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

[Superman93's Bitch]

So I have been thinking about where we go from here and IMO the smart play would be for everyone to acknowledge there is a new predator in the market that is designed specifically to hunt funds engaged in overly aggressive shorts. Which up until now never existed in the market ecosystem. It's why Melvin and Citadel were so fat and happy with their 140% short on Gamestop. There is no need for regulation because the market already regulated itself. Some mutual funds got fat and complacent and for that they got taken to the cleaners. It's a scenario that wont happen again any time soon.

But I dont think that is what is going to happen. There will be calls for "punishment" and "new regulations" from the same people who avoided punishment for the 2008 crash and strenuously argued no new regulations were necessary for it. The only way this pickle gets unravelled is for the big hedge funds to admit defeat, say so and pay up. Game Theory is very clear as to what happens if the issue is forced here. All the money burns.

Yeah yeah yeah, none of that is gonna happen. That "predator" you're talking about? That's a ton of normal people banding together over something. That's extremely easy to prevent if you know what you're doing and have the capability.

What will happen is bon a fide gay ops will be done by people with a ton of money to spread rumors and shit up the online communities surrounding this type of thing so much that the next time there is a short squeeze thats popularized, it'll be fake, a setup, and everyone who bought in will lose their money. The general populace will never trust the word of a "literal who" again, and we're right back to where we were. No legislation necessary.

The country has been split in 80 different ways by people trying to get ahead in politics. Think they can't do the same thing with laymen getting involved in the stock market?

 

[KimCoppolaAficionado]

Yeah yeah yeah, none of that is gonna happen. That "predator" you're talking about? That's a ton of normal people banding together over something. That's extremely easy to prevent if you know what you're doing and have the capability.

What will happen is bon a fide gay ops will be done by people with a ton of money to spread rumors and shit up the online communities surrounding this type of thing so much that the next time there is a short squeeze thats popularized, it'll be fake, and everyone who bought in will lose their money. The general populace will never trust the word of a "literal who" again, and we're right back to where we were. No legislation necessary.

The country has been split in 80 different ways by people trying to get ahead in politics. Think they can't do the same thing with laymen getting involved in the stock market?

Because politics is a matter, mostly, of opinion and feeling, while economics is a matter of fact. Unless they gouge out the eyes of the peons, they can still see what the stock is actually doing and make suppositions.

 

[Superman93's Bitch]

Because politics is a matter, mostly, of opinion and feeling, while economics is a matter of fact. Unless they gouge out the eyes of the peons, they can still see what the stock is actually doing and make suppositions.

You're correct. But this phenomenon relies on laymen who don't know any better. People who don't know shit about stocks or the market. They are relying on the words of those who supposedly know more. That's where the disconnect is and where what I said becomes plausible. Now fuck me gently bby.

 

[Disheveled Human]

I would say niggercoin but I heard it died after some trading site delisted it for being racist.
View attachment 1884665
RIP niggercoin.

In all seriousness though, I'd probably go with one of the well known big bois like bitcoin or ethereum.

Stop wasting time trading crypto when the hedge fund billionaires got their sack of gold cut open pick up all the spilt coins by investing in shorted and guaranteed american dollars.

 

[Binary Code]

I Like Money

 

[Pope Negro Joe the XIIIth]

daddy Twump

>Writes screed on how we should ignore politics here
>Insults people whose politics he disagrees with

Really taking that Biden style "unity" to heart I see.

 

[Letora]

Can someone explain to me, a moderate stock retard, why this stock won't crash to $20 at some point when people go on a selling spree after it is "squoze" and screw over everyone who bought it at $300+ and was expecting to sell it for a huge profit?

Here is a comment from Vanguard CFA Greg Davis on the 28th about this topic:

Speculation has destroyed many more fortunes than it has created. The shares that have risen so spectacularly will find their equilibrium. In time, they typically—and sometimes painfully—correct. It’s no way to invest your retirement savings, or the money you’ve set aside for a home or a child’s education.

