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

  • 🔧 At about Midnight EST I am going to completely fuck up the site trying to fix something.
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Only posting this because of the replys.
 
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Slap47 said:
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I'm loving this conspirism.
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Oh boo hoo. Bannon is a boogeyman or it is Russia being the boogeyman.

All these people are pissed off about is that the Elites believed they had won. They got Biden in and the Great reset was on track. The plebs were supposed to be on hands and knees begging for relief.

Then to their horror millions of people had their financial shit together and found a weak link in the system that could bring the whole system crashing down on the nobility.

Fuck these people.
 
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cantankerous jackalope said:
My gut is starting to tell me there might be a real issue with RH paying out the capital to people next week if this thing gets to 5k/share and the better play would be to cash out GME earnings into SPY -> transfer stock to a different broker. Anyone here (and I mean the people who actually have a grasp on what is going on, not those NOK/AMC/BB/DOGE pumping retards) feeling similarly or is this worry unfounded?
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This is very possible, what yesterday clearly shows is that Robinhood is willing to be a sacrificial lamb to save daddy Citadel from being blown the fuck out.

I would get my funds into a serious broker as soon as possible.
 
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I have a degree in Finance, and I hate when retards treat the economy like a meme. I typically tend to side with wealthy people on political/economic issues because more often than not, the common consensus for what is good does not match the actual objective reality.

HOWEVER, my logic on this whole thing is that it is good these fuckers are going under. Every wannabe broker for the past 10 years has been watching The Big Short idealizing about how these guys were the only ones to make money off of the market collapse because they were smart, and wanted to do the same thing. When it comes to economics, the only "good" thing a firm can do is generate value. Value is the money that is created when two consenting parties engage in a transaction. I.E: I pay you ten dollars to go pickup Taco Bell for me on your way home from work. The time you spent going to Taco Bell is worth less to you than 10 dollars, the value of Taco Bell being delivered to me is more than 10 dollars. Both of us has benefited and value has been created. What value do these short sellers create? They tank companies with stocks they don't have, destroying productive businesses and driving away capital from other investments. They aren't building anything up, they're just tearing stuff down.

My guess is short selling is not seen a risky enough investment technique in the Financial world. They think a company might fold, and they get dollar signs in their eyes thinking about The Big Short. Melvin Capital obviously did not think there was any significant chance they could go belly up from this, so they took on a huge liability thinking this would be either pure profit, or nominal losses. Every single short seller in Wall Street realizes that is no longer the case. Every single time a firm proposes to short a stock in the future, the very first thing that will be on their mind is "Will this go the way of Gamestop" and that is a very good thing. The risk-reward of shorting a company is no longer "Huge profits, minor losses" it's "Huge profit, catastrophic near infinite losses." Following the Gamestop crash, short selling will be done with significantly greater care. The only way that doesn't happen is if the Chuds behind Robinhood/Etrader aren't punished for manipulating the market, and congress somehow limits how common people trade, seemingly blocking normal people from the markets. If that happens, I think it'll be a huge wake up call to show the people how much the people on top hate them. I'm saying this as someone with an Finance degree with connections to the people on the top. People fucking over Melvin Capital is not market manipulation, it is a risk that should've been accounted for when they made their investments. The fallout from this won't be any lasting damage on the market other than the fact that people will be more careful shorting in the future. If they actually stop normal people from day trading, no matter what they say, it is the people at the top using the state against you to stop you from getting in the way of them making money.

My only concern from this whole escaped is whose money is Melvin Capital gambling with? My first thought when I saw the losses they were facing was "Is Melvin Capital one of those firms who invests people's retirement funds?", because I was very worried that mine or someone else's parent's might lose everything in this hold out.
 
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