It started with a bunch of smart ordinary Wall Street market watchers assembling on Reddit and noticing that hedgefunds were making millions destroying the stock value of GameStop (GME) -and others- by short selling the stock and trading the position.
[Short Lesson to Understand Short-Selling Here]
The hedgefunds were so greedy the short-sellers borrowed more than 140% of the total number of shares of stock of GME (GameStop) in order to destroy it. The stock value dropped from $20 to $4 as the sharks made millions in the short-sells. That’s when the Reddit investment community,Wall Street Bets, noticed an opportunity.
One of the issues with short-selling is that short-sellers must always eventually purchase the stocks they borrowed. That means if the stock value increases you are committed to buying it, you will lose money, and you cannot get away from the loss in your short-sell position so long as the stock value is high.
Knowing the borrowed shares were more than the total number of outstanding shares of the entire GME stock, the rebellious alliance knew the short-sellers (hedgefunds) would have to eventually buy them. So the independent group, mass numbers of individual investors, started purchasing shares and driving up the GameStop stock value.
The GME stock skyrocketed and the short-sellers (hedgefunds on Wall Street) were freaking out. The higher the stock went, the more it was going to cost the hedgefunds to get out of their short position. Billions were being wiped out as the pesky rebel alliance kept purchasing shares and driving up the value. [Go Deep] That’s when the biggest eye-opening series of events in financial history took place….
♦ First Big Tech jumped-in to protect the hedgefunds. The servers that handled Reddit’s investor discussion “WallStreetBets” were shut down, essentially trying to break down the communication of the rebel alliance. They used the oft-familiar “hate speech” justification, but that was really a ruse… Big Tech was supporting Wall Street.
♦ Then the New York Stock exchange stepped-in to protect the hedgefunds by blocking trades of GameStop and other Reddit targeted stocks (Nokia, Blackberry, AMC theaters). Ameritrade also blocked any trades. The NYSE was essentially trying to protect the institutional investors, billionaires, from the citizens, independent investors. Wall Street went to war against day-traders, ordinary Americans.
♦ Then the stock trading App “Robinhood” which was used by the citizens to make their trades, actually stepped-in to stop users from purchasing GameStop shares. The Robinhood app will now only allow sales of GME and the other stocks because the app is protecting the billionaire class from their short position.
Wall Street, the New York Stock Exchange, the entire financial trading system is trying to protect the short-sellers by driving down the shares of stocks so that the short-sellers can get out of their positions. Never has there been such blatant market manipulation by the organized efforts of the elite financial class.
Big Tech and Wall Street are working together to keep a rigged system tilted in their favor and their aligned efforts are spotlighting just how rigged that system is.
The elites don’t care what happens to the ordinary citizens in the stock market… they are protecting their own status. All of this is brutally illegal market manipulation and collusion by the financial sector. [Story Here and Story Here]
Keep watching….
Masks are dropping at an alarming rate as more people are witnessing in real time just how this market is rigged against the interests of ordinary Americans.
.
.
Don’t forget who owns the NYSE !! {Go Deep}…. Things make sense now?
Jury Nullification Jr. got in on the trading of GME stock. I’m so proud of that boy!
The hedgefunds were so greedy the short-sellers borrowed more than 140% of the total number of shares of stock of GME (GameStop) in order to destroy it.
“Never put your own money into a show.”
Max Bialystock, producer of “Springtime for Hitler”…..
Yep, this is The Producers.
Springtime for Reddit and Company
Winter for Wall Street Hedge Funds…
Or Duke & Duke, who shorted frozen orange juice futures, but thwarted by Billy Ray Valentine and friends. “Turn those machines back on!”
One of my favorite shows ever. 🙂
The funds actually held this position for months and months. Recently they started taunting retail investors over the position when people started to notice. Now there’s a public execution going on in Wall St.
It is reported that several hedge funds have incurred several billion in losses already. When I looked this morning, an April $150 put option (more than $100 out of the money even at today’s fallen share price) will set you back $9,000; even a $150 put option expiring next week is nearly $5,000.
They’re going after silver now. Can’t wait to see how it goes.
They are going after American Airlines now. Now I hear that Young republicans are doing an Occupy Wall Street now. It is really scary on how the average person in this country is screwed 7 ways to Sunday.
They should go after bitcoins; that’s where the big bubble is.
Crimes were committed and someone should go to jail, but never mind, two justice systems, one for me but not for thee.
Rule of law is what the oligarchs & government say it is.
Any hedgefunds or managers with political donation(s) to any of the ‘regulators’ is a direct path to quid pro quo. Dead to rights.
