Home Finance The Gamestop Rebellion

The Gamestop Rebellion

Author

Date

Category

The Political Implications of the Gamestop Rebellion.

Tyler Durden:

For a few hours this morning it seemed that all was lost for r/WallStreetBets and their crusade to teach Wall Street billionaires a lesson, when one exchange after another banned buying in the most-shorted stocks, an unprecedented unilateral decision made by brokerages (one of which, Robinhood, is effectively joined at the hip with hedge fund Citadel, which in turn is a part owner of Melvin Capital which was destroyed by the short squeeze that Robinhood banned, so a clear conflict of interest), and one which sent GME stock as low as $112 after trading at $500 just hours earlier.

Citadel also paid Janet Yellen, the new Treasury Secretary and ex-Chair of the Federal Reserve, over $800k in speaking fees. Hmmm.

However the hedge funds short Gamestop, who may have declared victory prematurely, had to put the champagne back on ice because just after the close, amid tremendous pushback from clients, Congress, and the public — not to mention what appears to be a liquidity crisis as millions of accounts bailed — Robinhood announced it would allow buying to resume on Friday, sending the stock up almost double after hours.

The little guys picked Gamestop because the Wall Street shorters had shorted 117% of its stock — more shares than existed in Gamestop. Normally this level of shorting would have driven Gamestop into the ground and possibly out of business, in a self-fulfilling prophecy that made Wall Street richer.

Last night we speculated that if indeed there are more shorts — both synthetically or otherwise — than available shares, then the only place bearish hedge funds will get shares to cover their shorts is from the company itself. Which means that Gamestop can theoretically ask for any price (somewhat reasonable) and hedge funds will have to agree. After all, it’s not GME’s fault that hedge funds were so greedy they overshorted the company, which really is what all this boils down to.

Of course, that is a bit of an idealistic take, one where hedge funds finally are forced to pay for their stupidity. Alas, in a country as corrupt as this one, that’s unlikely to ever happen.

Maybe millions of smaller investors are not in it just for the profits, but for the LOL — a big FU to Wall St and the Establishment, who do so much to rip them off, order them around, and make their lives miserable. It’s like voting for Trump.

TheQuartering, with a clue about why RobinHood reversed course:

Robinhood Took Years To Build & Only Hours To Destroy! Google Has Removed Over 100,000 Negative Reviews, Class Action Lawsuits Are Underway & We’re Not Done Yet!

Put These Assholes Behind Bars

Robert Stacey McCain:

Oh, my! Oh, my! What a storm of hilarious schadenfreude has overtaken the stock market this week!

The hero of this saga is a guy with a Reddit account called “DeepF**kingValue” who, in September 2019, accumulated $53,000 in stock in the retail chain GameStop. …

Liberals are actually claiming that “Trumpism” is what has caused the GameStop bonanza. The hedge funds got screwed over by “white supremacists,” some liberals are arguing on Twitter.

What does this claim imply? It implies that any challenge to the status quo is illegitimate, that it’s “hate speech” or “terrorism” any time you do something or say something that disrupts the ordinary process by which rich people get richer and powerful people exercise power.

Glenn Reynolds:

Wall Street giants are calling foul after having been beaten at their own game by a bunch of guys on the internet. It’s hard not to cheer.

A user comments: “Robinhood canceled stock orders on #gme #amc #NOK etc…. There should be a class action lawsuit. I thought we had a free market. So Wall Street is OK with me losing hundreds of dollars, so that rich investors can’t be called out on their risks.”

When push comes to shove, the oligarchs display an astonishing solidarity. …

More:

In the words of George Carlin, it’s a big club and you ain’t in it.

I’m seeing a lot of FB friends who I’m sure voted for Biden talking about how rigged and corrupt the system is as their trades on Robinhood and similar platforms are blocked. This is likely to make the “great reset” a lot more difficult. Also, if a lot of retail investors get the idea that the market is rigged against them — because, you know, they see it happening — that’s going to be a long-term drag on the markets, and on the many people who make their money, one way or another, off of retail investors.

