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Amarcarts
Feb 21, 2007

This looks a lot like suffering.


Lol there is a bubble/short squeeze currently underway driven by some folks on Reddit. Some people are losing and are going to lose a lot of money and it'll still be an insanely unprofitable business that's going down in flames.

Edit: To give some perspective it was ~$40 per share last week and they've made zero changes to their business model.

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Katamari Democracy
Jan 18, 2010

Oh, We understand.
A trip to collect a million votes, yes.
Oh, we know why.
We get the point of rolling up a million


Wedge Regret

Wasnt it like 8 bucks a share a couple weeks ago?

Kaiser Mazoku
Mar 24, 2011

Didn't you see it!? Couldn't you see my "spirit"!?

Apparently their goal is to "gently caress over the big guys" and I don't get how it's supposed to work because I'm a dumb dumb. If the folks at Reddit drive up the price of the stocks, what's stopping "the big guys" from selling their own shares and making bank?

luchajones
Jan 28, 2018

I have no beard, and I must scream


Kaiser Mazoku posted:

Apparently their goal is to "gently caress over the big guys" and I don't get how it's supposed to work because I'm a dumb dumb. If the folks at Reddit drive up the price of the stocks, what's stopping "the big guys" from selling their own shares and making bank?

Something about Martin Short

My Spirit Otter
Jun 15, 2006


CANADA DOESN'T GET PENS LIKE THIS

SKILCRAFT KREW Reppin' Quality Blind Made American Products. Bitch.

Kaiser Mazoku posted:

Apparently their goal is to "gently caress over the big guys" and I don't get how it's supposed to work because I'm a dumb dumb. If the folks at Reddit drive up the price of the stocks, what's stopping "the big guys" from selling their own shares and making bank?

The big guys shorted the stock and it out-performed, rather than under-performed and now they owe a lot of money

Kaiser Mazoku
Mar 24, 2011

Didn't you see it!? Couldn't you see my "spirit"!?

My Spirit Otter posted:

The big guys shorted the stock and it out-performed, rather than under-performed and now they owe a lot of money

After researching how short-selling works I am laughing my rear end off.

ELI PORTER
Sep 16, 2007

I posted on Something Awful and all I got was this lousy t-shirt


Kaiser Mazoku posted:

Apparently their goal is to "gently caress over the big guys" and I don't get how it's supposed to work because I'm a dumb dumb. If the folks at Reddit drive up the price of the stocks, what's stopping "the big guys" from selling their own shares and making bank?

"the big guys" made a bet that the price would go down but instead ... it's going up

Pekinduck
May 10, 2008


Kaiser Mazoku posted:

Apparently their goal is to "gently caress over the big guys" and I don't get how it's supposed to work because I'm a dumb dumb. If the folks at Reddit drive up the price of the stocks, what's stopping "the big guys" from selling their own shares and making bank?

The big guys had it heavily shorted. Gamestop's demise is inevitable so the big hedge funds bet the farm on it never going up. Its a pretty sweet burn by reddit I have to admit.

Vakal
May 11, 2008


It's been a while since I short sold anything, but if I remember right you only have a couple of days to "re-buy" the stocks you pre-sold. So it's not like you can just sit back and let things cool down again.

Lil Swamp Booger Baby
Aug 1, 1981

MTV




I lost thousands because of this, I bought 2000 copies of Madden 08

feelix
Nov 27, 2016



do hedge funds have stocks? can I short those?

Meme Poker Party
Sep 1, 2006

THIS NEW AV WILL LET ME POST LIZARD TITS TWICE AS EFFICIENTLY!

IT'S GIVING ME A FUCKING BONER RIGHT NOW!


Reddit is now good.

Not because stocks are good, but because they are savagely destroying several hedge funds.

Hamburlgar
Dec 31, 2007

WANTED


My Spirit Otter posted:

The big guys shorted the stock and it out-performed, rather than under-performed and now they owe a lot of money

It’s a step beyond this.

The hedge funders have shorted 140% of available shares. Essentially they’re hosed as there aren’t be enough shares to buy when they have to buy.

