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I'm certain the GME bubble will burst at some point. I am almost as certain that when this inevitably happens, those who lost their money will blame hedge funds

I'm certain the GME bubble will burst at some point. I am almost as certain that when this inevitably happens, those who lost their money will blame hedge funds, short sellers, Wall street, elites, the system, etc. instead of looking into the mirror.

dragontamer 6y ago
Enron and Madoff are examples of what "some time" means. Yeah, all bubbles / ponzi schemes run out of money eventually. But 17 years (Madoff) is longer than most people's radar. If you decide to go short, you gotta be right not only in the direction of the stock, but also in the timing of it. Timing is everything. Unfortunately, timing is also the most random.
- gruez 6y ago
  enron/madoff isn't really comparable because there's a mastermind behind both of them. GME? not so much.
  - sandworm101 6y ago
    Just because you cannot see the mastermind doesn't mean that there isn't someone pulling strings. And the Madoff scam wasn't a single person. There were lots of naïve participants/benefiters enjoying the profits of that scam. In that sense it is a parallel to gamestop: A small cadre of people influencing things, and lots of little people participating in what they should reasonably understand to be a pyramid. The situation has Fyre written all over it..
  - svachalek 6y ago
    A certain unprintable Redditor with initials DFV?
    - filoleg 6y ago
      Ah yeah, the guy who moved the entire stock market and beat the hedge funds with only $50k invested, despite GME stock trading volumes in billions of dollars per day. /s If someone seriously thinks that DFV (or the entirety of WSB, for that matter) would even physically be able to notably move a ticker such as GME, then I don't have much to say to them, because this is completely inane. With some penny stocks that have almost no trading volume? Sure, technically possible. But with something like GME, it is quite not that simple. For a solid frame of reference, the entire holdings of GME that DFV had after the gigantic pump were about $50mil, one of the largest retail traders by far. Institutional traders? They did individual GME trades in volumes of $700mil+ each on a daily basis. Not $700mil+ for all institutional investors combined, but individually. Cannot be bothered to find a citation for it now, but iirc institutional investors also held about 75-80% of all outstanding GME shares throughout the entire pump.
      - deleted 6y ago
        [deleted]
      - perl4ever 6y ago
        Someone claimed that during the week when it first went crazy, that retail traders were actually net sellers, according to, I forget, maybe numbers from Citadel?
- smnrchrds 6y ago
  The old "the market can stay irrational longer than you can stay solvent" adage still holds true. But I would be surprised if this particular bubble lasts as long as Madoff's, since the facts are available for everyone to see, unlike Madoff's case.
  - 6gvONxR4sf7o 6y ago
    At what point do you throw your hands in the air and say that "the market can stay irrational longer than you can stay solvent" means "the market is irrational, mostly smoke and mirrors." Stocks seem to have little more intrinsic value than bitcoin over a long enough period as to make the difference silly. It's all speculation/gambling, not investment, as far as I can tell.
    - dragontamer 6y ago
      Are you still getting a quarterly dividend at 3.25% APY from KO? (Coke) I think that KO stock you have might still be valued, and probably valued well. Just stay away from the stupid memes, and you'll find plenty of value. ------ Does the stock O still have a good dividend? Does O still follow the general trends of real-estate as expected? (Ex: O's assets are mostly houses in residential areas. O largely goes up when the housing market is good, and goes down when the housing market is bad). As such, O provides you with a low-cost way to expose yourself to the real-estate market without having to invest 6-figures to do so. That's plenty of value right there. Short-selling O, or buying call/put options on O can similarly provide more sophisticated financial instruments against the housing market. --------- I don't know what your expectations of the stock market are. But... a quarterly dividend from my dividend stocks + exposure to hard to enter markets are the main jobs of it for me. And I think its pretty good at both.
    - lamontcg 6y ago
      This is the real fascinating thing to watch. There's more and more people who believe in this kind of nihilism that since there's corruption and bubbles in the real economy that it is entirely fiction. And that is giving rise to things like this crazy pumping of GME for the lulz. The trend seems to be that a larger fraction of people have complete disillusionment with all our institutions to the point where nothing matters. That also seems incredibly dangerous to me. By believing that institutions are meaningless and beyond reform that could lead to a much larger systemic collapse in institutions / values / etc.

