Stock Market update: Everybody panic!

[Torvald Von Mansee]

You guys MUST be aware of this...

Anyway, here's my lame summary:

The subreddit /r/wallstreetbets decided to buy into a stock, GameStop (GME?), that someone realized some hedge funs had severely shorted. The stock has since skyrocketed in value, I think over 1000% in value, and now those hedge funds are currently on the hook for like $70,000,000,000.

Wall Street then proceeded to show how corrupt they are. Some platforms which allow you to buy/sell stocks suddenly wouldn't allow you to buy GME stock. Some people reported that not only could they not buy GME stock, but they would be locked out of their accounts and when they could access their accounts, again, they found some of their buy orders of GME stock had been cancelled.

[Moonlight]

The system is bent towards the big players, in a single word they're all "CORRUPT", do what Mr Squirrel does and keep your cash in your Nutsack.

[Rockstar]

When a mob bands together to pump the price of a stock creating an incorrect valuation its called market manipulation. One purpose of the SEC is to protect people from that. This pump didn’t improve GME's position. It’s not changing the fact that GME is not making any money and is bleeding cash like a stuck pig and is still shutting down stores.


Shorts are still very much in play if I was a Robinhooder I'd run far from GME.

[ET2SN]

There were reports yesterday of more shares of stock being sold than what really exist.

That isn't a good thing, that's noobs gambling with their rent money. It looks prettier when you set your cash on fire, BTW. Or, at least go to a casino. They'll comp you some free drinks.

[Jimbuna]

Originally Posted by Torvald Von Mansee

You guys MUST be aware of this...

Anyway, here's my lame summary:

The subreddit /r/wallstreetbets decided to buy into a stock, GameStop (GME?), that someone realized some hedge funs had severely shorted. The stock has since skyrocketed in value, I think over 1000% in value, and now those hedge funds are currently on the hook for like $70,000,000,000.

Wall Street then proceeded to show how corrupt they are. Some platforms which allow you to buy/sell stocks suddenly wouldn't allow you to buy GME stock. Some people reported that not only could they not buy GME stock, but they would be locked out of their accounts and when they could access their accounts, again, they found some of their buy orders of GME stock had been cancelled.

https://www.subsim.com/radioroom/showpos...5&postcount=95

[Torvald Von Mansee]

Originally Posted by Rockstar

When a mob bands together to pump the price of a stock creating an incorrect valuation its called market manipulation. One purpose of the SEC is to protect people from that. This pump didn’t improve GME's position. It’s not changing the fact that GME is not making any money and is bleeding cash like a stuck pig and is still shutting down stores.


Shorts are still very much in play if I was a Robinhooder I'd run far from GME.

I'm sure hedge funds do market manipulation all the time. Why is it suddenly wrong now?

[Torvald Von Mansee]

Originally Posted by Jimbuna

https://www.subsim.com/radioroom/sho...5&postcount=95

Oh, cool!! Thanks!!

[Onkel Neal]

https://www.subsim.com/radioroom/sho...25#post2725225

Where it belongs.

[Skybird]

Originally Posted by Rockstar

When a mob bands together to pump the price of a stock creating an incorrect valuation its called market manipulation.

Pro traders do that all the time and at the cost of little people called private investors. Just that this time the same applies but the other way around. What the pro traders do to others is not allowed to be done to them?

Double standards to protect the sharks in the pool.

I say: let it run, let it burn, let sink to the bottom whatever gets hit, leaks and sinks. Maybe it teaches some valuable lessons to some: on how crazy and insane it all has become. Gambling is not investing. And many people and investment companies and brokers cannot even be explained this, they just are beyond understandign this, ever. Investing is supporting something that is bigger than oneself, and being rewarded for that, it has a sense of responsibility and productivity in it. Gambling is to shave off as much cream as one can, and not caring for what happens afterwards.


Read the translated article I linked to here: https://www.subsim.com/radioroom/sho...5&postcount=95

[Onkel Neal]

This is just the start of the calamity, at some point those redditers will start closing their positions to capture their gains and the share price will collapse...it'll be a mad rush for the door.

[Skybird]

Hedge fonds bitching about Reddit can cry me a river:


https://edition.cnn.com/2021/01/29/i...eet/index.html

[3catcircus]

Originally Posted by Rockstar

When a mob bands together to pump the price of a stock creating an incorrect valuation its called market manipulation. One purpose of the SEC is to protect people from that. This pump didn’t improve GME's position. It’s not changing the fact that GME is not making any money and is bleeding cash like a stuck pig and is still shutting down stores.


Shorts are still very much in play if I was a Robinhooder I'd run far from GME.

Except it's not a pump-n-dump where you talk up the company, sell your shares, and watch the rubes who bought based upon your hype lose their retirement. The price has risen because of simple supply and demand. Those who shorted the stock *have* to buy it to cover off the shares that were loaned to them. They shorted more stock than was available to trade. When others started buying, the price goes up due to scarcity.

The hedge funds, perhaps shouldn't have tried to ruin gamestop by betting the price would tumble (and having friendly analysts badmouth the company in the media to make the price tumble).

People figured out their scam and countered it.

Perhaps, the market shouldn't allow shorts to begin with. The whole intent of the stock market was to allow business to offer a piece of a company to someone willing to take the chance that their money infusion would allow the company to expand and build.

Now, there's this perversion of the market that makes it attractive to short stock, manipulate the market to make the price tumble, and then swoop in to swap out the management, sell off pieces, fire all the employees, and wrap the debt up into a bankruptcy action.

Don't get me wrong, eventually the price will tumble and some fool will be left holding the bag, but this isn't a pump-n-dump.

[Onkel Neal]

Originally Posted by Onkel Neal

This is just the start of the calamity, at some point those redditers will start closing their positions to capture their gains and the share price will collapse...it'll be a mad rush for the door.

Just like that GME is has plummeted to $53


We'll see if the remain redditors can scheme another rise.

[Onkel Neal]

Blast, my OLN stock has tripled and is still going up.... but I have 4 weeks until I can sell if I don't want to take a short term capital gain. Gonna be so unhappy if the price craters.

Meanwhile: 'Big Short' investor Michael Burry says Tesla's $1.5 billion bet on Bitcoin was a distraction - and Dogecoin's record price signals a massive bubble

[Rockstar]

(Kitco News) - The gold market continues to shine as an alternative monetary asset, with more than just investors embracing the precious metal as a hedge against debased currencies.

Thursday, Idaho State House approved a bill that enables the State Treasurer to protect state reserve funds from inflation and financial risk by holding physical gold and silver. House Bill 7, the Idaho Sound Money Reserves bill, found overwhelming support in the House, passing by a 51-19 vote.

The bill will now head to the Idaho Senate for a hearing, which is expected to start as early as next week.

According to the bill, the proposed legislation would permit – but not require – the State Treasurer to hold some portion of state funds in physical gold and silver to help secure state assets against the risks of inflation and financial turmoil and/or to achieve capital gains as measured in Federal Reserve Notes.

https://www.kitco.com/news/2021-02-1...isk-hedge.html