The political landscape a wasteland, the meme lords move to Wall Street.

Ancalagon · Jan 28, 2021

Bailey said: ↑

These trading platforms largely exist to move money from retail investors to larger firms, it's not a surprise they instantly slam shut when that flow changes direction.
Click to expand...

Yeah, so this is part of my ‘not sure how it will play out’ thinking.

1) Establishment Retail firms show their hand, blatantly fucking their customers to save the big hedge firms

2) Redditers create some kind of decentralized alternative (not sure if this is possible, but if anyone could do it this group seems like it could)

3) Wallstreet installs explicit gatekeepers, blocking anyone except the big guys from accessing the markets

4) People see even more clearly that the stock market is a walled garden. We can throw money over the wall but aren’t welcome in.

5) ??????

Ancalagon · Jan 28, 2021

If... IF this is true then it is guillotine time.

Rincewiend · Jan 28, 2021

https://www.youtube.com/watch?fbcli...Am6DGpt-qAnwEQ&v=8YrnTbzuOWM&feature=youtu.be

Ancalagon · Jan 28, 2021

WTF?!!

Tuckerfan · Jan 28, 2021

Lanzman · Jan 28, 2021

Boy do I smell a massive class action lawsuit coming up.

We Are Borg · Jan 28, 2021

So let me get this straight:

Back in June, a bunch of Tik Tok geeks completely fuck over President Trump's first big election rally.

Now a bunch of Redditors fuck over a few Wall Street hedge fund companies.

I'm starting to think this internet thing ain't all bad...

steve2^4 · Jan 28, 2021

Robinhood is draining their credit. Something tells me they expect a run on the bank. Source.

Ten Lubak · Jan 28, 2021

Man, wish I was a lawyer for Robinhood. Those motherfuckers are about to get PAID

Daedalus12 · Jan 28, 2021

Greenwich CT in 2 weeks time.

Fisherman's Worf · Jan 28, 2021

Lanzman said: ↑

Boy do I smell a massive class action lawsuit coming up.
Click to expand...

Already been filed:

https://thehill.com/policy/healthca...led-against-robinhood-for-restricting-trading

Fisherman's Worf · Jan 28, 2021

GhostEcho said: ↑

Imagine having bought a ton of shares of this on April 3rd, 2020 at $2.80 per and then selling it all off yesterday.
Click to expand...

Yeah, you'd have nearly $13 in store credits for that trade in.

Tuckerfan · Jan 28, 2021

Ancalagon · Jan 28, 2021

Fuck.

CNBC has cracked the code.

All comm channels are compromised.

Everyone head back to your nearest Soros Center and await further in person instructions.

Elwood · Jan 28, 2021

https://www.twitch.tv/aoc

AOC is live on twitch talking about GME and Robinhood.

Elwood · Jan 28, 2021

Oh, and:

Tuckerfan · Jan 28, 2021

Elwood · Jan 28, 2021

Shirogayne · Jan 29, 2021

Kommander · Jan 29, 2021

Hmm, after this I decided I'd rather not use Robinhood anymore, so I sold my 0.00131 bitcoin and tried transferring the $43 I made to my bank account, but I keep getting error messages. If I had just sold stock I think I'd have to wait three days, but with Bitcoin I thought the funds were available immediately?

Still, if there's a cooldown I should get a notification that I need to wait three days, not an error message.

EDIT: I was able to complete the withdraw from my computer, and I was only having the issue in the Android app. Still, this seems like fuckery and I'm going to believe it's fuckery because we as a society have already determined that actual facts don't matter.

Rincewiend · Jan 29, 2021

Tuckerfan · Jan 29, 2021

RickDeckard · Jan 29, 2021

The elites are circling the wagons. Facebook has also banned a related group.

Tuckerfan · Jan 29, 2021

Tuckerfan · Jan 29, 2021

Mark Cuban in this thread tells folks how to throw a wrench into the hedge funds.

