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I'm honestly confused. I'm seeing a lot of rage in these threads. More than I'd expect. I understand not liking the hedge funds, and wanting to "stick it to the

by Cd00d 6y ago

I'm honestly confused. I'm seeing a lot of rage in these threads. More than I'd expect. I understand not liking the hedge funds, and wanting to "stick it to the man" in some way, but it seems like more is going on here. Nobody is buying GME long at $400. The price is crazy. GameStop's business is selling used hard copies and leaning into customer dissatisfaction. It's a clear bubble and people are going to be hurt when it pops. There should be some consumer protections, IMHO, because a bunch of people are amping up a price for lulz and hopes of timing things right, but not everyone can win that pyramid scheme. What am I missing that is leading to the rage I'm seeing?

zwieback 6y ago
You're not missing anything, pyramid scheme at the expense of latecomers, Robinhood or otherwise.
Miner49er 6y ago
It's a short squeeze, not just a bubble? I bought a single share near $400 for the memes, so I wouldn't say "nobody". Some retail investors will likely lose, sure, but the biggest losers will be the shorts, and retail/longs will win as a whole. That's why people are mad, with Robinhood's manipulation they are setting it up so only the shorts win and almost no remaining retail.
- Cd00d 6y ago
  I'm sorry I still don't understand and I hope you will clarify. You bought at $400 and expect that to be a good investment? How will the longs that bought above arbitrary number $20 benefit in the long term?
  - Miner49er 6y ago
    No, at this point it's not about a good investment. It's a "fuck you" to Wall Street. They exploit the working class, get rich, fuck up our economy, and then steal even more from us to save their own asses. People are tired of it. Gamestop is a form of protest. Robinhood did the worst thing they could by messing with it. They sided with Wall Street against the little guy. It shows how rigged the system is. Apparently the little guy can't exploit a bad trade by the rich, it can only go the other way around. So now Robinhood is on the other side of this, and I hope they go under from it.
    - zwieback 6y ago
      I have sympathy for the anger against Wall Street but correct me if I'm wrong: the short seller hedge funds are already out and now it's a bunch of little guys left holding the shares until the bubble bursts?
      - Miner49er 6y ago
        Nah, there's still ~250% of the float shorted, apparently. The shorts have doubled down. The (maybe a bit of a conspiracy) theory is they shorted more knowing that Robinhood and other brokers would limit buying today.
    - Cd00d 6y ago
      I see. Thank you for the follow-up. Honestly I think your money would go further contributing to a politician that would try to advance reform, but I acknowledge that's not a universal strategy.
ballenf 6y ago
People did the same thing with Beanie Babies and lost entire life savings. People get into credit card debt and eventual bankruptcy buying any number of luxury items. Should we require credit reports before you can buy Gucci or expensive wine? People lose their houses in Las Vegas. If we want to protect people, then I don't think it's fair to single out the stock market as the only place we do that.

by Cd00d 6y ago

zwieback 6y ago

You're not missing anything, pyramid scheme at the expense of latecomers, Robinhood or otherwise.

Miner49er 6y ago

It's a short squeeze, not just a bubble? I bought a single share near $400 for the memes, so I wouldn't say "nobody". Some retail investors will likely lose, sure, but the biggest losers will be the shorts, and retail/longs will win as a whole. That's why people are mad, with Robinhood's manipulation they are setting it up so only the shorts win and almost no remaining retail.

Cd00d 6y ago
I'm sorry I still don't understand and I hope you will clarify. You bought at $400 and expect that to be a good investment? How will the longs that bought above arbitrary number $20 benefit in the long term?
- Miner49er 6y ago
  No, at this point it's not about a good investment. It's a "fuck you" to Wall Street. They exploit the working class, get rich, fuck up our economy, and then steal even more from us to save their own asses. People are tired of it. Gamestop is a form of protest. Robinhood did the worst thing they could by messing with it. They sided with Wall Street against the little guy. It shows how rigged the system is. Apparently the little guy can't exploit a bad trade by the rich, it can only go the other way around. So now Robinhood is on the other side of this, and I hope they go under from it.
  - zwieback 6y ago
    I have sympathy for the anger against Wall Street but correct me if I'm wrong: the short seller hedge funds are already out and now it's a bunch of little guys left holding the shares until the bubble bursts?
    - Miner49er 6y ago
      Nah, there's still ~250% of the float shorted, apparently. The shorts have doubled down. The (maybe a bit of a conspiracy) theory is they shorted more knowing that Robinhood and other brokers would limit buying today.
  - Cd00d 6y ago
    I see. Thank you for the follow-up. Honestly I think your money would go further contributing to a politician that would try to advance reform, but I acknowledge that's not a universal strategy.

ballenf 6y ago

People did the same thing with Beanie Babies and lost entire life savings. People get into credit card debt and eventual bankruptcy buying any number of luxury items. Should we require credit reports before you can buy Gucci or expensive wine? People lose their houses in Las Vegas. If we want to protect people, then I don't think it's fair to single out the stock market as the only place we do that.