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.
.
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Don’t forget who owns the NYSE !! {Go Deep}…. Things make sense now?
Robinhood is apparently now selling GameStop shares without permission, “for their own good.” Surreal, the control certain groups of people have on what is referred to as a free market.
Martin Armstrong on Robin Hood:
https://www.armstrongeconomics.com/world-news/corruption/the-law-robinhood/
“…Shutting down the market in GME is outrageous. But this is by no means unique. Back in 1980, the COMEX did not shut down the silver market to force the Hunt brothers out of silver, but they made it much more expensive to be long v short. They aided the investment bankers as always. Even the Chicago Board of Trade raised the margin to trader silver by 10x the very day of the high – January 18th, 1980. History repeats because the corruption never changes.”
I remember that about the Hunt brothers and silver
I just tried to post a comment on the WSB Reddit site and “comments are blocked”.
They were hit with a class action lawsuit today.
Those are margin calls, George. Exchanges can and will force sales of stocks purchased on margin when the level of margin falls below their requirements. With GME, KOSS and AMC all down 25%-50% today no one should be surprised at margin call sales.
Rush Limbaugh went through all of this today. Sometimes the stock only looks like it’s selling off when in reality it’s not. Hedge funds sell back and forth with one another at lower and lower bids in rapid succession, tricking algorithms into thinking there is a mass sell off when actually there isn’t. He claimed they do this to scare off retail investors and to engineer a sell off. Supposed once the attack is over the stock goes back due to demand. Wash, rinse, repeat.
Scamming MoFo’s. I am fed up to beyond with the ruling class. All these people have done is cheat and game the system all the while lying to everyday regular Americans.
On top of that, Wall Street encourages the little guys to get in the market not in order to enable them but to essentially fleece them. They aren’t playing with their own money, but ours.
It is far worse than you could possibly imagine. Check out this little piece of history taken from the Federal Register, March 1993. There is no money – it is all debt. Every American citizen has been and continues to be swindled.
https://anticorruptionsociety.files.wordpress.com/2014/01/traficant-the-bankruptcy-of-the-unite.pdf
If your 401-I is invested in stocks, engineering an artificial sell-off through short selling is akin to armed robbery. When the hedge funds have more “puts” than the total number of shares outstanding, they deserve to be punished by a short squeeze.
In what universe does Game Stop stock have negative value?!
Here’s hoping that the Fed does not bail out the hedge funds that were buying naked put options. Let them fail!
I thought it was brilliant!! Yes for the Resistance! Seriously people, this is only one example of how we can beat them at their games. I have ZERO in the stock market because I know it’s rigged. However, I have family members whose pensions and retirements are in the stock market, and for them I have compassion. My opinion is money should be in *tangibles* such as skills development, land with a home on it, equipment (including self-defense devices), food and a means to produce it, physical silver and gold (not ETFs).
I remember during the 1980s how the government made IRAs attractive and made pensions obsolete. Friends of mine decried the loss of pensions, but I was too young to care at the time. Now, I do not have a pension and my employer (a college) contributes to a 403b. Yes, I have mutual funds, but what choice do I have? I went 50% to cash early in January, figuring that the huge gains of 2020 were unsustainable, especially during the Biden administration. I should have gone to 100% cash.
We all should have been firefighters in CA. Retire at 50 with a $150k per year pension. Nice work if you can get it, wish someone would have told me…
But cash is soon going to be worthless. Have to get all those middle class on food stamps. Then they can be controlled.
You make an interesting point Just an old woman.
People should probably invest in what they understand.
My husband and I looked into the stock market decades ago but could never really figure it out.
We could understand the basics of the trade techniques but could never really get to the “bottom” of the whole thing so we bought real estate instead, something we both could really research and understand.
We have wondered over the years if we did the right thing and now after reading all of this we are more than happy with our decision.
Best to invest in what you can really, and I mean really, understand.
Do not be a sucker or a mark.
You did the right thing.
I did and do both. The stock market is difficult because they make it difficult. There are two things about the stock market: Fundamentals and technicals. I use strictly technicals. It is simple, but not easy. However, it can be learned and you do0 not have to be a mental-giant to learn it.