They’re hosed.

deadeyez
Jan 31, 2015

aggressively stupid



Fun Shoe

It's absolutely hilarious and there's going to be suddenly incredibly rich people and very poor people left and right

Bronze Fonz
Feb 14, 2019






I understand very little of this but basically as soon as anyone who actually owns stocks in anything loses money I'm happy so voted 5.

Flannelette
Jan 16, 2010




Going to short the counter-short now.

Also the tin-foil stuff that is taking over reddit now is hilarious, "big wall street is coming to shutdown out wsb!!!".

Pawn 17
Dec 17, 2000

> access main security grid
access: PERMISSION DENIED.







A couple of hedge funds have already had to be bailed out. They have also had to liquidate other positions to cover the shorts on gamestop as well as other stocks like amc that are being ramped by redditors.

This has attracted the attention of the White House, the Fed, the SEC and many of the World’s billionaires. It’s pretty insane.

That said, the price on these stocks will eventually crash like 90% in a day and people buying them looking to get rich are going to lose everything.

feelix
Nov 27, 2016



Flannelette posted:

Going to short the counter-short now.

Also the tin-foil stuff that is taking over reddit now is hilarious, "big wall street is coming to shutdown out wsb!!!".

I mean hedge fund managers are legit calling for regulatory action because the free market shouldn't be free when it doesn't suit them

Meme Poker Party
Sep 1, 2006

THIS NEW AV WILL LET ME POST LIZARD TITS TWICE AS EFFICIENTLY!

IT'S GIVING ME A FUCKING BONER RIGHT NOW!


Flannelette posted:

Also the tin-foil stuff that is taking over reddit now is hilarious, "big wall street is coming to shutdown out wsb!!!".

I think that specific outcome is not likely, but no joke expect some rules might change because.

"Rich people collude to get richer" is just an average day in the world of finance. But "average folk got a hold of some rich people's money" is world-ending pikachu face for them.

Proficient Scoundrel
Aug 25, 2005



this could end up coming out of a lot of pension plans for union workers etc

Pekinduck
May 10, 2008


Proficient Scoundrel posted:

this could end up coming out of a lot of pension plans for union workers etc

whatever only boomers have pensions

feelix
Nov 27, 2016



Proficient Scoundrel posted:

this could end up coming out of a lot of pension plans for union workers etc

How so? You mean like, some CEO who had his money in that hedge fund will give himself a bigger bonus because he lost some money?

E:oh you mean the retirement account itself is in that fund partially

feelix fucked around with this message at 03:21 on Jan 28, 2021

ded
Oct 27, 2005

Kooler than Jesus


it

can

only

go

UP

Glenn Quebec
Oct 30, 2005

That's because our downstream reality reflects an upstream case but I'm going to violate it.

Lil Swamp Booger Baby posted:

I lost thousands because of this, I bought 2000 copies of Madden 08

now u shares and stock congratulations

Meme Poker Party
Sep 1, 2006

THIS NEW AV WILL LET ME POST LIZARD TITS TWICE AS EFFICIENTLY!

IT'S GIVING ME A FUCKING BONER RIGHT NOW!


I'm generally of the opinion that short term pain is ok if it's part of ending terrible/stupid things. If some pensions suffer to help end the inane practice of retirements being dependent on the loving stock market... well it sucks, but oh well. It's like when people go THE JOBS about closing a coal plant or something. Yeah I know it sucks, but that's not a reason not to do it.

Proficient Scoundrel
Aug 25, 2005



feelix posted:

How so? You mean like, some CEO who had his money in that hedge fund will give himself a bigger bonus because he lost some money?

i mean a lot of the money those hedge funds trade with come from teachers unions and fire departments

Flannelette
Jan 16, 2010




Meme Poker Party posted:

I think that specific outcome is not likely, but no joke expect some rules might change because.

"Rich people collude to get richer" is just an average day in the world of finance. But "average folk got a hold of some rich people's money" is world-ending pikachu face for them.

Seeing the meltdown on there would be worth all of this.

