stock market was up today...

#11,430
#11,430
newarkvol said:
How will the SEC be dealing with WSB? Well, we have the first female treasury secretary, so why don't you just focus on that.



That first female treasury secretary just so happens to be a complete Wall Street ghoul, but never you mind that.
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Seemed like another appropriate place for this:
iu (1).jpg
 
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#11,434
#11,434
NorthDallas40 said:
So they benefited from a position they held? How is this stoking the hedge fund revolt?

And I’d guess the real beneficiary here is GameStop as they now have funds which they definitely don’t deserve.
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Yeah I was wondering that also since they've held Gamestop since at least December.
 
#11,435
#11,435
I'm against the billionaires having so much power but for the sake of hearing the other side, there is a non-nefarious explanation for this. My bro works in finance

"Right, but in this case this meets a lot of the warning signs of a valuation bubble. Tesla is a good example of company with inflated stock valuation based on intangibles and their stock almost 700% over 1 year. GME grew 2000% in one month. Most of that growth happened in 1 day. And now their stock is down 55%."
 
#11,437
#11,437
n_huffhines said:
I'm against the billionaires having so much power but for the sake of hearing the other side, there is a non-nefarious explanation for this. My bro works in finance

"Right, but in this case this meets a lot of the warning signs of a valuation bubble. Tesla is a good example of company with inflated stock valuation based on intangibles and their stock almost 700% over 1 year. GME grew 2000% in one month. Most of that growth happened in 1 day. And now their stock is down 55%."
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And did Robinhood or any other brokers limit trading when those bubbles were inflating? Have you brother answer that question.
 
#11,441
#11,441
GameStop short squeeze situation is unique in the fact that both holders (whether you're talking about BlackRock or WBS) and short sellers may reach a point where they're locked into a vicious cycle.

What's stopping BlackRock and others from realizing that they can name their own price and buying/holding until the hedge funds are forced to pay up? What happens when prime brokerages (i.e. Goldman Sachs, Citigroup, and BNY Mellon) who underwrote the short contracts are left footing the bill when their hedge fund clients fold from the weight of margin calls and expiration date purchases?

Of course --there could always be a panic sell off

But -What if a bunch of autist redditors remain truly autistically stubborn, because they know mathematically impossible for all the existing shorts to be covered.

I suppose BlackRock and company may decide that $300 or so is enough--But is it better than $1000 next week?--. Knowing what we know about the psychology of Wall Street- and what they think they can get away with, do you trust them to make the right choice?

Margin calls caused the 1929 crash.
 
#11,442
#11,442
NorthDallas40 said:
But this is what the institutional traders wanted. They setup this whole environment. And its being used against them by the little guys who got organized and it’s glorious. When the inevitable crackdown on the little guys happen it needs to be screeched across every social media platform because no way in hell it gets air time on the business channels. For once social media got something right.
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I just hope that Carl Ichan is neck deep in shorts.
 
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#11,446
#11,446
newarkvol said:
GameStop short squeeze situation is unique in the fact that both holders (whether you're talking about BlackRock or WBS) and short sellers may reach a point where they're locked into a vicious cycle.

What's stopping BlackRock and others from realizing that they can name their own price and buying/holding until the hedge funds are forced to pay up? What happens when prime brokerages (i.e. Goldman Sachs, Citigroup, and BNY Mellon) who underwrote the short contracts are left footing the bill when their hedge fund clients fold from the weight of margin calls and expiration date purchases?

Of course --there could always be a panic sell off

But -What if a bunch of autist redditors remain truly autistically stubborn, because they know mathematically impossible for all the existing shorts to be covered.

I suppose BlackRock and company may decide that $300 or so is enough--But is it better than $1000 next week?--. Knowing what we know about the psychology of Wall Street- and what they think they can get away with, do you trust them to make the right choice?