I expect there to be far more examples of this happening. I’m convinced this is all a concerted effort to show the world what has been going on for a very, very long time. Expect more. Wall Street will die and people will think they are in trouble…. well your 401k might be in trouble,
cash out invest in real property hurt obiden in the economy as gas will skyrocket hurting the american worker going to a job to support illegals on welfare
Gas will cost $4/gal by summer, if not more.
At least
This first hedge fund will die, and no hedge fund wants to be the second. In order to escape the mob, they have to close their shorts, and reduce their risk which means they have to buy shares. This could be a great time to hold stocks that are shorted, or even in things like S & P mutual funds, because we now have a lot of very motivated buyers.
“Crimes were committed and someone should go to jail…”. Oh, if had a nickel for ever time I’ve heard that in the last. 4 years, I wouldn’t need Reddit!!!!! ??$$$$$$$$
Banana Republic status for our nation.
Even Banana republics have standards, what we are witnessing is the complete collapse of the free market so the rich elites can remain in control at any cost.
Great POV and analysis:
https://rumble.com/vdc3b9-steve-bannon-interviews-boris-epshteyn-on-populist-stock-market-move.html
And I’m sure there’s no regulatory oversight relief in sight, anyone got a feel for what judicial remedies might be available?
I see collusion to commit fraud, I’m sure there more – just getting in front of a fair judge is the next challenge.
Oh, there is talk of regulatory oversight, it’s just not to protect who you think should be protected.
The narrative is the People are not responsible or smart enough to invest their own money. Fortunately, through an act of benevolence, the totalitarians will step in and make sure you can’t harm yourself.
The donor class is outraged and want their money back and the political class will obediently comply as it works quickly with the militant tech overlords to stop this “insurrection”.
True, I think Game Stop or it’s investors that were backing a positive direction need to file suit quickly.
Definitely take on Big Tech to make them explain how stock trading is hate speech. Where is the SEC in this matter?
You mean Mrs. Peter Strzok?
The Judge would just throw it out. “ no standing”!
Please, the Learned Helplessness has to stop.
Think of the machinations they had to concoct to pull this off: The Covid, which led directly to denying Poll Watchers and to the hugely sloppy and corrupt Mail-in situations. Dedicate yourself to cleaning up your own state’s (better yet YOUR county) dirty vote rolls.
All our power is at the state level now. ALL computerized voting machines should be eliminated, in a legal manner- at first. That decision is made at your state & county level. Please act like it.
Then they will take our retirement plans and give us vouchers for a fixed pension for our own good.
Bet on it.
After deducting green new deal taxes and social justice reparation taxes and …
Most important thing, this happened spontaneously. The result is exposure (TRUTH). What is surprising is that The Club seems to have overreacted. I realize it is big money, but not big enough to permanently spoil the system.
So why did they react so impulsively. Should have quietly taken the hit and then written rules, laws, and procedures to prevent future underdog intervention. This impulsive action will have a harsher response than the stolen election and will be harder to bury (especially so in the short term). And subsequently, it will now be very difficult to prevent future episodes through regulation without serious smashmouth.
Almost any regulation will subdue the small investor and any dip in investment could crash the market. And that is my fear, that they will not waste this crisis and decide it is time for a 1929 reset (the big short).
Meanwhile, I cannot stop smiling.
They will just say you have no standing. It’s the quick easy out now.
The Biden* Administration is trying to bring back the dumb idea to change the $20 dollar bills from Andrew Jackson to Harriet Tubman like Obama proposed years ago. Hope they continue to drag their feet over at Treasury.
When president Trump gets back in in 2024 he can change the bills to look like THIS.
Deplorable_Vespucciland,
With the “struggle snuggle” that Treasury has established with the federal (spit) reserve, I won’t be surprised to see a form of currency that we haven’t seen before..
I am fine with them replacing the racist founder of the Democrat party with a minority Republican hero. If that was the GOP talking point this would be fun to watch.
Silentmenagerie,
As I understand it, Jackson’s face was put on a note of currency issued by a “central bank”, to mock him. The quote below seems to lend credibility to that “account” (pardon the pun?).
skipper
“Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, (bringing his fist down on the table) I will rout you out!” Andrew Jackson.
I like that a lot!
Harriet Tubman coming soon to a $20 bill near you. I hear it’s in the works.
Bring back the $500 and $1000 bills as a populist protest against the surveillance state.
$100 is not what it used to be.
This has all happened before, especially in the 1920s. The only thing that is different is the technology involved–not only in the act itself, but also, in the revelation of the act.
