Business & Finance The GameStop Short Stock Sensation

[Abhishekm]

Bought 1 gamestop, let's go to the moon
🚀🚀🚀

Obligatory 'Not Financial Advice, please don't sue' disclaimer here.

Edit: Seriously though, there probably are some percentage of shorts still out there but if its below 100% by this point you might just end up buying the stock from the people who shorted them before or the ones who lent the shorter in the first place.

 

[Terthna]

I don't have the money to be playing around in the stock market. Though even if I did, I wouldn't due to my aversion towards gambling; which the stock market is, in my opinion.

 

[Abhishekm]

I don't have the money to be playing around in the stock market. Though even if I did, I wouldn't due to my aversion towards gambling; which the stock market is, in my opinion.

Oh absolutely. The idea of shares is a good one, but the application has gone full Casino. Day trading man, it kills honest business investement. If your looking to buy shares as anything other than a long term investment you are playing poker. Betting against other peoples money.

 

[LindyAF]

I don't have the money to be playing around in the stock market. Though even if I did, I wouldn't due to my aversion towards gambling; which the stock market is, in my opinion.

Totally get that, IMO any stock that does not pay dividend and is not voting is fake and gay. It's effectively totally disconnected from reality. And even if it pays a dividend and is voting, the stock market as a whole is still mostly smoke and mirrors. No sane evaluation believes Tesla is a bigger deal than Ford and Toyota combined.

It's just, this time there's some reason to believe wall street banker types fucked up according to their own fake and gay rules and might get left holding the bag, which I would pay to see happen.

 

[The Mandarin]

I think this is great, I prayed today that these mom and pop financial revolutionaries would cause the complete and total financial collapse of the usury culture that has benighted our species for the last thousand years. Let them burn it all, let Wallstreet become the new Carthage.

 

[Abhishekm]

Well the stock is back to the (mid to upper) 200's. If thats it, its been fun. Good show Sir's. And keep this in mind when they talk about this being 'unfair, 'targeted', 'terrorism', or the like.




Also, if anyone is inspired or secretly has a huge net following or something. Market Watch is downright baiting us.

Redirect Notice

Wallstreetbets been taken off Discord and been forced Private on Reddit by the way.

WallStreetBets Is Back on Reddit and Banned on Discord, as Trading Apps Limit Stock Purchases - IGN

Update: Stock trading apps have seemingly begun limiting the purchase of Gamestop, AMC, and other recently volatile stocks.

www.ign.com

 

[ParadiseLost]

The problem is a lack of stock market regulation.

We need regulation to prevent 'fast' trading and slow things down, because this is pretty much unquestionably unhealthy for the economy.

A couple of things I would recommend:

1) An additional tax for really short term capital gains. This tax would apply to Institutional Investors.
2) A minimum stock holding period. Say 24 hours.
3) AIs aren't allowed to place trades. Period. You can automate trades at certain prices - still use stop orders and limits orders and such - but AIs can't place trades.

 

[Battlegrinder]

The problem is a lack of stock market regulation.

No, the problem is human greed, which you can't regulate away.

We need regulation to prevent 'fast' trading and slow things down, because this is pretty much unquestionably unhealthy for the economy.

This is unhealthy for a few few hedge funds, for whom I have no sympathy. They knew going into this that trading on the market is risky and that unpredictable events can screw them over at any time with no warning.

A couple of things I would recommend:

1) An additional tax for really short term capital gains. This tax would apply to Institutional Investors.
2) A minimum stock holding period. Say 24 hours.
3) AIs aren't allowed to place trades. Period. You can automate trades at certain prices - still use stop orders and limits orders and such - but AIs can't place trades.

None of those would have had any effect on this current bubble, and 2 and 3 are just outside the government's authority to regulate period. They have no right to micromanage when people can and can't sell things, nor what tools they can use to do so.

 

[ParadiseLost]

None of those would have had any effect on this current bubble, and 2 and 3 are just outside the government's authority to regulate period. They have no right to micromanage when people can and can't sell things, nor what tools they can use to do so.

You don't know what you're talking about.

None of these things are beyond the governments ability to regulate. Its not about actually stopping things from happening, its about breaking current day trading culture and institutional investor culture, which is currently destroying the stock markets ability to function as intended.

But you're right - those steps probably aren't extreme enough. You'd have to put even harsher regulations on the market at this point.

 

[Terthna]

No, the problem is human greed, which you can't regulate away.

Every problem involving two or more people boils down to human greed, and regulation has proved rather effective in mitigating it at least somewhat; so long as it's narrow in scope, precisely targeted, and properly enforced. Which is a rare thing, in this day and age; so I'll grant you that any attempt at regulation is doomed to fail, so long as the majority of the system remains corrupt.

 

[ParadiseLost]

No, the problem is human greed, which you can't regulate away.

You can absolutely mitigate the damages created by human greed. That's literally why capitalism is supposed to be better than communism.

If you don't believe you can mitigate human greed, then any form of democracy or republicanism becomes irrational.

This is unhealthy for a few few hedge funds, for whom I have no sympathy. They knew going into this that trading on the market is risky and that unpredictable events can screw them over at any time with no warning.

