Gamestop explained (so far)
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Wow!!! I learned something new today! Thank you, thank you! I never considered that naked shorting of stock is inflationary!! How could I have not seen that all these years? I had always associated "inflation" strictly with currency. But it's a totally applicable word for this situation also. Inflation is theft, and this is diabolically evil. Stripping the wealth of an entire society for the benefit of a very, very few.
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I think it's important to reiterate that we're hearing about GME only because they happened to get caught this time. There's a ton of these guys out there doing the same thing day after day, year after year to company after company. And this affects everyone - not just stockholders. The average stockholder loses his money because of stuff like this, and suddenly he doesn't have money to go out for a nice dinner that night. So now the waitress isn't getting tips and she's suffering too. Etc...
The other thing to take notice of is how leveraged they must be. If just one of their deals goes bad, and they've got to resort to government bailouts and backdoor highly illegal methods to avoid bankruptcy, then that should show you that it's just a matter of time before something happens that they won't be able to recover from - regardless the means. And when they go down, I wouldn't be at all surprised if they take down this whole fraudulent system with them.
The other thing to take notice of is how leveraged they must be. If just one of their deals goes bad, and they've got to resort to government bailouts and backdoor highly illegal methods to avoid bankruptcy, then that should show you that it's just a matter of time before something happens that they won't be able to recover from - regardless the means. And when they go down, I wouldn't be at all surprised if they take down this whole fraudulent system with them.
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About Robinhood...
If a company offers a service for free...YOU are the product.
No different between them and the manner social media outlets are treating people...at times like defective products.
Discount Brokerage houses and full service brokerages hold themselves to a different standard.... because the way Robinhood behaved would tank them overnight costing trillions of dollars.
They fill customer orders until the Feds hit the breakers.
If a company offers a service for free...YOU are the product.
No different between them and the manner social media outlets are treating people...at times like defective products.
Discount Brokerage houses and full service brokerages hold themselves to a different standard.... because the way Robinhood behaved would tank them overnight costing trillions of dollars.
They fill customer orders until the Feds hit the breakers.
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Most of the people investing in the stock market have absolutely no clue as to what they are doing.
They don't understand what a stock is or why they should buy the stock they are buying. Most buy on tips from someone somewhere. Especially those frequenting apps like Robinhood.
Short selling is just another way to make money by those smart enough to know how.
A hedge fund is there for those who hold self directed IRAs and want a hedge against a market collapse.
Putting some money in one is always a good idea for those with 6-figure portfolios.
A good trader or investor knows exactly how to take advantage of the large fund trading. Sure those guys manipulate the market...and the savvy investor/trader knows how to take advantage of those situations.
These single share investors are going to get hosed for their purchases. They are buying the stock at a super inflated price today and going to lose it all by the time all is said and done for a ten dollar stock.
Nostalgia doesn't put food on the table.
Nostalgia doesn't pay the power bill or put gas in the tank.
These hedge funds keep grandma in her house and pay for her hip replacement surgery.
And playing with glamour stocks is a gamble...a Huge one that is just as much a gamble as shooting dice at a craps table.
They don't understand what a stock is or why they should buy the stock they are buying. Most buy on tips from someone somewhere. Especially those frequenting apps like Robinhood.
Short selling is just another way to make money by those smart enough to know how.
A hedge fund is there for those who hold self directed IRAs and want a hedge against a market collapse.
Putting some money in one is always a good idea for those with 6-figure portfolios.
A good trader or investor knows exactly how to take advantage of the large fund trading. Sure those guys manipulate the market...and the savvy investor/trader knows how to take advantage of those situations.
These single share investors are going to get hosed for their purchases. They are buying the stock at a super inflated price today and going to lose it all by the time all is said and done for a ten dollar stock.
Nostalgia doesn't put food on the table.
Nostalgia doesn't pay the power bill or put gas in the tank.
These hedge funds keep grandma in her house and pay for her hip replacement surgery.