 

[Pope Negro Joe the XIIIth]

Why not stick a gun in your mouth?
You are trying to marry the hedonic treadmill (which only seriously exists for hard drugs, which yield hundreds of times more endorphins than the human body can produce naturally) with class warfare to explain why the rich would do something that, even assuming that the plebs remain demoralized and never ever rebel ever even as they're being marched into the humeat grinders (wildly optimistic), will lead to the rich no longer having nice things. You seem to think value is summoned into being by little goblins at the whim of the rich and that the rich can suspend the iron laws of logistics, statistics, economics, and in the most brutal view biology and physics by waving a wand to justify your loss-addict mindset. Against people like you, the "Elite" don't need to do shit, because you've already decided you've lost and you stab any hand extended out to you because you like losing and being miserable. Doomers should just follow their thought processes to the natural terminus and leave the rest of us alone. You're more of a "demoralization monkey" than ten thousand paid shills could ever be.

And you're the exact kind of person they rely on to spread the fictions that got us where we are today.

What do you think this is about? A joyous revolution in the street? There are people doing this who full well know they are throwing their money away. This is nihilistic rage on full display and you're talking like we're about to roast weinies and sing kumbaya.

Are you honestly naive enough to think this is going to end in any sort of fair arrangement? That all of these people aren't about to get fucked in plain sight to protect the money? That if they don't let these hedge funds fall they are literally lighting the fuse on a powder keg that they've been priming with rage for 4 years?

There's being optimistic and then there's just being delusional.

 

[DrunkJoe]

Can someone explain to me, a moderate stock retard, why this stock won't crash to $20 at some point when people go on a selling spree after it is "squoze" and screw over everyone who bought it at $300+ and was expecting to sell it for a huge profit?

Here is a comment from Vanguard CFA Greg Davis on the 28th about this topic:

At some point its gonna crash. You want the shorters to be the ones holding the stock when it does after they have to buy it up to cover the short.

 

[proteus4994]

Can someone explain to me, a moderate stock retard, why this stock won't crash to $20 at some point when people go on a selling spree after it is "squoze" and screw over everyone who bought it at $300+ and was expecting to sell it for a huge profit?

Here is a comment from Vanguard CFA Greg Davis on the 28th about this topic:

Because this is a special case, where there’s somebody out there who needs to buy all of the shares to fulfill prior obligations. What you’re talking about is the normal case, but what’s happening here is that the company already sold shares they didn’t have, and so now when it’s time to buy them back, they’re being forced to buy them at an extreme markup.

At least this is what is theoretically supposed to happen, but the major players in the markets do whatever the fuck they want, so we’ll see.

 

[reinigen]

You're forgetting the one important detail, wherein they sold more stock then actually exists. Something along the tune of 140%. That's why it's so unique, is while there are other stocks that are shorted right now, this is the only one above 100% (which is supposed to be illegal to do, last I checked).

 

[Letora]

You're forgetting the one important detail, wherein they sold more stock then actually exists. Something along the tune of 140%. That's why it's so unique, is while there are other stocks that are shorted right now, this is the only one above 100% (which is supposed to be illegal to do, last I checked).

Another stock question:

How the fuck do you buy shares that don't exist? My retard brain doesn't understand how that is possible. How do you then sell stocks that don't exist? How do non-existent stock purchases even go through? Are more created at some point in the process?

 

[A_throwaway_name62919]

So I have been thinking about where we go from here and IMO the smart play would be for everyone to acknowledge there is a new predator in the market that is designed specifically to hunt funds engaged in overly aggressive shorts. Which up until now never existed in the market ecosystem. It's why Melvin and Citadel were so fat and happy with their 140% short on Gamestop. There is no need for regulation because the market already regulated itself. Some mutual funds got fat and complacent and for that they got taken to the cleaners. It's a scenario that wont happen again any time soon.

If nothing else, now that the tactic's been done, I would expect other companies to give it a try themselves if they see someone's been aggressively shorting a company. It probably wouldn't result in such extremes, as I'd assume that other investment companies would take a more calculated risk than a bunch of reddit autists spearheading a viral internet push. Still, shorting more than 100% of a company's stock means someone's committed heavily to buying that stock at market price and left themselves highly vulnerable to a short squeeze. Targeting such a company being proven successful once all but guarantees someone will run the numbers and try a version of the same for themselves in the future if someone commits that heavily again. You don't need GME levels of extremes to swipe millions from your competitors for being careless like that.