The basic to leaning the technicals is; “Believing what you see”. Actually, the best trader would be a monkey. The monkey presses the green button when it turns green and the red button when it turns red. The monkey gets a banana either way.
Tim Pool read some of the postings of the rebel investors. These are ordinary people who are determined to screw over the powerful even if it costs them personally. This is what it is going to take people… America was taken from us because we were so comfortable.
It’s like ripping Mitt Romney a new one. Yes!
You hit the nail at 600 yards. Restoring the Republic will be at great personal cost. Inverse is there’s no down side to the progressive project. Until conservatives impose their will on the left and make their positions untenable, we are on the road to hell.
Exactly right.You will never get YOUR country back by voting for Republicans.The whole system is rigged.
You will only get it back when you FIGHT for it.The DemocRATS have NO INTENTION of letting you take it back by hook or by crook.They fight dirty,so you MUST do the same.
I see a great opportunity to unite 99% against the 1% crooks.
Power to the people!!!!
GameStop exposes Wall Street rigged game
The bartender moron chimes in uninvited: AOC Rips Robinhood Over Market Manipulation.
Having meaningless hearings to berate financial executives (while DOING nothing, see 2009) is part and parcel of the ruling class plan.
How much better to have “anti- Wall Street” “socialists” fronting the hearings.
Bernie, Warren and AOC are important role players, just as much as “free market” think tanks with their ‘muh free market “analyses”.
Excellent analysis in that video…
So happy the world sees this. I think the millennials aren’t so much into communism as they recognize the game is rigged by the wealthy. It is hard to tell the difference.
Now that the left has lost their focus on Orange Man Bad, they have a target rich environment in Big Finance, Big Tech, and Big Pharma.
Of course, Melissa Hodgeman will be right there to make sure everyone plays by the rules.
No where’s my popcorn?
Now if only more than the Bernie voters on the left would understand that their votes are UNCOUNTED.
No wonder why she’ll be “looking” into this. Corruption Junction
https://www.foxnews.com/politics/yellen-robinhood-citadel-gamestop-speaking-fees
Nancy Pelosi’s biggest donors, one of which in a New York meeting demanded that Pelosi be the Speaker of the House, or he and his Billioniare donors will no longer provide the DNC machine funding was also short Gamestop for the past 8+ years. Now Pelosi is looking into it, if that woman does not go to Prison, along with the people laundering money to her, we have some serious in your face Corruption problems in this country. (The American people must take a stand and root out these corrupt people.)
Of course no one will go to prison. Th globalists own the FBI. It’s their secret police.
Checking In
HOLA.
“All of this is brutally illegal market manipulation”
The word “illegal” actually assumes that there is such a thing as law & order. You can’t expect that in a banana republic.
The installation of joe biten proves those laws are of no consequence.
There they go again, holding us to the laws they don’t respect and have long since acknowledged.
We have a president in EXILE and are being ruled by bandits in the white house and on capital hill.
It doesn’t matter if it is against the law.
It is more important who OWNS the LEO, who is supposed to enforce said law.
I give you the DOJ and FBI.
“I give you the DOJ and FBI.”
Totally predictable. Character Hans Gruber in “Die Hard” called them (FBI) out decades ago for that.
The article links to Aaron D’s thread on the GME story. It’s junk. Go to the guy’s twitter account and you’ll see what an idiot he is.
Another piece of the puzzle
I just read a tweet and it went like this.
Several short sellers will continually sell stock to each other giving the outside appearance of a fake lower value..
Small investors are taken..
When the cycle is complete the stock goes back to its true market value..
Then they start again.. it’s always the little guy that get hurt by these hedge funds..
Fraud you bet.. but who is going to enforce the law..
Oh and let me remind everyone..
THE SDNY.. that’s the southern District of NY is in charge of looking into Wall Street crimes.. who are the attorneys that came out of there IIRC Robert Mueller.. and who works there now ..why his daughter.. coincidence don’t think so.
MAGA
I found these on yahoo finance:
“2 lawsuits just got filed against RH. $GME $AMC $BB $SNDL WSB is for the retail investors and to make sure both individuals and hedge funds have an even ground in the free market.”
“2 lawsuits just got filed against RH”
Who is the judge?
