3 ms·

Not exactly. It would be as if the bank that mortgaged your house then prevented people from buying it, then turned around to you and said "See? Nobody wants i

Not exactly. It would be as if the bank that mortgaged your house then prevented people from buying it, then turned around to you and said "See? Nobody wants it! You need to lower the price. Oh! What's this? The price has gone down, I need to reposses it. Thanks, come again!

dalbasal 6y ago
Ding ding ding. These "here's why it's OK" legitimations are sounding just as cynical as the high profile insiders' rage against WSB that we have been hearing. This is fast becoming a symbol of brazenly rigging of financial systems to ensure the house wins. Hypocritical appeals to responsibility are half of what's causing all this rage. Sure, a responsible broker might reserve a right to liquidate your position in order to limit their risk. This isn't a responsible broker. They might also liquidate your position to limit their losses at your expense... or because the cabal said to. We are not starting from the assumption that they (RH, Citadel, NASDAQ,etc... even the SEC) are acting responsibly, or in the interest of "mom & pop." They are playing heads I win, tails your lose... again. The hedge funds got caught holding $10m puts with $1bn (so far) long tail risk. RH are in some sort of similar position. They make high, steady returns from such positions. Typical insider deal. When that long tail risk materializes, all bets are off... and this is not even a figure of speech! The asymmetry is dumbfounding. Responsible actors! Market Fundamentals! The hypocrisy of it.
- imtringued 6y ago
  I consider this to be the funniest part. It's a cat and mouse game. This is a once in a lifetime event where you can push everything to extreme limits. As wall street gets more desperate they will resort to extreme and more extreme tactics. The average retail investor is not going for a win. They are trying to make the house expose all of the cheap tricks. The end result is a checklist of publicly confirmed anti retail strategies. Short selling above and beyond? Check Bailouts among wallstreet? Check Deplatforming? Check Control conventional media? Check Prevent buying stocks? Check Forcibly sell shares? The jury is still out
ianai 6y ago
But for the part where the current valuation was widely viewed as much too high. It does smell bad. I agree with how you framed it. I’m really grateful you wrote it that way as it makes it very clear how this feels deeply corrupt. I suspect this is a corner case which could bankrupt a broker though.
- erichocean 6y ago
  How can it be too high when there was a know market to buy them? Short seller positions are public, and they had already agreed to buy the stock by such and such date. The price looks just right to me.

dalbasal 6y ago

Ding ding ding. These "here's why it's OK" legitimations are sounding just as cynical as the high profile insiders' rage against WSB that we have been hearing. This is fast becoming a symbol of brazenly rigging of financial systems to ensure the house wins. Hypocritical appeals to responsibility are half of what's causing all this rage. Sure, a responsible broker might reserve a right to liquidate your position in order to limit their risk. This isn't a responsible broker. They might also liquidate your position to limit their losses at your expense... or because the cabal said to. We are not starting from the assumption that they (RH, Citadel, NASDAQ,etc... even the SEC) are acting responsibly, or in the interest of "mom & pop." They are playing heads I win, tails your lose... again. The hedge funds got caught holding $10m puts with $1bn (so far) long tail risk. RH are in some sort of similar position. They make high, steady returns from such positions. Typical insider deal. When that long tail risk materializes, all bets are off... and this is not even a figure of speech! The asymmetry is dumbfounding. Responsible actors! Market Fundamentals! The hypocrisy of it.

imtringued 6y ago
I consider this to be the funniest part. It's a cat and mouse game. This is a once in a lifetime event where you can push everything to extreme limits. As wall street gets more desperate they will resort to extreme and more extreme tactics. The average retail investor is not going for a win. They are trying to make the house expose all of the cheap tricks. The end result is a checklist of publicly confirmed anti retail strategies. Short selling above and beyond? Check Bailouts among wallstreet? Check Deplatforming? Check Control conventional media? Check Prevent buying stocks? Check Forcibly sell shares? The jury is still out

ianai 6y ago

But for the part where the current valuation was widely viewed as much too high. It does smell bad. I agree with how you framed it. I’m really grateful you wrote it that way as it makes it very clear how this feels deeply corrupt. I suspect this is a corner case which could bankrupt a broker though.

erichocean 6y ago
How can it be too high when there was a know market to buy them? Short seller positions are public, and they had already agreed to buy the stock by such and such date. The price looks just right to me.