Hedge funds which are primarily using their proceeds to fund working class peoples retirements and medical insurance.

Because that's who owns these hedge funds - there's something like 10 trillion in IRAs or something right now. Then a lot of insurance companies have their insurance policies backed by investments.

 

[Abhorsen]

Am I alone in thinking this is all fine? This is the market working as it's supposed to. Someone was overleveraged (i.e. doing stupid stuff), someone noticed it and exploited that to make money, and balance was restored to the Market. It's clearly an example of the market self correcting that many people want to be a sign that the market doesn't work, when in reality they just demonstrated it working very well.

 

[ParadiseLost]

Am I alone in thinking this is all fine? This is the market working as it's supposed to. Someone was overleveraged (i.e. doing stupid stuff), someone noticed it and exploited that to make money, and balance was restored to the Market. It's clearly an example of the market self correcting that many people want to be a sign that the market doesn't work, when in reality they just demonstrated it working very well.

No. This is not a correction, its an overcorrection.

This is the equivalent of seeing that you're slightly drifting into another lane, and then doing a full 360 spin with your car in the opposite direction.

Also, quite frankly, Gamestop was accurately valued at $3-4 a share.

 

[Battlegrinder]

You don't know what you're talking about.

I have an economics degree, I know exactly what I'm talking about.

None of these things are beyond the governments ability to regulate.

First, I didn't say "ability", I said "right", whether or not they can do something is a different question of if they have the right to do it. And secondly, there is next to no chance that either of those laws, if passed, survives a court challenge.

Its not about actually stopping things from happening, its about breaking current day trading culture and institutional investor culture, which is currently destroying the stock markets ability to function as intended.

But you're right - those steps probably aren't extreme enough. You'd have to put even harsher regulations on the market at this point.

The stock market is functioning just fine.

You can absolutely mitigate the damages created by human greed. That's literally why capitalism is supposed to be better than communism.

If you don't believe you can mitigate human greed, then any form of democracy or republicanism becomes irrational.

We already have mechanisms in place to mitigate the damage caused by human greed.

Hedge funds which are primarily using their proceeds to fund working class peoples retirements and medical insurance.

Because that's who owns these hedge funds - there's something like 10 trillion in IRAs or something right now. Then a lot of insurance companies have their insurance policies backed by investments.

Which is why most people put thier money in a Roth IRA, which investments in numerous funds and securities and not just one, precisely to prevent the exact scenario you are fearmongering about. This is going to screw over a few hedge funds that got greedy and sloppy with other people's money, and just them. Everyone else will be fine.

 

[Abhishekm]

The problem is a lack of stock market regulation.

We need regulation to prevent 'fast' trading and slow things down, because this is pretty much unquestionably unhealthy for the economy.

A couple of things I would recommend:

1) An additional tax for really short term capital gains. This tax would apply to Institutional Investors.
2) A minimum stock holding period. Say 24 hours.
3) AIs aren't allowed to place trades. Period. You can automate trades at certain prices - still use stop orders and limits orders and such - but AIs can't place trades.

Really? The problem is not enough regulation? The problems not letting them have to pay for it themselves.

 

[The Mandarin]

No. This is not a correction, its an overcorrection.

This is the equivalent of seeing that you're slightly drifting into another lane, and then doing a full 360 spin with your car in the opposite direction.

Also, quite frankly, Gamestop was accurately valued at $3-4 a share.

This has nothing to do with Gamestop and everything to do with what happened last year. The Elite let Black Nazis burn down America and smugly taunted the average American like a serial killer does as they produced more votes out of thin air than exist adults who vote to install a geriatric pedophile. The response of the every man? To try and force a financial collapse. Beat a dog long enough it goes feral, abuse even the gentlest of horses and it will kick you to death and ignore a man long enough and he will burn down a forest to be heard.

Thou hasth sown the wind, now reap the whirlwind.

 

[Abhorsen]

No. This is not a correction, its an overcorrection.

This is the equivalent of seeing that you're slightly drifting into another lane, and then doing a full 360 spin with your car in the opposite direction.

Also, quite frankly, Gamestop was accurately valued at $3-4 a share.

Gamestop is crap, yes, and usually isn't worth that much. But this isn't about Gamestop, so much as overleveraged hedge funds, who got slapped for being overleveraged. After a while, gamestop will go back to a normal price (definitely above $3-4/share), and then go back to its slow decline, as it is a shit store that is outcompeted by online stores. There's noting wrong happening here, GME was just used as a tool to punish idiots, so it's in an unusual place.

This is a very good thing, because it acts as a warning to other hedgefunds not to get over leveraged. Think of it like a bubble being popped, before it got very big. Honestly, I want the stock market to work like this more often, and pop more bubbles.

 

[Arch Dornan]

Is this eating the rich legally?

 

[Abhishekm]

Is this eating the rich legally?

More of an "eat me" from the plebs I'd say.

 

[f1onagher]

I have a headache from laughing so hard at this. The asshats on Wall street just can't comprehend the Waaaagh!!! mentality of the redditards.