That pesky little cell phone that is your external microchip which collects more data on your world than most can ever imagine is a device that may not be your friend, but represents how fast information (data) can travel around the world and it is getting even faster. Control is the name of this game!
They aren’t even hiding the colluding and corruption, suspending the rights of retail traders so the filthy rich hedge funds could make up their loses. Isn’t that suppose to be illegal, oh wait when the rich do it it’s for our own good.
They obviously don’t need to hide it. The DOJ will go after the little guys, not them.
As long as “The Big Guy” gets his 10%, nothing will happen to the manipulators.
he already got more than 10% from the manipulators. so did Yellen.
https://twitter.com/alexsalvinews/status/1354856043692482560
Cry me a river.
Couldn’t happen to a nicer guy! ?
Damn those rich Republican 1%. We need to only vote straight democrat to stick it them, yeah, that’s the ticket…
I smell fear….and shit.
You mad, Bro?
‘….don’t go away mad, just go away…’
gawntrail,
May I beg to differ? I would be quite happy to see him (them) go away DESPONDANTLY mad! INSANE even!
Funny, I thought in America a person, an individual, could have dreams and then work to achieve them…such as becoming wealthy. Vertical mobility so to speak.
Oh, who likes sitting at home doing nothing? Yea, those who have given up on making their dreams come true. There is nothing free, not even good advice!
Note to self:
This is one of THE Dons calling the shots.
Spiking the punch, eh Sundance? LOL:)
I would ‘like’ this but I got kicked off Twitter again. Not trying to get back on this time.
SD, So Much “Eye-opening” in such a short period of time may be pushing people to a “tipping point.” It’s one thing assuming that elections, politicians, the banking system, the stock market, pandemics, global warming, et al are “rigged.” It is another thing entirely having the proof shoved in your face and being told, “Ha ha, Sucker!”
didn’t know who that guy is, so … checked his Wiki.
“In September 2016 the U.S. Securities and Exchange Commission charged Cooperman and Omega Advisors with insider trading, more specifically for “trading stocks, bonds and call options of Atlas Pipeline Partners in July 2010 on information he obtained from an executive at the company.”[2] Cooperman’s firm agreed to a $4.9 million settlement with the SEC in May 2017 but admitted no wrong-doing.[3]”
https://en.wikipedia.org/wiki/Leon_Cooperman
You dumb ass, sure I am moving the market with $600 check. You are the only one full of BS
remembergoliad,
First, I believe they were allowing the purchase of “fractions” of shares (kinda like “micro-loaning/crowdsourcing), and they sold a sh1tl0ad of them. (I’m definitely NOT an expert)
Second, are you new here? I ask because of the disrespect you display to anyone, let alone Sundance, here on HIS site
THIS is proof positive; in a straight on contest between AI and real intelligence, AI will LOSE, every time.
AI is not nimble enough, nor is it capable of “thinking outside the box”; it IS a box, a big, dumb fast adding machine; algorythms are NOT true logic.
This is important because the technocrats eventual goal is based on the notion that eventually the World will be subject to the control of AI.
SKYNET will never happen, because this transformational event, estimated to be 20 years off, where computers will exceed human intelligence, will never happen.
Like the global warming prophecy of end of the World, its a delusion, that the idiots who want to “be in charge” are betting the farm on.
Speak a little louder, Obama is behind the curtain laughing his ass off as he creates as many slaves as he and his buds can during these next four years…he intends to keep his promise to “fundamentally”…
ozero is not that smart and not that capable. His puppet masters are pulling his strings. He may be laughing his ass off, but he has no idea why. Just like antifa, blm, demtards, and others of their ilk. They are protesting and rioting and such, but they have no idea why they are doing what they are doing.
OK. I take your point of view and it makes sense to me. Now, if I take your direction out to what may be it’s final place, that would seem to be God and the Devil.
Who is it that you think is pulling the major, primary strings in this situation?
I think that buying a farm right now would be a good investment!
Gotta leave this here. Quite fitting, and satisfying..
Enjoy,
skipper
Trading Places: Sell! – YouTube
The Millennials have an energy, and a desire to fix the system. What they need is a direction! The Leftists have been showing them a direction – blaming a false definition of capitalism and the white man – but now, the Left is showing themselves as the true enemy. This is an opportunity: to direct that energy into the proper channels. Imagine this: Antifa, marching for MAGA. That’s our opportunity right now.
Also you really don’t want to piss off the gamers. Talk about awakening a sleeping giant. If GameStop goes out of business… we are going to see an uprising. Again… we better be ready to direct that energy.
