You're absolutely right that "what goes around com... - Page 3

Puppy Lips · ‎05-09-2010

I think short selling should be illegal. It is gambling and then using whatever means you have to sway the outcome in your favor. Good for the Reddit people for catching on and beating the system. Corrupt Wall Street was exposed and boo hoo, I don’t feel sorry for them. So sick of the manipulation and arrogance that is going on in this country.

Always remember that you are absolutely unique. Just like everyone else. Margaret Mead

Snowpuppy · ‎03-09-2010

@gardenman describes the situation perfectly.

Who knew Robinhood's Band of Merry Men were actually Reddittors ?

on the bay · ‎03-09-2010

@CelticCrafter -

I thought all these things to myself today that you just wrote, including the thoughts about bitcoin.😳

"If you walk the footsteps of a stranger, you'll learn things you never knew. Can you sing with all the voices of the mountains? can you paint with all the colors of the wind?"

Linmo · ‎12-16-2013

@Snowpuppy wrote:
@gardenman describes the situation perfectly.

Who knew Robinhood's Band of Merry Men were actually Reddittors ?

The problem is that they aren't just taking money from the rich and giving to the poor, they are taking money away from millions of small investors who invested their hard earned money in high quality stocks which are now being sold off by institutions to cover their losses. Many of these folks are older, need the income and can't wait indefinitely for the stock market to rebound.

gardenman · ‎03-09-2010

@Linmo wrote:
@Snowpuppy wrote:
@gardenman describes the situation perfectly.

Who knew Robinhood's Band of Merry Men were actually Reddittors ?
The problem is that they aren't just taking money from the rich and giving to the poor, they are taking money away from millions of small investors who invested their hard earned money in high quality stocks which are now being sold off by institutions to cover their losses. Many of these folks are older, need the income and can't wait indefinitely for the stock market to rebound.

Those institutions that are now selling off stock to cover their losses could have done what the Reddit crowd did and bought the short selling stocks to drive the price up and then cashed in when the hedge funds doing the short selling had to buy back the stocks. Why didn't they? If you can buy a stock at $4 and know it'll sell for much, much more in a few days, shouldn't they have been doing that? Isn't that a good investment for them? Wouldn't that make their investors happy? At this moment Gamestop is at $325. If they'd bought it at $4 they'd have made $321 per share for their investors. That's a pretty darn good return. I think most of their investors would have been happy with that.

The big investment firms know how short selling works. They could have been the ones driving up the price of Gamestop. AMC, etc. to make a profit for their investors at the expense of the hedge funds. Why didn't they? Because they care more about scratching each other's backs than going to war against one another. They're all one big communal group who share in the profits.

Now an outsider has jumped in and is upsetting their system and they're not happy. "How dare those people steal money from us!" (By doing what the big investment firms should have been doing if they truly cared about their investors and not protecting one another.) I still find it all hilarious. I love it. It's going to be interesting to see how this all ends.

Gamestop stock will slide back down to around $4 a share, but a whole lot of people now know how to exploit the short-sellers and take their money. Will it end short-selling? Hopefully. We'll have to see.

Fly!!! Eagles!!! Fly!!!

ScarletDove · ‎07-11-2010

Glad to see the Reddit groupies stuck it to the elite Hedge Funders who are stuck with huge $ losses! What goes around....

suzyQ3 · ‎03-09-2010

@Linmo wrote:
@Snowpuppy wrote:
@gardenman describes the situation perfectly.

Who knew Robinhood's Band of Merry Men were actually Reddittors ?
The problem is that they aren't just taking money from the rich and giving to the poor, they are taking money away from millions of small investors who invested their hard earned money in high quality stocks which are now being sold off by institutions to cover their losses. Many of these folks are older, need the income and can't wait indefinitely for the stock market to rebound.

Exactly, @Linmo. There is not just one narrative here.

~Who in the world am I? Ah, that's the great puzzle~ Lewis Carroll, Alice in Wonderland

novamc1 · ‎07-02-2015

@ScarletDove

You're absolutely right that "what goes around comes around"......but karma is probably going to come back to bite those groupies.

They appear to be throwing around a lot of rhetoric---not to mention borrowed margin money that they will owe one day, no matter what, and creating quite a news event.

I am a stock market investor and saw how badly the similar army of exuberant daytraders got financially wiped out during the "tech wreck" of the 1990s.

When the price of overvalued stock gets pushed up too high, clueless people who bought the shares get caught in the downdraft of prices later. I've seen some of those downdrafts happen in a matter of minutes, before some folks can get out still havng some money.

Those sudden downdrafts happen when the Big Folks purposely start putting millions of dollars into making a big market move occur.

Also, another scenario can occur when an overvalued company declares bankruptcy....... shares owned by the uneducated small investors become totally worthless. The Big Folks qualify to own a different class of stocks in that company, and can still come out pretty well in a bankruptcy, because they're among the first to get paid off in a liquidation.