This too:
“It’s unlikely anyone here is selling. This is a short ladder. It only looks like the stock is selling off, ini reality, it’s not. Hedge funds sell back and forth with one another at lower and lower bids in rapid succession, tricking algorithms into thinking there is a mass sell off when there actually isn’t. (They do this to scare off retail investors to engineer a sell off).
“Once the attack is over, the stock will normally go back up due to its demand. Then they will rinse and repeat their attack, each time hoping to chip away more and more retail investors. Most people in here know this, so if retail investors are selling, it’s unlikely that it’s anyone at all.”
======================================
Copied from WSB https://s.w.org/images/core/emoji/13.0.1/svg/1f6a8.svg
MOST IMPORTANT THING YOU WILL READ ALL DAY: $AMC/NOK/BB/GME/NAKD
https://s.w.org/images/core/emoji/13.0.1/svg/1f6a8.svg
For those who don’t get this- it’s a stock Ponzi scheme. But, rather than getting you to buy their scam they (hedgies) want you selling off. Dropping the cost they would eat. When done well- it’s usually close to $0 eaten when all said and done.
Very over simplified.
credit default swaps – the sequel
Here is an excellent explanation from Glenn Greenwald –
– 34 mins and VERY easy to understand.
Well, apparently those unemployed pipe line and fracking workers have found new jobs ……
MAGA Day traders.
dang that’s funny, I don’t care who you are.
Well, it is “kinda like” coding,
but not exactly…..
I thought Botox John Kerry told them to make solar panels?
That is true.
I believe it was creepy joe himself who said they needed to become coders.
However, in the spirit of the solar panel ripoff,
You could say the MAGA day traders shone a much needed light onto the short trader’s fraudulent schemes.
CNN put out an article (I won’t link….no sense giving them clicks) saying that the group were “white supremacists” because they took down a Jewish hedge fund on Holocaust Remembrance day. I kid you not. And now it seems Robinhood is forcing sales of people’s stock….that MUST be illegal.
The thing is, I don’t believe they can stop this in the end because the group is targeting all kinds of stocks. And since the hedgies love to short stock they are exposed in multiple places. I read an article this morning that said Melvin (the hedge fund at the centre of this) specializes in shorting. They are so successful that they reject clients. Those rejected clients are picked up by other hedge funds who mirror what Melvin does. So the exposure is broad. And the financial institutions that lend money to these funds are also exposed. This particular analysis indicated that what’s coming could be much bigger than 2008.
We are watching a MASSIVE transfer of wealth – and that’s why the overlords have their hair on fire.
I would not be surprised in the least if regulations are put in place preventing small, retail investors from trading.
Oh I think RobinHood is in big trouble …
Huge trouble.. see it’s not the crime that is important is exposing the crime for all to see..
Robin Hood must be made to pay.. for exposing the fake stock market..
Law suits.. I just wonder why all this commotion over some supposedly corrupt action people buying stocks on the open market..that appears to be completely honest and within the system rules… after all it’s not like investigation voter fraud.. 200,000 more votes then voters… oh wait is similar they sold more stock shares then existed…
MAGA
Class Action lawsuit filed in Va this afternoon….may get very interesting…
Exactly Hans 🙂
Could end up in our favor. Wait, I forgot the Supreme Court is compromised as well.
“And now it seems Robinhood is forcing sales of people’s stock….that MUST be illegal.”
———————————————————————————————
I’m not a “Robinhooder” so I don’t know for sure. But I’d be willing to bet that such action was probably in the legal terms of service that the users agreed to when they signed up. I would encourage anyone with a brokerage account whether at Robinhood or elsewhere to actually READ what you agreed to when you signed up. You might be surprised…
Yes DJ it seems that it is legal. Although how on earth any company can have the legal right to sell your fully owned asset is beyond me (margin calls are another matter).
Not sure if RH offers margin purchases. If it does, it’s likely that these forced sales are due to margin calls when the GME stock price pulled back and closed lower yesterday. JAWAG on my part.
margin calls are real
House Speaker Pelosi or her husband Paul, who runs a venture capital firm, bought Tesla call options at a stake price of $500 each for a total of $500,000 – $1,000,000 just 4 weeks before Biden pushed a $2 trillion “Green New Deal” yesterday (Yahoo)
Insider Trading.