Everything Trump preached was for the little guy or gal. The millennials didn’t listen and voted for China Joe. Can this group be the next segment of our country that Trump goes after to swing over to his side. Everyday, since China Joe has been INSTALLED we are being shown how the Average Joe is being shitted on.
1, Trump got more of the Millennial vote than any other. R. 2, the rest of the Millennials listened to the same people their parents passed them off onto their whole lives. 3, the conservative Right, writ large, is still doing nothing but alienating the younger generations.
Summary: don’t blame the younger generation for the older generation’s bad choices.
You don’t want Antifa supporting anything – are you crazy! What you need is woke democrat individuals realising they’ve been had! Let them realise the Deep State is real. They’ll come around eventually to what’s being taken from them! Poor fools. It will shock to the core.
Fake candidate
Fake campaign
Fake election
Fake inauguration
Fake Riot
Fake media
Now fake stock market and associated fake laws and enforcement.
Is there anything that isn’t faked? Seriously is there is anything that is honest and not rigged? ANYTHING?
Yes, there is Something–or rather Someone. His name is Jesus, and in His day, they faked everything to nail Him to a cross. Only . . . what they meant for evil, God meant for good.
?
And that’s it, right there.
Thank you AlleyCat.
apparently not.
Fake regulators
Fake FBI
Fake DOJ
Fake GOP
Fake President
Fake VP
Fake systems of government, designed to satiate the masses. But people stopped buying the sh1t, all that’s left after the music stopped is red faced ? elites falling out of their feather beds – hilarious ? and priceless.
The best part of this is that the Rebel Alliance in this instance is a bunch of people willing to lose their $100-$1000 investments just to spite the Hedge Funds. And they are doing it with their Corona Stimulus LOLOLOL.
I disagree. The best part of this is that the people doing this are Antifa and Millennials: willing to do whatever it takes – staking their lives, their fortunes, and their sacred honor – to make Big Tech and Big Money hurt. That’s more than can be said for the keyboard warriors on the right.
What..
AntiFa goons are paid communist.. s hills
They have no money and even less for brains..
Nice try though trying to give a narative to hoodlums
Antifa are the children abandoned by their parents to daycares, public schools, and Marxist universities from the time they were babies in the name of “making more money,” who have been taught by Leftists that Leftism will save them. Antifa are the ones struggling to get a part-time job, cussing and complaining about spending $100s of $1000s on worthless college degrees and ending up as Starbucks baristas anyway, and grumbling about not being able to pay their rent.
No money? You’re damn right. Who slept while corporate socialists took over government and called it capitalism? The Boomers. No brains? Who abandoned their kids to Leftist indoctrination from infancy? The Boomers.
The Left – Soros – BLM – Antifa – ThinkBlue – come up and say “we know who caused your pain! And we’ll pay you [remember how you said they had no money?] to change the system!” It’s the Millennials who have the will and the energy to actually work to change the system. They’re just horribly misguided in doing it… because the Left stepped in where the Boomer parents failed.
Reddit is a bastion of Leftist Millennials. And yet it’s Reddit who took the initiative to crash Wall Street yesterday. So, besides making fun of those actually willing to be on the front lines, however mis-directed, what have you done to take down our Big Club overlords?
Exactly.
the GameStop story was the first thing that raised my spirits above curb level since the purloined election.????
way to stick it to the man, redditors!
may have go get some bell bottoms and beads, and a ‘fight the power’ sign to show my
solidarity.?
“Make Love Not War”
An oldy but goody that could include both sides.
When Colluders Collide.
This is actually pretty alarming, but as Sundance said, it’s opening some eyes. I’m see ordinary people on the Left and Right agreeing completely on this subject.
This is actually pretty alarming.
This is actually hilarious.
Go little guy go. Fight back and make some coin doing it.
I get it Eric. The alarming part is the part of the big guys doing what they’re doing. But still, poking them in the eyeball is pretty funny.
I agree, very alarming but opening a lot of eyes. That’s why I believe a solid “contract with America” for the 2022 mid terms could lead to a veto proof majority if it’s well written and the politicians campaign on only taking these specific actions. Could work.
That assume we have real elections. I’m not sure that happens anymore.
yeah I agree with you on that it could work. First though more needs to be done to expose other places/things that have been rigged. I don’t know what those places may be because this came out of nowhere. Almost like some stable genius was waiting for the perfect time. Or maybe it was divine intervention. Either way it’s been exposed to sunlight. Let’s see where the Biden crime syndicate lands on this.