 

[AnotherPleb]

You're forgetting the one important detail, wherein they sold more stock then actually exists. Something along the tune of 140%. That's why it's so unique, is while there are other stocks that are shorted right now, this is the only one above 100% (which is supposed to be illegal to do, last I checked).

Who cares about minor details like laws when there's money for Wall Street to make?

 

[Wikipedia]

This is what I like to see, internet reddit autist butt fucking giant wall street hedge funds for a couple of weeks.

 

[world of shit]

View attachment 1884289

Two points:
1) If banks are as overexposed to this as I suspect they are, Goldman may be right. And it could cause some major waves, even another banking crash.
2) They act like that possibility has any incentive whatsoever to halt or slow anyone. "What has this Market done for me?" Is what most millennials will rightly ask.

 

[reinigen]

Another stock question:

How the fuck do you buy shares that don't exist? My retard brain doesn't understand how that is possible. How do you then sell stocks that don't exist? How do non-existent stock purchases even go through? Are more created at some point in the process?

Because they didn't do a normal "Buy Low, Sell High" stock trade. They did what's called a "Short Sale".

Wherein:
1) You borrow a stock from someone (typically while paying some kind of loan/interest on it)
2) Sell that stock and pocket the money
3) Buy the stock back at a later date for less than you sold it for (hopefully)
4) Return the stock to original guy
5) Profit

This whole shuffle is risky because unlike a normal sale where you lose the price of the stock at most, these fucks borrowed the original stock somewhere around $16-20, and now it's worth $320. So that's a $300 loss PER SHARE.

They basically did this shuffle so many times, they have to return 100% of the stock of Gamestop, then return another 40% on top of that. which is why this is so special. If the retards and autists hang onto their stock with a death grip, it will drive the price of the stock up at a crazy high rate.

Edit: This happened in '08 with VW. See the chart below for the stock prices.

 

[Letora]

Because they didn't do a normal "Buy Low, Sell High" stock trade. They did what's called a "Short Sale".

Wherein:
1) You borrow a stock from someone (typically while paying some kind of loan/interest on it)
2) Sell that stock and pocket the money
3) Buy the stock back at a later date for less than you sold it for
4) Return the stock to original guy
5) Profit

They basically did this shuffle so many times, they have to return 100% of the stock of Gamestop, then return another 40% on top of that. which is why this is so special. If the retards and autists hang onto their stock with a death grip, it will drive the price of the stock up at a crazy high rate.

So, the part that I'm confused about is them short-selling more stock than exists. How can the hedge funds (or anyone) ever find 40% more stock to pay back if it doesn't actually exist. Or does the extra 40% stock get created at some point in the process?

 

[reinigen]

So, the part that I'm confused about is them short-selling more stock than exists. How can the hedge funds (or anyone) ever find 40% more stock to pay back if it doesn't actually exist. Or does the extra 40% stock get created at some point in the process?

That's the illegal part. They aren't supposed to do that. It's supposed to stop at 100%.

Edit: Also, their strategy was to literally bankrupt Gamestop, so that it would cost them pennies to pay back the short. They got impatient and greedy, and WSB caught them with their pants down.

 

[proteus4994]

Another stock question:

How the fuck do you buy shares that don't exist? My retard brain doesn't understand how that is possible. How do you then sell stocks that don't exist? How do non-existent stock purchases even go through? Are more created at some point in the process?

In a nutshell, it’s not that there are 140% of the shares outstanding. What they did was basically take the shares that they already shorted, and then shorted them again to themselves (which, if it’s not illegal, it should be). This causes the market to see more sales of the stock, which in turn causes the price to drop even more. The ultimate goal is to drive the price to zero or close to it, and then buy all of the shares, give some to the original people you shorted to, and then basically own a majority stock in the worthless company, which you then trash for parts.

edit: In effect, this is an extreme version of vulture capitalism.