And playing with glamour stocks is a gamble...a Huge one that is just as much a gamble as shooting dice at a craps table.
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It just looks like they don't like commoners capitalizing on the stock market like the big players do. Can't have that or it'll ruin the game. Robinhood was a fun experiment, but can't expect to beat the greedy and powerful at their own game.
Why else would something like this be placed front and center in the news? It's a distraction. They want you to make sure you don't miss who your new masters are: Democrats.
Why else would something like this be placed front and center in the news? It's a distraction. They want you to make sure you don't miss who your new masters are: Democrats.
Robinhood is in trouble because they are in part funded by the very hedge fund that was targeted by the reddit group.
Especially when they stopped filling orders or refused to fill orders based upon iligitimate reasonings. There will be a class action suit.
(Don't piss off guys who think they are rich because they will call greedy lawyers)
Like I said before...
If a service/product is offered to you for free by a business then you are actually the product the business is selling.
Especially when they stopped filling orders or refused to fill orders based upon iligitimate reasonings. There will be a class action suit.
(Don't piss off guys who think they are rich because they will call greedy lawyers)
Like I said before...
If a service/product is offered to you for free by a business then you are actually the product the business is selling.
Also feel free to add more man, I need more information 
Why I think PM's are not overpriced:
1. If there was too much supply of silver, then our coins would still be made out of it. Instead they started giving us pot metal currency in 65.
2. You showed how they drive the price downwards with GME. Why couldn't/wouldn't they do something similar with silver? (I can think of a reason, but you have convinced me that it can be overcome.)
3. In saying that silver is overvalued relative to dollars, you valued something real and true based on something fraudulent. An ounce of pure silver represents honest money. Dollars are just dirty debt notes. In this world there will never be an oversupply of honesty. But we're awash in lies. Dollars are lies because they are epitome of dishonest weights and measures.
4. I think it's more likely that bankers are the ones lying rather than the silver brokerages. Bankers have a long history of being slimy.
5. Currencies come and currencies go. Dollars are only as good as US military might enforcing the petrodollar. US military is crumbling. Americans lack the courage and will because we lack moral certitude. More and more people are becoming aware of this.
6. Silver is pretty cheap relative to gold right now.
#squeezesilver
Respectfully, I'm pushing against the idea or possible implication that hedge funds are good guys & savy and redditors are the uneducated villains here costing grandma her hip money. No, the hedge fund did this by gambling with her money...the same thing that happened in 2008 when 40:1 to 50:1 overleveraged investment banks traded in garbage debts and caused many grandmas, grandpas, mothers, and fathers to lose their homes, jobs and life savings.
These hedge funds make money with money. They're not providing a charity or altruistic service to any individuals. Everyone has a choice where to put their money. And everyone who puts their money in the market (should) run the same risk of loss. There's nothing guaranteed. Growth and higher returns aren't guaranteed, as a disclaimer.
That being said, the customers of hedge funds expect the fund managers to reasonably manage that risk, not over-extend themselves financially by betting against OVER 100% of what's available to trade for a stock. I'm hearing the actual percentage is around 140% of Gamestop. There's *only* up to 100% of any available stock to trade. This means they risk owing all borrowed shares back PLUS a 40% fee if they lost their bet (if the stock price goes up instead of down). They were hoping for obsene profit.
They're the ones who gambled with Gamestop. Never short over 100% of any stock.
Other retail investors - redditors in this case - saw this stupid greedy move by the hedge funds and banded together to buy up all the remaining available shares of gamestop making its price increase...so when the hedge fund needed to buy back the stock they borrowed, to settle the bet, very little would be available to buy.
...and because of supply and demand...
This increased the stock price more, and caused the hedge fund to lose the bet even more, requiring them to buy back the stock at higher price plus the fee...but the redditors aren't selling...
This increased the stock price more, and caused the hedge fund to lose the bet even more, requiring them to buy back the stock at higher price plus the fee...but the redditors aren't selling...