I wonder if there any betting lines on which side the DOJ/SEC takes on this?
I recomend starting on how You Tube
videos receive their “Like ” ratings. There’s
gotta be a TON of people out there that have
screenshots of You Tube rolling back the “Likes”
on videos. Similarly, there has to be some evidence
of them zooming the “Likes” on the narrative supporters.
EVERY video you could name from Colbert, Fallon, Seth
Myers has 2.8 million views. Just too pat. Just too convenient.
But ,just How do you plan on getting around the voting machines?….They can control the votes faster than you can scratch your a$$…….
Have to replace 98% of the Senate before we can make some real headway.
These hedgies are the lever and string pullers. They just outed themselves. They are not gov’t. They may have private security, but, they are civilians. Head(s) of the snake.
Kind of reminded me of the soccer game played between the English and German trenches on Christmas day.
IMHO, the shorts who oversold the stock should be charged with fraud.
The whole idea of “investing” is thrown out the window with the shorts in the Wall Street Casino, but so long as the rules apply to everyone equally then there’s a fairness to it. And that’s what has happened with the folks in Reddit. They discovered that they could make money if they acted in concert against the absolute greed of the hedge fund sharks.
Now, normally, “acting in concert” would be illegal, specially as they do in Wall Street, in private, in secret. But here, you see it done by millions of people in the open, in public, therefore it is legal.
The little retails investors found a way to get rid of those HATED, for a very good reason, hedge fund sharks… who will crash a company, destroy jobs, just to make millions for themselves.
So, they are acting to stop the retail guy, but this is all in the open. Everybody is seeing it. But, just as the stolen presidential election, the China coronavirus hoax, etc… the Elites don’t care. They hope to use the corporate propaganda machine and a few million of useful idiots to paper this over.
Unfortunately for them, AOC hates it and it’s only a matter of time before Antifa and BLM break ranks and attack Wall Street.
It’s worse than fraud. I’m convinced that they restock their political coffers with insider trading/market manipulation to come up with the $$$ to buy elections and politicians.
Billions are being thrown around to influence political bodies all over the world from the local to national level. Where is this money coming from? I think we now know.
Yep. Proof positive. It’s time to start pulling on that string and see what it unravels.
TY. Great post!! Sadly, the stock market has been artificially manipulated long before the crisis of 2008/9. By the hedge fund operators. This is what happened to AIG back in 2008.
Likely same folks that are in the human trafficking/pedophilia racket.
I saw Anna Kasparian’s tweet on this and agreed. Thought I was going to have to go take a cold shower and cry.
Wait wait wait…
What you mean fraud like in 2008 and 2009 when banks sold fake mortgage evaluation.. no bank CEO went to jail.. you can’t pick on these stock manipulators.. there is a Presidence to honor. And a dual justice system to uphold..
And for those less enabled ..this is pure sarcasm
My mom and us lost 300K on that episode.
Thank God I moved to put our 401Ks into bonds just before that crash.
Note that Reuters reports that total loss by GME short sellers has now surpassed $70B
? ? ? ? ? ? ? ?
No doubt they will go after them, bigly.
I just got this from Glenn Greenwald on this subject; he gives an explanation and there is a video, which I will watch later this evening..You can sign up for his mailing list. He does not bombard you daily but only occasionally with stuff:
https://greenwald.substack.com/p/video-the-reddit-revolution-gamestop-c69?token=eyJ1c2VyX2lkIjoyNDczNDg1OSwicG9zdF9pZCI6MzE5NjkzOTIsIl8iOiJ5VDJubCIsImlhdCI6MTYxMTg2MDg5NCwiZXhwIjoxNjExODY0NDk0LCJpc3MiOiJwdWItMTI4NjYyIiwic3ViIjoicG9zdC1yZWFjdGlvbiJ9.ImIiRZspsAQzaT1DlUk0wliKT22j1XU3ofGOCb2KSTQ&utm_source=substack&utm_medium=email&utm_content=share
Telsa?
cmon Gnell!
https://greenwald.substack.com/p/video-the-reddit-revolution-gamestop-c69
Thank you, Littleflower. Very illuminating!
Didn’t some Senators get in trouble for manipulating their inside classified knowledge of the upcoming temporary crash about a year ago based on COVID shutdowns? I don’t think anyone got in trouble… it’s such a shame Georgia didn’t vote for the 2×4 with eyelashes, she was so deserving of a Senate seat. COLD ANGER.?
Senators never get into trouble. 1) They exempt themselves from most of the laws they pass for the unwashed. 2) Stealing money is no crime to them.
