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

[Shield Breaker]

Source? If they do then that would not only devastate the market, but would pretty much give credence of this not even being a economically free country.

He claims shit that never happens all of the time.

Why is it that whenever i see you post anywhere in the farms you're always starting up retard fights, genuine curiosity

Dude, you missed the best fight he's known for. He literally posted an address to have people fight him IRL because he was mad at them for saying pedos should die.

 

[mindlessobserver]

poor choice on a vague word, sorry -- the the context of batman we were talking about moral actions between individuals: intentionally bad, consciously bad, evil

to rephrase: To call a hurricane evil would be a little strange.

if you want to get into moral philosophy, a precise term would be

Moral evil - Wikipedia

en.wikipedia.org

vs

Natural evil - Wikipedia

en.wikipedia.org

You forgot another kind of evil

 

[Michael Wade]

It truly is amazing. For the first time in a long while... the people have felt true power.

And you can see the fear in the air.

 

[draggs]

I agree. We are seeing massive moves to try and cover the positions and not move off the Short. Its turning out the claim they closed them out was a bald faced lie. The smaller funds lost their pants, and citadel swooped in to hold them up. But I bet their new coverage position did not foresee the stock holding at North of 300 dollars. I dont think they were ready for the autism to spill out into other retail companies like Bed Bath and Beyond and AMC. Those two in particular had clearly been dressed for the kill as well and the surge there has to be making things worse.

Krystal Ball over at "The Hill" actually made an interesting point. What is going on is not unknown. In fact its well known. It's a part of economic game theory called "the ultimatum game".

You have two men negotiating over a pile of money. One man who makes the offer on how the money is to be split between the two, and the other man who has to accept the offer. The man making the offer has absolute power to set the terms but has absolutely no negotiating power. His first offer will be the ONLY offer. He could in theory say that he gets 99% of the money and the other guy gets 1%. Now this seems like a really shit deal, until you realize what the other guys power is. He has absolute power to accept the offer or refuse the offer. And if he refuses the offer, the money spontaneously catches fire and both men leave the table with no money at all.

At a rational level it would seem that so long as the man making the offer offers something, the other guy will accept. Because something is better then nothing. Yet in repeated studies of this game, if the man making the offer claims more then 70% of the money pile, the other guy becomes more more likely to opt for both men having absolutely nothing.

And this is what wall street has done. These big hedge funds ignored a fundamental rule of Game Theory that got taught to them back when they were still wearing diapers at Yale. If you abuse a position of ultimate power to force a bad deal, eventually the other guy would rather see all the money burn then content himself with some of it.

They've done studies that show in a competition, if one side wins more than about 7 times out of 10, the other side quits. Losing more than about 7 times out of 10 makes people think the game is unfair and they don't want to do it anymore

There are lots of different games in the world and lots of different ways to quit

 

[mindlessobserver]

They've done studies that show in a competition, if one side wins more than about 7 times out of 10, the other side quits. Losing more than about 7 times out of 10 makes people think the game is unfair and they don't want to do it anymore

There are lots of different games in the world and lots of different ways to quit

And if I am remembering my Jordan Peterson lectures correctly, even fucking rats adhere to the 7 out of 10 rule as a metric of fairness. Its literally hardwired into our monkey mammal brains.

 

[world of shit]

SEC will suspend trading on GME/AMC etc for 10 days soon

I think that may be on the table, but I would be surprised if that happens.

The markets right now are extremely unstable and cracks are beginning to show.
I know some regular (not wallstreet, but decent vets) that were extremely freaked out by what happened today.

If they do that, then their cards are clear: They're willing to possibly send the market into freefall over a few hedgefunds.

 

[Lord of the Large Pants]

I think that make be on the table, but I would be surprised if that happens.

The markets right now are extremely unstable and cracks are beginning to show.
I know some regular (not wallstreet, but decent vets) that were extremely freaked out by what happened today.

If they do that, then their cards are clear: They're willing to possibly send the market into freefall over a few hedgefunds.

What if it's NOT a few hedge funds though? What if this is a 2008 type situation where everybody bet on everybody else assuming they'd never lose?

 

[world of shit]

It truly is amazing. For the first time in a long while... the people have felt true power.

And you can see the fear in the air.

I feel more baneposting is in order

 

[Shield Breaker]

Why do people think the entire market will crash? They're going to sacrifice RH and / or Melvin. They have been trying to get control of the price, but failing that, they will sacrifice the least possible and make new rules to fuck over the little guy.

 

[Jet Fuel Johnny]

"It's only $20, what do you think you're going to do with $20 worth the stock? You can't change anything, LMAO."

"I can wrap an ungreased fist around this twenty and shove it straight up their ass to give them papercuts so deep they'll taste Andrew Jackson's jizz."

 

[Meat Target]

Even The Wolf of Wall Street himself now says the Hedgies are crybaby sore losers. Alas, they will never have the introspection to admit they done got punk'd.

 

[Kane Lives]

Why do people think the entire market will crash? They're going to sacrifice RH and / or Melvin. They have been trying to get control of the price, but failing that, they will sacrifice the least possible and make new rules to fuck over the little guy.