dragontamer 6y ago

Enron and Madoff are examples of what "some time" means. Yeah, all bubbles / ponzi schemes run out of money eventually. But 17 years (Madoff) is longer than most people's radar. If you decide to go short, you gotta be right not only in the direction of the stock, but also in the timing of it. Timing is everything. Unfortunately, timing is also the most random.

gruez 6y ago
enron/madoff isn't really comparable because there's a mastermind behind both of them. GME? not so much.
- sandworm101 6y ago
  Just because you cannot see the mastermind doesn't mean that there isn't someone pulling strings. And the Madoff scam wasn't a single person. There were lots of naïve participants/benefiters enjoying the profits of that scam. In that sense it is a parallel to gamestop: A small cadre of people influencing things, and lots of little people participating in what they should reasonably understand to be a pyramid. The situation has Fyre written all over it..
- svachalek 6y ago
  A certain unprintable Redditor with initials DFV?
  - filoleg 6y ago
    Ah yeah, the guy who moved the entire stock market and beat the hedge funds with only $50k invested, despite GME stock trading volumes in billions of dollars per day. /s If someone seriously thinks that DFV (or the entirety of WSB, for that matter) would even physically be able to notably move a ticker such as GME, then I don't have much to say to them, because this is completely inane. With some penny stocks that have almost no trading volume? Sure, technically possible. But with something like GME, it is quite not that simple. For a solid frame of reference, the entire holdings of GME that DFV had after the gigantic pump were about $50mil, one of the largest retail traders by far. Institutional traders? They did individual GME trades in volumes of $700mil+ each on a daily basis. Not $700mil+ for all institutional investors combined, but individually. Cannot be bothered to find a citation for it now, but iirc institutional investors also held about 75-80% of all outstanding GME shares throughout the entire pump.
    - deleted 6y ago
      [deleted]
    - perl4ever 6y ago
      Someone claimed that during the week when it first went crazy, that retail traders were actually net sellers, according to, I forget, maybe numbers from Citadel?
smnrchrds 6y ago
The old "the market can stay irrational longer than you can stay solvent" adage still holds true. But I would be surprised if this particular bubble lasts as long as Madoff's, since the facts are available for everyone to see, unlike Madoff's case.
- 6gvONxR4sf7o 6y ago
  At what point do you throw your hands in the air and say that "the market can stay irrational longer than you can stay solvent" means "the market is irrational, mostly smoke and mirrors." Stocks seem to have little more intrinsic value than bitcoin over a long enough period as to make the difference silly. It's all speculation/gambling, not investment, as far as I can tell.
  - dragontamer 6y ago
    Are you still getting a quarterly dividend at 3.25% APY from KO? (Coke) I think that KO stock you have might still be valued, and probably valued well. Just stay away from the stupid memes, and you'll find plenty of value. ------ Does the stock O still have a good dividend? Does O still follow the general trends of real-estate as expected? (Ex: O's assets are mostly houses in residential areas. O largely goes up when the housing market is good, and goes down when the housing market is bad). As such, O provides you with a low-cost way to expose yourself to the real-estate market without having to invest 6-figures to do so. That's plenty of value right there. Short-selling O, or buying call/put options on O can similarly provide more sophisticated financial instruments against the housing market. --------- I don't know what your expectations of the stock market are. But... a quarterly dividend from my dividend stocks + exposure to hard to enter markets are the main jobs of it for me. And I think its pretty good at both.
  - lamontcg 6y ago
    This is the real fascinating thing to watch. There's more and more people who believe in this kind of nihilism that since there's corruption and bubbles in the real economy that it is entirely fiction. And that is giving rise to things like this crazy pumping of GME for the lulz. The trend seems to be that a larger fraction of people have complete disillusionment with all our institutions to the point where nothing matters. That also seems incredibly dangerous to me. By believing that institutions are meaningless and beyond reform that could lead to a much larger systemic collapse in institutions / values / etc.