The Postman
May 12, 2007



This dude I know went from "i don't understand stocks" to ~TRADING GURU~ in the span of a week after a strict diet of that subreddit

stratdax
Sep 14, 2006


Here's, as far as I can tell, a fairly decent article explaining in basic terms what's happening: https://www.vox.com/the-goods/22249458/gamestop-stock-wallstreetbets-reddit-citron

Meme Poker Party
Sep 1, 2006

THIS NEW AV WILL LET ME POST LIZARD TITS TWICE AS EFFICIENTLY!

IT'S GIVING ME A FUCKING BONER RIGHT NOW!


The Postman posted:

This dude I know went from "i don't understand stocks" to ~TRADING GURU~ in the span of a week after a strict diet of that subreddit

That dude, in the near future:


Chumbawumba4ever97
Dec 31, 2000



Proficient Scoundrel posted:

this could end up coming out of a lot of pension plans for union workers etc

iirc stuff like union retirement plans don't exactly engage with risky hedge fund BS. They usually deal with "blue chip" stocks like Microsoft, Apple, IBM, AT&T, etc. Not Bed Bath & Beyond or Blockbuster Video.

Also stock market usually impacts 401ks. My union's pension doesn't care how the stock market is doing; I am going to get X amount per month when I retire and how the stock market is doing doesn't matter.

Chumbawumba4ever97 fucked around with this message at 03:31 on Jan 28, 2021

ArbitraryC
Jan 28, 2009
Pick a number, any number

Pillbug

If it's so easy to wreck some big hedgefunds by propping up stock that should be any reasonable metric be failing how come that doesn't happen more often in a rich vs rich person scenario. I have a hard time believing there's so much collusion there's absolutely no one up top willing to take down other rich people in the name of their own profit. Is it just sort of a mutually assured destruction thing where it's taboo because they'd all ruin each other?

Bouillon Rube
Aug 6, 2009



Proficient Scoundrel posted:

this could end up coming out of a lot of pension plans for union workers etc

poo poo just checked my 401k and apparently my plan is split 50/50 between Gamestop stock and Dave & Busters tokens

Chumbawumba4ever97
Dec 31, 2000



Yeah I am pretty confused how no one thought to do this sooner.

Chinatown
Sep 11, 2001

~*Suck My Balls*~

Fun Shoe

all the bitchmade financial professionals screaming THIS ISNT A GAME ITS NOT A CASINO is the funniest part

because its in reality exactly those things

Gatts
Jan 2, 2001

Goodnight Moon


Nap Ghost

Chumbawumba4ever97 posted:

Yeah I am pretty confused how no one thought to do this sooner.

I think it also has to do with transparency or available info. I think many keep it to themselves what they’re shorting except a couple funds were too transparent in their activities so they got targeted.

Assuming the intention was to specifically hurt hedge funds

Chumbawumba4ever97
Dec 31, 2000



Gatts posted:

I think it also has to do with transparency or available info. I think many keep it to themselves what they’re shorting except a couple funds were too transparent in their activities so they got targeted.

Assuming the intention was to specifically hurt hedge funds

Ah so there was no specific reason they picked Gamestop?

kazr
Jan 28, 2005


ArbitraryC posted:

If it's so easy to wreck some big hedgefunds by propping up stock that should be any reasonable metric be failing how come that doesn't happen more often in a rich vs rich person scenario. I have a hard time believing there's so much collusion there's absolutely no one up top willing to take down other rich people in the name of their own profit. Is it just sort of a mutually assured destruction thing where it's taboo because they'd all ruin each other?

A small incestuous circle jerk

chaosbreather
Dec 9, 2001

Wry and wise,
but also very sexual.



This is hilarious, I'd hop in but I get the feeling it would be way too late and it takes a couple days to transfer money into my trading account, and I'd have to go through all the hoopla of signing up to trade US stock. I guess I'll just continue my sensible but aggressively growth-focused ETF portfolio that Does Okay Pretty Much All The Time

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hamtaro
Oct 7, 2008



Yeah, it's in the post-hype phase, dicey to get in right now

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