I own quite alot of GME myself. The MOASS or infinite losses being described is a possibility no doubt and a reason why so many jumped in. Keep in mind if.....infinite losses occur, this sounds like, YES we are all wealthy monetarily, however a complete and total market and currency crash is also a very likely outcome. Take that for what its worth, noone knows its never happened. But having millions of worthless dollars is something to keep in mind. Which should mean the smart ones immediately re divest into other options of value, not a Fiat currency.
My speculation is the GME wallets will be the "buckets" to capture the new currency of the next 50 years. They will be used for company dividends, GME tokens, stable coins, DAO governance models for voting on ideas/projects, NFT'S and a way to crush the shorts with their synthetic "shares".
You will have a unique footprint on the blockchain that cannot be counterfeited. It's your GME fingerprint. It's an attempt to have a pure financial corporate model (or at least a step up from the whorehouse that is Wall Street today).
I havent dove too deep in the NFT and blockchain plans gamestop has going. I tend to revert back to extreme hesitation if we are actually faced with a currency dissolution and another replacement relies on electricity for access. Ill be converting Fiat to tangibles and tradeables. All very reasonable speculations there though and I think it would be prudent to see how those play out if this all rolls out as the "apes" are speculating.
It's just a speculation. I agree with you, tangible assets should be prioritized before crypto and NFT. I'm pretty invested in physical silver and got some gold laying around. I'm not invested in any cryptos or NFTs, but alot in GME shares (xxx).
For this reason it's gonna be a hectic few weeks when it does take off. I'm definitely gonna sell a portion on the way up/down (not looking for a top) to put it into gold/silver/cyprto/land immediately while the frenzy is going on
Yes. Short selling has the potential for INFINITE losses. Throw in the fact that a Market Maker (Citadel) abused their special "providing liquidity" abilities to create 100s of millions of fake GME shares out of thin air... we are now talking about the potential for infinite losses to be extremely high, especially if there are plenty of "apes" that refuse to sell all of their shares when the price runs up. The only thing I see stopping this big mess when it takes off is if the government steps in and shuts it down for the "safety of the economy".
Although I have bought a handful of shares, I am not totally optimistic that it will work out as some are saying. The powers that be can totally halt trading on a stock or the entire market. The other thing that nobody has been able to explain to me is why the hedge funds don't just sell their holdings to a separate corporation and just let that corporation go bankrupt? That's the whole reason limited liability corporations exist, --right? -- to limit losses. Not an expert in this area, so people in the know can educate me.
The other thing that nobody has been able to explain to me is why the hedge funds don't just sell their holdings to a separate corporation and just let that corporation go bankrupt? That's the whole reason limited liability corporations exist, --right? -- to limit losses.
No, that would not work.
You don't get physical shares when you short. It's just an accounting entry at a brokerage firm.
You owe the shares. Borrow 100 shares and you have to pay back with 100 shares.
You can't just "move" the account to a corporation. The broker would still hold you responsible if there is a margin call that exceeds the value of the account.
If your idea would work, just buy a house, get a mortage, "move" the mortgage to a corporation, bankrupt the corporation, and ... abracadabra!
I do believe that the Reddit promoters are frauds.
However, let's say they are right. I will tell you what will happen (or may have already happened) ...
Goldman Sachs, or some other big player, will have a meeting with the big shorts.
They will offer to buy back all their shares, in exchange for a handsome fee.
GS will then buy and sell in the market to exit their position, over time. They will create money out of thin air, just like the Federal Reserve does, and they will call on the Fed to "borrow money" from, if necessary.
The entire position will be unwound, and that will be that.
GME will go to bankruptcy court, most likely. Or maybe the company will survive, but there will be no killing, other than by GS.
I suspect that was already done long ago, but will be interesting to see if there any fireworks (doubt it, but let's see).
I own 53 shares. So you’re saying this small piece could have me set for life? I’m really trying to understand.
I own quite alot of GME myself. The MOASS or infinite losses being described is a possibility no doubt and a reason why so many jumped in. Keep in mind if.....infinite losses occur, this sounds like, YES we are all wealthy monetarily, however a complete and total market and currency crash is also a very likely outcome. Take that for what its worth, noone knows its never happened. But having millions of worthless dollars is something to keep in mind. Which should mean the smart ones immediately re divest into other options of value, not a Fiat currency.
My speculation is the GME wallets will be the "buckets" to capture the new currency of the next 50 years. They will be used for company dividends, GME tokens, stable coins, DAO governance models for voting on ideas/projects, NFT'S and a way to crush the shorts with their synthetic "shares".
