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GameStop (GME) was expected to go bankrupt, so some Wall St. hedge funds (notably Melvin Capital) put down some serious short sells on their stock.
Reddit took notice, and coordinated an attack and have driven the price of Gamestop (GME) up from about $40 a week ago to $209 currently.
Some of the firms, notably Melvin Capital, have doubled down and gone to investors for billions in financial backing to cover their margin calls.
https://www.buzzfeednews.com/article...t-stock-shares
Just started following this today. Quite the story. The revenge of Kekistan...
https://paranoidenough.com/2021/01/2...-Gamestop.html
What I gather from this morning's financial porn is that the Hedge Funds folded on their short positions on Gamestop this morning, so essentially Reddit's WallStreetBets crowd beat the Hedge Funds. Back of the envelope math is that Melvin Capitol took over $3 billion in losses over Monday and Tuesday, which exceeds the infusion of capital they received from two other Hedge Funds.
I wonder at what point short selling now would be a pretty smart move.
And as could be expected, when the hedge funds lose money, screams of regulation, policing and bailouts start. Shorting and destroying by the establishment hedge funds is perfectly acceptable.
Watch out for silver. Notoriously shorted by the establishment...
I forgot who said that the "market can remain irrational longer than the investor can remain solvent," but many smart investors have tried to time the market and failed.Quote:
Originally Posted by Invisible Man
The rumors are that the SEC is going to seek criminal charges against Reddit's WallStreetBets crowd. I don't know what basis they could do so unless there were individual members who were using the forum to "pump and dump" their shares in GameStop.Quote:
Originally Posted by Brian4Liberty
Quote:
Originally Posted by Gaius Marius
That's true. And honestly, it's not for me. But many have also succeeded. And those are sometimes the ones who, often just because they were lucky, get remembered as legendary great investors, and then write books on how they did it that prescribe methods that end up not working when others try them after that.
HankHeIl
@HankHeil
·
18h
The mass elation caused by GamestopGate should seriously concern the elites. Basically everyone under 40 is now oriented toward enjoying any victory over the elites more than any circus the elites can put in front of them.
HankHeIl
@HankHeil
·
18h
Lobbing the Trump grenade into DC was fun. Eventually they shut that down by taking away the ability to participate in elections.
Blowing up a bunch of Cohen's bank accounts is fun. Eventually they will shut this down by taking away the ability to participate in markets.
HankHeIl(wiz: They did this today! Ameritrade has suspended the plebes from trading GME and AMC)
@HankHeil
·
18h
Their problem is that it's impossible to maintain a society that doesn't require the participation of those below them. They can never eliminate every vector the other classes have to strike back against them and now there is sense, albeit small, of class solidarity against them.
HankHeIl
@HankHeil
·
18h
Eventually these sentiments flare up and they overreact in tamping them down over and over again. Eventually everyone is so disenfranchised and disengaged that no one sees inherent value in maintaining systems they have no relation to.
Twitter thread link
(couldn't embed the whole thread or I don't know how)
Melvin Capital was the hedge fund in trouble being short. They covered their position yesterday. Whatever the high of today is will be the high water mark for as long as the company trades publicly going forward.Quote:
Originally Posted by Invisible Man
Not advice because you can lose your ass on these kinds of trades but better than 50-50 it trades below 200 today. At 322 right now. And roughly 100% chance trades down to the mid 100s by close of monday.
Shorting Blackberry which is a sister stock to this move is a lot safer
Of course. Go after the Robinhood gamblers who threw in $1000 bucks each. Such big criminals.Quote:
Originally Posted by Gaius Marius
Meanwhile the crooks on Wall St can naked short all they want.
Lol. More stimulus!Quote:
best use i could find to put that laughable stimulus into
...
https://www.twitter.com/ilovecueayy/...65370794860546
:D
Quote:
Top 5 richest people:
-Elon Musk
-Jeff Bezos
-Bill Gates
-Bernard Arnault
-Retard6969
...
https://www.twitter.com/richassvc/st...21103003885570
https://pbs.twimg.com/media/CBcmQ-rU8AAWuVn.pngQuote:
Originally Posted by wizardwatson
This is a moment. As Syrian Girl said, it's what Occupy Wall Street should have been.
