Jarhyn
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Yeah, there's plenty of reason to like the stock.
It's just hard holding on to that through all the noise.
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Stock market drama llama: GameStop shares dramatically rise in price from some Reddit users' trading in it
- Thread starter lpetrich
- Start date
Yeah, there's plenty of reason to like the stock.
It's just hard holding on to that through all the noise.
Jason Harvestdancer
Contributor
There's so much about this story that I like, even the bad parts are good. Now while I've got no problem with short selling, I don't like naked short selling.
The financial industry is highly regulated - to the benefit of those regulated. It is designed that way, to serve the elite. Some might call it "regulatory capture", others might say it has been that way the whole time. Either way, the rules are written for the elite.
This was an uprising of the people, doing to the elite what the elite do to the people. GameStop was not dying, it was at a lull. Its value fluctuates with releases of new gaming systems, and like just about everyone else in the world they were hit by the Covid mess. This particular short-sell would have actually worked to destroy the company for the profit of the hedge fund.
People are allowed to invest for whatever reason they want, and saying "I want to save GameStop" is just as valid as saying "I think I can make a profit." So they did. And ruined a hedge fund. So rather than give way to the people, other hedge funds tried to loan to the primary one, and that money was lost too. Sure, GameStop is currently overvalued, but these investors don't give a damn.
The reaction by the elites is the best part. Robinhood trading showed who they really work for by shutting down investment in certain stocks, saying "No, you little people aren't allowed to play our game". Seriously. That was a bad thing for them to do, but as I said earlier even the bad parts have good parts. This was the elite tipping their hands and showing that the game is rigged. They had to either lose their shirt or show the legal ways they cheat. They chose the latter, because now people see it. I'm also happy that the customers are now suing Robinhood. I hope they rename themselves to "Sheriff of Nottingham" after this.
Some people were so upset they even tried to say this was part of the Trump uprising, a continuation of the Capitol protest. I think for the next decade, any time the people stand up to the elite someone will try to tie it to Trump. Even that is pretty funny, because it shows the desperation on the part of those tying the two together.
The financial industry is highly regulated - to the benefit of those regulated. It is designed that way, to serve the elite. Some might call it "regulatory capture", others might say it has been that way the whole time. Either way, the rules are written for the elite.
This was an uprising of the people, doing to the elite what the elite do to the people. GameStop was not dying, it was at a lull. Its value fluctuates with releases of new gaming systems, and like just about everyone else in the world they were hit by the Covid mess. This particular short-sell would have actually worked to destroy the company for the profit of the hedge fund.
People are allowed to invest for whatever reason they want, and saying "I want to save GameStop" is just as valid as saying "I think I can make a profit." So they did. And ruined a hedge fund. So rather than give way to the people, other hedge funds tried to loan to the primary one, and that money was lost too. Sure, GameStop is currently overvalued, but these investors don't give a damn.
The reaction by the elites is the best part. Robinhood trading showed who they really work for by shutting down investment in certain stocks, saying "No, you little people aren't allowed to play our game". Seriously. That was a bad thing for them to do, but as I said earlier even the bad parts have good parts. This was the elite tipping their hands and showing that the game is rigged. They had to either lose their shirt or show the legal ways they cheat. They chose the latter, because now people see it. I'm also happy that the customers are now suing Robinhood. I hope they rename themselves to "Sheriff of Nottingham" after this.
Some people were so upset they even tried to say this was part of the Trump uprising, a continuation of the Capitol protest. I think for the next decade, any time the people stand up to the elite someone will try to tie it to Trump. Even that is pretty funny, because it shows the desperation on the part of those tying the two together.
lpetrich
Contributor
WATCH: Rep. AOC TORCHES Robinhood CEO at GameStop hearing - YouTube
She asked RH CEO Vlad Tenev if there was some connection between Robinhood's margin rules and its stopping buying of Gamestop stock. Much of the exchange was about financial arcana that I found difficult to follow. Toward the end, she asked if Robinhood was hiding its costs behind other companies' transaction fees. VT stated that his company has to make money in some way.