Roy,
Is it mean of me to chuckle, thinking that the husband of the “Georgia 2×4” is possibly “taking it in shorts” (pun intended)?
Best,
skipper
This can’t be. This is capitalism at work – didn’t we conservatives defend billionaires and millionaires and Wall Street from Obama and AOC and the rest of the democrats, acuz capitalism? I mean, no one is stupid enough to believe that power concentrated in the hands of private sector could be evil. That only happens when power is concentrated in the hands of government. I mean, the magical free market fairy transforms human nature when the human is in the private sector, right? RIGHT?
When billionaires target a domestic company using junk bond debt and then strip mine its assets and slash the workforce and eventually outsource the jobs to China, that is just the market correcting the economy. When ordinary citizens target a hedge fund, that is a moral outrage and must be stopped without any regard to legality. Mitt Romney must be pleased.
Of a similiar vein, take a walk around Las Vegas. See all those magnificent buildings housing the casinos? Very expensive structures. Do you own stock in those businesses, the casinos? Those who do are the “big guys” so to speak.
Who supplies the monies for these casinos? That’s right, the losers, those who spend their monies hoping to beat the odds. And the odds favor who, the gambler or the house? So, which side of the table would a smart better stand, the house or the gambler?
Same game in many regards takes place on Wall Street. Recall the movie “The Wolf of Wall Street” for an example. You’ve got to know your place in life and in this pecking order…little people!
Think of those vote counting machines from Dominion, the electronic machines, designed and maintained by who?
Look to see who owns the “house” in the game we play…oh, that would be Washinton, DC where the democrats are now in total control with friends from the republican side of the aisle.
Who’s your Daddy? Seems this line is rather appropriate at this moment in time. Your not so new slave master is just behind the curtain where his boy, Biden is out front with his minders, Rice and Kerry. Give them a shout out and offer up your best smile before going back to making bricks without straw!
But in Vegas it’s all in the open.
You know the odds favor the casinos and nobody is allowed to cheat.
The fact is that in Vegas you have the opportunity to win big and the casinos won’t chase you down and/or chase the rules on you because you won. They will actually comp you to come back so that next time you will lose money. The odds are with them.
The hedge funds are simply way too greedy.. hmm.. who else changes the rules when it doesn’t suit them? hmm.. yeah, yeah.. the American Progressives.
So now you see why Wall Street gives so much money to the Progressives. They’re birds of a feather.
I’d be interested to see a list of people who invested in these collapsing hedge funds.
I love it when somebody throws a wrench into The Man’s machine.
I’m not the smartest guy in the world, but something occurred to me a few years ago. The creation of the 401(k) financial instrument was intended to help individuals and companies. Individuals could have their retirement plan and NOT have to rely on the company. Companies would free to re-organize without having a lot of pensions hanging over their head.
What was not anticipated was moral decline of the people managing this VAST pool of money in the 401(k)s. It is my opinion that now the 401(k)s are nothing more than a massive play-pen for investment companies and financial institutions to play in. I liken it to putting these trillions of dollars into a big pot, then taking a big paddle and stirring the money around. As it is being stirred, some of the money goes out of the pot. The institutions get to keep that money. The rest of it just moves and moves and moves…. but doesn’t really gain value.
I am convinced that the financial institutions make more profit with your money than you make with your money invested. BTW, reading “The Big Short” was an eye-opening read.
It’s why the unions are still around. The guys managing the retirement funds are still kicking up. RICO is the way to topple it all.
Historically, the market returns 10% annually. It still does with diversified holdings.
Also why the Dems have been so hell bent to
keep public edumaction precisely the way it is.
Teacher’s retirement funds= largest investment
pool going. Want proof? The Mall of America, the
one in Minnesota with an indoor amusement park.
Built and paid for by teacher’s retirement funds.
The last 10Q issued 10/31/20 has a real interesting Management Discussion and Analysis. Gamestop’s year end is Monday.
For those interested, it is on page 22 if viewed as a PDF.
https://news.gamestop.com/sec-filings/sec-filing/10-q/0001326380-20-000134
The “stock” heard round the world…
The thread linked in the article provides an irresponsible, wrongheaded take on short selling. So bad, in fact, it’s like reading a progressive’s take on the matter — a garbage take.
Please read an unbiased source to better understand the strategy. https://www.investopedia.com/terms/s/shortselling.asp
Take a breath first. There’s too much emotional froth in this story. This is a global effort now to bankrupt these hedges — not just a ragtag group of ordinary investors. Why do you suppose this is?
