CNN Declares that the Gamestop stock surge is Trump's fault

[Tiny]

Originally Posted by GastonGlock

That won't happen, Dem reps and senators are in big oil's pockets.

Hahaha! They're not. As Gnadfly said, a lot of them, like Sheldon Whitehouse (Rhode Island Senator) want to put the oil companies out of business, by suing them for claims related to global warming.

You're going to see hundreds of thousands of people at oil and gas companies put out of work if Biden "just" refuses to allow additional drilling permits on federal land. And millions if Biden's goal of "0" net carbon emissions is achieved someday.

[Tiny]

Looks like the politicians are going to get right in the middle of this, with hearings that will harp on the brokers, who temporarily halted trading in GameStop and the like, and the evil short sellers, who allegedly manipulated the market, so much so that individual investors made a bundle squeezing the shorts.

What bull shit. Game Stop's consensus price target is 13.44. The only analyst with a big name broker, Seth Sigman with Credit Suisse, has a 3.50 broker. Including after hours trading, today the shares traded between 126 and 520. This is a house of cards about to crash, and the brokers and the short sellers are the only sane ones in the house.

[winn dixie]

Anyone know how the muppet stocks are doing?

[Tiny]

I love this, what AOC said today:

“This is unacceptable,” tweeted Representative Alexandria Ocasio-Cortez, a Democrat. “We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.”

Interesting Alexandria. This is like telling the owner of some cannabis cafe who had some crack slip into his product selection that he must continue selling the crack or else.

Some people who get out early will fare well with Game Stop, just like some people who cash out of a Ponzi scheme early. And others will have their lives ruined.

[Texas Contrarian]

.


(Yes, blaming Trump for this doesn't even pass the laugh test.)


Truly amazing! What a world we live in, eh?



A short squeeze of sufficient magnitude to threaten sizable hedge funds gets crowdsourced!



Enthusiastic members of the Robinhood brigade would do well to never forget that many swords have two (very sharp) edges, though.


(Also, it appears there may be some shorts who maintain sufficient margin to remain in the trade for the duration and are likely to be the big winners after the smoke clears. Not a game I play, though.)



.

[I Love Freedom]

Originally Posted by GastonGlock

TBH I'd like to see Gamestop crash & burn, I think they're a predatory business. Same with AMC. But watching this has been hilarious.

You think selling used CD's of games is predatory?

How?

[GastonGlock]

Originally Posted by I Love Freedom

You think selling used CD's of games is predatory?

How?

They treat their employees poorly, try to get you to buy into a subscription club that the majority of people don't see a fair return on, and they buy low and sell high on games with such margins that I often hear anti-Semitic stereotypes used.

Pre-release/pre-order bonuses and deluxe editions in games actually came about so software publishers could incentivize players to buy it new, because they would not get these bonuses if they bought the game used.

That being said, as much as I hate them as a business, that doesn't mean I want the government to shut them down. I just wish customers would wise up and not give them any business.

Like I told Lucas, Consoles moving away from physical media and moving to digital distribution will be the death knell of them. They don't make enough money selling hardware, peripherals, or toys to stay open.

[rexdutchman]

Yellings behind this crap ( remember she made 810,000 from robinhood) ,,, the corruption in the w/h is unbelievable

[Lucas McCain]

Originally Posted by GastonGlock

That's not what's happening though. Gamestop has been on the deathknell for a couple years now and filed for bankruptcy I think in 2019. Modern gaming systems are moving to digital delivery systems which remove Gamestop from the market.

What was happening is that Hedge funds were trying to short Gamestop to bleed it dry while making a tidy profit. Someone noticed, took it to the amateur day trader board on Reddit, and they all conspired to buy it up and hold to cause the price to surge and hopefully bankrupt the hedge fund. So far it's working.

I'll be the 1st to admit that I am hardly an expert on video game companies because I've never been involved in that fantasy world. I just know that the boys in my family and the boys who I buy Christmas presents for from the Angel Tree always want a new game.

