/r/wsb autists taking on a wallstreet hedgefund. Elon musk involved as always / wallstreetbets / gamestop - Gamergate 2: financial boogaloo

usoland said:
What's to stop the company from just not honoring the short? They can just convince the government/regulators to step in.
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They could get sued and/or the SEC could slap them with penalties, possibly even criminal. But these sorts of regulations tend to be selectively enforced.
Gig Bucking Fun said:
Sorry, autismo moment. I meant to say they won't be able to capitalize off the influx of liquidity aside from cashing out. If they try to expand with the inflated market shares, they will lose money.

If GameStop cashes out, the stock will crash, meaning investors will get fucked.

If investors cash out, GameStop will just be where it started before the autists took over with a little more money in their pockets.

Finger's crossed it's scenario #2.
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"GameStop" can't cash anything out. GameStop as a company doesn't own any shares. The company can issue more shares to raise capital, but it takes time to do that. The CEO and other executives are restricted by insider trading rules from making transactions willy-nilly.
 
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Gig Bucking Fun said:
Sorry, autismo moment. I meant to say they won't be able to capitalize off the influx of liquidity aside from cashing out. If they try to expand with the inflated market shares, they will lose money.

If GameStop cashes out, the stock will crash, meaning investors will get fucked.

If investors cash out, GameStop will just be where it started before the autists took over with a little more money in their pockets.

Finger's crossed it's scenario #2.
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They only have to cash out a small percentage of their stock in order to get a ton of liquidity.

Don't remember where I read it but someone said that they could sell off %5 when it was at 300 and pay off everything they owe. Don't know how accurate that is.

Where the price goes after the shorts cover depends on what the people that are holding the stock want.
 
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Bosmadden said:
Even Antifa used to be a genuine bunch of faggots. They limited themselves to burning down Starbucks in Seattle. Who could possibly argue against that?
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Remember when the left actually fought against the globalists? Now they can't, because alt-right CHUD Nazi incels are also fighting against the globalists, so they can't look like they're on the same side. Not a good look, yikes, very problematic ya'll.

I never thought I'd get nostalgic for the 1999 Seattle riots, but here I am now, cheering for it to all burn it all down. Clown fucking world.
 
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JohnDoe said:
If only more people understood this basic concept. Money is meaningless until it is used to do something productive. All these Hedge Fund people do is make numbers on computers go up.
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Capital markets evolved to lessen risk in the agricultural sector. Basically to sell insurance to farmers against the risk of a bad crop.

Now they're nothing more than a legalized form of theft. They don't just 'move money around' they target perfectly viable businesses, load them up with debt, and sell off the pieces to foreigners.

Everyone needs to learn the difference between wealth and money. The wealth in this country is produced by the miners, farmers and industrial workers. Everyone else is playing a game of taking in each others laundry.

It's just that modern industrial production is so insanely productive, needing a relatively tiny number of highly skilled people to function, we can all lie to ourselves that making apps, or buying and selling stock etc is a vital part of the economy, and not what it really is, a surplus to needs make work scheme to keep us busy while we live off the surplus created by the few.
 
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I think we've been tricked. Robinhood was probably not lying. Why did they stop trading in NOK and dogecoin?They weren't shorted by melvin or infact ANYONE
 
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Spasticus Autisticus said:
They could get sued and/or the SEC could slap them with penalties, possibly even criminal. But these sorts of regulations tend to be selectively enforced.

"GameStop" can't cash anything out. GameStop as a company doesn't own any shares. The company can issue more shares to raise capital, but it takes time to do that. The CEO and other executives are restricted by insider trading rules from making transactions willy-nilly.
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Tbh, I haven't looked at their financials, but I'm sure GameStop owns a portion of shares: every company does. If not GameStop, then the CEO or a large investor tied closely with management. No company doesn't own a portion of their own shares. If that were the case, stock options for employees as a concept would be illegal, which it isn't.
 
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Harvey Danger said:
Remember when the left actually fought against the globalists? Now they can't, because alt-right CHUD Nazi incels are also fighting against the globalists, so they can't look like they're on the same side. Not a good look, yikes, very problematic ya'll.

I never thought I'd get nostalgic for the 1999 Seattle riots, but here I am now, cheering for it to all burn it all down. Clown fucking world.
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That's because the Left is actually the vanguard of globalists. Why don't Leftists talk about class anymore, instead focusing on issues like race and sexuality that don't effect anyone's bottom line?
 
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Gig Bucking Fun said:
Tbh, I haven't looked at their financials, but I'm sure GameStop owns a portion of shares: every company does. If not GameStop, then the CEO or a large investor tied closely with management. No company doesn't own a portion of their own shares. If that were the case, stock options for employees as a concept would be illegal, which it isn't.
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Yeah companies will have allotments of stock that are reserved for things like compensation, but they can't just sell that whenever they want. Same goes with the executives and other insiders. If you are in possession of insider information there are all sorts of regulations restricting you. You can't just log onto your brokerage and sell whenever you want.
 
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Dafuqisdis? said:
They only have to cash out a small percentage of their stock in order to get a ton of liquidity.

Don't remember where I read it but someone said that they could sell off %5 when it was at 300 and pay off everything they owe. Don't know how accurate that is.

Where the price goes after the shorts cover depends on what the people that are holding the stock want.
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Yes, that makes sense, but I'm just thinking what if the owners of GameStop say "fuck it" and just cash out on their company as a whole since their business model isn't solvent?
 
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Bosmadden said:
In the gilded age, the era of the robber barons, there was an actual trickle down effect, culminating in Henry Ford paying his workers above market rates because he thought it a good thing that the people who made him rich share in the spoils.

The difference between now and then is that the commanding heights of the American economy is no longer owned by Americans.
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The biggest difference between then and now is that the people controlling the American Economy can flee the United States within a day on a private plane. Why hold any concept of helping those below you when you are that insulated from physical danger? Before air travel became so ubitiquous there was always the threat of the peasants of a country burning their shit down while they were still there.

I've said it in another thread and I'll repeat it here: noblesse oblige died when the nobles discovered they need no roots to retain nobility.
 
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american_amadan said:
This is a rare situation where the stock was 140% shorted. The hedge funds were playing with stock that didn't exist. It will never happen on this kind of scale again because if the SEC has any kind of dignity left they will make naked shorting illegal.
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Naked shorting is already illegal. The hedge funds borrowed shares at insane premiums to keep up the short selling. They had the "too big to fail" mindset despite being peanuts in comparison to the big boys.
 
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