4 ms·

Your skepticism is well founded given the lack of details. I on the other hand, instantly had the opposite reaction when I first read the claim earlier today.

by ipspam 5y ago

Your skepticism is well founded given the lack of details. I on the other hand, instantly had the opposite reaction when I first read the claim earlier today. It stirred up memories of recent speculative manias like sports cards, D&D cards, Pogs, etc selling for ridiculous sums of money. 11 month wait times for grading of cards. Yeezyzs and sneakers are now bonafide asset classes to many people? Housing prices in my country were supposed to be stable or maybe even set for a correction and they are up 20-30-40% in different places. Used Cars are not really in the speculative, but the prices behind them have led to Runs on certain new cars. I recently had an acquaintance of mine purchase a brand new Rav4 hybrid at an "insiders" price from a friend at a dealership, with the sole purpose of flipping it for a couple thousand dollars profit when he finally took possession. These are just anecdotes, but it certainly seems like everyone is vying to participate in the get rich quick economy.

real-dino 5y ago
I've gone all in on GME. It's old news, but there is something there. When I try to explain it, I end up looking like the crazy conspiracy meme guy.
- atatatat 5y ago
  Try me.
  - real-dino 5y ago
    The idea is that the shorts never actually covered. They shorted it greater than 140% back in January, as that was the maximum that can be reported. Even before January it was slowly rising from 4 dollars, so the hedgefunds kept doubling down on their bankruptcy jackpot. If they short the company to zero, the shares are worthless and they don't have to cover their short positions. This has always worked, they have power and abuse it to put companies like Toys R Us out of operation with no way to effectively raise capital. They did not anticipate that a company could turn around, which is essentially what has happened. Ryan Cohen the new CEO has effectively taken GameStop's domain name and is building a whole new business around it, with all the debts gone, the whole board replaced, and completely new management. Not to mention they have raised billions with ATM offerings and are now completely debt free. Even without a short squeeze, Gamestop is set to compete with Amazon for gaming, and has poached ex-Amazon talent in it's management. Fundamentaly it's a solid company, and that is even without the MOASS. Hedgefunds are trapped now, and are now triggering FTDs (Failure to Delivers), and need to reset the timers using various means including deep ITM options, ETFs, and shorting whatever shares they can get their hands on. For example XRT has been 240% shorted since Feb. They'll buy up a whole ETF just to get their hands on the GME shares inside. They will dig a deeper and deeper hole until they are margin called and forced to cover. Conservative estimates have retail holding 110 million shares, but due to the lack of transparency in the market, this cannot be proven. In addition all the new SEC filings that have been coming out have been specifically worded to agree with this. 005 for example is an ass-covering exercise about options manipulation, and 002 increases the frequency which short positions must be reported. Most of these are to prevent this kind of scenario happening ever again. Finally the media coverage has been constant dismissal of Gamestop and the promotion of other meme stocks such as AMC. Gamestop is no longer a memestock at this point and is a solid play MSM (the news network) do not want to advertise. Only recently has the media been talking about 'naked shorts' (2 weeks ago by accident), and 'dark markets' (2 days ago), where these subjects were discussed on Reddit 6 months ago! You won't find this on WallStreetBets, there is a dedicated subreddit SuperStonk, which is a bias confirmation echo chamber still, but incorrect info does get corrected and people called out.
lotsofpulp 5y ago
> Yeezyzs and sneakers are now bonafide asset classes to many people? No? That kind of stuff makes for good headlines to get clicks, but is there any data showing it is anything but clickbait?
- jfim 5y ago
  There are actually specialized websites to trade them. For example you can see a price chart and 52 week high/low for some sneakers: https://stockx.com/nike-air-force-1-low-white-07 https://stockx.com/nike-air-force-1-low-white-07
- thedudeabides5 5y ago
  In fact there's a startup marketplace doing just that and apparently has a couple billion in GMV https://qz.com/1994596/stockx-a-sneaker-resale-site-is-now-worth-3-8-billion/#:~:text=The%20company%20had%20a%20strong,in%20merchandise%20sales%20in%202019 https://qz.com/1994596/stockx-a-sneaker-resale-site-is-now-w....
mckirk 5y ago
I certainly see the value in those anecdotes. When I realized how much my Steam inventory was suddenly worth, because old CSGO items were rising in value for no apparent reason, that was my personal 'oh crap, this is exactly what an everything-bubble would look like' moment.

