Well we just emerged from the prequel to Idiocracy, so it seems like we can probably run multiple narrative fuckups at the same time.
this is a great reason why big investors should get behind the ftt.
wall street i’m sure hates it because it would help eliminate day trader gambling and all those fees they’re able to suck up. but, it would also help eliminate day trader gambling and all those fees wall street is able to suck up.
we gotta balance that federal budget somehow(*)
(* okay. we don’t. but if saying so gets us to start taxing investors properly to free up money for things people actually need, that’s fine by me. )
I’m all for screwing over hedge funds, but I’m not comfortable with the direct line of meme lords progressing from the social fuckery of GamerGate to massive political fuckery of /r/The_Donald and the 2016 election to now financial fuckery.
I hope these assholes don’t blow up the economy –– again.
Citadel isn’t bailing out the hedge fund, so much as they’re using a privileged position (HFT with access to Robinhood’s data stream) to buy into the hedge fund at firesale prices that they helped cause (click through for the thread):
The HFT bunch also would hate it, for obvious reasons. I’d be fine with that. This kind of tax is one of the revenue mechanisms Andy Stern sees funding a UBI (discussed in this topic).
Now that would be something for the SEC to look into. Not sure if there’s much evidence yet, though.
And I just saw on Slashdot Elon Musk is in this too, egging it on.
What a stupid shitshow
The more momentum the bigger the crash.
Trading Places 2. I can’t wait.
No one in the press seems to want to mention that this stock didn’t just have a ‘short position’ - it was shorted at 140% of it’s available stock.
It’s illegal to short a stock to over 100% - this is called naked shorting. People are going to go to jail over this - but it won’t be the little robinhood investors.
You know what happens when a stock price goes up and there are no shares to cover a short? Yeah - no wonder people jumped on this.
Hopefully there will soon be a podcast or YouTube video to explain all this to a dummy like me.
That’s a good video about the mechanics of short selling and the narrative about the Reddit r/wallstreetbets vs hedge fund story.
Basically a bunch of smaller traders noticed that GameStop was at $3 a share but 140% of the shares were sold short. It meant there was somebody with a huge exposure. Once they started pointed it out and the stock started rising, it took on its own momentum.
The problem is that GameStop is probably not a $3 stock, but neither is it a $300 stock. (That’s where it is now in pre-market trading)
Also looking at some of the stock message boards and twitter on this has a very conspiracy theory feel. People buying now expecting it to go to$1000 and are making rationalizations about how good the company is. It is FOMO for people jumping in now. A lot of people are going to lose money. They’ll be the collateral damage of taking out a hedge fund or two.
Full disclosure: I bought a put option which limits my risk but I expect GameStop stock price to fall in the next few weeks.
I don’t really understand the stock market.
Why is it legal to buy stocks that are bets a company will fail?
It doesn’t make sense to me
I can offer you a great deal of Tulip Bulbs!
Yup, I’m firmly on the fence here. It’s damn hard to sympathize with a company whose business is to dismantle other businesses. On the other hand, edge lords in coordinated groups can do a lot of collateral damage.
And there it is. A bubble that pops almost as fast as it began. As always, the people in on the ground floor can make a tidy profit while bailing out early (don’t get greedy!), while the latecomers are left holding the bag. That seems to be the way with any kind of investment-related bubble. By the time an investment trend makes the news, it’s already too late to join in.
It’s what plants crave!