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

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Desktop User2 said:
"(Elizabeth) Warren asks SEC if hedge funds influenced fluctuation on GameStop prices" is the dumbest question I ever read both in the context of RobinHood halt and specially out of it. Between the shit she talks about financing and her crackhead healthcare plan, I´m thoroughly convinced chief Bleeding Cunt is the dumbest politician in DC. She blows AOC, Maxine Waters, Gohmert, whomever... out of the fucking water.
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Not that I have much love for Warren, but she knows the answer. She just needs it on public record (especially if they try to lie).
 
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Vaclav said:
Something interesting I saw. Tl;dr according to this, Melvin Capital's liabilities are guaranteed by multiple investment banks _and_ there are a bunch of other hedge funds that do nothing but copy what Melvin does, and those funds are also guaranteed by multiple investment banks. If the funds go under, the banks are left holding the bag. The losses from a short squeeze are potentially unlimited so this could end up taking down multiple investment banks, perhaps most of the i-bank industry.

If this is accurate, it explains why so many people are losing their shit over one hedge fund getting squeezed... because it's actually the entire financial sector in jeopardy.

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This is what happened in the 90s with Long Term Capital Management. One hedge fund risked crashing the entire system because of everyone doing business with them, and all those other funds dealing with banks (obviously)
I mentioned it some 100 pages ago but check out When Genius Failed, or at least the first chapter; everyone keeps talking about the Big Short but this book is a lot more relevant.
 
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You know how Gamestop rips you off with trade in values for games?

Well, now Wall Street knows how that feels.

1611938472616.png
 
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Vaclav said:
Something interesting I saw. Tl;dr according to this, Melvin Capital's liabilities are guaranteed by multiple investment banks _and_ there are a bunch of other hedge funds that do nothing but copy what Melvin does, and those funds are also guaranteed by multiple investment banks. If the funds go under, the banks are left holding the bag. The losses from a short squeeze are potentially unlimited so this could end up taking down multiple investment banks, perhaps most of the i-bank industry.

If this is accurate, it explains why so many people are losing their shit over one hedge fund getting squeezed... because it's actually the entire financial sector in jeopardy.

View attachment 1880507
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This is correct. Mathematically stockholders in GME can't lose as long as they hold on to their stock and there is no upper limit to where the price can go.

But that's not going to happen. If the government believes there is a real systemic risk to the banking industry they will absofuckinglutely step in and forcibly liquidate, laws be damned.

We're in a game of chicken. Keep a close eye on the political rhetoric. At the moment Dem politicians are sounding off against the hedgies, because their base doesn't like Wall St.

As soon as they start singing in unison about how the evil white supremacists on Reddit are wrecking the economy head for the exits.
 
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Vaclav said:
Something interesting I saw. Tl;dr according to this, Melvin Capital's liabilities are guaranteed by multiple investment banks _and_ there are a bunch of other hedge funds that do nothing but copy what Melvin does, and those funds are also guaranteed by multiple investment banks. If the funds go under, the banks are left holding the bag. The losses from a short squeeze are potentially unlimited so this could end up taking down multiple investment banks, perhaps most of the i-bank industry.

If this is accurate, it explains why so many people are losing their shit over one hedge fund getting squeezed... because it's actually the entire financial sector in jeopardy.

View attachment 1880507
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See what a couple of greedy mother fuckers in a firm destroyed?

GG, Melvin. You played yourselves. Have fun with the farm.
 
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Spasticus Autisticus said:
Share buybacks are definitely a thing and relatively common especially these days. I'm not sure if those have to be announced beforehand, but if they did do buybacks, we'll eventually find out on their quarterly reporting.
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Yes, buybacks are possible, but I'm wondering if they even have the liquidity to buy a remotely significant block of shares. Seems to me like they're along for the ride at this point.

They definitely will not issue more as they run the risk of basically selling their company to some hedge fund squeezing shares for cheap.

Also, I'm pretty sure I read they can buyback 5% outstanding shares before having to release PR on the purchase of more.
 
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So best case scenario maybe 1 hedge fund goes under and the banks raise our rates to cover their loss or get bailed out yet again.
 
Jimjamflimflam said:
Once this is all done i really hope it starts a new group of financial trolls who do everything they can legally do to fuck with wallstreet.
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You think the Hedgies aren't already in communications with the SEC to prevent this from happening again?
 
Terrifik said:
View attachment 1880529
like clock work :story: :story:
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This is my second favorite thing about this (the first being hedge funds getting fucked into the dirt). Everyone's mask is coming off. You have fat asses in cow suits going on Fox News and calling for social media to censor people, you have a trading app named Robin Hood forcibly selling their customers' stocks without their consent, you have ANTIFAgs who'd normally be cooming over the idea of the rich and powerful capitalists being taken down a notch defending them, and now you have the fake Indian sticking her neck out to protect an industry she promised to regulate when she ran for office.

Truly the masks are coming off.
 
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Bosmadden said:
This is correct. Mathematically stockholders in GME can't lose as long as they hold on to their stock and there is no upper limit to where the price can go.

But that's not going to happen. If the government believes there is a real systemic risk to the banking industry they will absofuckinglutely step in and forcibly liquidate, laws be damned.

We're in a game of chicken. Keep a close eye on the political rhetoric. At the moment Dem politicians are sounding off against the hedgies, because their base doesn't like Wall St.

As soon as they start singing in unison about how the evil white supremacists on Reddit are wrecking the economy head for the exits.
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Nah. They'll do it on the weekend when there's "no trading". They won't sell the shares, they'll just confiscate them when no one is looking and sell them off at a discount.
 
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