I'm not sure how this is about Trump. It's easy to manipulate the stock market so I'll just leave it at that. All I know is that I wish they would stop coming out with new versions of games all of the fucking time so I don't have to buy them. I'm always like didn't I just buy you that? Is this like version 12 of this silly ass game I have to buy again? These sports games are getting ridiculous with how much you have to buy for kids because of how much they change. I'm buying soccer, golf and tennis games and those little motherfuckers do none of it in real life.

[rexdutchman]

Not about Big T its about the little guys making money from wall street """"you cant have that "" only the elites can now the lawsuits are flying

[1blackman1]

Originally Posted by Tiny

Looks like the politicians are going to get right in the middle of this, with hearings that will harp on the brokers, who temporarily halted trading in GameStop and the like, and the evil short sellers, who allegedly manipulated the market, so much so that individual investors made a bundle squeezing the shorts.

What bull shit. Game Stop's consensus price target is 13.44. The only analyst with a big name broker, Seth Sigman with Credit Suisse, has a 3.50 broker. Including after hours trading, today the shares traded between 126 and 520. This is a house of cards about to crash, and the brokers and the short sellers are the only sane ones in the house.

Originally Posted by Tiny

I love this, what AOC said today:

“This is unacceptable,” tweeted Representative Alexandria Ocasio-Cortez, a Democrat. “We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.”

Interesting Alexandria. This is like telling the owner of some cannabis cafe who had some crack slip into his product selection that he must continue selling the crack or else.

Some people who get out early will fare well with Game Stop, just like some people who cash out of a Ponzi scheme early. And others will have their lives ruined.

Originally Posted by CaptainMidnight

.

(Yes, blaming Trump for this doesn't even pass the laugh test.)

Truly amazing! What a world we live in, eh?

A short squeeze of sufficient magnitude to threaten sizable hedge funds gets crowdsourced!

Enthusiastic members of the Robinhood brigade would do well to never forget that many swords have two (very sharp) edges, though.

(Also, it appears there may be some shorts who maintain sufficient margin to remain in the trade for the duration and are likely to be the big winners after the smoke clears. Not a game I play, though.)
.

Personally I have no issue with what the redditers did. It is a gamble (which alot of them will lose) but they are forcing the market to do what they want it to do. Usually they are not operating on margins like the short sellers they are screwing.

I dont believe the clearinghouses should have stepped in, they should have allowed this to play out like it eventually will. Those properly margined short sellers will be just fine when the price hits $5 or Whatever price they were aiming for, those funds that were gambling the short will lose out big.

The fact that a bunch of small investors ran up the cost of a shitty stock should not be something that either the govt intervenes in or the clearing houses which are booking the sales. Robinhood, TD Ametrade and others only shut down the small investors because short sellers had a fit that they were getting creamed on their buy orders for what they thought would be at a great profit.

[nevergaveitathought]

in a very real and strong way cnn is right...unwittingly correct perhaps

the reddit raiders have to be americans...trumpers? check

for if they were leftists...they would have never put their own capital at risk

if they were leftists....they would have likely applauded the destruction of a capitalistic company, even though the destruction would have benefited other rich people

but these hedge fund other rich people are likely leftist rich people, who donate to leftism and think of themselves as the elite, who went to havard and then wall street and became billionaires, so all would be good should the hedge funds just keep their money making scams going as its just another circle of money back to the dimocrats

so yes the reddit raiders were turmpers in a real sense, heroes wielding a sort of justice born of capitalism and risk taking

[Tiny]

Originally Posted by 1blackman1

Personally I have no issue with what the redditers did. It is a gamble (which alot of them will lose) but they are forcing the market to do what they want it to do. Usually they are not operating on margins like the short sellers they are screwing.

I dont believe the clearinghouses should have stepped in, they should have allowed this to play out like it eventually will. Those properly margined short sellers will be just fine when the price hits $5 or Whatever price they were aiming for, those funds that were gambling the short will lose out big.

The fact that a bunch of small investors ran up the cost of a shitty stock should not be something that either the govt intervenes in or the clearing houses which are booking the sales. Robinhood, TD Ametrade and others only shut down the small investors because short sellers had a fit that they were getting creamed on their buy orders for what they thought would be at a great profit.

