**** I AM NOT TELLING YOU HOW TO SPEND YOUR MONEY, I REPRESENT NO ONE BUT MYSELF, THESE ARE MY THOUGHTS AND IN NO WAY SHOULD BE INTERPRETED AS FINANCIAL ADVICE ****
Daily, I am watching the 1% battle each other with money, and the closer it comes to an end, the more I feel that this is somehow connected to everything.
Short story: GME (GameStop stock) has been heavily shorted (bet that the stock price would fall) for a long period of time, to the point that more than 100% of the available shares have been “lent out” and have created counterfeit stock. Normally this is illegal, but if you’re making billions, a $1 million fine is just the cost of doing business. Yadda yadda yadda.
So the 1% have been using this loophole to make billions of untaxable dollars. That’s right, when a business fails, some douche on wall street makes billions. Well they got caught with their hands in the cookie jar, and got a little greedy with all the businesses that failed during the pandemic and saw GameStop as nothing more than another brick and mortar store that would fail.
The problem is that it’s not gonna go bankrupt, and they don’t want you to know the truth.
They went and lied on national television, risking prison time for stopping the rise in January. Billionaires cried on television ? and they want you to believe they covered, but they told Congress that the price didn’t rise because they were covering their shorts.
They spent millions to buy accounts and spread fear, uncertainty, and doubt to every corner of the internet. Telling people to sell their positions now. They paid the media to do the same, preparing articles 12 hours ahead of time for a price drop the next morning.
The biggest thing in my opinion is the 10 minutes edited from the congressional GameStop hearing on CNBC website
https://youtu.be/d2DU6DXfGPM This is the edited version
https://youtu.be/imRzHXRq80I Here is the original
Something big is about to happen and I believe we need eyes on this. It’s a major happening going on coincidentally along side everything else.
(1) There is nothing wrong with shorting stocks. It's a healthy aspect of the market. There were a few geniuses that figured out Enron was cooking the books, and they shorted to profit, as well as sounding the alarm bells. They were right, the execs went to prison, and Enron is no more.
(2) Having said that, Kelly Loeffler's husband runs the NYSE, and he and his co-conspirators have allowed many stocks to be shorted more than there are shares available. This should be prosecuted.
(3) The hedge fund that was in trouble conspired with Robin Hood and their frong-running scheme, to cause investors to be harmed financially. They should also be prosecuted.
(4) The heavy short position has been mostly unwound now, so it is not the same story that it was before. The conspirators got away with rigging the markets so they could unwind their short positions.
Looks like the reason they picked GME to short is that the covid play was this store would lose business, since a lot of their sales come from brick and morter locations. But their financial numbers have stayed pretty good. Some hedge funders were taking a big risk, got caught, and then probably did something illegal to get out of it.
Will they be held accountable? Hahahahahahaha.
They should be.
There is NOTHING healthy about the market. The fact you can come up with a scenario where shorts helped fix a problem is a perfect example. There is no scenario where betting against a company is healthy. There is no scenario where you should be able to destroy a company if you have sufficient money (which is what the whole concept of shorting allows).
Regardless of the shorts, the entire stock market is a scam. The idea of being able to invest in a company you like is great and straight forward. But having 5000 loop holes and exploits in the system allows for the crap where shorts are a necessary evil. When the Patriots win, shorts need to go, and all the stuff that goes along with it. We should have a market where we can invest in companies we like. Nothing else is necessary or desirable.
What's your take on Citadel? They make up all of Robin Hood's revenue and as a market maker they're able to execute a lot of trades without the prices ever hitting the actual market.
How confident are you the short position has been unwound? They knocked it down to $50 but it shot back to $200 on no news. I get that finance.whatever.com indicates it's unwound, but how much of the real data are we seeing? Do those numbers reflect what's going on at market makers like Citadel?
How do you account for the effects of the millions of shares failing to deliver?
This isn't like crypto where everything is mathematically enforced. With stocks we're relying on something infinitely more brittle: humans.
They haven't covered at all. Just institutional investors own 130% of the stock and retail probably owns over 109% to. They counterfeited too many to cover and institutions have to report so we know they can't cover the it illegal shorts