She then tried to ask Mr. Plotkin something, but I couldn't follow it, and FSC Chairwoman Maxine Waters cut her off because her time was up.
She asked RH CEO Vlad Tenev if there was some connection between Robinhood's margin rules and its stopping buying of Gamestop stock. Much of the exchange was about financial arcana that I found difficult to follow. Toward the end, she asked if Robinhood was hiding its costs behind other companies' transaction fees. VT stated that his company has to make money in some way.
She then tried to ask Mr. Plotkin something, but I couldn't follow it, and FSC Chairwoman Maxine Waters cut her off because her time was up.
Why is it Robin Hood's fault that a bunch of people engaged in very stupid stock market plays?
The real problem with Robin Hood is the ease with which it lets the little guy play in the big guys games.
Jason Harvestdancer
Contributor
The real problem with Robin Hood isn't that it let the common man play against the big guys. The real problem is that it stopped the common man from playing against the big guys. They are more Sheriff of Nottingham than Robbin Hood.
They stopped transactions they deemed to be too risky--this is normal. It's just we had a bunch of amateurs who don't know how the game works trying to play in the big leagues.
Jason Harvestdancer
Contributor
That's wrong though. If they choose to do those transactions, that is their business, and what Robin Hood offered them.
What Robin Hood did was stopped them from transactions they deemed to be too risky -- to the hedge funds.
It becomes an issue for the brokerage when there is margin involved.
As for the hedge fund--one lost big but others won. Overall, this is a transfer of wealth from the suckers to the big boys. Hopefully the instigator of this pump-and-dump goes to jail over it.
Jason Harvestdancer
Contributor
The "little people" buying Game Stop are not expecting to make fortunes. One of their slogans is "we can be stupid longer than you can be solvent".
I want to say that means I don't expect the instigator to go to jail, except he is hurting "the elite" and that is strictly forbidden.
I want to say that means I don't expect the instigator to go to jail, except he is hurting "the elite" and that is strictly forbidden.
If his motivations were true he won't go to jail. However, this looks an awful lot like a pump and dump.
Jimmy Higgins
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So, I would have guessed shorting Gamestop would have been a safe bet. Gamestop did fall from $280 to $120, but is now $271 a share.
AMC is following suit, specifically today. Had someone invested in January, you could have quintupled your money early on. It subsided for months, but in late May it started climbing again is now up 78% TODAY, up to $57 at the moment. It was around $2 six months ago.
For the life of me, I have no idea how this trading is legal. The trading of the shares was halted temporarily once it got to a 92% increase for the day. Apparently 50% wasn't irrational enough.
AMC is following suit, specifically today. Had someone invested in January, you could have quintupled your money early on. It subsided for months, but in late May it started climbing again is now up 78% TODAY, up to $57 at the moment. It was around $2 six months ago.
For the life of me, I have no idea how this trading is legal. The trading of the shares was halted temporarily once it got to a 92% increase for the day. Apparently 50% wasn't irrational enough.
Jimmy Higgins
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This level of arbitrary volatility is unprecedented.
Gospel
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What makes it arbitrary? Is it because they specifically targeted these stocks after discovering a large hedge fund holder bet against them? To my knowledge, neither side of this did it on a whim.
Jimmy Higgins
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Being Reddit driven.
Hedge funds are betting against companies that aren't doing well. And those bets don't cause these (50%, 100%) wild swings in value in the period of a day.
Jimmy Higgins
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Previous close $64.50.
Opens down to $58.
Yo-yo's and then trends down. Bottoms at $38 (down 40%).
Then goes back up again. At $68 right now (up 5%).
That is nearly a swing of 50% of the share value at opening.
Opens down to $58.
Yo-yo's and then trends down. Bottoms at $38 (down 40%).
Then goes back up again. At $68 right now (up 5%).
That is nearly a swing of 50% of the share value at opening.
Jimmy Higgins
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I'm not arguing that short selling should be allowed. I am arguing that this Internet driven volatility shouldn't be allowed. Someone can (likely has) easily taken advantage of this nonsense.