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re: A summary of what happened today with GME and why securities were restricted
Posted on 1/28/21 at 6:22 pm to Lou Pai
Posted on 1/28/21 at 6:22 pm to Lou Pai
The analogy I would use is from the strategic bombing campaign in WW2.
The allies didn't just bomb factories at random. One of their prime strategic targets were wait for it... ball bearing factories.
Something most people would never even think of, but turns out the Germans couldn't make a number of key platforms without significant numbers of ball bearings.
Think of it as a tiny lynchpin, which in and of itself seems insignificant, but taken as a part of an incredibly interrelated and complex command economy helped bring the nazi war machine to its knees.
I think Reddit found a gap in the functioning of the system that having nothing to do with gamestop in particular threatened to take the entire machine offline temporarily.
The allies didn't just bomb factories at random. One of their prime strategic targets were wait for it... ball bearing factories.
Something most people would never even think of, but turns out the Germans couldn't make a number of key platforms without significant numbers of ball bearings.
Think of it as a tiny lynchpin, which in and of itself seems insignificant, but taken as a part of an incredibly interrelated and complex command economy helped bring the nazi war machine to its knees.
I think Reddit found a gap in the functioning of the system that having nothing to do with gamestop in particular threatened to take the entire machine offline temporarily.
This post was edited on 1/28/21 at 6:31 pm
0
Posted on 1/28/21 at 6:46 pm to rocket31
Thats actually pretty scary.
Posted on 1/28/21 at 6:47 pm to CapitalCityTiger
I’ll explain this
Hedge Funds are allowed to push a stock price down to make money on a short, but the average Joe can’t push a stock price up to screw the Hedge Fund.
Hedge Funds are allowed to push a stock price down to make money on a short, but the average Joe can’t push a stock price up to screw the Hedge Fund.
Posted on 1/28/21 at 6:57 pm to 13SaintTiger
quote:
Last night, Robinhood sent out a message to users: you could no longer enter into new options. You could exercise them if you had the collateral (money in the account) to do so.
quote:
The market ran out of liquidity today, or was threatening to get close enough that they killed it. What does that mean? It means they ran out of shares and/or capital. They wouldn't let you buy new shares because we were burning through all the shares on the market.
It seems to me that the billionaires and hedge funds should have been forced to take an earlier loss (just like they would have done to the average investor).
Them doubling down earlier this week (instead of eating the losses) amplified the problem they created by gambling/shorting so many shares they didn't own.
Posted on 1/28/21 at 6:58 pm to molsusports
Bingo.
The “smartest men in the room” created this problem but the Redditors are going to get the blame for what happened.
The “smartest men in the room” created this problem but the Redditors are going to get the blame for what happened.
Posted on 1/28/21 at 7:07 pm to teke184
Excuse my ignorance but how would the stock go to infinite cost (100k)? No one would buy at that price which would cause a build up of supply which in turn would drop the price, correct? I know in theory it could keep going and going but you have to have a buyer and at a certain point that becomes impossible.
Posted on 1/28/21 at 7:12 pm to GAFF
There has to be people willing to sell in order for someone to buy.
What they are talking about is there being no available shares being offered while people are trying to buy constantly.
At that point, the price of the stock starts jumping heavily because the demand is infinitely higher than the supply.
It is the opposite of what happens when people start trying to sell and no one wants to buy. In that case, the price drops until a taker is found.
What they are talking about is there being no available shares being offered while people are trying to buy constantly.
At that point, the price of the stock starts jumping heavily because the demand is infinitely higher than the supply.
It is the opposite of what happens when people start trying to sell and no one wants to buy. In that case, the price drops until a taker is found.
Posted on 1/28/21 at 7:24 pm to LSURep864
quote:
The squeeze is squozing, and the only way out of $100k+ share prices which would break everything was to STOP THE MARKET.
And they will continue to stop the market. The market will not allow the squeeze to continue. The fix is in
Posted on 1/28/21 at 7:26 pm to molsusports
quote:
It seems to me that the billionaires and hedge funds should have been forced to take an earlier loss (just like they would have done to the average investor).
The squeeze should have been forced to happen last Friday and if one or 3 hedge funds explode so be it. If this thing has now turned into something much much larger that is truly fricking disgusting that it was allowed to occur
Posted on 1/28/21 at 7:38 pm to Upperdecker
quote:
And they will continue to stop the market. The market will not allow the squeeze to continue. The fix is in
So is buying more or even holding shares worthless now?
Posted on 1/28/21 at 7:45 pm to JohnnyKilroy
This is what happens when arrogant frickers insist they aren’t done and instead double down and triple down.
Posted on 1/28/21 at 7:46 pm to WITNESS23
No. The same thing happens today and it went over $400 in the morning.
Going to be hard for them to stop it with all the publicity already on them tomorrow.
Going to be hard for them to stop it with all the publicity already on them tomorrow.
This post was edited on 1/28/21 at 7:47 pm
Posted on 1/28/21 at 8:30 pm to 13SaintTiger
I'm not a market guy, but reading through all of this today my thought was that reddit had literally broken the stock market.
Is this the kind of thing that will bring true catastrophic times to the U.S.?
Is this the kind of thing that will bring true catastrophic times to the U.S.?
Posted on 1/28/21 at 8:38 pm to BornCritic
No dude
Posted on 1/28/21 at 8:39 pm to WITNESS23
quote:
So is buying more or even holding shares worthless now?
My personal opinion is yes. I am convinced the stock market will halt GME for days before allowing it to squeeze significantly further up
Posted on 1/28/21 at 8:40 pm to BornCritic
No, hedge funds incinerating a few billion isn’t that catastrophic.
Posted on 1/28/21 at 8:52 pm to southernelite
Its beyond that. They sell off everything after bankruptcy and cause a massive correction in the market. And since no one has money to buy that volume, massive price drops doubling down worse when stop losses are hit.
This shoukdve ended last week with Melvin admitting he fricked up vs citidel backing him and his frickin ego. That ego trip blew the lid off this thing to where every reasonably shorted stock is getting pumped.
This shoukdve ended last week with Melvin admitting he fricked up vs citidel backing him and his frickin ego. That ego trip blew the lid off this thing to where every reasonably shorted stock is getting pumped.
Posted on 1/28/21 at 9:04 pm to 13SaintTiger
And accurate!
Posted on 1/28/21 at 9:09 pm to southernelite
quote:
No, hedge funds incinerating a few billion isn’t that catastrophic.
Talk me off the ledge baw. If the shite that happened today was unwound and regular trading resumes tomorrow going forward, how does this end?
As someone has said reddit has found a small technical "glitch" in the matrix and that has now blown up into a worldwide phenomenon. The longer this goes on, the more damage can be dealt to the overall system when the bag eventually has to get held.
I have this eerie feeling that the powers that be exerting all this "control" over the situation actually shows that this thing is tripping some serious circuit breakers to prevent catastrophe, or maybe that they really aren't in control at all anymore.
This post was edited on 1/28/21 at 9:11 pm
Posted on 1/28/21 at 9:16 pm to JohnnyKilroy
quote:
have this eerie feeling that the powers that be exerting all this "control" over the situation actually shows that this thing is tripping some serious circuit breakers to prevent catastrophe, or maybe that they really aren't in control at all anymore.
Ditto.
They wouldn't act like this to save a few billion dollars. I think we are in danger.
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