I know several people participating in this. It is not a conspiracy to take down the poor hedge funds who, by the way, fund the destruction of this country and fund globalism. Maybe if these hedge fund types hadn’t been so busy profiting from the destruction of jobs in this country, these kids wouldn’t have so much time on their hands to engineer the hedge funds’ broken nose which, by the way ,i don’t believe for a second was the intention. No pity for the hedge funds, may they ALL fall.
Read the link and you’ll better understand hedge funds and why so much of our portfolios use them. Otherwise, you’re cheering your own financial ruin.
Hint: “Hedging” is a sound and wise strategy. Read the link in my initial post.
Hedging via calls is a good strategy.
Selling naked puts is gambling.
I don’t know for sure but Sundance has covered some of this. The big banks are heavily invested in hedge funds. So much so that the Trump administration prioritized smaller local banks as opposed to trying split up the hedge fund dominated too big to fail banks.
Maybe someone is trying to cause a banking crisis right as we are coming out of the china virus recession? Like I said I don’t know. But maybe.
Because short selling is pure casino.
The original purpose of Wall Street was to provide capital liquidity for industries.
Not for a few jerks to bankrupt companies and make people lose their jobs just so they can play games and make massive profits with casino “derivatives”.
IMHO, “puts” should not be allowed. “Calls” should.
“How dare the peasants buy stocks.”
As I understand it, it is even worse than you describe. It began a couple years ago when Dr. Michael Burry, famous from the movie The Big Short for having called the collapse of the ,mortgage bond market, noticed that short sellers had driven Gamestop’s share price WAY below the price it should have been trading at based on its inherent value as reflected in its financials. Basically, as I understand it, the short sellers were deliberately ruining a viable company for fun and profit. No one was stopping THEM. But when word got out and little guys started buying and drove the price back up, it ruined the shorts’ obscene feeding frenzy on Gamestop so they ran to their other uber rich pals for help.
The shorts started it. And what they were doing was unconscionable. Reminds me of the scene in The Accountant where Braxton confronts Simon.
Explain to me, if the stock’s fundamentals are strong, why is the value off? Think about it. What about the market, and GameStop’s position in the market, make it vulnerable.
Now, ignore the emotional froth of the press, and ask yourself, with clear eyes, would you have invested any money in GameStop a month or so ago? If I was a bargain investor, I might have, if I read their SEC filing, knew that the stock would creep downward, for good reason. On my stock wishlist, I might watch them. But with this emotionalism over GME, what decent investor would buy it on the low and hold it until it improved? No one. So who is ruining the company?! All of the players in this little v. big money war.
Read some Edwin Lefevre’s investing short stories if you want to laugh at the market. Otherwise, people shouldn’t play around. It mucks up the market.
Carly, the stock price was off because the HF mouthpieces in the financial media trashed GME stock saying it had zero future as a company. They are in the club and do the HF bidding.
But the company had new directors who were looking at switching from bricks and mortar to more on-line retailing and some decent new investors came along. GME had a decent enough balance sheet.
But the HFs and mouthpieces needed to push the stock price down because they were exposed with their shorts.
The Reddit investors have zero blame in this saga. I hope they make a fortune and send one or two HFs into bankruptcy. It might teach other HF’s a valuable lesson.
Yes, this is the stain of the hedge funds efforts. They weren’t using short positions as a hedge; they were purposefully gutting a stock and a company for their own benefit.
Take it up your belly button or other deserving orifices suckers.
The Stock Market…(next to Politics)
IS THE BIGGEST CON GAME IN TOWN !
And we’re learning they’re intertwined.
As a former Wall St securities analyst for more than 20 years I have watched these events unfold with increasing amusement. The hedge funds got their a**es handed to them – one fund was down more than 70% for the week before the rescue crew stepped in – then went crying to the exchanges and online brokerage firms for relief. Whaddya know, next thing that happens is no sales of GME, KOSS, AMC etc allowed by you retail investor plebes.
It’s worse than when the SEC outlawed short sales of financial stocks back during the crash of 2008 because this time it was not to save an important industry (US banking) but rather to rescue a small number of privleged hedge funds, many of whom are run by guys like Steve Cohen who just bought the Mets for over $2 billion and has a net worth of over $14 billion.
Bow down to your betters, you plebes.
That should read “no purchases of GME, et al”.
Another reason to give squat, zero, zilch, none to
major league sports. The owners are unbelievably
connected. Tax breaks, wet dreams for bond brokers
with stadium building every 10 years.