Margin calls caused the 1929 crash.
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It looks like a great opportunity for GME to issue more common shares which will of course dilute the stock price but it’s still way over valued. And then GME gets a totally unexpected and undeserving windfall 😂
 
#11,447
#11,447
After reading a little more:
Blackrock owns like 13% of GME shares, Citadel securities manage trades for robinhood so they can offer zero-fee trading, in exchange for getting to see every single trade that goes to them before it completes, allowing them to know when to get in to drive stock prices up and when to get out before it collapses.

It gets worse--Blackrock doesn't even hold the most shares. Much of GameStop's shares are owned by investment firms who hold millions of $GME stock. From this non-exhaustive list, there's about 53.1 million shares owned by large institutions alone. I think there's about 70 million shares issued, with about 47 million shares floating on the market. I don't really know how to square 53.1 million publicly owned vs. 47 million floating, but I think this sufficiently reinforces the point that this may have nothing to do with "the people" as much as it's being done by large corporations.

It may be that large Wall Street institutions have successfully learned how to use the power of social media to drive markets. A dramatic proof of concept for the Citadel/RobinHood partnership (which lets Citadel make money by subtly front-running calls from retail investors). Over time this will be institutionalized, with retail people used as pawns for battles between competing institutions.

The biggest players using the smaller players to squeeze the middle players

yes, in the end blackrock, fidelity, etc are still winning, but at the very least, it's a transfer of wealth to the little man...A rare win for 'us' that also illuminates the hypocrisy of financial institutions
Ownership Summary | Gamestop Corp.
 
Last edited:
#11,449
#11,449
NorthDallas40 said:
It looks like a great opportunity for GME to issue more common shares which will of course dilute the stock price but it’s still way over valued. And then GME gets a totally unexpected and undeserving windfall 😂
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GameStop won't be the first company in history to have an undeserving windfall due to stock price. I remember at one point Facebook was valued at close to Exxon level on the stock market with like $4MM earnings per year. At least GameStop provides a valuable service. I mean what kind of person doesn't like video games?
 
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#11,450
#11,450
newarkvol said:
After reading a little more:
Blackrock owns like 13% of GME shares, Citadel securities manage trades for robinhood so they can offer zero-fee trading, in exchange for getting to see every single trade that goes to them before it completes, allowing them to know when to get in to drive stock prices up and when to get out before it collapses.

It gets worse--Blackrock doesn't even hold the most shares. Much of GameStop's shares are owned by investment firms who hold millions of $GME stock. From this non-exhaustive list, there's about 53.1 million shares owned by large institutions alone. I think there's about 70 million shares issued, with about 47 million shares floating on the market. I don't really know how to square 53.1 million publicly owned vs. 47 million floating, but I think this sufficiently reinforces the point that this may have nothing to do with "the people" as much as it's being done by large corporations.

It may be that Wall Street investors have successfully learned how to use the power of social media to drive markets. A dramatic proof of concept for the Citadel/RobinHood partnership (which lets Citadel make money by subtly front-running calls from retail investors). Over time this will be institutionalized, with retail people used as pawns for battles between competing institutions.

The biggest players using the smaller players to squeeze the middle players

yes, in the end blackrock, fidelity, etc are still winning, but at the very least, it's a transfer of wealth to the little man...A rare win for 'us' that also illuminates the hypocrisy of financial institutions
Ownership Summary | Gamestop Corp.
Click to expand...

I don't think Citadel is in on it because they're forcing Robinhood to cancel buy orders from their customers. The point about who actually owns most of the shares could be explained by large mutual funds that have millions of investors and don't really day trade. The large mutual funds aren't the problem with today's stock market anyway. It's not even wealthy people that invest in good companies. The problem is the high frequency traders, these hedge funds, and private equity firms that skim, manipulate, and destroy decent companies just to make a profit.

The fact that retail is being forced out of the buy side, while big finance tries to wrangle its way out of this is horrific. It seems like we're seeing massive scale financial manipulation minute by minute. The stock was dropping like a rock on almost no volume earlier (because the redditors aren't selling). It was possibly a couple of firms trading the same stocks lower hoping to trigger any automatic stop loss levels.
 
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