Comments

You must log in or register to comment.

ziq wrote

The hedge fund really has nothing to lose, the US gov will just hand them a bailout if they keep tanking. Billionaires no longer have to take risks now that the state secures their wealth with bailouts.

11

kin wrote

I am totally ignorant about this subreddit actions but assuming this could spread and affect the whole market I assume the bailouts will be more complicated to pull out even more with the public paying attention. Like they had to let lehman die in 2008.

Dunno seems a neat idea this financial guerrilla.

7

NeoliberalismKills wrote

At the initial down turn of the US economy from COVID-19 they found a way to print trillions and funnel it into Wall Street with minimal backlash. A fundamental restructuring of Wall Street would be a fundamental restructuring of power. And if there's one thing we anarchists know, those with power don't let that happen. So, as with Lehman, you might get one sacrifice to appease the peasants but you're not going to see anything dramatic. But maybe I'm just a pessimist.

6

kin wrote

I think your point is exactly what is going to happen, but this concept as a tactics is very new to me, and maybe is radicalizing some folks that "don't care" about politrics.

I don't expect a turning point where this action will generate a crash, as you remind me, the recuperation works fast

4

86944 wrote

So that's what's going on with the gamestop memes over there?

Fucking hilarious.

9

milkweed wrote

It’s so funny to see the finance “experts” fucking writhe

8

mofongo wrote

Thanks, I've been looking for an explanation for the last week.

7

existential1 wrote

I've been following this very closely since September of last year. It has been a wild ride. Strangest thing I've ever seen in socks.

6

rot wrote (edited )

shorted 140% of all shares available.

shouldn't even be possible but here we are. this is really funny money is fake, dont make silly bets you cant recover from. listening to Death while reading this was a good choice.

4

edmund_the_destroyer wrote

I saw an explanation for the 140% shorting. The idea is that you sell shares, buy them back, and sell them again. If the stock price is racing downwards, it works fine.

But GameStop stock is now trading at 10x+ higher than it was when these big firms set up their short sales, and trying to buy enough shares to sell twice is costing billions.

3

rot wrote

shorting is selling bets on a team you predict to lose so you can make profit basically (bad analogy but bear with me)

over 100% means they sold a short stock, bought it back then resold it, sorting the buyer again

3

edmund_the_destroyer wrote

There have been some brilliant memes on this. I can't find the best one I saw, but it was something like this: "Some hedge fund managers are on CNN saying that Wall Street is not a casino. What he really meant is that regular people aren't welcome in the Wall Street casino."

Even if you believe in capitalism, stock values are almost entirely useless. Stock prices are important at an IPO because it funds the company, and when one company can afford to buy another. Other than that, it's just gambling with silly rules.

4