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Game Stop Stock Manipulation Flap

Satanica

Satanica

Veteran Member
This has really served to pull back the curtain on market manipulation. A lot of this information came to light in Twitter conversations, so I will do my best to sort of sum things up.

A Hedge Fund by the name of Melvin Capital decided to short GME (Game Stop) and brought the stock down. When small investors realized this, they started buying until they managed to drive up the stop to over $100 per share knowing that Melvin would eventually have to buy eventually and go bankrupt. In a questionable and rage-inducing response, Robin Hood, broker, refused to honor those purchases thereby protecting Melvin from the consequences of their actions. This has not gone over well at all and has gotten plenty of attention from all corners, including Elon Musk and AOC.

ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
www.zerohedge.com www.zerohedge.com
 
I saw something about this yesterday, reminds me of a schoolyard bully, the victim gets in trouble while the bully stands behind the teacher sticking his tongue out at them. In my opinion, what's good for the goose is good for the gander, in other words, the stock market is manipulated all the time but that's okay as long as it's the *right* people manipulating it.
 
I can just see it now... 'Short Sellers Will Hate You If You Follow These 10 Easy Investing Tips' will replace the 'sexy singles' page clogging clickbait.

There's nothing illegal about what's going on.
Citadel bought buttloads of GME on margin expecting it to fall.
Folks found out about it from their issued quarterly and decided to say fuck it.
The risk and possible loss to more than a few thousand individual day-traders is minimal if GME tanks (except for the whales but they won't give a shit).
Sooner or later those margin holders are going to call Citadel and say 'Where's my money BITCH?!?'
And this is where they're fucked.
I see it as payback for the 2008 real estate shitstorm.
And the behavior of Wall St. suits aren't doing them any favors.
They're making the 'Eat The Rich!' slogan become more acceptable.
 
This interviewee has an interesting perspective. He says that it's complicated, and Robinhood was, or is, in fact, in deep shit because of what the traders did, potentially wiped out due to needing to pay losses eventually regarding the gamestop buys. He says that Robinhood did need to do *something*. But the idea is stated that shutting the buys down was not correct, instead requiring more collateral from its traders could have gotten the same thing done.

Interviewee is Jordan Belfort, also known as "The Wolf of Wall Street", his memoirs by that name having been made into a movie in 2013 (https://www.investopedia.com/investing/who-is-jordan-belfort/ )


 
So, seems the powers to be are ok with multi billion dollar funds with powerful lobbyists screwing the the public ( retail investors) by working together shorting a company 130% to bring the price down (that’s right they shorted 30% more stock than is available for sale, how is that possible you ask) but heaven forbid the public (retail investors) catch on and fuck them over for billions like they deserve for being the scum of the earth and politician and SEC pocket lining assholes they are
 
I have to agree that this movement to go massively bullish on stocks with weak fundamentals is essentially a Ponzi scheme, and ultimately it's not going to end well.

BUT.

I have to wonder where all these sage financial analysts were leading up to the crash of 2008. Back then, financial giants were recklessly pouring everybody's life savings into mortgages for people with bad credit. I distinctly remember hearing radio ads from that time: Bad credit? Credit cards maxed out? Can't pay the bills any more? Refinance your home to get the equity out, you can pay all that off and buy a boat!

There were no talking heads wagging fingers at the recklessness of the banks, big companies stepping in to put the brakes on things, regulators talking about new rules to protect consumers. That all came after the collapse had started in earnest.
 
^^^^What he said! It was an interesting show seeing it from the inside. I was the office manager at a boutique real estate shop. Didn't lose my job until 04/2011. By then the industry was gutted. :(

ETA I did get laid off on 01/15/2009 (Miracle on the Hudson day) but they brought me back after a couple of months.
 
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DaveL said:
I have to wonder where all these sage financial analysts were leading up to the crash of 2008.

There were no talking heads wagging fingers at the recklessness of the banks, big companies stepping in to put the brakes on things, regulators talking about new rules to protect consumers. That all came after the collapse had started in earnest.
Click to expand...


 
Robinhood is pretty much gone, since they show they lie to their users.
ca.movies.yahoo.com

Robinhood's future is 'toast,' says 'Wolf of Wall Street' Jordan Belfort

Jordan Belfort, convicted felon and author of 'The Wolf of Wall Street,' has a warning for big money hedge funds and retail investors following the GameStop phenomenom.
ca.movies.yahoo.com ca.movies.yahoo.com
Here's the CEO of Robinhood admitting to lying. (at 18:30 mark)
 
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Satanica said:
www.goodreads.com

A quote by George Carlin

But there’s a reason. There’s a reason. There’s a reason for this, there’s a reason education sucks, and it’s the same reason that it will never, ever, e...
www.goodreads.com
Click to expand...
Wow. Welp, he 100% understood. He knew.

They don’t want people who are smart enough to sit around a kitchen table to figure out how badly they’re getting fucked by a system that threw them overboard 30 fucking years ago.
Click to expand...

He even understood when it started, considering the year he would have recorded this.
[automerge]1612282935[/automerge]
This is best listened to rather than read... he was 100% serious about all of this. It was not comedy. And he knew he was leaving this for everyone to see at a later time and for all history, really.
 
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As a financial advisor, going on 17yrs now, this has been interesting to say the least. I had no idea how many people on my social media were "expert investors".
 
Blizzard said:
Oh cool! What's your take on this thing? srs.
Click to expand...

My basic take on this is that there is a reason there are "professionals" in certain fields. Can you represent yourself in court? Yes. It it ever a good idea? Usually not. I view it the same with investing. I am fully registered, take all kinds of CE every year so that I can make sure I know how to make sure clients goals an objectives are achieved. I understand everything about how what happened with GME happened but it is still very bizarre. I could go on and on but at the end of the day I just don't understand how and industry like mine, which has been very heavily regulated since 2008 also has a DIY option.
 
New York (CNN Business)GameStop shares climbed rapidly and were halted twice for volatility ahead of the closing bell Wednesday. The gaming retailer's stock was priced at $91.71 at market close, up nearly 104% from the previous day.

Shares were halted once around 3:40pm ET after climbing nearly 74%, and again just over 10 minutes later after gaining 104%. GameStop's trading volume was roughly three times higher the five-day average for the stock, according to data provider Refinitiv.

Less than an hour after the closing bell, the stock was on the move again — gaining nearly 90% in after-hours trading.
[....]
The jump in GameStop also comes a day after the company announced its chief financial officer would resign next month to help "accelerate GameStop's transformation," which could fuel investors who believe in the long-term value of the retailer and its ability to shift from relying on physical stores to an e-commerce sales model.

AMC (AMC), another "meme stock" involved in the trading frenzy last month, also jumped around 18% on Wednesday.

Redditors on WallStreetBets cheered as GameStop soared. Posts on the subreddit included diamond emojis (a reference to holding a stock long term) and titles like "NEXT STOP IS THE MOON BABY" with rocket emojis, representing a belief that the stock will continue its upward trajectory.

Some GameStop investors have talked publicly about not selling their positions in the company during last month's trading frenzy because they believe in its long-term potential.

Around 4pm, the entire Reddit site was down for many users, though the company did not identify the cause of the outage. Within about half an hour, Reddit said it had identified the underlying issue and "systems are beginning to recover."
Click to expand...

www.cnn.com

GameStop shares surge more than 100%

GameStop shares climbed rapidly and were halted twice for volatility ahead of the closing bell Wednesday. The gaming retailer's stock was priced at $91.71 at market close, up nearly 104% from the previous day.
www.cnn.com www.cnn.com
 
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