While high-fives and smily-faces abound on the interwebs over the destruction wrought on numerous hedge funds amid the short- and gamma-squeezes in GME and the rest of the heavily-shorted names, some are at least taking a moment to pause and reflect on other possibilities about how this all ends…
Via ‘The_Law_of_Pizza’:
I don’t work on the trading Floor, but I’m an attorney who services a variety of financial institutions, including broker/dealers.
This isn’t the exciting, hilarious answer you want, but a lot of people had no idea it was even happening until the past 48 hours, and even now, it’s mostly just a funny news article about some internet trolls making a bubble.
This is a big deal to the shorting community, but to the other 99% of the financial world, nobody gives a shit.
As much as young people on the internet like to imagine this as an epic, David vs Goliath, Wall Street vs Main Street showdown for the history books; from a bird’s eye view its actually just a brief dumpster fire where a couple hedge funds lost their shirts betting on one little small cap stock. It has happened before, and it will happen again.
In 6 months, nobody will remember or care, except that (maybe) it will become more difficult for retail investors to trade options.
And not because the greedy hedge fund oligarchs forced the SEC to crack down on retail investors.
But rather because, when this is all said and done, there is going to be a black hole where most of these retail investors’ brokerage accounts used to be, and the SEC and brokerage community will be lambasted for failing to protect unsophisticated investors from a bubble.
I have been monitoring the WSB threads, and while the WSB veterans know that they’re making a suicide charge for the memes, they have brought thousands of naive, new investors with them – who predominantly think that they’re going to somehow come out on top, not realizing that they’re cannon fodder for the more savvy WSB users to exit with gains.
Redditors never seem to stop and think about why the WSB guys know so much about derivatives trading.
Or how they seem to know how to access and read from a Bloomberg Terminal.
Or why there are so many users there that can seemingly drop tens or hundreds of thousands of dollars on complicated meme plays.
How do you think that WSB knew that GME was open to a short squeeze and a gamma squeeze play?
WSB’s power users are younger finance bros. It’s 30-something investment bankers and portfolio managers memeing with each other a. cosplaying as “autists.”
If you didn’t know what a gamma squeeze was 48 hours ago, you are their exit strategy and the down payment on their next Porsche.
Caveat Emptor indeed.
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Just keep swimming, Nemo.
There’s a man who understands a lot about trading and next to nothing about human nature.
In the long run I wonder which will provide the best return on his investment?
The WSB crowd all used options?
So that’s why RH is limiting stock trades in GME??
What is that bullshiff of an argument…
Robin Hood sold itself as being egalitarian by allowing anyone to buy one measly share or purchase options on margin with a free app. That was proven as BS.
Gee, what could ever go wrong with that in an environment where any basement dweller with an iPhone and a stimulus check could play on an even basis with Fed-backstopped hedge fund vultures? I guess we all found out. You can’t convince me that some Whale out there wasn’t slowly accumulating common shares, too … or that those shares will eventually be sold leaving the latecomers holding the bag.
The second stinking fish is how the shorts are allowed to play the naked short-selling game and no one wants to talk about it.
Ummmm … is that the real Yo, or a doppleganger??
If doppleganger ….. YOU AIN’T FUNNY!!!
Huh! That’s exactly what a doppler would say.
I’m waiting for ADMIN to confirm.
Wait … I have a “test”. Name any two of the books you sent me; title and author. That will convince me.
======
If it is you …. good to see your Going Dark hiatus was a brief one.
It’s them.
Well … look at THAT!!! You nailed it. “Judaism’s Strange Gods” was my favorite of all the books, and I told you that, and you chose that as one of the two books.
Good to see you testing the waters, Yo. Don’t let the fuckers win by chasing you away.
Dahum, this is gonna be a GREAT day, no matter what.
annuit coeptis novus ordo seclorum <—-====
Yup! just bump the MIC annual taxpayer payouts to 2 trillion a year and the majority of taxpaying tards never complain! That’s called groupthink across party lines! OK, I know put on my hardhat as here comes the brave military boys who are gorging themselves on gubmint cheese!
Hilarious fact!
Individualist can be team players. Forced collectivism is never going to work.
Pretty decent comment with research.
#1 No one goes to jail except the hoi polloi and those who buck the system.
#2 If they are willing to create money that isn’t backed by anything, why wouldn’t they create stock out of thin air too?
#3 Blowing up the economic system is the endgame. You can’t have a Great Reset without a Great Knockdown.
#4 When you control the means of communication, you can blame it on whomever you like, doesn’t matter who is actually responsible, only who they tell you is responsible that counts. Remember 9/11?
#5 If people are willing to believe we actually went to the Moon, what won’t they believe?
You were doing so very well … until you got to that. Again. You’re never going to stop, are you? lol
Not until we go.
https://www.youtube.com/watch?v=TZAdojHn0yE
Just posted the same thing… then got a database error msg…
The guberments after me…
Stucky. Watch this please.
[youtube
TRANSTRONAUTS: Transgender astronauts and problems with space balls (SATIRE)
https://www.brighteon.com/fd297f0e-c4cd-4220-a079-968512efeff1
Hey Farmer/Stuck…there is still ‘Confusion in the Cosmos’…just saying
I’ll take #4 for the win, Alex. Something about this whole thing smells funny. But I’m suspicious of everything these days.
That’s funny. Really funny. Really really funny.
Talk about losing credibility in one fell swoop!!
What credibility?
You’re nothing but a shill. A chicken. A rat. A pig.
Go fuck yourself to death.
Yeah, he’s like the guy on the old TV ads: “I’m not a doctor, but I play one on TV.”
Like I’d ever listen to anything a self-professed corporate attorney had to say.
These people are acting collectively, to make money, not to attack an evil in their society. There would be zero interest if personal greed was not involved. Human nature rides again.
yep its a scam, wallstreetbets is run by the banksters, there is no little guy victory, and it probably ends with more regulation that favors big finance.
Got gold!