So far nobody here has argued the government should intervene. I'm an agnostic on that -- I haven't thought it through and don't know enough to have an opinion.

The clearinghouses have every right to require brokers to increase margin deposits, when the potential liabilities of brokers go up because of increased trading volume and volatility. And brokers have every right to place restrictions on trading and increase margin requirements on their clients in response to increased volatility.

Really, the brokers and the clearinghouses have to do this, or risk going under. A good example of this was when the price of oil went negative in April, 2020. I believe one or two brokers went under because they didn't have sufficient margin or restrictions on trading when the price of oil went negative. Interactive Brokers had to shell over something like $100 million to clearinghouses because of money its clients lost.

Think back to 2008/2009. You had financial institutions go under, a big recession, and many people kicked out of their houses. A huge government bailout was required. How would this have played out if the banks and mortgage companies hadn't loaned money to people they figured were going to have problems paying it back? If the financial institutions had been required to keep a higher level of equity relative to their assets? If homeowners couldn't borrow in excess of, say, 5X their annual income? A lot better, that's how. Same principle here.

Back during that period, remember Democrats caught huge flack for requiring mortgage companies to loan to anyone, and Republicans for lightening up regulatory requirements on financial institutions. This is something we should learn from and not repeat. But politicians have short memories, as we can tell from what's coming out of AOC's and Ted Cruz's mouths.

[oeb11]

Good point - Tiny!
Unfortunately- the marxist lizzie - in her hatred of Trump,republicans, and wall street - already has this as an excuse to step in with regulations to destroy her most hated capitalistic institution - thes tock markets - and capitalism in general.

she will team with yellen in teh Treasury Dept - and create one helluva mess.

Just as fiden is doing on many fronts at this moment - particularly as he asks 'What is this i am signing" - and is ordered - 'just sign it" by the fiden marxist handlers.



Lizie /yellen actions will Likely be depriving the billionaire donors to the marxists of countless millions - which they should take in pause as to their political leanings.

[1blackman1]

Originally Posted by Tiny

So far nobody here has argued the government should intervene. I'm an agnostic on that -- I haven't thought it through and don't know enough to have an opinion.

The clearinghouses have every right to require brokers to increase margin deposits, when the potential liabilities of brokers go up because of increased trading volume and volatility. And brokers have every right to place restrictions on trading and increase margin requirements on their clients in response to increased volatility.

Really, the brokers and the clearinghouses have to do this, or risk going under. A good example of this was when the price of oil went negative in April, 2020. I believe one or two brokers went under because they didn't have sufficient margin or restrictions on trading when the price of oil went negative. Interactive Brokers had to shell over something like $100 million to clearinghouses because of money its clients lost.

Think back to 2008/2009. You had financial institutions go under, a big recession, and many people kicked out of their houses. A huge government bailout was required. How would this have played out if the banks and mortgage companies hadn't loaned money to people they figured were going to have problems paying it back? If the financial institutions had been required to keep a higher level of equity relative to their assets? If homeowners couldn't borrow in excess of, say, 5X their annual income? A lot better, that's how. Same principle here.

Back during that period, remember Democrats caught huge flack for requiring mortgage companies to loan to anyone, and Republicans for lightening up regulatory requirements on financial institutions. This is something we should learn from and not repeat. But politicians have short memories, as we can tell from what's coming out of AOC's and Ted Cruz's mouths.

That’s because the brokers aren’t properly margined. Robinhood for instance (one of the brokers that intervened) requires that buyers provide money for their trades. They have some good plan members operating on margins but most of their buyers/members/whatevers are not buying and selling using only 10% cash, they are usually running at 80-90% cash (to the extent that cash is the best description since it’s money on deposit).

With that being the case I don’t really see why Robinhood should have been intervening. The people/institutions that were actually operating cash free were the short sellers who also got crushed and they are well able to cover their margins. They are just angry because they thought they were gonna make money short selling these stocks when in fact they got hit with a huge increase in price of the borrowed stock they sold at the lower price.