Economy stonks v13, gamestonkegeddon

[Hadron90]

That article seems like one giant strawman to me, and I don't even know much about all this shit. Maybe I'm wrong here...but...

Is anyone even making the argument that no hedge fund should ever short a company when they feel the stock price is too high? The article acts like that's the prevailing attitude.

My understanding is that you can't pull off a short squeeze (and definitely not this "gamma squeeze" thing) unless the funds are leveraged way too much on the short side of a stock. Just some hedge funds being short doesn't mean they can be squeezed if they can easily cover the calls, right? And isn't that why these Wallstreetbets guys had to pick the exact correct stock? So the lesson isn't "Dear hedge fund manager, never short another stock again or we'll come after you" because that wouldn't work anyway. The lesson is "Don't overextend a position and leave yourself vulnerable to things you can't control with no cap to your potential losses. Gambling that way is irresponsible."

Again, what the hell do I know? I'm more trying to learn here and be entertained than anything. But that just struck me as a bizarre view of what's happened here.

Yep. And of course these articles are bullshit. These are all paid articles.

 

[mkess101]

The lesson is:
Idiots will believe a half-truth about "short sellers" and then get duped into a pump and dump run that isn't a 1:1 comparison to what they've been told.
Which is why a bunch of people lost shitloads of money bidding up American Airlines this morning and then it crashed.

Just to remind you again, keep in mind this is not a subject I'm very knowledgeable about. Anything I say is through the eyes of someone who understands a tiny fraction of this stuff.

Okay, disclaimer out of the way, I guess my point was that the article is written under the premise that the majority of these people who have bought up GME are rabidly opposed to any short selling whatsoever. I don't know anything about these guys. I haven not read a word of their forum aside from a couple random things posted here. So I don't know their collective view (if they have one) of hedge funds or the markets in general. Is that really how they see things, that short sellers are evil, period? Or is it more that being THAT short something to where this is even possible is a bad idea? And am I am correct in that a hedge fund simply shorting a stock does not at all make it susceptible to being squeezed? There has to be a certain amount of exposure for it to work?

 

[Deleted member 513083]

Pump and dump.

Somebody gets the bag somebody holds it, feel sorry for all the guys getting shilled and joining the party too late

 

[Hadron90]

Somebody gets the bag somebody holds it, feel sorry for all the guys getting shilled and joining the party too late

Yeah. Look just a few posts above that one. Its a Forbes article trying to convince you people buying GameStock are Nazis. Then they shit out another article claiming some shitcoin is the "Gamestop of Crypto". Is bullshit. Some hedge fund paid for that article to convince people to go put their money somewhere other than Gamestop. GME is the play. Stick to the fucking plan and make the hedgies bleed. The entire establishment had a fucking heart attack over GME today. No hedge fund manager is sweating over DOGE. There is a reason for that.

 

[brackis1]

Just to remind you again, keep in mind this is not a subject I'm very knowledgeable about. Anything I say is through the eyes of someone who understands a tiny fraction of this stuff.

Okay, disclaimer out of the way, I guess my point was that the article is written under the premise that the majority of these people who have bought up GME are rabidly opposed to any short selling whatsoever. I don't know anything about these guys. I haven not read a word of their forum aside from a couple random things posted here. So I don't know their collective view (if they have one) of hedge funds or the markets in general. Is that really how they see things, that short sellers are evil, period? Or is it more that being THAT short something to where this is even possible is a bad idea? And am I am correct in that a hedge fund simply shorting a stock does not at all make it susceptible to being squeezed? There has to be a certain amount of exposure for it to work?

Shorts are useful for the market just like buyers. Scam artist shorts are bed, just like scam artist buyers are bad.

Saying "all shorts are bad" is like when a chemicals company tries to convince an entire town that all lawyers are evil in hopes nobody sues them for getting mesothelioma from illegal working conditions in the town plant. Shorts often sound the alarm and alert attentive investors to fraud companies deserving of failure like Luckin Coffee before the insiders can cash in their shares.
Shorting has unlimited risk and high costs to do, so people who take legit short positions based on research need to be right or pay a big price.

 

[Deleted member 513083]

Yeah. Look just a few posts above that one. Its a Forbes article trying to convince you people buying GameStock are Nazis. Then they shit out another article claiming some shitcoin is the "Gamestop of Crypto". Is bullshit. Some hedge fund paid for that article to convince people to go put their money somewhere other than Gamestop. GME is the play. Stick to the fucking plan and make the hedgies bleed. The entire establishment had a fucking heart attack over GME today. No hedge fund manager is sweating over DOGE. There is a reason for that.

Probably, I think it was the Elon tweet and desperate people who try to create another GME, but youre right they should stick with GME that will make them bleed hard.

 

[Cuzcatlan]

 

[ElijahWood]

I got out of a small position in BBBY but I’m still pissed. Should let the market drop prices not force sales to accommodate new margin requirements with no advanced notice. What if I had the cash and just had to transfer it? I wasn’t given the ability to.

scummy, scummy, double dipping jackasses.

Why is this surprising to anyone? They literally changed the voting laws right before the election to make sure their guy won.

 

[mkess101]

Shorts are useful for the market just like buyers. Scam artist shorts are bed, just like scam artist buyers are bad.

