It's interesting to see how this is being framed as a consequence of retail investors on r/WSB when the reality is that the price has been short squeezed up mostly due institutional investors having to buy back stock in order to cover their shorts on GME. Anyone who has spent more than a few hours on r/WSB sees that it's not exactly a cohesive unit. " Just today, CNBC reported that GameStop is “the single most shorted name in the U.S. stock market.” "
r/wsb is not mostly retail. I can tell there are people from shady hedge funds doing pumps there. And they’re all breaking securities law by doing that without disclosures.
For some reason this makes me think of EVE online and how a group called goonsquad basically took over a large chunk of the game by overwhelming established player empires with sheer numbers of disposable units. The Zerg approach to stock market gambling.
I think it’s a legit question. The answer is: yes. Short GME and be rich in a week.
The other answer is: no. Buy call GME and be rich in a week.
The whole market is irrational in the short term, maybe it’s luck, serendipity or genius.
You’ll find the same pattern at your local casino.
Put less than 5% of your net worth on this bs if you don’t want to FOMO. Otherwise just disregard, it’s 100% gambling.
I’ve been following this situation and it’s mostly due to short interest exceeding all available shares ( peaked at 140% afaik). Institutions were selling naked shorts and will be forced to cover. Has nothing to do with the business it’s supply / demand of shares outstanding driving this as far as I understand it
No gamer loves GameStop, where’d you get that idea? They are known for buying back your 60$ blockbuster game after a month for $3, and reselling for $55.
They should be dead in the water, and the shorts will eventually be correct, if they can’t pivot to a digital presence (which they can’t, because why would anyone go outside of the native platform stores?)
Ryan Cohen chewy.com cofounder has gotten involved and bought a 10% stake in the company and intends to amp up their online footprint selling a wide range of merchandise. There is more at play here than an epic WSB super troll.
Ease of access to funds and buyers. GS takes all the risk of having to find an ultimate end buyer. If that buyer has issues they take it up with GS not you. And GS can give you that money right now in the store so you can buy something else at the store at that moment.
Plus a lot of people trading in games were minors, who don’t exactly have easy legal access to say online means of selling.
So GS is providing a valuable service, not sure what the problem is. If you dont like GS you can always sell and buy games on facebook marketplace and other sites.
No, the large majority of the traders there don't have the capital to be big players. Some do, but they are undisciplined in the sense that the timing of when they close positions is unpredictable. It's closer to someone in a casino on a high from their hot streak not understanding the time to pull out. Some argue that they trade on herd mentality, but the reality is that you're likely to only see people who lost or gained large amounts of money. And no matter what meme stock has attention currently, you'll see losses contrasting the gains.
The irrationality of the mob is multiplied 10x with the power of technology and automation.
These past two years makes me feel like we’re living in a black mirror episode.
“Plato argued that democracies inevitably degenerate into anarchy, as the poor plunder the rich and profligacy produces bankruptcy.”
Tech has only sped the slide of western democracy. 100 years from now, the West will be ruled by mobs or will have adopted something close to China’s modern communism just to ensure “order.”
When a bunch individuals BUY a stock to hold it, it’s an irrational mob.
As opposed to the “institutional investors” who are shorting a stock, which is to borrow a stock, sell it, and then buy it back later at a reduced price.
Which one sounds more like an irrational mob?
Seems like people are getting mad that the exclusivity of Wall St is getting torn down.
That's an overgeneralization. Democracy is not a new invention, it was theorized and implemented back in Athens in 5 BC. If it took 100 years to fall apart, it would already have fallen apart. A pure democracy doesn't scale well and so requires some corrections to be implemented in the real world. If anything modern technology has accelerated the corrections required to sustain a government based on liberal democracy principles.
Also I'm not sure what makes you think that China is not ruled by mob mentality. I would argue that propaganda and censorship, which is the foundation of a communist government, is more likely to produce mobs. While classical communism might not have a strong opinion on information censorship, China's modern communism is strongly for censoring speech as well as information.
He thought democracy degenerates into tyranny - what we'd think of as a dictatorship. Anarchy is a temporary stop on the route. (Democracy - anarchy - people look for leader - tyranny)
https://news.ycombinator.com/item?id=25868680
Going through HN "new" and looking at flagged posts is the only reason I was able to buy GME stock.
You can read the deleted "conspiracy" here:
https://web.archive.org/web/20210122054438if_/https://www.re...