by ipspam 5y ago

real-dino 5y ago

I've gone all in on GME. It's old news, but there is something there. When I try to explain it, I end up looking like the crazy conspiracy meme guy.

atatatat 5y ago
Try me.
- real-dino 5y ago
  The idea is that the shorts never actually covered. They shorted it greater than 140% back in January, as that was the maximum that can be reported. Even before January it was slowly rising from 4 dollars, so the hedgefunds kept doubling down on their bankruptcy jackpot. If they short the company to zero, the shares are worthless and they don't have to cover their short positions. This has always worked, they have power and abuse it to put companies like Toys R Us out of operation with no way to effectively raise capital. They did not anticipate that a company could turn around, which is essentially what has happened. Ryan Cohen the new CEO has effectively taken GameStop's domain name and is building a whole new business around it, with all the debts gone, the whole board replaced, and completely new management. Not to mention they have raised billions with ATM offerings and are now completely debt free. Even without a short squeeze, Gamestop is set to compete with Amazon for gaming, and has poached ex-Amazon talent in it's management. Fundamentaly it's a solid company, and that is even without the MOASS. Hedgefunds are trapped now, and are now triggering FTDs (Failure to Delivers), and need to reset the timers using various means including deep ITM options, ETFs, and shorting whatever shares they can get their hands on. For example XRT has been 240% shorted since Feb. They'll buy up a whole ETF just to get their hands on the GME shares inside. They will dig a deeper and deeper hole until they are margin called and forced to cover. Conservative estimates have retail holding 110 million shares, but due to the lack of transparency in the market, this cannot be proven. In addition all the new SEC filings that have been coming out have been specifically worded to agree with this. 005 for example is an ass-covering exercise about options manipulation, and 002 increases the frequency which short positions must be reported. Most of these are to prevent this kind of scenario happening ever again. Finally the media coverage has been constant dismissal of Gamestop and the promotion of other meme stocks such as AMC. Gamestop is no longer a memestock at this point and is a solid play MSM (the news network) do not want to advertise. Only recently has the media been talking about 'naked shorts' (2 weeks ago by accident), and 'dark markets' (2 days ago), where these subjects were discussed on Reddit 6 months ago! You won't find this on WallStreetBets, there is a dedicated subreddit SuperStonk, which is a bias confirmation echo chamber still, but incorrect info does get corrected and people called out.

lotsofpulp 5y ago

> Yeezyzs and sneakers are now bonafide asset classes to many people? No? That kind of stuff makes for good headlines to get clicks, but is there any data showing it is anything but clickbait?

jfim 5y ago
There are actually specialized websites to trade them. For example you can see a price chart and 52 week high/low for some sneakers: https://stockx.com/nike-air-force-1-low-white-07 https://stockx.com/nike-air-force-1-low-white-07
thedudeabides5 5y ago
In fact there's a startup marketplace doing just that and apparently has a couple billion in GMV https://qz.com/1994596/stockx-a-sneaker-resale-site-is-now-worth-3-8-billion/#:~:text=The%20company%20had%20a%20strong,in%20merchandise%20sales%20in%202019 https://qz.com/1994596/stockx-a-sneaker-resale-site-is-now-w....

mckirk 5y ago

I certainly see the value in those anecdotes. When I realized how much my Steam inventory was suddenly worth, because old CSGO items were rising in value for no apparent reason, that was my personal 'oh crap, this is exactly what an everything-bubble would look like' moment.