It’s how Soros puppet Obama turned wealthy RATS into millionaires and billionaires … that and giving them billion$$$ of tax dollars for his Green Energy bailout.
Don’t forget who is head of NYSE, none other than the hubby of darling ex-Senator Loeffler from Ga…..THINK she wasn’t privy to insider news. Recall Sen Burr (NC) was ABSOLVED of his insider trading the day of inauguration….how convenient….BOTH were accused…See Pelosi and hubby made $$$million investment in electric cars just before Prez Biden went all-out on car fleets being ALL electric..
SEE HOW THIS WORKS? Martha Stewart has to wonder, why she is the ONLY, sole person ever tried, convicted, sentenced as a ‘big wheel’…who did she tick off so bad…or what are her sins….??
And, IF, that were one of us being short-sold, WHO would have protected us???? We all know what that answer is….
THIS ENTIRE COUNTRY IS CORRUPT to high heavens…..ALL govt, ALL agencies, ALL levels, FBI, DOJ, NSA, CIA. Congress, Wall St, Big Tech, Apple, Google…. ALL ONE BIG BASKET of CROOKS.
Don’t you just know Apple, Google, Yahoo have all our texts, emails and they are there for any moment needed to take us out and down….
And to be sure any CEO or CFO in a big corporation have the quarterly information obtained by interested parties thru Google Yahoo, Apple etc. before the news comes out for us commoners
MAGA
Perhaps one of Martha’s dogs bit the evil witch from Arkansas?
Corruption is pervasive in America now. Not just the money part, but on all levels. Integrity compromised for the social affiliations, one’s tribe, group, etc. People playing sophistic games, chicanery, outright deception and duplicity, to cover their conflicts of interest and tribe. I’ve never seen it this bad, and it seems to be feeding on itself, getting worse, a kind of feedback loop.
So yes, all of the ominous things happening – covid artificial emergency driving scientifically indefensible lockdowns and masks for something as hazardous as a flu, the election illegalities enabling fraudulent result with substantial evidence swept aside by corrupt judiciary and legislature, the corrupt 0.1% wringing ever more from the rest as in this example, the deceptions of LGBT immoralities – it all seems to be converging. It appears that America became Sodom, and now God is moving to destroy it.
The media is spinning it as if the individual investors are up to no good. The corruption is so pervasive that we probably need to rebuild everything
Let them eat cake……say the angry corrupt wealthy slobs
Reminds me of O’Crazio and her 50.00 t-,shirts that said—eat the rich!
Hoping that more people see the light on the corruption!
Here’s something people need to understand about short selling, which will highlight how rapid upward moves in price such as was seen in GME, KOSS and AMC can very quickly destroy anyone short those stocks – shorting a stock carries an ASYMMETRICAL risk/reward. More specifically, the most one can make shorting a stock is 100% on your investment, whereas the losses are theoretically UNLIMITED.
Example: smart hedge fund guy shorts 1,000 shares of a $10 stock for a nominal capital risked of $10,000. Let’s say he’s right, stock goes to $0, smart hedge fund guy makes $10,000 when he covers the short (e.g. buys back the borrowed stock which he sold short at $10), or 100% on his capital. But if he’s wrong, spectacularly wrong as was the case with GME, KOSS and AMC earlier this week, those losses can multiply rapidly. GME was a $10 stock not too long ago and peaked earlier this week at $475/share. Therefore at the peak loss moment, smart hedge fund guy who shorted it at $10 was looking at a $465 per share loss position, or $465,000 on his initial $10,000 capital risked.
That is the kind of massive loss that puts funds quickly out of business, and I am sure several of them were hours away from complete liquidation / going out of existence. Thus a fund like Melvin Capital which was down 70% earlier this week required Citadel and Steve Cohen’s Point 72 to step in with billions in “loans” to stave off liquidation. The next step for the Sav-A-Hedgie boys was to run to the regulators and get Robinhood/WSB purchases of GME, KOSS and AMC banned.
Today’s price action: GME and KOSS are down 25% while AMC is down 50%. Problem solved for the smart hedge fund boys…..
HOWEVER, it was PERFECTLY ACCEPABLE for the white shirt, snotty nose snobs to put GameStop OUT OF BUSINESS and NOBODY was going to stop that, huh?