Quote:
Originally Posted by Gaius Marius
The news that the hedge funds fully exited is being called fake on reddit. Who knows?Quote:
Originally Posted by Krugminator2
Quote:
When Hedge Funders and others loot our markets its all good. But when retail investors destroy a hedge fund then all of a sudden CNBC analysts start calling for regulation, blame foreign powers, and talk "fundamentals".
...
https://www.twitter.com/esaagar/stat...61874151190536
https://www.youtube.com/watch?v=9ToOGrUQ7ME
https://www.youtube.com/watch?v=9ToOGrUQ7ME
So, for all these buyers who are just trying to support a high price for GameStop stock to punish the hedge fund short sellers, what's in it for them financially?
Aren't they now stuck with the choice between selling it before it drops precipitously (leaving the peers who joined them high and dry), or else losing a lot of money, just for the sake of making a statement or punishing a hedge fund?
Subjective value and ordinal preferences are strange and wondrous things ...Quote:
Originally Posted by Invisible Man
https://cdn.shopify.com/s/files/1/21...g?v=1528004937Quote:
Originally Posted by Invisible Man
Although not all of MSM is fakenews but there may be a foreign military support impact potentially as a result of this money shift that is not being discussed in MSM.
Some "Social capital CEO" guy appeared on CNBC and almost suggested as if this was some sort of "democratization of wall street manipulations", not these exact words. Wall Street manipulations and scams have been going on forever, might be coincidence that following two developments (exposing such manipulations by Wall Street insiders usually done quietly) happening right after Trump loss and in such a public and "transparent" manner?Quote:
Originally Posted by dannno
These could also be bringing under wraps wall street plays of some of some "questionabe philanthropists" linked to the only non-racist democracy in mideast and its non-war-criminal military.
https://www.youtube.com/watch?v=p4jMZLX7rAs
https://www.youtube.com/watch?v=p4jMZLX7rAs
"Questionable Philanthropy"
Quote:
During Plotkin's time at SAC Capital Advisors he was the recipient of illegal insider information according to federal prosecutors.[23] Reuters identified Plotkin as the so called "Portfolio Manager B" in the Securities and Exchange Commission's civil complaint against Michael Steinberg a fellow SAC PM who was arrested on charges he traded Dell's earnings based on insider information.[24] Plotkin was allegedly forwarded several emails by Steinberg and others that contained insider information.[24] Plotkin was never formally charged in the SAC insider trading scandal which sent several SAC employees to jail.
Melvin Announces $2.75 Billion Investment from Citadel and Point72Quote:
IDF Heroes Appear in New York
The gala, chaired by Gabriel Plotkin and Yaara Bank-Plotkin, also honored Jonathan and Jennifer Harris and Eli and Yael Weiss for their leadership in supporting Israel and its brave soldiers. Rabbi Bentzion Krasnianski, director of Chabad of the Upper East Side, gave the Dvar Torah.
NEW YORK, Jan. 25, 2021 /PRNewswire/ -- Melvin Capital Management ("Melvin") today announced that Citadel and its partners and Point72 have made investments into its fund.
"I am incredibly proud to partner with Ken Griffin and Steve Cohen," said Melvin Founder and CEO Gabriel Plotkin. "The team at Melvin is eager to get to work and reward the confidence of these two great investment icons."
Apollo Global Management CEO Stepping Down
Apollo's Leon Black Paid Jeffrey Epstein $158 Million
January 26, 2021, 3:37 AM
Jan.26 -- A report released by law firm Dechert, commissioned by the board of investment firm Apollo Global Management Inc., found that its founder and chief executive officer Leon Black paid Jeffrey Epstein $158 million between 2012 and 2017 -- after the sex offender pleaded guilty to felony charges in 2008 -- for advisory services that helped expand the wealth of one of America’s richest men. Apollo said in a statement Monday that Black will retire as CEO no later than July 31, while remaining chairman. Bloomberg's Tom Metcalf reports.
Controversy continues over MoMa PS1 protest as artists call out questionable philanthropy
Artists are protesting the affiliation between Leon Black, the chairman of MoMA, and Constellis Group, the private military contractor formerly known as Blackwater
Similar questions had come up after former infamous former NASDAQ President Bernie Madoff's Wall Street scam:
Israeli Nonprofits Shaken by Madoff Scam
April 4, 2009
JERUSALEM — The collapse of Bernard L. Madoff’s $65 billion Ponzi scheme
The Madoff scheme’s collapse has forced educational institutions and organizations that aid the sick and the needy to reassess their investment strategies, and Israel, which depends heavily on the nonprofit sector to provide such services, has been forced once again to confront its dependence on American donors’ largess.