This increased the stock price more, and caused the hedge fund to lose the bet even more, requiring them to buy back the stock at higher price plus the fee...but the redditors aren't selling...
...and on...and on...and on...causing the stock to soar and costing hedge funds billions.
Ordinary people beat the hedge funds at their own game within the rules. The stock is only valuable because the hedge fund NEEDS it to settle their growing debt.
What the hedge fund didn't plan on in their gamble was that a group of random people would band together and have enough money to buy all available shares.
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So this wasn't just a nostalgic buy. It was very calculated. If they make a move about this it'll probably be called The Big Squeeze.
These hedge funds make money with money. They're not providing a charity or altruistic service to any individuals. Everyone has a choice where to put their money. And everyone who puts their money in the market (should) run the same risk of loss. There's nothing guaranteed. Growth and higher returns aren't guaranteed, as a disclaimer.
That being said, the customers of hedge funds expect the fund managers to reasonably manage that risk, not over-extend themselves financially by betting against OVER 100% of what's available to trade for a stock. I'm hearing the actual percentage is around 140% of Gamestop. There's *only* up to 100% of any available stock to trade. This means they risk owing all borrowed shares back PLUS a 40% fee if they lost their bet (if the stock price goes up instead of down). They were hoping for obsene profit.
They're the ones who gambled with Gamestop. Never short over 100% of any stock.
Other retail investors - redditors in this case - saw this stupid greedy move by the hedge funds and banded together to buy up all the remaining available shares of gamestop making its price increase...so when the hedge fund needed to buy back the stock they borrowed, to settle the bet, very little would be available to buy.
...and because of supply and demand...
This increased the stock price more, and caused the hedge fund to lose the bet even more, requiring them to buy back the stock at higher price plus the fee...but the redditors aren't selling...
This increased the stock price more, and caused the hedge fund to lose the bet even more, requiring them to buy back the stock at higher price plus the fee...but the redditors aren't selling...
This increased the stock price more, and caused the hedge fund to lose the bet even more, requiring them to buy back the stock at higher price plus the fee...but the redditors aren't selling...
...and on...and on...and on...causing the stock to soar and costing hedge funds billions.
Ordinary people beat the hedge funds at their own game within the rules. The stock is only valuable because the hedge fund NEEDS it to settle their growing debt.
What the hedge fund didn't plan on in their gamble was that a group of random people would band together and have enough money to buy all available shares.
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So this wasn't just a nostalgic buy. It was very calculated. If they make a move about this it'll probably be called The Big Squeeze.
But any fund can only leverage a short for so long...market calls are a reality everyone including a hedge fund has to respect. Options especially are troublesome because of their very nature.
And the name "Robinhood" is marketed to the "little guy" as the name suggests.
With the stock currently in it's over bloated position I would cash that out immediately and head towards safer waters.
This morning I'm looking at xtc telecom etf. It's primed for a up day.... especially looking at premarket. I'd be swapping positions as fast as my broker can do so.
Because once the selloff of GME begins...those options won't be worth a dime. You can't herd cats... you can make them run but not together for very long.
And the name "Robinhood" is marketed to the "little guy" as the name suggests.
With the stock currently in it's over bloated position I would cash that out immediately and head towards safer waters.
This morning I'm looking at xtc telecom etf. It's primed for a up day.... especially looking at premarket. I'd be swapping positions as fast as my broker can do so.
Because once the selloff of GME begins...those options won't be worth a dime. You can't herd cats... you can make them run but not together for very long.
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And the stupidity continues...
This morning they are focusing on silver. Where it is an industrial metal, the demand for it is way too much. The associated stocks have bloated as well. It's well past a 5 year high without a 5 year high industrial demand.
What does that do?
It puts plumbers out of work.
It makes electronics more expensive so they don't get purchased.
It makes Electrical equipment for distribution of power more expensive... putting electricians out of work.
So any moral high ground these people had... completely gone in the name of greed.
This morning they are focusing on silver. Where it is an industrial metal, the demand for it is way too much. The associated stocks have bloated as well. It's well past a 5 year high without a 5 year high industrial demand.
