And whose gonna buy from them?
Somewhere at the end of this are a bunch of bagholders. Hopefully it’s rich people that shorted the stock. We’ll find out! It’s very exciting.
Well, it’s going to be rich people in the sense that anyone who has the cash available to play stupid stock market games is probably in a fairly high income bracket, or at least their parents are.
While you certainly might cause some losses for people who shorted the stock, at this point they’re probably pretty well hedged.
On the other hand, every idiot who takes a long position on it will be underwater once it comes back to earth.
Also, while I certainly share your disdain for financiers, you do realize that the person instigating this is… one of those rich people, right? This isn’t some kind of populist revolt against the financial class, this is one rich finance bro leveraging a bunch of marks to get an edge over other finance bros.
Yeah, he’s using lemmings to pump up his wealth.
Exactly.
Some of the lemmings will end up in the life raft below, the others will all drown holding bags full of stocks worth far less than they paid.
The time to buy gamestop stock was the week before he did a livestream
Or at the very least the same day he did.
Yeah, rich and wealthy are two different things. Some movie pointed out that a pro ball player may be rich, but the person who owns the team is wealthy.
I think roaring kitty is in the rich category, and only because of the last gamestop go around. The short investers that he is sticking it to are the wealthy.
I know nothing about him, but if Dumb Money was at all accurate, he’s a freaking hero to the tick tock generation.
Last time, if people had exercised their options instead of selling them, they may have caused a big problem. At least, according to this vampire.
Jan 28, the day he cites, is the day Robinhood and other brokers stopped allowing buy orders on GameStop. Fuckery!
The “wealthy” (large investment firms, pension funds, sovereign wealth funds, etc.) don’t gamble everything they have on the future value of a single notoriously unstable stock. That’s what gullible people on Reddit do.
For some reason, the most cynical people are always the easiest to manipulate.
Well, unless they’re Bill Hwang.
I agree with you here… The institutions simply freezing trading on a stock because the plebs are doing stuff they don’t like was categorically bullshit.
Robinhood’s defense was that they just straight up didn’t have the ability to do the amount of trades that customers were requesting, there was no weird conspiracy, just a Silicon Valley tech app that wasn’t prepared for the volatility that the stock market can have, their clearinghouse requested $3 Billion dollars in deposit to clear the trades. Robinhood said they had only $2 Billion in funds at that point.
Due to the high volatility of GME and other meme stocks at that point, the clearinghouse was asking for a substantially higher deposit than the share prices, due to the volatility of the market.
This happened at literally every electronic stockbroker that exists, because they all use the same clearinghouses. Clearinghouses were not willing to take the risks on such a volatile stock, so they asked for way more collateral than normal. This is because you don’t actually buy stocks on these apps, you put in an order for a stock that will get granted when the trade goes through. There is a middleman that takes on some risk as they hold the stock from the seller, until it gets sent to the buyer.
Pretty simple explainer.
Typical collateral for a stock in a clearinghouse is 10%, for GME, the clearinghouse wanted 100% collateral, which Robinhood (and many other e-trading apps) could not afford to do. Robinhood actually raised 1B$ in funds from investors in a week to cover this, and allow GME trading again.
It’s super convenient for them the clearing houses made this request on the very day the short squeeze was about to go nuclear.
That’s in the past, though. There’s currently over 300,000 open interest on ITM call options expiring June 21. Let’s see if people exercise their options this time!
I don’t think that having to block their users from using the platform, causing them to be sued, and having to rush to raise an additional 1 billion in capital was very convenient. Like I said every e trading platform had to halt sales of GME due to the collateral being requested at 100% share price.
I think that the clearing house went way overboard with their 100% collateral requirement, but they state that the collateral price was set via algorithm. If you want some sort of conspiracy, that would be the place it would be, the dtcc
The stock market is not really able to deal with high speed e trading when demand skyrockets. It broke for everyone except those who had the ludicrous 100% collateral.
This was just proof that the system needs to be fixed, but nobody wants to fix it, because it doesn’t benefit those with deep pockets, only the retail investor.
I hope everyone has already filled their bunkers with supplies now that the financial system has been destroyed by the common man.
Ouch
Lotta bag holders this time.
I’m shocked.
I don’t understand what this Kitty guy is doing. He woke up, stock went up, he spoke, stock dumped.