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> There’s orders of magnitude more money to be made today shorting $GME at $400 than there was shorting it at $20. There's also orders of magnitude more money

> There’s orders of magnitude more money to be made today shorting $GME at $400 than there was shorting it at $20. There's also orders of magnitude more money to be lost, because there's just more money on the table. At the end of the day it's a bet based on assumptions. A month ago everybody that was investing in GME was told the same thing by people that wanted to short it. The market can remain irrational longer than you can remain solvent.

stouset 6y ago
> There's also orders of magnitude more money to be lost, because there's just more money on the table. And my point is that the losing side of this is inevitably going to be the majority of people long $GME. > The market can remain irrational longer than you can remain solvent. Billionaires can remain solvent longer than you can remain irrational. Again, Melvin is almost certain to lose their shirts on this. But there’s many, many more hedge funds that are sharks circling the waters. And Melvin and WSB are both going to be their prey.
- Judgmentality 6y ago
  > Billionaires can remain solvent longer than you can remain irrational. Melvin Capital has a very real chance of going insolvent. Also have you heard of Lehman Brothers? Hell, just watching Cramer get upset is enough for me to realize the rich aren't happy with what's happening. It seems pretty obvious they're worried. Why else would they pay for ads claiming to have closed a position for which they supposedly no longer have an investment stake? > And my point is that the losing side of this is inevitably going to be the majority of people long $GME. I said the same thing about TSLA way back when. So did David Einhorn. I still believe TSLA is more than 10x overvalued, and people continue to get rich despite my "rational" obstinance. Also you're completely missing the point. Do you not even understand most of these people aren't trying to make money? If you don't understand that, then you don't even have a basis to start the conversation.
  - stouset 6y ago
    > Melvin Capital has a very real chance of going insolvent I just don’t know how many more times I’m going to have to say that Melvin is going to lose everything. Melvin and WSB are not the only two players in the market. > Also you're completely missing the point. Do you not even understand most of these people aren't trying to make money? If you don't understand that, then you don't even have a basis to start the conversation. That’s the meme. We’ll see how the people with tens of thousands YOLO’d feel when things turn south. And if that’s the point, that makes this whole thing all the more depressing. They’re sticking it to the hedge funds by… blowing a bunch of money taking out one while dozens of others profit off of them? Good luck with that.
    - Judgmentality 6y ago
      > I just don’t know how many more times I’m going to have to say that Melvin is going to lose everything. Well, it just contradicts your previous point: > Billionaires can remain solvent longer than you can remain irrational. Anyway, we're obvious not agreeing. That's fine. I wish you luck as well!
      - stouset 6y ago
        n(billionaires) > 1.
        Judgmentality 6y ago
        Okay. So when you say: > Billionaires can remain solvent longer than you can remain irrational. It just sounds really disingenuous when we're talking about Melvin Capital and you agree they're going to lose all their money. Nobody is claiming all billionaires are going away because of this trade. The point is some billionaires will lose money on this trade.
        stouset 6y ago
        That's the point you're making. The point I'm making is that Melvin is going under, a few Redditors will make money if they get out in time, but the eventual impact of this will be a different set of billionaires gets richer while most Redditors are going to be stuck holding the bag. Which isn't exactly the "Reddit gets rich off of evil billionaires" narrative that's being sold. And it makes the diamond hands strategy all the more foolish when literally the only way Redditors will actually stick it to the billionaires is if they all manage to get out in time. Diamond hands as a strategy just makes WSB the eventual suckers donating their money to the funds who shorted at $400.
- tasuki 6y ago
  > Billionaires can remain solvent longer than you can remain irrational. Hilarious because true!

stouset 6y ago

> There's also orders of magnitude more money to be lost, because there's just more money on the table. And my point is that the losing side of this is inevitably going to be the majority of people long $GME. > The market can remain irrational longer than you can remain solvent. Billionaires can remain solvent longer than you can remain irrational. Again, Melvin is almost certain to lose their shirts on this. But there’s many, many more hedge funds that are sharks circling the waters. And Melvin and WSB are both going to be their prey.

Judgmentality 6y ago
> Billionaires can remain solvent longer than you can remain irrational. Melvin Capital has a very real chance of going insolvent. Also have you heard of Lehman Brothers? Hell, just watching Cramer get upset is enough for me to realize the rich aren't happy with what's happening. It seems pretty obvious they're worried. Why else would they pay for ads claiming to have closed a position for which they supposedly no longer have an investment stake? > And my point is that the losing side of this is inevitably going to be the majority of people long $GME. I said the same thing about TSLA way back when. So did David Einhorn. I still believe TSLA is more than 10x overvalued, and people continue to get rich despite my "rational" obstinance. Also you're completely missing the point. Do you not even understand most of these people aren't trying to make money? If you don't understand that, then you don't even have a basis to start the conversation.
- stouset 6y ago
  > Melvin Capital has a very real chance of going insolvent I just don’t know how many more times I’m going to have to say that Melvin is going to lose everything. Melvin and WSB are not the only two players in the market. > Also you're completely missing the point. Do you not even understand most of these people aren't trying to make money? If you don't understand that, then you don't even have a basis to start the conversation. That’s the meme. We’ll see how the people with tens of thousands YOLO’d feel when things turn south. And if that’s the point, that makes this whole thing all the more depressing. They’re sticking it to the hedge funds by… blowing a bunch of money taking out one while dozens of others profit off of them? Good luck with that.
  - Judgmentality 6y ago
    > I just don’t know how many more times I’m going to have to say that Melvin is going to lose everything. Well, it just contradicts your previous point: > Billionaires can remain solvent longer than you can remain irrational. Anyway, we're obvious not agreeing. That's fine. I wish you luck as well!
    - stouset 6y ago
      n(billionaires) > 1.
      - Judgmentality 6y ago
        Okay. So when you say: > Billionaires can remain solvent longer than you can remain irrational. It just sounds really disingenuous when we're talking about Melvin Capital and you agree they're going to lose all their money. Nobody is claiming all billionaires are going away because of this trade. The point is some billionaires will lose money on this trade.
        stouset 6y ago
        That's the point you're making. The point I'm making is that Melvin is going under, a few Redditors will make money if they get out in time, but the eventual impact of this will be a different set of billionaires gets richer while most Redditors are going to be stuck holding the bag. Which isn't exactly the "Reddit gets rich off of evil billionaires" narrative that's being sold. And it makes the diamond hands strategy all the more foolish when literally the only way Redditors will actually stick it to the billionaires is if they all manage to get out in time. Diamond hands as a strategy just makes WSB the eventual suckers donating their money to the funds who shorted at $400.
tasuki 6y ago
> Billionaires can remain solvent longer than you can remain irrational. Hilarious because true!