Rankin Smith, former owner of the
Atlanta Falcons managed to get plans
changed on the proposed outer perimeter
that was defeated in Georgia awhile back.
It had a section that took a huge detour in
one area. That area being where he had vast
land holdings.
#STOPTHESTEAL…. applies to everything now :):)
I am sure that Circleback will splain it to all of us soon.
I prefer the bloody part of the fight, but this is asymmetric warfare. Let those with appropriate skills ride forth…
The SEC intervening to protect the Big Club — the one we ain’t in — is no surprise after waking up about two+ tiers of justice (one for Dems, another for us; one for China, the other for American workers; one for the Capitol critters, the other for Minneapolis, post-Antifa).
Take heed all you poor, unedumucated, white, racist, hicks, hayseeds, white supremacists, domestic terrorists!! Its a small club and you and yer President ain’t in it. Don’t even bother…
Great article Sundance as usual but 3 quick notes:
1) Reddit didn’t shut down /r/WallStreetBets. The subreddit went private because a) the massive new interest overloaded the servers and b) there was no auto-moderation mechanism and they were worried about trolls getting them banned
2) Discord are the ones who shut down their chat server
3) Additionally, @TheMarketsWork (Jeff Carlson) suspects that much of the Robinhood auto-selling of $gme was due to margin calls. So basically Robinhood prevented people from buying the stock but were auto-selling some stock during the lockout. Absolutely f-ing criminal.
u r not kidding that the hedge funds are greedy.
that said, they all should have exit plans to stop losses as the price rose — or to take profits (albeit not as much as they would have liked).
well…. that is what is done n the futures markets every. single. day. And noone cries…..
The ditzy congressgirl AOC and Trump agreed on this one…. imagine that!
“The ditzy congressgirl AOC and Trump agreed on this one….”
She also voted against the passage of the Democrats’ latest superjumbo omnibus bill. She argued that no bill should be that big — too big even to be read.
I’m no good at the stock market thing- but is Robinhood a bad guy or good guy? I heard on the radio that Robinhood was leaned on by big tech and Wall Street to stop purchases of GME and others mentioned by SD.
That is exactly what happened. See my comment just above.
The WH was in on it as well. Which means Susan Rice was in on it. Which means Obama the puppet master was likely the one pulling the strings. Whistleblowers are already coming forward. There will be more. Will this be THE weekend? We can only hope.
“Don’t forget who owns the NYSE !! {Go Deep}…. Things make sense now?”
Gamestop is traded on the NASDAQ
Loeffler’s husband is the chairman at NYSE and something with ICE.
So, how is gamestop tied to Loeffler’s husband? Thru ICE?
GME didn’t ask for any of this. (For one, it would be illegal, and it fouls up decent investors buying a down stock to hold until it improves, which is precisely what companies need as they struggle to regain footing in a download market.)
Who will be holding the back when GME plummets? The longer term investors, maybe many of the employees.
Virtue signaling wins again! I guess it’s okay when the little guy does it.
what makes you think the shareholders of gamestop weren’t shorting the stock through these hedge funds? Is it illegal? IDK but what makes you think they wouldn’t do it anyway?
This demonstration has “the Anti-Soros”s name all over it. Was this really just a grass roots activity or was it something Trump arranged? Willing to bet it was the latter. 🙂 It’s just the kind of thing he would do.
If you review Trump’s administration, his measured responses to everything, I doubt Trump would condone this drama in the market. People who actually build and invest for the future don’t muck around and manipulate markets. I’m 100% confident that Trump would say that this fooling around will hurt GME in the end, including its employees who hold the company stocks and might find themselves out of a job if this isn’t under control.
I don’t doubt it at all. The gloves and the chains on Trump are officially off. The types of things Soros has been getting away with for decades shows what can be done.
This thing could have been made to happen (and it WAS “made” to happen) long ago. And if you imagine a bunch of basement dwelling man-children and script kiddies decided to make this move out of the blue, I think you might need to take a wider look.
Yes, Trump’s “administration” had to take measured responses. He’s not president any longer and under the current conditions, he will never be president again. And frankly, for his and his family’s safety, he has to take things on the offensive because trying to negotiate from a position of weakness will not produce desired results. They have to FEAR him in order to even hope for a respectful balance because the left are complete jackals.
Darn I almost forgot…
Wasn’t the banks/brokers that wanted congress to change the rules.. you know.. when a person reached 65 years old and ready for retirement he could lump out his SS fund and invest it in the stock market and get 10 to 20 percent return.. yes I remember them telling me this..
Now what could be wrong with that
New pigeons!