Some smart person explain the GME (gamestop) thing

[MontuckyFried]

This is awesome. The real "Wolf of Wall Street," Jordan Belfort made this video. Dude's kind of hilarious:

[bennymac]

[old goat]

Paul Krugman's take.
https://www.nytimes.com/2021/02/04/o...op-stocks.html

I wonder how many redditors imploring people to hold are dumping/have dumped their own shares.
The idea that you can trust a bunch of strangers on a social media site not to get greedy and screw the other strangers is hilarious.

[Benny Profane]

Worth it.

https://taibbi.substack.com/p/this-i...interview-with

[LeeLau]

Worth it.

https://taibbi.substack.com/p/this-i...interview-with

Taibbi is the only one who writes consistently about what scum hfs and IBs are. Having worked on that side I can attest to that

[MTT]

What was the subreddit? Wallatreetbets? I remember seeing that reddit forced them to become private "Move content to separate host's". Then that hosting platform shut them down over dangerous content? So that subreddit was shut down.

What happened with all that?
I just watched a piece on the who thing and they gave the impression that the subreddit still exists?
What's the story on all this.

[bennymac]

What was the subreddit? Wallatreetbets? I remember seeing that reddit forced them to become private "Move content to separate host's". Then that hosting platform shut them down over dangerous content? So that subreddit was shut down.

What happened with all that?
I just watched a piece on the who thing and they gave the impression that the subreddit still exists?
What's the story on all this.

Not an expert on this situation but I suspect you have this confused with another subreddit. I don’t believe “wall street bets” was ever shut down or moved - not is it the kind of place where dangerous information is shared.

I’m not even sure what kind of investing/stock market information or gossip would be considered “dangerous” - other than to someone’s pocketbook or retirement.

[gravitylover]

I dunno, the story is it got shut down temporarily then had to go private but the next day it reopened. There's millions of members of that group now.

We should have our own "influencer group", we could bump the price of outdoor gear companies or resorts or what have you...

[Kinnikinnick]

Game Stop stock back down to $50 from a high of $483.

Wow Redditor manipulation is just short term market manipulation and a bunch of small time fools bought at hundreds of dollars and now $50


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[kathleenturneroverdrive]

They followed it up by going in on SNDL, TLRY, and APHA yesterday. Some made money, lots didn’t.

But after watching fairly closely it didn’t seem like the weed stocks went up due to WSB. More that they went up and the WSB who didn’t have money in them jumped in out of FOMO.

[LeeLau]

They followed it up by going in on SNDL, TLRY, and APHA yesterday. Some made money, lots didn’t.

But after watching fairly closely it didn’t seem like the weed stocks went up due to WSB. More that they went up and the WSB who didn’t have money in them jumped in out of FOMO.

Weed stocks were a classic momentum pile on. All driven by otm call buyers and share price driven up by market makers having to hedge to deliver just in case the calls went itm.

Big distinction. Weed stocks aren't overly shorted hence no cornered market with a dumb hedge fund to get squeezed. Also the market makers quickly put in otm call options so there was plenty of room for added price rise and volume.

Result WSB implosion

[MTT]

https://www.forbes.com/sites/abrambr...h=1086a7f12001

[Bunion 2020]

YouTuber at Center of GameStop Surge ‘Took on Fake Persona of an Amateur’: Lawsuit

A class action suit alleges Keith Gill “took on the fake persona of an amateur, everyday fellow, who simply was looking out for the little guy” in order to recruit investors.
Arya Hodjat

Keith Gill, the Massachusetts financial educator turned basement YouTuber turned Reddit folk hero for his early investment in GameStop before a massive surge—and subsequent drop—in the company’s stock, is being sued in a class-action suit.

The suit, filed in federal court in Massachusetts, alleges that Gill “took on the fake persona of an amateur, everyday fellow, who simply was looking out for the little guy” in order to recruit investors to the short squeeze, thus constituting securities fraud.

Gill—who has over 400,000 subscribers on his YouTube account, Roaring Kitty—was acting in his capacity as a securities broker for Massachusetts Mutual, according to the lawsuit.

When a user named DeepFuckingValue made their first post on Reddit’s r/WallStreetBets forum in September 2019, it didn’t make too many waves on a message board where retail traders frequently share their strange stock bets and losses. “Holy shit bro, what made you drop 53K on gamestop?” one user commented.

At that point, the video game store’s stock was trading at about $5 a share. Yet Gill, then posting anonymously on the account, kept sharing his updates; and Reddit retail investors, along with some hedge funds, soon jumped on the train. By January, $GME stock was trading at just under $500 a share, with Gill’s initial investment reaching a payout of as much as $48 million, according to the lawsuit.

A post Gill wrote on Jan. 27 about his peak payout, “is replete with [WallStreetBets] users’ recounting how Gill encouraged them not only to buy GameStop shares, but further inspired them to hold their shares so as to manipulate the market into ensuring a loss for those holding short positions,” the lawsuit reads.

The lead plaintiff of the lawsuit, a Washington state man named Christian Iovin, “used approximately $200,000 in collateral to sell call option contracts for GameStop shares when the stock was below $100,” the suit reads. Iovin and his attorney, Reed Kathrein, declined to comment for this article.

On his YouTube channel, where he offers “educational live streams where I share my daily routine of tracking stocks and performing investment research,” Gill repeatedly directed viewers to a potential short squeeze of GameStop stock, where investors purchase a stock being heavily bet against. Of the 80 videos on Gill’s channel, 56 reference GameStop, the lawsuit reads.