More:

The result was that GameStop, which had been trading between $3 and $10 a share, rocketed north of $300. …

This display of spontaneous group power by a bunch of previous unknowns has frightened the Really Smart People™ …

Meanwhile, regulators huffed and puffed, and CNBC was filled with industry bigshots arguing that this sort of thing shouldn’t be allowed — although, as critics noted, the Reddit mob was just doing to the short-sellers what Wall Street insiders do all the time to retail investors. …

Writing for The Post this week, Charles Gasparino explained why the little guys got together to buy GameStop: “Mostly, they’re out to hurt the big guys.”

The Big Guys’ problem is that nobody likes them much. From Silicon Valley to Wall Street, they’re deeply unpopular with ordinary Americans, on both the left and the right, resentment they’ve stoked with selfishness, arrogance and condescension. Their solution to this unpopularity has been to use their control over online platforms, and their influence over the government, to silence their critics.

But they can’t stop the signal. No sooner did the tech giants collude to shut down Twitter alternative Parler than a new revolt sprang up somewhere else entirely among stock traders on Reddit. What will it be next? Truck drivers refusing to deliver food to Silicon Valley? Plumbers boycotting “woke” executives? It’ll probably be something cleverer and less foreseeable than that, but it’ll be something. The more the techno-elite tightens its grip, the more Americans will slip through its fingers.

The realization that the markets are corrupt and unfair, like so much else in society (elections anyone?), has spread considerably due to the Gamestop episode. Including to the young lefty crowd.

Since the GFC in 2008, all the markets have been manipulated. “There are no markets, only interventions” — Chris Powell. Central banks have ruled all the bond, share, and commodity markets, to one degree or another.

The market manipulation is greatest in gold and silver, whose prices have been manipulated downwards by agents of the central banks since the mid-1990s. After all, gold and silver are the old money, the competitor to the modern paper currencies produced by the central banks. Surging prices of precious metals indicates a lack of confidence in their product,.

The little guys coordinating on Reddit are considering getting into silver, as the biggest downward manipulation and potentially greatest short squeeze of all. But then they would be taking on not only a few Wall St hedge funds, but all the world’s central banks simultaneously. The establishment would just change the rules to suit themselves to ensure they won.

But at some point we move beyond mere rules set and reset by the establishment. Physical gold and silver are immune, for instance. And see all those troops in Washington? Both are examples of moving outside the usual rules.

A reader adds:

Ironically and despite its name, Robinhood was set up by the big boys to rip off the little people. Robinhood trades had no brokerage fees because information about the little people’s trades was sent, ultrafast, to Citadel so that Citadel could front-run the peasants’ trades and steal from them.

Bridget Phetasy:

They locked us up, shut down the economy and gave us $1200–what did Americans do? They decided their favorite new video game is fucking with hedge funds. I’ve never been prouder.

Keith Woods:

They have rigged everything, silenced dissent with tech censorship and financial deplatforming, rigged the economy with insider trading, rigged democracy with lobbying and mass immigration, and they’ll tell you with a straight face that racist rednecks are the problem.

rudy betrayed:

Remember when senators got coronavirus briefings before the public and sold off millions of dollars in stocks before the crash last year and faced no consequences and no regulation? Then reddit made one stock into a meme and they’re talking about restructuring the whole market.

Glenn Reynold’s friend:

10,000 national guard troops to Wall Street by Monday.

9 COMMENTS

  1. I’ve spent hours looking at this and reading the Reddit thread.

    This is a game changer. But I have no idea what the change will be.

    The people are NOT expecting to make money out of this. They 100% know it’s financially”retarded” ( Their term). The average investment is just $40.

    To help understand it you really need to read the Reddit thread. Without that you are a “smooth brain”

    6

    0

    • I spent hours reafing the thread today, freaking halarious the shenanigans that goes on there, accidentally buying tankers of oil or making half mill and losing it all or students gambling their studrnt loans. The best of all is the gamestop saga and somehow a few managed to unite many enimies to target the corrupt elite and are keeping it going, they dont care about the money they just wana hurt the fuckers like the hurt everyday joe public.
      Go for it wsb keep going and dont give in!!!

      3

      0

  2. I see this as “cancel culture” taken to a new level, in a way. I think these Reddit guys/gals are onto something and will just move from one target to the next, just for the fun and the challenge of it. For example, will the insurance industry be a target?

