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There is nothing inherently wrong in short interest above 100%, as you point out. There is no disagreement from me that it's possible to both have large short i
by gmaster1440 6y ago
There is nothing inherently wrong in short interest above 100%, as you point out. There is no disagreement from me that it's possible to both have large short interest and at the same time have healthy economic activity devoid of fraud.
The core of the social movement here is an asymmetry in who gets to engage in audacious economic transactions. Is it reserved exclusively for the institutions we should be thanking for maintaining the pillars of our society? Maybe if a fund decides to take out an audacious short position, retail investors should be able to have an equal and opposite reaction to it.
The suppression from trading platforms and the asymmetric response here is only supporting the cause of the movement, and not helping with getting us closer to "thanking" the funds.
- notahacker 6y agoAnyone is able to have opposite reaction to an audacious economic transaction, it just takes a lot of retail traders to have an opposite reaction to one hedge fund. So even if the hedge fund's audacious bet is horribly wrong, the smart money reacts and profits before the crowd can coordinate their pile on. Hedge funds bet against other hedge funds too. The asymmetry is who loses, and unlike the hedge funds with dreadful risk management, most of the retail traders piling in this week won't have mansions and yachts to go back to after their bad bet turns sour.
- gmaster1440 6y agoThis is exactly where I will agree 100% with you, and why my original comment is more cautionary than optimistic.