But, oh, the reverse, let’s liquidate THEM and PUT THEM OUT OF BIZ, oh, the horror and we must protect them…..
Movement in GME stock price has absolutely nothing to do with GME’s balance sheet, cashflows, or net income. GME was shorted by the hedge funds because it has a bad and rapidly deteriorating business. GME’s revenues have fallen by over $2 billion in two years ($8.3 billion to $5.1 billion) and they are losing money hand over fist (TTM net loss over $4 per share). The stock price was reflecting these poor fundamentals prior to the Robinhood/WSB crowd stepping in.
And this whole thing just proves that in many cases the share price is completely disconnected from the company valuation because of market manipulation. Apparently though its only okay if the big end of town are doing the manipulating.
Oh there is plenty of market manipulation going on. One of the hedgies favorite games is “get short and get loud”, where they short a stock and then hire some disreputable firm like Citroen to write a piece badmouthing the company. Happens all the time. That is where the term “short squeeze” comes from, when other funds (or in this case Robinhood/WSB) gang up to run a stock up that they know someone has a massive short position in.
I know first hand….I’ve been holding a stock when it happened. Lost a lot of $$. So I am absolutely filled with glee that these hedgies are getting their butts handed to them.
It’s happened the other way as well. Bernie Ebbers, CEO of WorldCom collapse fame had massive positions in Worldcom stock he purchased on margin. He even got the board of directors to loan him corporates funds to cover a margin call.
Sadly for Bernie and the other crooks at Worldcom, that information was required to be reported in SEC filings. When everyone saw the footnotes in the filing, the street sharks smelled blood and drove the price of Worldcom stock down and Bernie has to liquidate his positions, driving the price further down. And that was before the cooked accounting books were exposed leading to the company going chapter 7.
Was GME really bad … or just the greedy hedge-fund vultures using GME as their favorite short?
They are bad, but they are also taking steps to turn themselves around. WSB members started this by betting on the turnaround, but then it became a movement to knock the shorts off the stock.
“Example: smart hedge fund guy shorts 1,000 shares of a $10 stock for a nominal capital risked of $10,000.”
———————————————————————————-
Um, no. That isn’t the proper way to look at capital at risk in a short sale. $10,000 is the max profit, not the max risk, which, for a short sale is theoretically unlimited. Also, Reg T requires the short seller to have 150% of the value of the position – $15,000 in this case – on deposit in the account. Additional capital must be added to the account as the trade moves against the short position. If additional capital can’t be added, the short seller will have to cover the position or else the broker will liquidate the position to protect their interests. So it’s more complicated than your example.
Which is exactly what I wrote above: “whereas the losses are theoretically UNLIMITED.”
Cue the stock market scene from the movie “Trading Places!”
Those were orange juice futures, but you’re on the right track…
potato potahto ~ just don’t, ‘Let’s call the whole thing off.’
*i want every penny of those ba$tard$ money
That’s all I can think about when reading this.
Wish it had the same outcome. Only have a line up
of average Joes standing outside these awful firms.
And handing each other ONE dollar. And smirking.
Dougger,
Have a look on the previous page.. Great minds….
skipper
Just watched AGAIN last night for the umpteenth time…never gets old especially that NYSE scene..but then I was a Philly girl for DECADES!!!!!
Kudos to the rebels, whoever they may be, for thinking outside the box and actually inflicting some pain on the elite. At least it cost them some money, embarrassed the masters of the universe, and pulled a few more masks off. Maybe this thinking outside the box will spread and a REAL resistance will arise.
There’s going to be a civil war in this country….keep pushing, pressing and destroying the mid-working class. What do you think the mindset of all those Pipeline workers are this wk? THINK they have ANY empathy for these rich, snobby elitists and their ilk? One stroke of Prez Biden’s pen and they are out a job, earnings, livelihood and you have wall st punks and s**theads ‘playing around’ trying to make a quick $ten thousand by driving out GameSTop or some other random company of their choice, biz of the day. Is it a roulette game; let’s spin the wheel and pick a company to drive out of biz…
Mid-working class is hanging on by a thread and being pushed down, suffocated and destroyed, while the rich and famous and wealthy and ‘insiders’ get richer and richer..APPLE, during the pandemic, released financials today, made more $$$ than EVER BEFORE. Everyone else (mid-working class that is, broke and destroyed) and Apple, best quarter EVER>…..
