[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Sign-in]  [Mail]  [Setup]  [Help] 

Status: Not Logged In; Sign In

This is the America I grew up in. We need to bring it back

MD State Employee may get Arrested by Sheriff for reporting an Illegal Alien to ICE

RFK Jr: DTaP vaccine was found to have link to Autism

FBI Agents found that the Chinese manufactured fake driver’s licenses and shipped them to the U.S. to help Biden...

Love & Real Estate: China’s new romance scam

Huge Democrat shift against Israel stuns CNN

McCarthy Was Right. They Lied About Everything.

How Romans Built Domes

My 7 day suspension on X was lifted today.

They Just Revealed EVERYTHING... [Project 2029]

Trump ACCUSED Of MASS EXECUTING Illegals By DUMPING Them In The Ocean

The Siege (1998)

Trump Admin To BAN Pride Rainbow Crosswalks, DoT Orders ALL Distractions REMOVED

Elon Musk Backing Thomas Massie Against Trump-AIPAC Challenger

Skateboarding Dog

Israel's Plans for Jordan

Daily Vitamin D Supplementation Slows Cellular Aging:

Hepatitis E Virus in Pork

Hospital Executives Arrested After Nurse Convicted of Killing Seven Newborns, Trying to Kill Eight More

The Explosion of Jewish Fatigue Syndrome

Tucker Carlson: RFK Jr's Mission to End Skyrocketing Autism, Declassifying Kennedy Files

Israel has killed 1,000 Palestinians in the West Bank since October 7, 2023

100m Americans live in areas with cancer-causing 'forever chemicals' in their water

Scientists discover cancer-fighting bacteria that "soak up" forever chemicals in the body

Israel limits entry of baby formula in Gaza as infants die of hunger

17 Ways mRNA Shots May CAUSE CANCER, According to Over 100 STUDIES

Report: Pentagon Halts Some Munitions Shipments To Ukraine Over Concerns That US Stockpiles Are Too Low

Locals Fear Demolitions as Israeli Troops Set Up New Base in Syrias Quneitra

Russian forces discover cache of Ukrainian chemical drone munitions FSB

Clarissa Ward: Gaza is what is turning people overseas against the US


National News
See other National News Articles

Title: Revenge: An Internet Mob Is Turning The Stock Market Into “A Video Game”, And The Establishment Is Freaking Out
Source: [None]
URL Source: https://www.newswars.com/revenge-an ... establishment-is-freaking-out/
Published: Jan 28, 2021
Author: Michael Snyder
Post Date: 2021-01-28 08:57:09 by Horse
Keywords: None
Views: 1181
Comments: 18

Retail investors have banded together to turn over the tables on Wall Street, and it has created a wild frenzy that is making headlines all over the globe.

Unprecedented short squeezes have pushed the share prices of GameStop, AMC, Macy’s and BlackBerry to insane heights, and prominent voices in the financial world are complaining that trading in those stocks has become completely divorced from the fundamentals.

In fact, these young retail investors are actually being accused of turning the market into “a video game”.

Infamous investor Michael Burry, who made crazy amounts of money betting against the housing market during the last financial crisis, even had the gall to claim that recent trading in GameStop was “unnatural, insane, and dangerous”.

Of course Burry is right, but the truth is that the entire market has been transformed into a giant casino and has been “unnatural, insane, and dangerous” for a very long time.

If the entire market fell 50 percent tomorrow, stock prices would still be overpriced.

So it is more than just a little bit hypocritical for the Wall Street establishment to be complaining about GameStop when they have been gaming the system for years.

Ultimately, GameStop is not a good long-term investment. Most people download video games these days, and so a brick and mortar retail chain that sells physical copies of video games shouldn’t be attractive to anyone.

GameStop lost money last year, and they will lose money again this year.

But a group on Reddit known as “WallStreetBets” noticed that some big hedge funds had taken ridiculously large short positions against GameStop, and they sensed an opportunity. They realized that if they all started to buy GameStop all at once, it would likely create a short squeeze of epic proportions.

And that is precisely what has happened.

A year ago, a single share of GameStop was going for about four dollars.

At the beginning of the month, GameStop was sitting at $17.25.

On Wednesday, it closed at $347.51.

In addition to making huge profits, the investors on “WallStreetBets” also wanted to get revenge on the big hedge funds for all the evil things they have done in the past.

Every great story needs a great enemy, and in this case the great enemy is a hedge fund called Melvin Capital…

Melvin Capital, the $12.5 billion hedge fund founded by Gabriel Plotkin, was one of the main targets of the Reddit campaign, after an SEC filing revealed that the fund had a large short position in GameStop.

