Supporter of Possible Sexual Deviants
By Pam Martens and Russ Martens: January 7, 2021 ~ As a violent mob of Trump’s citizen militia scaled walls, broke windows and seized control of the
gamestop has been going bankrupt for years now so a bunch of wallstreet hedge funds took out shorts on the stock (betting it was going to go low). and by a bunch i mean A BUNCH. billions worth. so some enterprising scamps on reddit noticed the huge short positions and started buying up the stock making it more valuable.No but I saw a number of articles on Yahoo! (yes, I still visit to read the sports section and my email) and unfortunately not a single one explained why exactly Gamestop doubled in stock price today other than that aforementioned subreddit was involved.
gamestop has been going bankrupt for years now so a bunch of wallstreet hedge funds took out shorts on the stock (betting it was going to go low). and by a bunch i mean A BUNCH. billions worth. so some enterprising scamps on reddit noticed the huge short positions and started buying up the stock making it more valuable.
short version is they're betting on driving up the price of the stock to bankrupt the hedge funds. whether or not they can do it is going to be one of the most fascinating things to come along in years.
What a coincidence, after nearly all retail brokers went offline yesterday now most of them just ban trading all those stocks. Hmmm that certainly hasn't anything to do with Citadel being the owner of Robinhood, executing (and frontrunning) their (and other retailers) trades AND getting cold feet that they won't be able to bail out (and hence take over) all the shortiesvery interesting doing today:
several firms have banned trading in gamestop and amc
discord banned the wallstreetbets channel
the discourse is overloaded with how what the people on reddit are doing is illegal/immoral/wrong and not saying a single thing about how this has easily exposed the market for being a complete sham.
can't wait to see what tomorrow will bring.
Not sure if true but people are now claiming Robinhood is just flat out selling their shares
Remind me how this relates to Robinhood (allegedly) selling shares that weren’t bought on margin, i.e. that were 100% paid for in upfront cash by their customers? That is different from enacting buy limits, from lending customers shares (and pocketing the interest), from selling the order flow, etc.Brokers suspended trading because the clearing houses need to manage risk and they don't play favorites. This is a blip for someone like DTCC, which settled transactions in the quadrillions of dollars last year. https://www.dtcc.com/dtcc-connection/articles/2020/april/27/dtcc-2019-performance-dashboard
It's common in the US for brokers to lend your shares if you have a margin account. https://www.fidelity.com/trading/fully-paid-lending
Robinhood had something like this buried in their terms, but of course, no one reads that. Robinhood offers free trading on fractional shares. If the service is free, you are the product.
“It’s a cultural embarrassment,” said Triston Thompson, chief opportunity explorer for Tacaya, a consulting and brokerage firm for the country’s nascent legal cannabis industry.