Preach it brother. I’m a UA pipefitter. We havent listened by and large to the crooked leadership for some time, most of us are Trumpers.
John,
I actually found some “small print” in my Stagehand’s union bylaws, which enabled me to “opt-out” when it came to my dues being “donated” to political (predictably democrat) candidates! I know it may not amount to much $$, but I get great satisfaction from doing it nonetheless.
skipper
Good for you!!!
Every dollar you control matters…no matter how small..
Remember, Benjamin
Franklin once was to have said “a penny saved is a penny earned”
Needless to say…I literally have jars of pennies…been gathering pennies for over 50 yrs….when computer money disappears, I will have copper to buy bread…????
“been gathering pennies for over 50 yrs”
Then you know the ones made before 1982 are solid copper and worth more than a penny.
Thanks Skip!
Skip Bresnahan as my old grandad told me when I was just a kid “if you’ll watch your pennies, the dollars will take care of themselves” – and if everyone stops donating their pennies to these corrupt creeps, the dollars will dry up! Woo-Hoo!
CWA vs Beck
https://www.unionfacts.com/article/political-money/understanding-beck-rights/
I see a come to Jesus moment for the Antifa….they were sold a bundle of goods….thats what our public schools and universities of all types have fomented…
I am so glad every day when I open these comment threads…all of you out there talking the talk….keep it up….maybe these other dem labelled groups will cross over…hence my prior posts on continuing forward unabashedly to reach out to all demographics no matter how uphill that climb might appear..
Advocate your positions fearlessly and vociferously….President Trump did it…we can follow his lead, using his prior examples, and do it too!!!
If we succeed…those corrupt mf are toast!!!
Exactly right Kathryn!
Dems can collude against companies by boycotting a company for its position or lack of position on political points.
But god forbid a group of investors decide to assist a company’s share price which is being unfairly shorted by large financial firms and make some money while doing it!
Disgraceful how regulators have ignored the YUGE impact on companies, employees and shareholders this short selling causes.
Viral Tweet from a Reddit guy the other day:
[email protected] @Jason
I guess professional short sellers never considered what would happen if they got squeezed by a legion of tiny retail investors with 20-year-old forum software, a free-trading app, and a $600 stimulus check at their disposal
Perfect storm!
1:44 PM · Jan 25, 2021
Elon Musk sums it up quite well in a tweet:
u can’t sell houses u don’t own
u can’t sell cars u don’t own
but
u *can* sell stock you don’t own?
this is bs – shorting is a scam
legal only for vestigial reasons
“Never has there been such blatant market manipulation by the organized efforts of the elite financial class.”
Thanks again Sundance, this is what I am determining as well.
The big guys have whipped the little guys for decades. Now, they have their revenge, or so they thought. Let the lawsuits begin. Maybe, in the future, the powerbrokers are the little guys.
Was watching CNBC Fast Money yesterday and today. Rarely watch ever since the Trump haters on CNBC got out of control years back. The big takeaways …. other than “how dare they” was that the rules will be changed to screw the little guy and protect the elite investors. Already seeing this in the restricted trading in certain stocks.
Are the Day-traders or ordinary Americans in this case heroes. I’m going to be optimistic and think they are heroes. Realizing that the WEF through Biden is intent on destroying our country, they decided to stand up to it, in the only way they could.
Blocking people from buying stocks, is that legal?
I expect the DOJ will ignore this and probably go after the reddit group.
It really irks me when citizens kick over a rock, and exposes scum/maggots/filth and nothing happens
I’m no expert, but unless they are selling the shares to cover margin calls, then yes, its illegal.
It is not illegal. The exchanges and brokerage firms can impose basically any rules they want to, short of creating an outright SEC violation. It’s in the fine print when you open your brokerage account.
Interesting. I can’t imagine any other asset you own outright that a company could simply sell without your approval. Seems like it should be illegal.
I explained margin call sales up above. If you buy a stock on margin and the stock price declines such that your margin falls below the brokerage firm’s required level they will come in and sell the stock out from under you asap. The term is ‘margin call’. The Robinhood/WSB kids who bought at much higher prices yesterday are learning that term today.