What does that do?
It puts plumbers out of work.
It makes electronics more expensive so they don't get purchased.
It makes Electrical equipment for distribution of power more expensive... putting electricians out of work.
So any moral high ground these people had... completely gone in the name of greed.
And after looking at things for a bit...
I kinda like robots this morning...
Real traders and Investors look where everyone else is ignoring a stock or sector. Trading in this area is down and the bad news has been dealt with...soooo I can see a long position in some robots this week being a decent position to hold.
They can only come out with some good news especially since so many workers are still out on unemployment and can be replaced with robots...who don't get sick and call out. And if a robot breaks down you have to call an electrician to fix it.
I can see some real upside to it. Outside the glamor... until the day comes that it begins to shine.
I kinda like robots this morning...
Real traders and Investors look where everyone else is ignoring a stock or sector. Trading in this area is down and the bad news has been dealt with...soooo I can see a long position in some robots this week being a decent position to hold.
They can only come out with some good news especially since so many workers are still out on unemployment and can be replaced with robots...who don't get sick and call out. And if a robot breaks down you have to call an electrician to fix it.
I can see some real upside to it. Outside the glamor... until the day comes that it begins to shine.
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I 100% agree that the first out wins. The last out will be left with nothing. It's interesting how so many MSM analysts were encouraging the redditors to sell last week, saying "ok you made your point", and also claiming a need for regulation when it's usually the other way around ("deregulation. Let the market be, it'll self-correct.")
The main hedge fund involved in this got capital from other funds last week. If the main hedge fund involved is indeed in danger of bankrupting, I'd look at their portfolio to see which healthy/stable stocks they'd need to sell off for cash as that could be an opportunity to get into a few longs at discount. I think we saw some of this at the end of last week, actually, with the selloff of healthy stocks..
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To your other point regarding silver, it appears there are several groups involved here...
1) the redditors that saw the math & over-bet by hedge fund, who got in to squeeze them.
2) the group who saw the stock increase as a result of the 1st group and wanted part of the action for the short-term (day traders or other sophisticated investors who get in and get out)
3) first-timers (the remaining public at large) hoping to go long with GME after hearing about it, not knowing what the heck is actually happening. I think it's this group you're seeing make other silly purchases since they're restricted from purchasing a lot of shares of GME by all brokerages.
This is how it appears to me...but of course I can't be too sure.
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Interesting times we live in.
The main hedge fund involved in this got capital from other funds last week. If the main hedge fund involved is indeed in danger of bankrupting, I'd look at their portfolio to see which healthy/stable stocks they'd need to sell off for cash as that could be an opportunity to get into a few longs at discount. I think we saw some of this at the end of last week, actually, with the selloff of healthy stocks..
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To your other point regarding silver, it appears there are several groups involved here...
1) the redditors that saw the math & over-bet by hedge fund, who got in to squeeze them.
2) the group who saw the stock increase as a result of the 1st group and wanted part of the action for the short-term (day traders or other sophisticated investors who get in and get out)
3) first-timers (the remaining public at large) hoping to go long with GME after hearing about it, not knowing what the heck is actually happening. I think it's this group you're seeing make other silly purchases since they're restricted from purchasing a lot of shares of GME by all brokerages.
This is how it appears to me...but of course I can't be too sure.
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Interesting times we live in.
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90% of those playing with apps like Robinhood have absolutely no clue what they are doing.
I play in various other places and positions appeal to me.
So far for today I nailed my day trades.
(picked up an XTC etf for a win) my long robotics is down a dime or two but I'm not expecting anything today anyway.
And as I'm watching silver it was flatlining...not my idea of a good time. AMC is all over the place today.
I play in various other places and positions appeal to me.
So far for today I nailed my day trades.
(picked up an XTC etf for a win) my long robotics is down a dime or two but I'm not expecting anything today anyway.
And as I'm watching silver it was flatlining...not my idea of a good time. AMC is all over the place today.