You will have a unique footprint on the blockchain that cannot be counterfeited. It's your GME fingerprint. It's an attempt to have a pure financial corporate model (or at least a step up from the whorehouse that is Wall Street today).
Hold.
I havent dove too deep in the NFT and blockchain plans gamestop has going. I tend to revert back to extreme hesitation if we are actually faced with a currency dissolution and another replacement relies on electricity for access. Ill be converting Fiat to tangibles and tradeables. All very reasonable speculations there though and I think it would be prudent to see how those play out if this all rolls out as the "apes" are speculating.
It's just a speculation. I agree with you, tangible assets should be prioritized before crypto and NFT. I'm pretty invested in physical silver and got some gold laying around. I'm not invested in any cryptos or NFTs, but alot in GME shares (xxx).
Do you know there are more than 10,000 cryptocurrencies that have been created over the past few years, and MOST of them have gone bust?
One dropped 98% in value in ONE DAY, just a week or so ago.
For this reason it's gonna be a hectic few weeks when it does take off. I'm definitely gonna sell a portion on the way up/down (not looking for a top) to put it into gold/silver/cyprto/land immediately while the frenzy is going on
We’ll be wiping our asses with hundo’s friend...!
My hundies will be gold and silver bullion and a chunk of acreage i can wipe my ass on every leaf with
20 here, selling 1 at phone numbers and infinity pool the rest.
Yes. Short selling has the potential for INFINITE losses. Throw in the fact that a Market Maker (Citadel) abused their special "providing liquidity" abilities to create 100s of millions of fake GME shares out of thin air... we are now talking about the potential for infinite losses to be extremely high, especially if there are plenty of "apes" that refuse to sell all of their shares when the price runs up. The only thing I see stopping this big mess when it takes off is if the government steps in and shuts it down for the "safety of the economy".
Although I have bought a handful of shares, I am not totally optimistic that it will work out as some are saying. The powers that be can totally halt trading on a stock or the entire market. The other thing that nobody has been able to explain to me is why the hedge funds don't just sell their holdings to a separate corporation and just let that corporation go bankrupt? That's the whole reason limited liability corporations exist, --right? -- to limit losses. Not an expert in this area, so people in the know can educate me.
No, that would not work.
You don't get physical shares when you short. It's just an accounting entry at a brokerage firm.
You owe the shares. Borrow 100 shares and you have to pay back with 100 shares.
You can't just "move" the account to a corporation. The broker would still hold you responsible if there is a margin call that exceeds the value of the account.
If your idea would work, just buy a house, get a mortage, "move" the mortgage to a corporation, bankrupt the corporation, and ... abracadabra!
But it won't work. :-(
I do not believe that the shorts have a problem.
I do believe that the Reddit promoters are frauds.
However, let's say they are right. I will tell you what will happen (or may have already happened) ...
Goldman Sachs, or some other big player, will have a meeting with the big shorts.
They will offer to buy back all their shares, in exchange for a handsome fee.
GS will then buy and sell in the market to exit their position, over time. They will create money out of thin air, just like the Federal Reserve does, and they will call on the Fed to "borrow money" from, if necessary.
The entire position will be unwound, and that will be that.
GME will go to bankruptcy court, most likely. Or maybe the company will survive, but there will be no killing, other than by GS.
I suspect that was already done long ago, but will be interesting to see if there any fireworks (doubt it, but let's see).
This makes zero sense. GameStop is sitting on like a billion of unused capital. How the hell are they going bankrupt here?
Unused? Do you know what Working Capital is?
They have $1.2 billion cash.
They have $1.3 billion in current liabilities.
They lose money at $365 million per quarter, or $1.5 billion per year (and Cash Flow Negative of almost $1.6 billion per year).
All that cash is spoken for, and they will need ... MOAR ... assuming they wanna stay in business.
Plus ... a business model that ... SUCKS. That's why they are "playing games" with the business model now.
I wrote about this almost 2 years ago when the story was hot. Today, it's the same fucking story.
Nothing has changed, except the shorts are no longer in trouble -- especially now that we are in a bear market.
Why do you think the shorts shorted this thing in the first place? Just for kicks?
How can a company with no debt and 1 billion in liquid cash go bankrupt?
No, some people who either don't know what they are talking about, or do and are intentionally trying to deceive you, are blowing smoke up your ass.
If there is a stock split, the total dollar amount you own will be the SAME afterwards.