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I'm pretty sure way more people heard "oh poo poo I can make a bunch of money from buying GME. what's GME?" than "I CAN STICK IT TO THE HEDGE FUNDS, MAAAN". Just look on the reddit and discord and stuff and it's pretty obvious pretty fast.
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Feb 4, 2021 00:05
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Also, again, the "sticking it to the big guy" largely didn't happen, or happened in reverse: https://www.wsj.com/articles/this-hedge-fund-made-700-million-on-gamestop-11612390687 quote:Richard Mashaal and Brian Gonick started buying GameStop Corp. GME 2.68% shares in September. $700 million dollars to just one hedge fund, and there were others who profited off GME. Some of that money came from Melvin Capital, but some of that money came from redditors. Redditor money given to a hedge fund. That's the opposite of sticking it to the big guy. And look, the reddit ringleaders who championed buying and holding GME are actually registered securities brokers: https://www.nytimes.com/2021/02/03/business/roaring-kitty-gamestop-massmutual.html quote:Moonlighting under the name Roaring Kitty, Keith Gill became something of an online folk hero for his dedication to GameStop, the struggling video-game retailer at the center of a trading frenzy that sent its share price into the stratosphere. Zaphod42 fucked around with this message at 00:19 on Feb 4, 2021 |
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Feb 4, 2021 00:15
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A hedge fund shorted a stock (Melvin), and some other hedge funds either bought or held the stock (Blackrock etc). Melvin lost that bet in, but  if you think they lost 70 gigajillion or whatever. They would have closed out their position as soon as it moved 10%ish out of their risk parameter. The stock market is a giant prediction market, and making bets against each other is what financial institutions do. There's nothing particularly unique about this situation, except that someone conned people into a pump&dump through reddit and youtube instead of on the phone or via email. The whole "screw Wall Street by going all in on one side of a bet" turned real fast into people pushing an obviously fraudulent narrative that the stock price was going to hit $5000 dollars, and what it didn't it's due to made-up terms like "short ladder attacks". There's a whole industry of people baiting people into pump&dumps and it's sad because instead of just mildly inconveniencing their friends with MLM pitches, this kind of fraud has the potential to nullify someones life savings.This is the kind of bullshit this incident will spawn more of: 
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Feb 4, 2021 00:27
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I remember reading the last 4 posts verbatim and even contributing one in the bitcoin thread way back in the day. You guys are right, these things are usually bubbles, but sometimes they aren't. At the end of the day smart money shouldn't ignore the possibility of masses of idiots stumbling into becoming millionaires online v0v Like if I had put the same $50 into every dumb bubble I heard about on SA including bitcoin I'd be colossally up right now. Just something to think about with all this chump talk. S w a y z e fucked around with this message at 20:29 on Feb 8, 2021 |
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Feb 8, 2021 20:19
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S w a y z e posted:I remember reading the last 4 posts verbatim and even contributing one in the bitcoin thread way back in the day. You guys are right, these things are usually bubbles, but sometimes they aren't. At the end of the day smart money shouldn't ignore the possibility of masses of idiots stumbling into becoming millionaires online v0v It's easy to think this way but if you were into chasing the ground floor of bubbles all the time, 9 out of 10 would see you busting out in the end. You could have made millions on GME if you sank your life savings into it in August and then pulled the money out a week and a half ago. But... You probably wouldn't have done the latter, even if you had done the former. Anyway, r/wallstreetbets now reads like the ravings of a bunch of Jim Jones cultists mixed in with some very disillusioned people who thought they were going to burn it all down. For what it's worth, Bitcoin is still fundamentally unstable and is essentially designed to eventually collapse.
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Feb 8, 2021 22:12
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Bitcoin can't collapse! Tesla just announced they're taking bitcoin as payment!
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Feb 9, 2021 00:12
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Detective No. 27 posted:Bitcoin can't collapse! "The Price of Bitcoin is Crashing HARD!" is my all-time favorite GBS thread title, because every time I saw it I imagined it was happening at that very moment. 
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Feb 9, 2021 00:57
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S w a y z e posted:I remember reading the last 4 posts verbatim and even contributing one in the bitcoin thread way back in the day. You guys are right, these things are usually bubbles, but sometimes they aren't. At the end of the day smart money shouldn't ignore the possibility of masses of idiots stumbling into becoming millionaires online v0v Its key to remember that this is an entirely zero-sum game. Its like poker. For someone to win, someone else has to lose. There is no "smart money" in a meme stock. The old adage of the stock market holds true here, "If you're hearing about a stock, its too late to get in" The "possibility of masses of idiots stumbling into becoming millionaires" requires even MORE masses of idiots to be financially ruined and lose their entire life savings. You're basically arguing that a lottery is a good investment because maybe you'll get lucky. Even if you did make money, other people lost tons of money. I wouldn't feel good about that. Its basically theft. https://www.reddit.com/r/gme_meltdown/comments/lezb9b/go_fund_them/ Some of these are probably made up or scammers, but no doubt several of these people who are now crying over losing thousands of dollars are real humans. If I had put $50 in Apple or Tesla I'd be rich right now. You can always say that about past investments. If you'd put $50 into plenty of other stocks you'd have $0 though. Its like saying "If I'd bet $50 on the Buccs to win the superbowl I'd be up right now!" like, yeah. But back when you had to make that bet, it wasn't such a sure thing. That's how gambling works. Zaphod42 fucked around with this message at 17:33 on Feb 9, 2021 |
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Feb 9, 2021 17:30
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Zaphod42 posted:Its key to remember that this is an entirely zero-sum game. It actually isn't zero sum. You are assuming a few things that aren't true: 1) Magin trading doesn't exist 2) No new money comes into or leaves the market 3) Firms don't go bankrupt 4) Inflation doesn't exist I agree about the "no smart money here" bit though. Lorem ipsum fucked around with this message at 20:02 on Feb 9, 2021 |
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Feb 9, 2021 19:59
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Stocks in general aren't a zero sum, but profiting off a bubble is entirely zero-sum.Lorem ipsum posted:3) Firms don't go bankrupt More firms profited off this then went bankrupt. So if anything, if we're talking about for redditors, its negative-sum then. Inflation doesn't effect bubbles, at least not one like this. All of this is way too short term. Its just a money lottery.
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Feb 9, 2021 20:04
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Zaphod42 posted:Stocks in general aren't a zero sum, but profiting off a bubble is entirely zero-sum. My mistake, I thought you were talking about the market as a whole.
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Feb 9, 2021 20:16
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Lorem ipsum posted:My mistake, I thought you were talking about the market as a whole. Nah, long term buying in of stocks you believe in and hold for years is a fairly reasonable investment. Especially big mutual funds. But people buying into GME is the direct opposite of that. Completely different thing.
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Feb 9, 2021 22:10
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A shame that this turned out to be some Hedge Funds screwing over other Hedge Funds using redditors for collateral. Teach us to be more cautious about what the Stock Market is doing next time. I wonder if any of those Redditors who made millions convincing others to pump the stock up are still active online, or if they've ghosted.
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Feb 11, 2021 17:50
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