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"So basically like almost every other trade? Every buyer needs a seller and vice versa." No, not at all. It's well known that this stock is massively overvalu
by jariel 6y ago
"So basically like almost every other trade? Every buyer needs a seller and vice versa."
No, not at all.
It's well known that this stock is massively overvalued.
It's a mania, or a crowd-induced Ponzi scheme.
This is different than investors predicting outcomes based on fundamentals or their view of growth.
The plebes will be left holding the bag and probably lose much more money than the banks and it will affect them more greatly.
- throw0101a 6y agoJust because GME-as-ownership-unit may be overvalued, does not necessarily mean it is overvalued for GME-as-contract-closure-instrument. If you want to focus on GME-as-ownership-unit, as a share in a retail business, that's perfectly valid. But that's not the only perspective.
- jariel 6y agoThat's actually a good point, at the same time, in the bigger picture, it's market chaos and nobody wants it. Basically, mobs are fighting against hedge funds using random companies as battle grounds - the markets are there to support those companies, not destroy them. So what we are seeing is kind of an inflection point that the system wants to tamp down. It's actually pretty distressing to see how many intelligent people think they are doing some kind of good here, like burning down a few stores to force the owners to leverage some kind of fire insurance policy to destroy the 'evil insurers'.
- ric2b 6y ago> the markets are there to support those companies, not destroy them. The shorts were the ones destroying Gamestop, though.