The crisis “has exposed a very substantial weakness” among nonprofits here, said Eliezer Yaari, executive director of the New Israel Fund, an advocacy organization that promotes equality and social justice in Israel.
nytimes.com/2009/04/05/world/middleeast/05israel.html
Hard to say how much financial impact these would have on the financial support for our mideast allies militaries. These devlopments come on the heels of passing of another high profile philanthropist and top MAGA donor who also championed similar foreign military causes.
Relational
CEO Makes $500k Off GameStop Stock Run, Donates It to Barstool Fund for Businesses
1/27/21 at 4:13 PM EST
With GameStop's stock soaring, Social Capital founder and CEO Chamath Palihapitiya took advantage of the video game retailer's good fortune and donated the half a million dollars he apparently made in profits off of GameStop stocks to Barstool Sports' Barstool Fund, which helps businesses that are struggling because of the coronavirus pandemic.
I like how so many people think this is some great cause in protest of wage stagnation, income inequality, wall street bailout and God knows whatever else.
This is really just like episode of Seinfeld where Kramer drives the car past the E just to see how long he can go before the car stops.
^^^this^^^Quote:
Originally Posted by Brian4Liberty
I guess the Robinhooders have to bribe the right people.
Quote:
Originally Posted by Brian4Liberty
Watched 1 minute and realized how fucked this country is.
Here is the reality: short sellers lose money on balance. Even the best ones. Even George Soros said he has lost money on balance shorting. They are essential to a properly functioning market. All these buzzwords like banker and hedge fund manager and shorting are just being used for hate the rich nonsense. Not to mention 99.8% of the manipulation in markets is longs pumping up stocks. Like this Gamestop, for instance.
Naked shorting is not something really even exists since 2007. Gamestop, for instance, is easy to borrow. There are very few stocks that don't have shares available to short. There are always brokers willing to lend shares at a price.Quote:
Originally Posted by Brian4Liberty
Been following this. If they try to short squeeze silver I might get in and ride it as high as I dare.
I have not ruled out this is planned.Quote:
Originally Posted by Krugminator2
The origin of the "inside info" so to speak of Gamestop being 140% shorted was convenient. Also, there's people commenting that the million dollar investors in WBS are suspect (Portnoy being one).
It's not outside the possibility-in my mind-of these redditors being the Q-tard equivalents who instead of "storming the capitol" and patsy-ing themselves into P.A.T.R.I.O.T. Act 2.0, end up being the pin that pops the derivatives bubble or perhaps silver/gold (already talk of them moving into silver).
That being said...
It's certainly fun to watch.
We know now that Trump was an absolute NOTHING. Incompetent patsy at best, swamp creature in patriot clothing also a strong possibility.
But boy was it fun watching the other side whine when they lost in 2016 and we savored those liberal tears. Same here.
We think we're winning, but it's really just these Hannibal Lecter globalist nosferatu's feeding our own severed limbs and we savor the aroma.
Worldly take, anyway. Really, I believe this is all the glory of God as Noadic rains slowly begin to cleanse the whitewashed world and we see things as they are.
But I'm just a weird dude on the internetz, what do I know.
If a Hedge fund makes money shorting a stock, where does that money come from? Other investors? If a Hedge fund loses money on short bets, where does that money go?Quote:
Originally Posted by Krugminator2
I would have to assume that other investors make money when the hedge fund loses. Is that a bad thing? Or is it only good when hedge funds make money from other investors?
How do we end up with 140% shorting if there are no naked shorts?Quote:
Naked shorting is not something really even exists since 2007. Gamestop, for instance, is easy to borrow. There are very few stocks that don't have shares available to short. There are always brokers willing to lend shares at a price.
Elon Musk and other CEOs have complained about shorting and bear raids on their stock.
People have said that borrowing Gamestop for shorting is pretty difficult right now. I don't short, so I wouldn't know. I came within a hair of buying some AMC yesterday, but there was no value proposition there. It was already at fair value. But I had no idea AMC was going to be the next target of a Bull raid.
Obviously, at some point, someone is going to lose money when a hyper inflated bubble like Gamestop pops. It is gambling, not investing. My impression was that it was a ton of small investors throwing some spare cash into futures. If so they have a chance of a big win, or simply exiting while they are still ahead. Better than buying a Powerball ticket.