- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Hey Gang, this has been fun and all...
Posted on 1/27/21 at 5:28 pm
Posted on 1/27/21 at 5:28 pm
Ok, hear me out...crazy idea and all. But what if all these short squeezes shut down a hedge fund. Could it be the first domino of our next financial crisis?
Everyone starts losing their shirts. They shut down the markets until Monday of next week. Or longer.
Can these trading platforms go broke and take all our money down with them? Should e we be requesting our funds deposited to our bank accounts?
No. This is not a Hussss alter.
Everyone starts losing their shirts. They shut down the markets until Monday of next week. Or longer.
Can these trading platforms go broke and take all our money down with them? Should e we be requesting our funds deposited to our bank accounts?
No. This is not a Hussss alter.
9
Posted on 1/27/21 at 5:33 pm to TDFreak
Maybe sit the next few rounds out
Posted on 1/27/21 at 5:36 pm to TDFreak
I have indeed warned of this. It is a very valid topic to bring up.
And the way the Fed is handing out cash to its cohorts, no worries.
The mother of all busts will begin in the bond market with a bond rout.
And the way the Fed is handing out cash to its cohorts, no worries.
The mother of all busts will begin in the bond market with a bond rout.
This post was edited on 1/27/21 at 5:39 pm
Posted on 1/27/21 at 5:37 pm to TDFreak
quote:
Ok, hear me out...crazy idea and all. But what if all these short squeezes shut down a hedge fund. Could it be the first domino of our next financial crisis?
Hedge funds do this to each other. They have been doing this for as long as we have been alive. If they hear another hedge fund is weak they will burn it down. Cramer wrote about this happening to him in his book. It’s not going to bring down the financial system. Transfer some wealth, maybe. You all are Overestimating how big/small GameStop is in the market.
Posted on 1/27/21 at 5:37 pm to TDFreak
Don’t fricking short stocks. It’s simple.
Posted on 1/27/21 at 5:38 pm to Hussss
We will run out of oil in the 80's. 
Posted on 1/27/21 at 5:39 pm to Hussss
quote:
Hussss
He lives!
Posted on 1/27/21 at 5:39 pm to TDFreak
I think it's less likely to be as direct as "WSB tanks hedge funds which tank the financial system."
More likely in my view is that this kind of insanity produces the tipping point wherein enough market participants finally realize, "Yep, it's a bubble."
It's one thing for FAANG stocks to moon; it's another thing for shitty stocks like GameStop to moon.
There's often a reason the short interest is so high on these companies ... it's typically the smartest people in the room who find ways to make money on shorts in a 10+ year raging bull market fueled by artificially low interest rates. Those people are, well, smart, and they vote with dollars. Those dollars show up in short interest.
More likely in my view is that this kind of insanity produces the tipping point wherein enough market participants finally realize, "Yep, it's a bubble."
It's one thing for FAANG stocks to moon; it's another thing for shitty stocks like GameStop to moon.
There's often a reason the short interest is so high on these companies ... it's typically the smartest people in the room who find ways to make money on shorts in a 10+ year raging bull market fueled by artificially low interest rates. Those people are, well, smart, and they vote with dollars. Those dollars show up in short interest.
This post was edited on 1/27/21 at 5:42 pm
Posted on 1/27/21 at 5:40 pm to EveryoneGetsATrophy
Watch the bond market, not the stock market to kick off the grand finale.
Posted on 1/27/21 at 5:41 pm to RedStickBR
quote:
It's one thing for FAANG stocks to moon; it's another thing for shitty stocks like GameStop to moon.
I’ve read that a top is near when the crappy stocks begin to get hot.
Well, here we are.
Posted on 1/27/21 at 5:42 pm to TDFreak
All the brokers are insured against catastrophic trades through the SIPC. Could the SIPC go broke paying out losses? Yes. But then you're talking something like an FDIC collapse
Posted on 1/27/21 at 5:43 pm to TDFreak
This isn't kum bay ya...
This is the essence of efficient markets, one's wins is the others loss
Finally its starting to swing to the little guy (due to technological advances) and he gets ahead then they change the rules.
This is the essence of efficient markets, one's wins is the others loss
Finally its starting to swing to the little guy (due to technological advances) and he gets ahead then they change the rules.
Posted on 1/27/21 at 5:43 pm to TDFreak
I'm not a financial advisor or stockbroker, but I'll give my $.02.
My thougths are, no.
Hedge funds are not where people have their checkign/savings accounts, they're not where people get their mortgages. And that situation, if it occurred would not be like the financial crisis...which did threaten retail banking institutions. Hedge funds are company that exist to make money in the stock market. If they have investors, sure, those people will lose money. But it's not like them going out of business is taking "our money" with them.
The reason they would be going under is because "their money" became "our money" due to their stupid and risky bets that went belly up.
My thougths are, no.
Hedge funds are not where people have their checkign/savings accounts, they're not where people get their mortgages. And that situation, if it occurred would not be like the financial crisis...which did threaten retail banking institutions. Hedge funds are company that exist to make money in the stock market. If they have investors, sure, those people will lose money. But it's not like them going out of business is taking "our money" with them.
The reason they would be going under is because "their money" became "our money" due to their stupid and risky bets that went belly up.
This post was edited on 1/27/21 at 5:45 pm
Posted on 1/27/21 at 5:44 pm to Lightning
quote:
Could the SIPC go broke paying out losses? Yes. But then you're talking something like an FDIC collapse
Breaking the dollar and resulting in hyperinflation?
Posted on 1/27/21 at 5:45 pm to misterc
quote:
Finally its starting to swing to the little guy (due to technological advances) and he gets ahead then they change the rules.
Agreed.
Posted on 1/27/21 at 5:46 pm to misterc
quote:
Finally its starting to swing to the little guy (due to technological advances) and he gets ahead then they change the rules.
Don't be so naive. There will be many more little guys who lose their arse because of this than the opposite.
Posted on 1/27/21 at 5:50 pm to RedStickBR
quote:
Don't be so naive. There will be many more little guys who lose their arse because of this than the opposite.
agreed, my point is the availability of information and free trading has made markets more accessible. I agree these new traders\investors\degens may not have been through some bear markets, theres your test of success
Posted on 1/27/21 at 6:12 pm to TDFreak
The problem is it is all about leverage. Hedge funds that are over leveraged. If one has to liquidate that means they have to sell what they are long (actually own) to cover the losses. Let’s say they frick up and have to sell Apple to cover their losses. Well then you see Apple go down and then the next one says shite Apple broke its trend so I need to get out. Definitely could be a domino. The thing is I suspect some of the hedge funds made money on this run up too. Interesting to see how this plays out.
Posted on 1/27/21 at 6:13 pm to Hussss
Of course you agree. You’re probably talking to yourself here.
Posted on 1/27/21 at 6:33 pm to MrJimBeam
quote:
MrJimBeam
quote:
Of course you agree. You’re probably talking to yourself here.
I’m my own man.
If you don’t believe me, go talk to Russian. I give Russian shite over stuff Hussssssssss doesn't even care about.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News