The man I have been linked to in business for the last 30 years made his billion or so, the old fashioned way. Buying, developing and selling real assets. I will never forget meeting him for the first time, so long ago.
He promised to NEVER go public, or to get in bed with Investment Bankers. His comment was, ” every time I shake the hand of one of those a$$holes, I have to go find a rag to wipe the slime off.”
After watching the last 30 years and then seeing what drove the Texas-Delaware Basin stupidity, the last few years. I agree.
This is just more of the same type of manipulation.
Isn’t the SEC enforcer Mrs. Peter Strzok?
Not illegal cause, you know, domestic terrorists. This is the new label for everyone who opposes Deep State.
Here’s a thought…..in going up against the Wall Street titans, the left and right have found a mutual enemy. If those that lean left start to get red-pilled by the actions of the big end of town preventing them from trading who knows where things may go….
It would be a shame if all little people who could, pulled their money out of the stawk market.
Imagine if…
Many of the USA’s functional problems can be fixed in the blink of an eye, there’s a strange horrified reaction when those fixes are discussed.
-No naked shorts, you must own the stock to short it. Obvious.
-All legal costs of both parties paid by losing initiating appellate. Reduces court litigation by at least half.
-Ban all payments by lobbyists to Senators and Congressmen. In kind, to relatives, post political career. Hard to police but not beyond the IRS, a 20 year potential sentence should concentrate the crony minds.
-Pen and paper voting, manual count, party scrutineers mandatory. Australia doesn’t have fraudulent elections for that reason.
The US thereby 90% fixed.
I believe we still have some voter fraud in Australia. We need voter ID and real people voting not people who live at non existant addresses, no dead people voting, no more ‘vote early, vote often’ and counting to be checked.
Great catch Sundance,
Some liberal young folks on Redditt did this. And they are pissed. Especially at the Robin Hood app for helping shut down what was payback for what the big Hedge Funds do every single day. And the kids did absolutely nothing illegal.
Liberal folks tell me they now hate corporations and “why is it that Trump got kicked off of Twitter, nobody understands that next will be us”.
I say this for the first time, people are waking up!
noswamp ~
a lot of optimism in your paragraph and frankly that’s fine by me
feels like ‘Merica could use more of what you’re seeing
The above short lesson on Short Selling is basically the WallSteet version of the demonRATS stealing President Trumps re-election from WeThePeople.
Where’s the Securities and Exchange Commission? Aren’t they supposed to be the watchdog for unfair or illegal stock manipulation? / sarc
AIG reminded me of how traders can always invent a new product at the edge of the rules.
All of these big corporations are the ENEMY of the people.
It’s too much concentrated power.
We need true economic freedom in this country. We need an ACTUAL free market.
All the pretty lies about our perverted form of so-called capitalism are being EXPOSED.
A true free market would be great; too bad we don’t have one.
It’s a controlled market, aimed at exploiting people.
the strings have been cut from the marionettes. they’re being used to tie the sausage links we get to watch being made now in our living rooms.
Remarkably erudite quip. I will remember it, thank you!
I hope Hollywood was heavily invested in the short-selling traders.
A lot of people are going to be in for a shock when they lose the law suits.
The lack of law and order that directly hits pocketbooks will open a lot of eyes.
(yes, I’m an eeyore)
Indeed. We have been shown just how corrupt the courts are.
The stock market is rigged. Cryptocurrency is where it is at. Dogecoin is up over 200% today.
“Cryptocurrency is where it is at”
How are you going to get it when the overlords turn the electricity off on us peons?
LOL! I buy my gold from Rosland Capital…..
I’ve been thinking quite a bit on how fast everyone is moving to protect those poor billionaires.
And how slow everyone moved when politically connected Bernie Madoff was running his ponzi scheme.
I recall reading stories about farmers having their savings invested, losing it all, then having to try sue him in court to get anything back. I believe it took years for some to see a dime.
Jon Corzine is another that comes to mind.
Yes NOTHING HAPPENED TO CORZINE
Anne Barnhardt who lost her livelihood because of that SOB, wrote about him
I am an experienced trader. I have two E*TRADE accounts and invest large amounts of money daily. I have never had any problems trading any stocks.
EXCEPT TODAY I COULD NOT PURCHASE GAMESTOP. E*TRADE WOULD NOT LET ME PURCHASE IT ON LINE.