People are mostly speculating on the interconnected nature of these hedgies. The most well-known link to Melvin is Citadel, but what if Citadel cannot cover Melvin? That's when thing gets fun; they're forced to liquidate. By liquidating they're also driving down the price of other stocks/assets, which in turn may snowball into other institutions being forced to do the same to cover their asses, especially if they themselves are overleveraged.

 

[mindlessobserver]

It's too late for the SEC to close the barn door. The brokers who lent the Gamestop and now the AMC, Bed Bath and Beyond shares etc need to get paid. They had guaranteed fees on the loan of the stock option. They would get a guaranteed amount of money when citadel and melvin returned the shares. And since it was "guaranteed" they were busy making other trades and so on using this "guaranteed" money.


Now sure, maybe Melvins bet would not pay off. And instead of losing value Gamestop Shares would gain a couple bucks. Whatever. Melvin has several billion dollars in equity. They were good for any black swan oscillation in value. And then the fire nation attacked. Sorry, and then the retail investors who were supposed to be a heard of sheep for fleecing turned into a stampede of very angry Longhorne cattle. Definitely individually dumber then the ranch hands, but as a mass absolutely unstoppable.

And now we have a BIIIIIIIG problem. See, the smart play for Citadel is to just wait the cattle out. Eventually the stock will crater. We all know it will. The issue however is not how long Citadel can wait, it's how long the brokers who loaned the stocks in the first place can wait. Remember, they took the "guaranteed money" from Citadel and Melvin, remonitized it, and loaned it on to other people. Who may have in turn loaned what they viewed as a guaranteed thing on again. Creating a knock on effect....AKA SYSTEMIC RISK. Citadel and Melvin will need to pay up soon...or else...

Buckle up

(Disclaimer, I study history not finance, but one of my professors was a financial historian, and his favorite subject was financial crashes)

 

[AMHOLIO]

What if it's NOT a few hedge funds though? What if this is a 2008 type situation where everybody bet on everybody else assuming they'd never lose?

Are you saying wallstreet are so retarded that they'd repeat a mistake they made within recent memory? Because you're very likely right.

Why do people think the entire market will crash? They're going to sacrifice RH and / or Melvin. They have been trying to get control of the price, but failing that, they will sacrifice the least possible and make new rules to fuck over the little guy.

While I still am a little lost, its probably because people made bets on RH and or Melvin, and it might be a domino type of reaction depending on it..

Lastly my Batman autism is happy. I hope Jaimas finishes the Lets Sperg soon, I love my riddler icons.

 

[Meat Target]

HOLY GOD USE THE RESIZE TOOL PLEASE

I don't realize how big it is, because I'm a phoneposter, unlike the rest of you neanderthals.

 

[dorxter¼]

Transfer the money slowly if you can, maybe try to get a offshore account going?

Just ask Kent Hovind how that turned out...

 

[Clones of Alex Jones]

I feel more baneposting is in order

 

[world of shit]

What if it's NOT a few hedge funds though? What if this is a 2008 type situation where everybody bet on everybody else assuming they'd never lose?

Why do people think the entire market will crash? They're going to sacrifice RH and / or Melvin. They have been trying to get control of the price, but failing that, they will sacrifice the least possible and make new rules to fuck over the little guy.

I'm beginning to think this goes a lot deep than we suspect. I thought some of these reactions were just normal overreach and overreaction.
But it's strange they're holding out this long and going to such extremes....really burning the bridge here.

We know Melvin is balls deep in this, and Citadel is balls deep in Melvin. After Citadel you have the mysterious illumanti BlackRock, which I'm sure factors into this (blackmail is a hella drug).

But ignoring all that. What happens when Melvin goes tits up and cannot cover the spread: that risk goes to broker, and down the chain until it hits an investment bank.

Thanks to 2008 and Dodd-Frank, the exposure to existing banks from these cascading events are massive and worse than ever (at the time people called it a feature, not a bug).

What if everyone got together and said "2021, we know Covid is around for another year, full lockdowns coming, inflation, debt, failing american economy, etc. Let's short the fuck out of retail, smash them into dirt, so we make money and continue to solidify control over the economy while also double dipping to buy the remains on the cheap".

See, they now can buy retail business for the cheap, just like banks bought houses for pennies on the dollar after the subprime crash. And the existing retail business or assets don't mean shit....it's the land (which if you didn't know, American farmland and houses are being scooped up like hotcakes).

So the dominos will fall and start an unsustainable reaction in the market, which at this point is being driven on pure meth-like exuberance. Banks start to fold, money comes out of the market and into dollar hedges, the fed at the point *cannot* pump more money in the market, no actual growth to fuel the market while inflation skyrockets.

We saw today what happened to the markets with just a small little nudge of one hedge fund did.

 

[Fatrick Hamlinson]

Jen Psaki's relative (?) donated to Mitt Romney, Kelly Loeffler, and John McCain.

 

[Geralt of Rivia]

Is Biden really retarded enough to do this?

To be honest with you, it might as well be a fucking coin flip at this point.