Saying "all shorts are bad" is like when a chemicals company tries to convince an entire town that all lawyers are evil in hopes nobody sues them for getting mesothelioma from illegal working conditions in the town plant. Shorts often sound the alarm and alert attentive investors to fraud companies deserving of failure like Luckin Coffee before the insiders can cash in their shares.
Shorting has unlimited risk and high costs to do, so people who take legit short positions based on research need to be right or pay a big price.

For sure, and that was kinda my point/question. This raid...it's only possible with funds taking extreme (even reckless) short positions right? Just being short GME would never have allowed this to happen. A position becomes unreasonable exactly when something like this even becomes possible?

The hedge fund managers are the professionals, right? They're managing billions in assets, mostly of other people's money. They shouldn't just be a step ahead of a bunch of reddit guys, they should be miles ahead. Which means never leaving their firms vulnerable to a squeeze like this? That's part of their job, right?

Shouldn't the majority of the ire and blame on this go toward the extremely well compensated professionals who are managing these huge sums of money who just plain should never have put their firms in a position where this was possible?

 

[Deleted member 513083]

Is there some Bailout for the funds? Like can't they cry to some judge or whatever, maybe I am being overly pessimistic but it seems too good to be true.

 

[brackis1]

For sure, and that was kinda my point/question. This raid...it's only possible with funds taking extreme (even reckless) short positions right? Just being short GME would never have allowed this to happen. A position becomes unreasonable exactly when something like this even becomes possible?

The hedge fund managers are the professionals, right? They're managing billions in assets, mostly of other people's money. They shouldn't just be a step ahead of a bunch of reddit guys, they should be miles ahead. Which means never leaving their firms vulnerable to a squeeze like this? That's part of their job, right?

Shouldn't the majority of the ire and blame on this go toward the extremely well compensated professionals who are managing these huge sums of money who just plain should never have put their firms in a position where this was possible?

It's well beyond the technical and spilled far into the "just sell idiots on buying random shit" and pretend there's another reason its just, which is why Dogecoin is now up 800% and there are zero "wall street shortsellers" there.

 

[rob mafia]

It's well beyond the technical and spilled far into the "just sell idiots on buying random shit" and pretend there's another reason its just, which is why Dogecoin is now up 800% and there are zero "wall street shortsellers" there.

i'd buy doge way before bitcoin.

 

[legkicktko]

Guys, can I buy shares of AMC and GME at E-Trade?

Yes

 

[Deleted member 513083]

i'd buy doge way before bitcoin.

Don't do it, it is very likely some ponzi scheme started by some morons on reddit and /biz who bought shit ton of these when they were worth nothing. A lot of people will lose their mind once they realize they are just holding bags for some Fat Neet.

 

[mkess101]

It's well beyond the technical and spilled far into the "just sell idiots on buying random shit" and pretend there's another reason its just, which is why Dogecoin is now up 800% and there are zero "wall street shortsellers" there.

You're focusing on the buyers here and that's fine, I guess I'm more wondering about the professional fund managers who'd allow their fund to be put in jeopardy by "idiots buying random shit". That shouldn't be possible if a fund is being managed correctly, right? If you're shorting a stock that's priced too high and deserves to be shorted, great. But to be so exposed that a bunch of people buying it up makes it possible that your fund goes bankrupt? That seems absurdly reckless.

 

[rob mafia]

Don't do it, it is very likely some ponzi scheme started by some morons on reddit and /biz who bought shit ton of these when they were worth nothing. A lot of people will lose their mind once they realize they are just holding bags for some Fat Neet.

much bags, heavy yes

 

[Prefect]

Somebody gets the bag somebody holds it, feel sorry for all the guys getting shilled and joining the party too late

I think the fix is in. The percentage being shorted went from 140% to 292%. Either, it already peaked or the solution is to break the system because they are already done. If you owe 4 billion or 4 trillion, it doesn't matter because you can't pay it. Owing 4 trillion is preferable because you at least made a bet that could pay off if the price dropped. Doing nothing or clearing your position would bankrupt you anyways.

 

[Deleted member 513083]

much bags, heavy yes

Tons of people who do not understand stocks think they are the players while they are getting played.
The ones who sell now did make some decent cash tho, but like always some people gonna believe in the meme instead of actually thinking.
GME was the thing but people get greedy and a ton of people wanna profit now since they see the GME people getting payed. But as long as you are not the one holding the bags who cares.

 

[Prefect]

For sure, and that was kinda my point/question. This raid...it's only possible with funds taking extreme (even reckless) short positions right? Just being short GME would never have allowed this to happen. A position becomes unreasonable exactly when something like this even becomes possible?

The hedge fund managers are the professionals, right? They're managing billions in assets, mostly of other people's money. They shouldn't just be a step ahead of a bunch of reddit guys, they should be miles ahead. Which means never leaving their firms vulnerable to a squeeze like this? That's part of their job, right?

Shouldn't the majority of the ire and blame on this go toward the extremely well compensated professionals who are managing these huge sums of money who just plain should never have put their firms in a position where this was possible?

It isn't redditors that have the money. Some large investors are swinging the price. You think you could shuffle together a billion dollars on a forum that post a bunch of dick and homo memes?

 

[Deleted member 513083]

I think the fix is in. The percentage being shorted went from 140% to 292%. Either, it already peaked or the solution is to break the system because they are already done. If you owe 4 billion or 4 trillion, it doesn't matter because you can't pay it. Owing 4 trillion is preferable because you at least made a bet that could pay off if the price dropped. Doing nothing or clearing your position would bankrupt you anyways.

Are we talking about doge or GME right now? I am a bit slow