We are truly living in communist China. This is insane.
Reports: RobinHood is tapping credit lines.
I daytraded etrade when online brokers busted out. Nobody minded when their stock price went thru the roof in very short order.
Robinhood was about to go public with an IPO late last year, and then delayed it. Then this happens. Now their retail clients are furious at them, they are being sued, and their clients are leaving in droves.
If you’ve never watched it, watch the outstanding film “The Big Short.” My favorite quote from it that is perfectly applicable to the farcical terms “free markets,” “voter control,” Department of “Justice,” equal protection under the law, etc., etc., etc.:
Mark Baum: “It’s time to call b******t.”
Vinnie Daniel: “B******t on what?”
Mark Baum: “Every f*****g thing.”
70.87 Billion Reasons Why The Retail Brokers Just Betrayed Their Customers
https://www.zerohedge.com/markets/7087-billion-reasons-why-exchanges-betrayed-retail-customers
Robinhood is now selling users GMT stock without their permission and at a huge loss.
?itok=kB69jWhO
https://www.zerohedge.com/markets/you-can-not-purchase-additional-shares-robinhood-reportedly-removed-shuts-down-buying
options. margin calls.
That’s a margin call sale. Explained on this comment page several times.
notice NOBODY gives Gamestop a chance of using their new found value to improve? they talk about it like investors stuffing nickels in a dead pig snout.
Same thing happened to Tesla Motors
AMC did a secondary offering. So they might have enough cash to survive until movies come back.
GME could do similar.
Read somewhere that Michael Burry was also involved in this. Don’t know which side he was on though if even true–
It’s not over. Read the posts:
https://www.reddit.com/r/wallstreetbets/
I think they’re just getting started judging by the comments! I suspect the Wall St barons have unleashed a genie that will be very difficult to get back in the bottle.
This might be the only time in history that I’ve agreed with Robert Reichhhhhhhhhh
So Ted Lieu also agrees with the Redditers? This is getting into uncharted territory..
Hey GB…the same thought also came to my mind.
Melvin is a GME short seller predicted to lose billions due to the people taking the free market back.
Citadel is a hedge fund that owns Melvin Capital Management.
Citadel also owns the app Robinhood. The same Robinhood that prevented purchases of GME and forced sales of GME to drive the price back down. Market manipulation?
Ben Bernanke, the Federal Reserve Chair during the 2008 meltdown, is currently Citadel’s senior board advisor.
You’re making it too easy to identify the colluding criminals.
Now if we could only as easily identify an honest DOJ prosecutor and an honest court in which to prosecute those criminals.
My guess is that a small, but not insignificant, federal tax on all stock market transactions would work wonders in stabilizing both the financial industry and the economy as a whole, as it would serve as a throttle on both reckless speculation and deficit driven inflation.
We have that. It’s called capital gains as part of your income tax. What you want is another tax. NFW.
“Beware of a Biden Tax On Unrealized Capital Gains”
https://www.realclearmarkets.com/articles/2021/01/25/beware_of_a_biden_tax_on_unrealized_capital_gains_657597.html
If the capital gains tax were lowered commensurately, then it would a move away from income tax based system. Capitol gains punishes people for investing where investment results in economic growth. A transaction based tax would punish those who are “gaming” the system, and aren’t doing anything for the economy.
Rex Lex it is then
More ‘ordinary people’ making a difference – Bed Bath and Beyond stock plunges over 36% today after they decided to drop My Pillow.
https://www.wnd.com/2021/01/4888545/
Also came across this site (referenced in above article): Media Action Network who appear to be rallying people to fight back against media bias etc.
https://mediaactionnetwork.com/
keep fighting for trump boycotts work eg macys now bed, bath and beyond obiden
All you of you have the power of the purse.Get your selves organized and fight these fraudsters.Big tech etc have lost huge amounts of money since they started their purge(51 billion as of last week)Reddit has shown you how.Get to work.
Hedge funds bankroll the Democrats because they both have the same goal: a weak America.
Hedgefunds should be illegal. Nothing they do is for the benefit of the country or its citizens. Their only purpose is to make the filthy rich even richer (and filthier).
For years people have been saying we need to get the money out of politics. This would be a great place to start.