Corrupt hedge funds have for a long time shorted (bet against, not for) companies. They use a lot of unethical, or downright illegal tactics (counterfeiting shares, which is called naked shorting) to drive the companies into bankruptcy and to get delisted from the stock exchanges. The shorts win big $ when this happens.
It began 20+ years ago, mostly to small companies that went under the radar. It was also common with medical research companies who were developing cures to cancer and other ailments. Of course big pharma can’t allow that to happen, so these companies were ruthlessly driven into bankruptcy.
The game escalated into the big time when a hedge fund VP named Jeff Bezos left his big $ job on Wall Street, and decided, instead, to launch an "online book store" called Amazon. Maybe you've head of it, and it's too good to be true rise to become the king of retail. By sheer dumb luck (sarcasm here) as Amazon expanded from books into other avenues, their competitors (Sears, Toys R Us, Radio Shack, Blockbuster, and on and on) were being driven into bankruptcy, right as Amazon was moving into those new avenues of retail. Amazon's competitors dropped by the wayside as his old buddies on Wall Street got rich in the process. Surely just a coincidence, lol.
As more people starting becoming aware of what was happening, a guy (a white hat asset, it now seems like in hindsight) named Keith Gill (aka "Deep Fucking Value" or "Roaring Kitty") began amassing a growing following as he explained the situation, and how GameStop was a current target of the shorts. Was Amazon trying to take over the video game segment of retail? Gill showed how all investors needed to do to stop this, was to buy shares, and HOLD THEM, which would thwart the shorts.
If you're "long" on a stock and it goes bankrupt, then you could potentially lose your whole investment, whatever amount you paid for the shares. However, if you're "short" a stock, and its value rises, there is no limit to your potential losses. Again, there is no limit to the amount you could be responsible for owing. To make matters (EXTREMELY) worse, if a stock has been severely "naked shorted" then it isn't even possible to close your short position, because not enough real (not counterfeit, or naked) shares exist. There aren't words that can describe the situation that can arise from this. Catastrophic would be putting it mildly.
Long story short (no pun) what we believed was just us holding shares of GameStop (GME) a few years ago was a one-off situation (that is still in play) now seems to be part of a much larger, extremely well orchestrated white hat plan to trap the corrupt short sellers. As we learn more, it now looks like many companies are involved in this, not just GME, with the latest being Trump's DJT stock. By digging into legal filings, it now appears that DJT is part of it, and last night, in the video clip I posted, Trump mentioned the situation, and said "shorts can get hurt very badly" which is a yuge understatement. He's letting us know.
TL/DR: Corrupt Wall Street bankers are going to be bankrupt in the greatest transfer of wealth of all time. Or, as GameStop CEO, Ryan Cohen, put it "the best time to be alive in human history is now."
Here's great documentary from 2012, about the naked shorting scam...
That was a great explanation, thank you fren for taking the time. I watched the film too from beginning to end -- was excellent. The question now is will DJT go lower like Steve Bannon suggested, or should we buy more now while it's around $31 a share. I think it will go lower, but seeing it at $30 today was a great temptation.
Well, that's the gamble, none of us have a crystal ball and can predict when it might fall or rise in price. If Trump, or TRUTH Social drops some big development then the price will shoot up and you'll be kicking yourself for not getting in when you could have. We've all done that; I almost bought Bitcoin when it was at $25k but I procrastinated and didn't end up buying until it was at $43k.
One more quick thing, if you're not aware of the difference between shares and warrants...
Shares (DJT) are currently $32.50
Warrants (DJTWW) are currently $13.70
If you buy a DJTWW warrant, then you'll be able to turn that into a share of DJT (exercise the warrant) for an additional $11.50 when the window to do that begins (should be in a month or so).
So $13.70 + $11.50 = $25.20 which is a $7.30 discount, compared to buying a share directly.
Sure thing, CornPop...
Corrupt hedge funds have for a long time shorted (bet against, not for) companies. They use a lot of unethical, or downright illegal tactics (counterfeiting shares, which is called naked shorting) to drive the companies into bankruptcy and to get delisted from the stock exchanges. The shorts win big $ when this happens.
It began 20+ years ago, mostly to small companies that went under the radar. It was also common with medical research companies who were developing cures to cancer and other ailments. Of course big pharma can’t allow that to happen, so these companies were ruthlessly driven into bankruptcy.
The game escalated into the big time when a hedge fund VP named Jeff Bezos left his big $ job on Wall Street, and decided, instead, to launch an "online book store" called Amazon. Maybe you've head of it, and it's too good to be true rise to become the king of retail. By sheer dumb luck (sarcasm here) as Amazon expanded from books into other avenues, their competitors (Sears, Toys R Us, Radio Shack, Blockbuster, and on and on) were being driven into bankruptcy, right as Amazon was moving into those new avenues of retail. Amazon's competitors dropped by the wayside as his old buddies on Wall Street got rich in the process. Surely just a coincidence, lol.
As more people starting becoming aware of what was happening, a guy (a white hat asset, it now seems like in hindsight) named Keith Gill (aka "Deep Fucking Value" or "Roaring Kitty") began amassing a growing following as he explained the situation, and how GameStop was a current target of the shorts. Was Amazon trying to take over the video game segment of retail? Gill showed how all investors needed to do to stop this, was to buy shares, and HOLD THEM, which would thwart the shorts.
If you're "long" on a stock and it goes bankrupt, then you could potentially lose your whole investment, whatever amount you paid for the shares. However, if you're "short" a stock, and its value rises, there is no limit to your potential losses. Again, there is no limit to the amount you could be responsible for owing. To make matters (EXTREMELY) worse, if a stock has been severely "naked shorted" then it isn't even possible to close your short position, because not enough real (not counterfeit, or naked) shares exist. There aren't words that can describe the situation that can arise from this. Catastrophic would be putting it mildly.
Long story short (no pun) what we believed was just us holding shares of GameStop (GME) a few years ago was a one-off situation (that is still in play) now seems to be part of a much larger, extremely well orchestrated white hat plan to trap the corrupt short sellers. As we learn more, it now looks like many companies are involved in this, not just GME, with the latest being Trump's DJT stock. By digging into legal filings, it now appears that DJT is part of it, and last night, in the video clip I posted, Trump mentioned the situation, and said "shorts can get hurt very badly" which is a yuge understatement. He's letting us know.
TL/DR: Corrupt Wall Street bankers are going to be bankrupt in the greatest transfer of wealth of all time. Or, as GameStop CEO, Ryan Cohen, put it "the best time to be alive in human history is now."
Here's great documentary from 2012, about the naked shorting scam...
https://archive.org/details/videoplayback_20210423
That was a great explanation, thank you fren for taking the time. I watched the film too from beginning to end -- was excellent. The question now is will DJT go lower like Steve Bannon suggested, or should we buy more now while it's around $31 a share. I think it will go lower, but seeing it at $30 today was a great temptation.
Well, that's the gamble, none of us have a crystal ball and can predict when it might fall or rise in price. If Trump, or TRUTH Social drops some big development then the price will shoot up and you'll be kicking yourself for not getting in when you could have. We've all done that; I almost bought Bitcoin when it was at $25k but I procrastinated and didn't end up buying until it was at $43k.
One more quick thing, if you're not aware of the difference between shares and warrants...
Shares (DJT) are currently $32.50
Warrants (DJTWW) are currently $13.70
If you buy a DJTWW warrant, then you'll be able to turn that into a share of DJT (exercise the warrant) for an additional $11.50 when the window to do that begins (should be in a month or so).
So $13.70 + $11.50 = $25.20 which is a $7.30 discount, compared to buying a share directly.