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RE: Stonk Madness - ken-do-nim - 02-02-2021

I inadvertently got pulled into the GameStop madness last week because I owned an ETF called RETL which is a Retail Index Fund. Luckily I was able to sell with a profit. I figure I'll get back into RETL when the dust settles.


RE: Stonk Madness - fenders53 - 02-02-2021

It will remain one of the major stories for 2021 as institutional players end up testifying before Congress. Legal or not, they appear very complicit in the takedown of the gambling kids. Robinhood brand destroyed in days. Some individuals like our forum members made bank, but this level of disorderly market is not a good thing longer term.


RE: Stonk Madness - crimsonghost747 - 02-02-2021

Ohh I do look forward to hearing Vlad the Impaler explain to the Congress. Unfortunately, I have zero faith in the SEC and other similar organizations in this matter... would be awesome to see some crooks jailed but I don't see that happening. It didn't happen in 2008... it's unlikely to happen now.

But yeah at least Robinhood is out of the game. Even if Google is deleting all the negative reviews they are getting and Yahoo Finance is claiming "they are still the #1 option for retail investors" etc. Maybe they can rebrand to "Sheriff of Nottingham" and try again with a different target audience in mind? Big Grin


RE: Stonk Madness - fenders53 - 02-02-2021

(02-02-2021, 10:39 AM)crimsonghost747 Wrote: Ohh I do look forward to hearing Vlad the Impaler explain to the Congress. Unfortunately, I have zero faith in the SEC and other similar organizations in this matter... would be awesome to see some crooks jailed but I don't see that happening. It didn't happen in 2008... it's unlikely to happen now.

But yeah at least Robinhood is out of the game. Even if Google is deleting all the negative reviews they are getting and Yahoo Finance is claiming "they are still the #1 option for retail investors" etc. Maybe they can rebrand to "Sheriff of Nottingham" and try again with a different target audience in mind? Big Grin
Since I can't get any trades to drop today I'm glad you started this thread.  This is going to be a good show.  There was a time when I thought the Brits were the undisputed champions of political theater.  I used to watch your Parliament carry on and it was straight up a Monty Python episode. It looked like an argument at the Pub around midnight lol.  You know exactly what I am talking about.  Smile  

Now hold on while US Congress grandstands "for the little guy".  The SEC won't likely do much but they will have to put in a few regs to lessen the chance it so easily goes to an extreme.  The hearings should be an education for most.  Robinhood doesn't actually hold your share certificates in a shoe box and the market is completely safe from financial markets meltdown.  Some of the RH moves were necessary because they had no idea when it would subside.  The inequality of wealth narrative will be well fed the next few months.  The "kids" thinking they were going to overthrow Wall Street in a month still makes me shake my head.  They truly believed that.  Their internet heroes led them to slaughter and it was so predictable.  Those who started this will pretend they didn't at least partially cash out and lock in a nice gain.


RE: Stonk Madness - crimsonghost747 - 02-02-2021

I agree that these past two days have been bloodbaths. It was inevitable.
But I'll still point out that anyone who got in early is STILL up 500% or so. Those who got in a bit later around $50 are still up over 100%. Of course this could have changed by the time I'm finished with this post. Those are some amazing gains.. especially when they are the gains after getting butchered. Big Grin

Of course there are a lot of those who bought in at $300 too. As long as they knew it was gambling then it's fine. I just truly hope there weren't many who put in money they cannot afford to lose... there are always some out there who refuse to see the massive risk.

Another thing is: this might not be over yet. GME is still probably a couple hundred percent higher than the shorts would like to see it. Just yesterday the media was doing a mass diversion to silver. I haven't seen any hedge fund people laughing on TV. Robinhood (and some others) still have massive restrictions on GME stock.
And indeed the media/court fun is just getting started. Smile


RE: Stonk Madness - fenders53 - 02-02-2021

I will be surprised if they can keep the price up for a full day at this point. At least until it drops sub $50. We'll find out.


Stonk Madness - chascornell - 02-03-2021

One thing they don’t explain very well on Wallstreetbets Reddit page is what happens when the HFs can’t cover their shorts


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RE: Stonk Madness - fenders53 - 02-03-2021

(02-03-2021, 04:40 PM)chascornell Wrote: One thing they don’t explain very well on Wallstreetbets Reddit page is what happens when the HFs can’t cover their shorts


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That was a problem when the entire float was shorted plus some imaginary shares.  It was the entire "to the moon thesis"  The S-3 report I saw yesterday seemed to indicate that was no longer a problem.  And that could have changed again this morning?  Keep the float at say 30% and you can just wear the street down.  They have tricks we haven't even heard of yet.  Many illegal but they will get by with it. Stocks don't run to a million. A short HF can liquidate the fund and file a form of BK. Just like when a BK company tells us sorry your 100 shares are now worth 9 cents total.

And to be clear, this entire debacle is complete institutional thievery.  Yes the rookies on WSB are being willfully ignorant by now and deserve to lose some money.  They will surely learn the lesson eventually.  That doesn't make it right though.  I ran across some good video interviews with a few of the original "founders" of this movement. (Other than DFV).  It was time consuming and VERY thorough.  Outstanding DD going back for years.  Peter Lynch style individual investing.  He started cashing out at 60 but he was in sub 5 so good for him.  Plus some options I guess.  Far more impressive than a Momo boy that loaded up with calls 10 days ago and got lucky.


RE: Stonk Madness - crimsonghost747 - 02-03-2021

(02-03-2021, 04:40 PM)chascornell Wrote: One thing they don’t explain very well on Wallstreetbets Reddit page is what happens when the HFs can’t cover their shorts


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The shorter of course goes bankrupt.
Then the broker they have been using would be responsible for sorting out the mess. (this is to ensure that the broker keep an eye on their clients risk profile.. which they didn't do apparently. This is why your broker has margin limits etc and will margin call the second they feel it's necessary.)
I have no idea what happens if the broker can't cover the losses either. But somehow the positions have to be cleared, and they won't clear in the bankruptcy of an investing company because that doesn't makes stocks disappear. (or appear out of nowhere in this case)



The US and blatant corruption at the top level... it never ceases to amaze me how easy it is there. Sure, it happens in the majority of countries but at least the others TRY to hide it!  Smile  Apparently someone has decided that Janet Yellen is a good person to be pulling the ropes in the official side on this. Despite that it's public knowledge that Citadel (owner of Robinhood) just paid her $800k recently to make a speech or something.


RE: Stonk Madness - fenders53 - 02-04-2021

@crimsonghost Agreed. We have a system of government which has proven generally effective with proper adherence to laws and the separation of powers respected. It has never been perfect but you are correct that corruption has become blatant. Too many of our legislators have ties to financial markets. Corruption goes unpunished too often. From insider trading to HFs violating laws. It's my understanding HF shorts are executed and the broker/clearinghouse has days to find the new shares to borrow. If they don't exist the market manipulation can't be undone of course. It can't remain this way or investor trust will be gone. We all know the game is rigged. We willingly play anyway and even attract a large share of foreign investors. Some new rules have to happen and be enforced on the big money. I don't think Congress will let it slide this time even though they are involved with personal funds in some cases. We will get our answer soon. Media's first reaction was to blame the band of fraudulent small investors on an internet forum. How absurd to suggest that was all that was going on here.