Tuckerfan · Jan 29, 2021

Quincunx · Jan 29, 2021

AMC has been "saved" now? That's what happened?

tafkats · Jan 29, 2021

Yeah, I'm having trouble buying that.

This was basically a prank aimed at screwing over some people who make their living profiting off of other people's misery. And I'm all for that. But if AMC was in trouble before, this isn't gonna save them.

Hopefully it will lead to some much-needed reforms in vulture capitalism.

steve2^4 · Jan 29, 2021

yeah, someone doesn't understand how the secondary market works. It did however make some AMC execs rich if they still have stock options.

steve2^4 · Jan 29, 2021

more:

GameStop's business brisk amid stock price madness, Wall Street hedge fund closures [The Philadelphia Inquirer]
BY Tribune Content Agency
— 1:04 PM ET 01/29/2021
Jan. 29--For the last 2 1/2 weeks, a band of small investors has been bidding up GameStop shares in a bid to punish the hedge fund titans who had bet on the retailer's demise. The effort was shockingly successful: The stock rose more than 17 times by the market's close on Wednesday.

But that support began to crumble Thursday as such brokerages as TD Ameritrade, Charles Schwab, E-Trade, Interactive Brokers, and most notably, Robinhood, limited access to trading in GameStop shares, causing its stock to plummet 44% just on Thursday, from $347 to $193 a share. The stock is still up 927% for the year.

The explosive rise had led some investors to crow about whacking Wall Street and landing a blow for the little person.

"It's a beautiful thing to see," said One_Guy_One_Jar on Reddit's profanity-filled r/wallstreetbets, the movement's main hangout. "I don't think of my purchase as an investment, but as putting my own skin in the game" to denounce a rigged system.

Critics, however, called the rapid rise a case of market manipulation that should be investigated by the U.S. Securities and Exchange Commission. The SEC said Wednesday that it is monitoring the market's volatility and "working with our fellow regulators to assess the situation." State regulators have also expressed interest.

As the bubble deflated, a furor grew over the steps some brokers took to halt sales. Lawmakers ranging from U.S. Sen. Ted Cruz, the conservative Republican from Texas, to left-leaning U.S. Rep. Alexandria Ocasio-Cortez (D., N.Y.) blasted Robinhood, in particular -- a firm that has sold itself as an investment tool for the masses. Later Thursday, the brokerage partially reversed course, saying it would allow "limited" buying on Friday.

GameStop, the Grapevine, Texas, public company at the center of this exuberance, hardly seems to be worth all the attention.

Founded 37 years ago when the Macintosh was a hot new product, GameStop, which sells video games, gaming consoles, and other home entertainment products, has benefited somewhat from the pandemic-driven increase in demand for in-home activities. It has also aggressively boosted online sales.

But short-sellers -- those betting that the stock price would fall -- targeted the company.

GameStop has been seeking a rebound. It cut its operating loss to $399 million in 2019, almost half the 2018 losses of $701 million. Still, the firm continued to lose money last year. GameStop, which had 5,000 stores in 10 countries before the pandemic, has been on a steady track to build its online business and close poorly performing locations.

Ryan Cohen, the founder of online pet food giant Chewy, bought a stake in GameStop last year and joined its board, leading some to expect a turnaround.Same-store sales for the most recent holiday season dropped 3.1% to $1.770 billion for the holiday season, while e-commerce sales rose 309% to $1.35 billion.holidays the nine-week period ended January 2, 2021 compared to the nine-week period ended January 4, 2020. The company reports full fiscal year 2020 results in late March.

The company has been helped by stay-at-home mandates in New Jersey and Pennsylvania that have prompted more folks to take up electronic gaming. The shutdowns have also encouraged enthusiasts to buy -- and trade in -- popular video and streaming hits such as Call of Duty: Cold War, Marvel's Spider-Man: Miles Morales, and Hitman 3.

Both Sony's PlayStation and Microsoft's Xbox put out new gaming consoles before the holidays, further fueling the trend.

With at least a dozen locations in the Philadelphia area, GameStop has emerged as a major beneficiary of COVID-19 claustrophobia.

