First of all, I haven't the damnest clue about how the stock market works. This is just wild speculation. So, remember back on the 6th when all the Patriots surrounded the Capitol and gave everyone a good scare? And then what happened? The commies called in the NG to build a giant fence around them to protect them from the violent and scary plebs. Now they're free to continue the scamming of the country without fear of any resistance from the populace. Okay now look at the GameStop thing going on. Do you see what the Elite are wanting to put in place to prevent this kind of thing from happening again? They want the power to stop the market whenever they feel threatened. We're probably not too far from the general public being banned from the exchange altogether. But anyway... What's to say this isn't another false flag event being carried out by the DS? The elite get their Police State. The public gets screwed out of billions. And the media gets a nice distraction from the disaster going on in the Senate.
Comments (25)
sorted by:
You're right, you don't know what you're talking about Here's the executive summary of the executive summary.
You can buy a stock and hope the price goes up. You can sell a stock, hoping the price goes DOWN.
When you buy a stock, your risk is limited: you can only lose as much as you paid for the stock, they can't come after you for anything else.
But if you have a brokerage account and they give you certain permissions (you have to have enough money and have a clue what you're doing...)
You can short a stock.
That means, you BORROW some shares from the broker. You SELL the borrowed shares. You are hoping the stock prices goes DOWN.
When the stock price goes down, you buy it back at the lower price, and give those back to your brokerage. You get to keep the difference.
The risk in a short is, NOT just the amount the stock cost when you shorted it. What if the stock goes up? What if the stock was at $1 / share. So you borrowed and sold 2000 shares, for $2000. Great, when the stock goes to 50 cents, you buy it for $1000 (2000 shares times half-a-buck-per-share), and give the shares back, and you've made $1000.
Clear so far?
Now, what's the risk in a short? Let's say you sold 2000 borrowed shares for $1 apiece. Now let's say that company announces they've discovered the cure for liberalism. Their stock goes to $1000 / share !! Now you have to come up with, $2, 000, 000 -- a cool million -- to buy your 2,000 shares back.
In theory there is no limit to what you might owe, by shorting a stock.
Hang on, because it gets worse.
Now there are two kinds of shorts -- not joking, despite the pun -- regular and naked. In a regular short, your broker actually has the shares to borrow. In a naked short, they've sold more shares than actually EXIST.
So when it comes time to buy them back -- it's like all 3 of the Three Stooges trying to go out the same door at the same time. EVERYBODY wants the stock. But there isn't enough to go around. So the price goes UP. That makes all the people with shorts on the stock, go even FURTHER into debt. And so on.
(There's a rule that you can't buy back your shares in a short until the price temporarily drops a bit. So what does that rule do, if it just keeps going UP?)
But there's one more nasty ingredient.
There are organizations called "hedge funds" -- for rich people (net worth usually in the millions at least, or at least (say) $250,000 yr in income,sometimes more than that.) They are called "hedge funds" because they provide a hedge, a shelter, against risk and uncertainty.
Sometimes what the hedge funds do -- and this is kinda near the border of what is legal -- is, they see a stock of a weak company. And they informally say, "We iz ALL gonna short that stock at once, and drive the stock down, and that'll bankrupt the company but make us rich, so YAY US!"
Some hedge funds tried to do this to GameStop. The rationale on the surface, was, hey, retail store + COVID == business sucks. But GameStop had two things.
So when the hedge funds said, "Let's short GameStop" the autists said, F this S, we're gonna buy and drive the price UP.
And the hedge funds (who were doing naked short selling) got caught with their pants down, bigtime. If you owe too much on a short, your brokerage fund, or bank or whatever, can FORCE-sell other stuff you own, to make sure you're good for the money on the short. That happened to the hedge funds here: $2.5 BILLION in losses so far.
So now they're squawking to the FTC and lawyers and Congress and everybody, "Waah! Those nasty redditors aren't letting us bend the rules!"
Hilarity ensues.
Thank you for doing the Lord's work. You're right. That's hilarious.
Good! Fuck those assholes. Of course they aren't complaining when it's the other way around!
This guy fucks
No, its a short squeeze sparked by a reddit trading board. Not DS because it's fucking up the Market Makers
I feel like you missed OP's analogy to January 6th.
Reddit board = Antifa
Short squeeze that screws market makers = Raid on capitol "threatening" congress
Use as an excuse to lock down capitol = Use as an excuse to lock down markets
Except they already did that today and have before. Those "technical difficulties" Robinhood, Ameritrade and so on have is their way of shutting down trading they don't want. This whole thing is also pretty popular on /pol/ and /biz/ too. So I wouldn't chalk it all up to "antifa" types. If they ban wallstreetbets maybe it's time for a .win section to replace it.
This would be equivalent to the agitators storming the capital while the trump supporters walk in the opposite direction. The agitators lose massively, while the trump supporters win. The stock market is being countered by a "Q" type of movement. You have someone getting a bunch of normies to organize together and fight back against the elites.
i made money. best false flag ever.
For those who were at the capitol, that was a pretty cool one too
Well they play the same game and follow the same rules. If they BAN this, than the whole stock market will collapse.
no dude. Its liberation.
Just all the bitcoin kids bringing their bitcoin tactics into the swamp market.
They found someone who had shorted GME BIGLY, so they bought and held GME, come Friday Melvin Capital has to pay up on their bad bet. They shorted GME at like $40, like hundreds of millions of shares. So ya. They are fucked. But SOMEONE is making a ton of money, Blackrock financial just bought a bunch of gme in December, they just made like 2 billion this week.
Same Blackrock that is running the Treasury's trades for the Fed Reserve?
makes sense to me and it could go either way--- the stock market has been figured out by lots of average Joe's (I'm not one of them unfortunately) so maybe a bunch of guys saw patterns in shorts and jumped on the band wagon which could have made them lotsa money.
The assholes holding the purse couldn't have that so they suspended trading. Kind of like the casino closing a table when it's "lost" too much money.
Gme? Whats that?
GME is the stock handle for Gamestop the video game company that is primarily known for buying and re-selling used games.
I wouldn't be so sure about that,
The stock rise is raping not only Hedge fund billionares in the ass but also Naked Short sellers (Investors illegally selling phantom stocks via "borrowing" to circumvent regulations)
Poor people are buying the stock and raising the price. Hedge funds of rich pricks are losing A LOT OF MONEY for betting against the stock. It looks like the mass is warring against the rich.
"First of all, I haven't the damnest clue about how the stock market works." You should have stopped right there.