‘By the end of the week (Or even the end of the day), Plotkin is going to have less than a college student 50k in debt who works part time at starbucks,’ one Reddit user wrote on Wednesday morning.

Nobody knows for sure how much money Melvin Capital has lost, but it appears to be in the billions…

CNBC could not confirm the amount of losses Melvin Capital took on the short position. Citadel and Point72 have infused close to $3 billion into Gabe Plotkin’s hedge fund to shore up its finances. On Wednesday’s “Squawk Box,” Sorkin said Plotkin told him that speculation about a bankruptcy filing is false.

Melvin Capital has supposedly closed all of their short positions in GameStop now, but not everyone is buying that claim.

In any event, the crowd on WallStreetBets intends to continue to drive up the prices of GameStop, AMC, Macy’s and Blackberry for the foreseeable future.

Eventually, each of those mini-bubbles will collapse, but for now the big short sellers are squealing in pain.

Needless to say, the large hedge funds have been reaching out to their “friends” for help, and the SEC just released a statement which indicated that they are watching developments closely…

We are aware of and actively monitoring the on-going market volatility in the options and equities markets and, consistent with our mission to protect investors and maintain fair, orderly, and efficient markets, we are working with our fellow regulators to assess the situation and review the activities of regulated entities, financial intermediaries, and other market participants.

And White House Press Secretary Jen Psaki told reporters just a few hours ago that the White House is “monitoring” the situation.

But what is there to “monitor”?

All is fair in love and investing, and the retail investors of “WallStreetBets” caught some big hedge funds with their pants down and punished them for it.

After everything that big hedge funds have gotten away with over the years, many would argue that a little bit of revenge was definitely in order.

But Wall Street has never seen anything like this before.

Retail investors are supposed to be small fish that get eaten alive by the bigger fish, but now technology has changed the rules of the game…

The way people trade stocks has been upended by the rise of no-fee apps like Robinhood. That technology has democratized investing, giving armchair investors far removed from traditional banks free access to sophisticated trading instruments, like options.

You could pay an analyst to tell you what stocks to buy, or you could create a Reddit account and follow forums like WallStreetBets. Millions of young people are opting for the latter, which is partly why the sudden surges in GameStop and AMC have caught Wall Street veterans by surprise.

Nobody should shed a tear for the short sellers.

They have made obscene amounts of money over the years by manipulating the markets and by preying on weak companies.

Now an Internet mob is preying on them, and many that are involved believe that revenge is a dish best served cold.

If you can’t handle the pain, don’t play the game.

In the end, this entire farce of a market is going to utterly collapse anyway. So the truth is that very few are going to get out of this thing unscathed.

Since the financial crisis of 2008 and 2009, investors have seen their portfolios increase in value by trillions of dollars, but this bubble only exists because of unprecedented manipulation by the Federal Reserve and others.

Now a relatively small group of retail investors is manipulating stock prices to punish a couple of hedge funds and everyone is in an uproar over it?

What a joke.

Our financial markets are fraudulent, and they have been for many years.

Nobody should be accusing retail investors of turning the stock market into “a video game”, because the Federal Reserve already did that a long time ago.

Post Comment   Private Reply   Ignore Thread  


TopPage UpFull ThreadPage DownBottom/Latest

Begin Trace Mode for Comment # 4.

#1. To: Horse (#0)

ghostdogtxn  posted on  2021-01-28   9:16:41 ET  Reply   Untrace   Trace   Private Reply  


#2. To: ghostdogtxn (#1) (Edited)

massive short positions

JP Morgan was short selling silver to keep the price down. And they just might get caught in a squeeze before much longer, since silver is used and cannot be replaced. Once it is gone, it is gone for good. Those holding physical silver will come out on top. ;)

BTP Holdings  posted on  2021-01-28   12:01:40 ET  Reply   Untrace   Trace   Private Reply  


#4. To: BTP Holdings, ghostdogtxn, Lod (#2)

That silver J P Morgan is sitting on actually belongs to China.

Horse  posted on  2021-01-28   15:04:43 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 4.

#7. To: Horse (#4) (Edited)

That silver J P Morgan is sitting on actually belongs to China.

It seems strange that China would not take physical delivery of that silver. Having it in JP Morgan's vault is a bit like holding paper silver or gold like an ETF. You really should have it in your hot little hands.

China had been accumulating as much gold as they could in a plan to release a 40% gold backed Yuan. But it seems they have been snookered on that deal since many of those gold bars had Tungsten cores. ;)

BTP Holdings  posted on  2021-01-28 20:32:35 ET  Reply   Untrace   Trace   Private Reply  


End Trace Mode for Comment # 4.

TopPage UpFull ThreadPage DownBottom/Latest


[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Sign-in]  [Mail]  [Setup]  [Help]