At the Cherry Hill Shopping Center store, customers were too busy vanquishing on-screen enemies to track the hourly gyrations of the company's stock.

"The hit games have been very hard to keep in stock," said Ricardo Soto, assistant manager at the Cherry Hill Shopping Center store. The corporate office chose to sell popular games and accessories in waves online, to prevent crowds from gathering in stores, he added.

"After the holidays, business really picked up. We're breaking last year's expectations," Soto said. "That's due to everyone being home and demand with [PlayStation's] PS5 and Xbox" releases last fall.

GameStop isn't the only target for day-traders. Others include American Airlines, the theater chain AMC Entertainment Holdings, BlackBerry, Bed Bath & Beyond, and other public companies with a significant "short" position, meaning bets made by investors that the share price will drop.

GameStop's current sky-high price isn't rooted in financial fundamentals or reality, said Samuel Rosen, assistant professor of finance at Temple University. "It shows the power of these online communities" to drive prices, he said.

Thomas Peterffy, chairman of the Interactive Brokers brokerage, was also among those criticizing the campaigns that bid up the GameStop stock, calling it "illegal" and a "manipulation."

He said on CNBC that his firm's halt in sales was needed to protect the stock market. "We are worried about the integrity of the marketplace."

Hedge funds, large institutions such as Vanguard, and first-time traders have all been touched by GameStop.

Vanguard's index funds are one of the largest institutional shareholders in GameStop, holding roughly 4.17 million shares in its funds as of Dec. 31, according to Bloomberg data.

Yet, the effect has been minuscule on the Malvern mutual fund giant, said Jeffrey DeMaso, director of research at Adviser Investments, which tracks Vanguard funds.

GameStop gained roughly $1.6 billion in value, which is a drop in the bucket compared with Vanguard's overall assets of $6 trillion. Among more than 40 Vanguard funds holding GameStop shares, the company's Total Stock Market Index Fund is the largest shareholder, with 1.2 million shares as of Nov. 30.

And there are no business-related reasons why the share price has shot up more than 17 times in one year, DeMaso said.

Instead, it's a populist movement. "There are layers as to why people are involved in GameStop -- Wall Street bashing, pure greed, people getting their stimulus money. It's a reflection of people bored sitting at home," he said.

In addition, day-traders are suffering from the "gambler's fallacy, the belief that what's happened in the recent past will keep happening in the future. Your successes tell you you'll have more success," he said.

R/wallstreetbets and other Reddit message boards are rife with new ideas to drive big run-ups in price, a mania reminiscent of the dot-com boom-bust and the 2008 real estate bubble, academics noted.

"It's a fine strategy, as long as you're not the last person buying," said Rosen. Even his students at Temple's Fox School of Business have been talking about GameStop's valuation.

"These are due for a crash, similar to the ones we saw in 2010 among high-frequency traders, Rosen said. "Prices can go down as fast as they went up."

What about the online trading war between individual and professional investors?

The GameStop trading frenzy "is a fascinating example of collective action through social media. From what I've seen, most of the retail investors joining the Reddit movement understand that they've taken a reckless position," said Nathan Fong, associate professor of marketing at Rutgers University-Camden.

To succeed, "they have to convince everyone -- including each other -- that they're a little bit crazy and are going to hold on to their GameStop stock," Fong added. "So far, they've managed to achieve that, in part because they've built a subculture that is at once both self-deprecating and hostile to being patronized by the establishment."

Investors opened up 10 million new brokerage accounts in 2020, according to JMS Securities research. And many of them started trading through online-only brokers such as Robinhood.

But not with Robin Hood Funding, a firm in Wayne that buys settlements and annuities. A victim of mistaken identity, it says it has been fielding hundreds of misdirected calls recently from disgruntled Robinhood brokerage customers, irate at that firm's moves to restrict purchases.

And those calling in, said firm executive Edward Dabrowski, have not had "the nicest things to say."
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The political landscape a wasteland, the meme lords move to Wall Street.

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