    The big Reset might happen, but not in the way the Davos people think it will

    7

    0

  3. A few decades ago NZ’s share market was known as the cowboy of the wild west,
    When raiders like Briarly’s were able to operate, and make great profits.
    ——— – — – — – – — —

    A submission made to an Australilan Senate Inquiry on the performance of Australian Securities and investments Commission (submission 110) –

    “Superannuation fund buys shares on market, drives up the price.

    Loans the stock to a Borrower. (e.g. a Hedge Fund (which may be privately owned and nothing to do with Super Funds)

    Hedge Fund and Super fund enter into a commercial ‘borrow’ agreement, the basic parameters of an agreement include nominal interest on the stock while borrowed and repayment of the stock at a later time*. (see later clarification: Alternative stock repayment scenario)

    Hedge Fund then commences to sell the stock on market with the intention to buy back at a lower price.

    Using highly complex algorithmic trading platforms (computerised trading) the Hedge Fund sells the borrowed stock (some or all) on market, in such manner as to drive down the share price in a manner most beneficial to short selling.

    The Share Price is driven down to ($3), the Hedge fund’s average selling price is ($5.00)

    The Hedge fund then must repay the shares to the Super Fund, or pay 5 – 7% interest on the contracted value.

    Using computerised trading platforms the Hedge Fund then may proceed to buy on-market replacement stock, in a manner that causes the least rise in the price. Over time the Hedge fund buys the replacement stock at a lower average price ($4) and when the process is completed the share price of XYZ is left at ($5)

    At the beginning the Super fund portfolio value of XYZ was $7 x 3,333,333 or$23,333,333, cost being $20,000,000 to the fund (an ‘on-paper’ gain of $3.33m) and the Hedge fund portfolio value is $0.

    At the end, the portfolio value of the Super fund is $5 x 3,333,333 or $16.66m,a real loss of $3.33m (and an additional ‘on-paper’ loss of $3.33m) and the portfolio value (cash) of the Hedge fund is a gain of $3.33m.

    The interest payable by the Hedge Fund may be insignificant if the transaction is completed in the short term.

    The share price and Market valuation of XYZ has been trashed, the Super fund has had $3,333,333 cash stripped from its portfolio (but retains dividends paid, if any) and this same value has been added to the Hedge Fund.”

    https://www.aph.gov.au/DocumentStore.ashx?id=9b425f06-b003-456f-8581-07d38cafeb0c&subId=31121.
    Then one has to open the file.
    – – – – – – – – – – – – – – –

    Have it changed much in NZ?
    Those superannuation funds that people dreamed would be so great for the people?

    Doing projects that governments want to redirect them to.

    Then the talk of like Canadian superannuation funds, buying into NZ.

    But are these “hedge funds” really bona-fide or just lip stick on a pig?

    Can our supposed sharks, swimming in a small pool, punch above their weight, or more truly, just grist to the mill for the larger part of the food chain,

    Then why is this pushed by the NZ government?

    6

    0

    • I can remember back in the early mid 80s when everyone was into shares, so IPOs were going mad. I can still remember a friend saying “C’mon Ross give us an idea, you can float a brick in this market”

      4

      0

Recent posts

Businesses Who Are Discriminatory.

Noting the Kiwi Businesses Who Are Discriminatory. If you need to be vaccinated soon, (because you are forced to, so you can see your family,...

Fakebook Censorship

Yesterday Braybots nemesis posted a link to Twitter. https://twitter.com/zaraaa__1/status/1442106157426896897?s=21 This lists some of the Kiwis who have had their post deleted from Fakebook because they were...

Are They TRYING To Kill You?

Are They TRYING to Kill You, or Are They Just Corrupt, Avaricious, and Stupid? By L. Reichard White Governments lie. They lie all the time. If...

Recent comments

Brigadier General Rissole on Have Your Say
Editor on Have Your Say
Brigadier General Rissole on Have Your Say
Odakyu-sen on Have Your Say
Editor on Have Your Say
Odakyu-sen on Have Your Say
DylanHunt on Have Your Say

The way we all feel about this useless government

Hamilton
scattered clouds
6.8 ° C
10.5 °
5.7 °
95 %
1.4kmh
42 %
Mon
10 °
Tue
14 °
Wed
15 °
Thu
15 °
Fri
14 °
NZD - New Zealand Dollar
USD
1.4231
EUR
1.6679
AUD
1.0335
CAD
1.1240
GBP
1.9475
JPY
0.0129
CNY
0.2201
INR
0.0192