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Here's the question that we are all hanging on: was the WSB sub engaged in manipulation of the price of securities. For this they (we) need to decide: - is t
by mancerayder 6y ago
Here's the question that we are all hanging on: was the WSB sub engaged in manipulation of the price of securities. For this they (we) need to decide:
- is the 'game plan' above evidence of that.
- when someone posts a screenshot of their position and emojis of rocketships, and a bunch of people respond with This is the way. and other meme-y jokes, is that manipulation?
If the second is true, we're in for a rocky road ahead. We are going to have to decide as a society how far we wish to go. People post Buy This, Sell That, I did this, I did that, all over the place and not least on retail financial news sites like Seeking Alpha. There are comments there, too.
Should we ban all comments and news from non official channels out of fear of getting sued or investigated for securities fraud?
A dystopian possibility is Reddit shuts all stock subs. Seeking Alpha turns off comments. HN bans talk of securities. YouTube pulls stock analyst videos and comments. Google fiddles with results to avoid people who aren't CNBC or an approved site getting hits.
Remember how they banned crypto YouTube videos?
- vagrantJin 6y ago> when someone posts a screenshot of their position and emojis of rocketships, and a bunch of people respond with This is the way. and other meme-y jokes, is that manipulation? Its hard to take WSB in earnest as a criminal element. If SEC or FED respond disproportinately, ut mught lead to the global "high finance" becoming a meme.
- mike00632 6y agoImagine a world where stock price manipulation is illegal and everyone cares if I try to defraud new investors out of their money. Do I want to live in a world with such censorship? That would be such a dystopian hellscape.
- mancerayder 6y agoSarcasm noted. Now, is your suggestion to ban all comments and discussion of stocks to avert this defrauding of new investors?
- mike00632 6y agoForum moderators are not on the hook for what their users say. The SEC or other law enforcement will do as they see fit. I just don't like the suggestion that nothing should be done. We're all essentially bystanders to young people being lured into losing a lot of money. This isn't just the Darwinian free market taking its course (which you could object to anyways on ideological grounds); it's a lot of people acting illegally and victimizing some vulnerable people.
- DennisP 6y agoIn this case it appears young people got lured into making a lot of money, and the vulnerable people were professional short sellers who should have known better.
- mike00632 6y agoI can't tell if you're actually this naïve. GameStop stock is not a success story because it is up at the current moment. Also, vulnerable people are exactly who will be left holding GameStop stock when it inevitably goes down. The narrative that a Robinhood proletariat is making a bunch of money at the expense of evil hedgefund managers is a fairy tale.
- DennisP 6y agoIt's generally the short sellers who lose money in a short squeeze. All this paternalism about poor naive retail traders is frankly getting a bit tiresome. They've done quite well for themselves and it won't take much risk management to stay in profit.
- mike00632 6y agoThe short sellers? Who exactly? It's not Melvin. How much are these shorts? Where are you getting your information? Are you really taking financial advice from Reddit trolls and unsourced Tweets? I really want to emphasize how naïve this is.