The lawsuit also names MassMutual, Gill’s former employer, as a defendant, alleging that the insurance company had “legal and regulatory obligations to supervise Gill to prevent this very conduct.”

According to The Wall Street Journal, Gill resigned from his job at MassMutual on Jan. 28, the day after his peak payout, and the day before his first public interview, also with the Journal, was published.

Gill’s actions have drawn attention from state and federal officials, as well. William Galvin, Massachusetts’ secretary of the commonwealth, issued a subpoena against Gill earlier this month, with the goal of investigating whether his day job affected his trading, according to The New York Times.

MassMutual told the Times that it didn’t know about Gill’s trading until he submitted his resignation on Jan. 21, and would have asked him to stop, had they known. MassMutual did not immediately respond to a request for comment on this article.

Gill is due to testify on Thursday, along with the CEOs of Reddit and Robinhood, at a congressional hearing on the stock surge organized by Rep. Maxine Waters (D-CA), chair of the House Financial Services Committee.

In prepared remarks released Wednesday ahead of his congressional testimony, Gill denied any wrongdoing.

“The idea that I used social media to promote GameStop stock to unwitting investors is preposterous,” Gill’s remarks read. “I was abundantly clear that my channel was for educational purposes only, and that my aggressive style of investing was unlikely to be suitable for most folks checking out the channel.”

GameStop investors also filed a class-action lawsuit against trading app Robinhood last month after it restricted trades to GameStop and other stocks popular on r/WallStreetBets, sending Redditors and app users into a meltdown.

[Timberridge]

This ought to be a fun watch today. You have Maxine Waters who may or may not know what an option is, K to the G who loves any excuse to fire up his G5 and head to Washington. Hopefully he had the decency to pick up Vlad on the way there. And I pray that Keith Gill shows up in a bandana and a Gamestop t-shirt with the sleeves cut off.

[Benny Profane]

I think I'll put this here, although it belongs in the stock market and real estate thread, too.

https://thereformedbroker.com/2021/02/17/the-big-long/

"One year ago, MicroStrategy was a mundane, third-tier publicly traded software concern with a moribund stock price that hadn’t moved in nearly two decades. Then the CEO decided to dump most of his treasury into Bitcoin. The the stock went from 100 to 1000. Now he’s doing a convertible bond offering (more free money) with the express purpose of buying more Bitcoin. He’s not even pretending to invest in his company’s software products. He’s not working on productivity nor innovation. He’s simply creating value out of thin air through a massive bet on asset price inflation. Equity money is free. No interest rate to repay. The only cost is dilution of the existing shareholder base. But the existing shareholder base is probably 100% Bitcoin Zealot, so give the people what they want. They want more f***ing Bitcoin. “Drown us in it, if you please, sir.” Dilute them for the right reason and they will reward you with an even higher share price ex-post."

[Kinnikinnick]

Crazy bullshit going down.

Market manipulation, check

Bullshit coin ponzi, check


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[Timberridge]

I think I'll put this here, although it belongs in the stock market and real estate thread, too.

https://thereformedbroker.com/2021/02/17/the-big-long/

"One year ago, MicroStrategy was a mundane, third-tier publicly traded software concern with a moribund stock price that hadn’t moved in nearly two decades. Then the CEO decided to dump most of his treasury into Bitcoin. The the stock went from 100 to 1000. Now he’s doing a convertible bond offering (more free money) with the express purpose of buying more Bitcoin. He’s not even pretending to invest in his company’s software products. He’s not working on productivity nor innovation. He’s simply creating value out of thin air through a massive bet on asset price inflation. Equity money is free. No interest rate to repay. The only cost is dilution of the existing shareholder base. But the existing shareholder base is probably 100% Bitcoin Zealot, so give the people what they want. They want more f***ing Bitcoin. “Drown us in it, if you please, sir.” Dilute them for the right reason and they will reward you with an even higher share price ex-post."

I posted that in the Bitcoin thread yesterday, but you're correct that in today's "everything is a casino" mentality you can post this shit in any of the 3+ threads we have going. The only thing we're missing is the watered down free drinks brought by pretty girls with the short shorts that they have in the casino.

[Bunion 2020]

Best thing about a Casino is the watery bourbon & short shorts.

[Benny Profane]

I posted that in the Bitcoin thread yesterday, but you're correct that in today's "everything is a casino" mentality you can post this shit in any of the 3+ threads we have going. The only thing we're missing is the watered down free drinks brought by pretty girls with the short shorts that they have in the casino.

And Elvis performing tonight.

[simple]

We just made 6 figures on Riot. Holy moly

[Timberridge]

Hookers and blow are on simple.

[simple]

Hookers and blow are on simple.

Skidoo just announced 2022 snowmobiles....

[alpinevibes]

We just made 6 figures on Riot. Holy moly

[stuckathuntermtn]

Bwahahaha!

So do we have it wrong, the Securities and Exchange Commission is there to protect institutional securities exchangers, not the exchange of securities? Could have sworn it was the latter, but we do live in an oligarchy.

[TahoeJ]

The madman actually said "I like the stock" and "I am not a cat" during his testimony today.

Fucking legend. Screw all of these politicians who are in bed with Wall Street... they don't deserve any respect and I'm glad he kept it real.