#gamestop
#Revolution missing in the #movie “Dumb Money”
source: https://www.themoviedb.org/movie/792293-dumb-money
This movie is probably the most miserable attempt to sell a pathetic trick as a revolution!
Some have become rich with the stocks and a hedge fund has been hit, but where is the revolution and redistribution? It’s not about taking advantage of a pathetic trick to get rich yourself, but about smashing the exploitative #system. The question of whether the criminals from Wall Street were even allowed to stop trading and block the app was not clarified at all. How are you supposed to defeat them if they keep changing the game rules in their favor?
The movie is probably the worst kind of spoof of wanna-be revolutionaries.
#cinema #entertainment #exploitation #WallStreet #Finanace #Gamestop #economy #politics #money #fail #news #capitalism #crime #rich #wealth #power #internet #hedgefond
#wallstreet #fraud is OK, as long as only 'responsible adults' from Wall Street do it https://fortune.com/2022/01/27/gamestop-trading-frenzy-anniversary-retail-investors-shaping-markets/ #gamestop
The markets are crazy! #NFT are just jpegs! Dog coins! Cat coins! #Tesla ! #GameStop!
Everyone is going to get burned! Don't they realize about discounted cash flows?!!! These #people are ruining everything! #Green #energy?!
source: https://www.pingthread.com/thread/1454612829248630790
#Crypto is a bubble! Tech is a bubble! VC is a bubble! Biotech is a bubble! Passive investing is a bubble! Web 3.0 is a bubble! Green energy is a bubble! The #Metaverse is insanity! Cant they see??!! They are all wrong!
#money #news #twitter #problem #society #capitalism #environment #climate #future #economy #internet #bitcoins
Hedge fund that bet against #GameStop shuts down
source: https://www.ft.com/content/397bdbe9-f257-4ca6-b600-1756804517b6
Cory Doctorow has an excellent #Gamestop / #Robinhood / #CitadelCapital explainer:
… But there’s a third story, and I think it’s the most important one. That’s Alexis Goldstein’s account of what’s going on with Robinhood and the institutional investors it’s in bed with.
https://marketsweekly.ghost.io/what-happened-with-gamestop/
Recall that all of this is only possible because Robinhood lets average joes buy and sell stocks for free. How can Robinhood give away a service that costs it money and still stay in business? (Hint: They’re not making it up in volume).
The answer is: surveillance. Robinhood partners with institutional investors and lets them spy on what the average joes are buying and selling. Sometimes, this is just “market intelligence” (“Hey, people like fidget spinners”) but the main event is front-running.
If you’re paying Robinhood to tell you what assets its customers are about to buy, you can go out and buy them up first and sell them for a profit to Robinhood’s customers.
Or you can buy some of that asset up because you know its price will go up once Robinhood’s customers orders are filled.
Or both.
Citadel Securities is Robinhood’s main institutional investor partner. Founded by billionaire Ken Griffin, they combine tech (high-frequency trading), an “asset manager” (they spend other peoples’ money) and a “market maker” (they sell things like options).
Citadel gets to see all those r/wallstreetbets buy orders before they’re filled. They can fill some of those orders, making a profit. They can buy some of the same stock for themselves, making a profit. They can sell options, making a profit.
A little bit of this profit comes at the expense of average joes: if there wasn’t a front-runner marking up the stocks they buy, the average joes would pay a little less. But the average joes are still profiting from the destruction of the shorts.
Citadel is merely taxing their winnings. The real losers here, though are Citadel’s competitors, funds like Melvin Capital, who were seriously short on Gamestop and went bust thanks to all of this. Guess who bought Melvin at fire-sale prices? That’s right, Citadel.
So the third story goes like this: there are a lot of average joes. They’re numerous, pissed and smart. They move a lot of money against shorts and make it go farther thanks to the force-multiplier effect of options.
Then all this activity is multiplied again by Citadel, a fund that is no better (and no worse) than Melvin or the other targets of the average joes’ wrath. Citadel’s bots are triggered by the average joes’ activity, which turns kilotons of damage into gigatons. …
https://pluralistic.net/2021/01/28/payment-for-order-flow/#wallstreetbets
Send This to Anyone Who Wants to Know WTF Is Up With GameStop Stock
... GameStop, a company that sells physical copies of video games next to Auntie Anne’s pretzel shops in dying malls, is the most highly traded asset in the United States, a “meme stock,” and currently the primary front in a micro class war. GameStop’s stock price jumped from $4 last summer to $20 at the end of 2020, to $40 two weeks ago. It was worth $100-ish at times on Monday and Tuesday, and as I write this it is worth close to $300. Essentially, many normal-ish people have made a huge bet against gigantic financial institutions and are currently winning. In practice this means we are seeing one of the largest wealth transfers from the financial ruling class to the middle and middle-upper classes in recent memory, so it is, understandably, the only thing anyone is talking about.
How did this happen? A bunch of Redditors in the r/WallStreetBets subreddit, led by a person going by "DeepFuckingValue," analyzed GameStop stock and concluded that its price was undervalued. They then, over the course of months, identified a weakness in the strategies of several giant hedge funds that had bet many millions of dollars that GameStop would fail.
These Redditors purchased huge numbers of GameStop stock at low prices (and then kept buying more as the prices rose), held it, and are currently forcing something known as a “short squeeze” that is driving the price up and is emptying these hedge funds in the process. These Redditors are diamond-handing (holding) their stocks, imploring each other to not be a weak-minded stock seller (paper hands) and are waiting for their messiah Ryan Cohen—the CEO of Chewy.com who invested millions in GameStop last year—to hitch them to his rocket and take them to the moon/sun/Mars (become very rich). ...
...
The rallying cry of the entirety of the WallStreetBets subreddit and its extraordinarily chaotic Discord became: buy GameStop stock, hold it, and fuck over the big hedge funds, specifically Melvin Capital and Citron Research, which, throughout this entire saga, was publishing various YouTube videos about why it believed GameStop stock would go down....
...
This brings us to this week. By all accounts, Melvin Capital is in deep trouble. Earlier this week, it took in $2.75 billion in funding, reportedly to help cover its GameStop shorts. A prominent venture capitalist said he was buying GameStop stock. Every financial publisher is talking about GameStop stock. Elon Musk, who, again, famously hates Tesla's short sellers with a burning passion, tweeted about GameStop stock and said that he's hanging out in the WallStreetBets Discord. Meanwhile, the GameStop shorts have seemingly not figured out an elegant way out of this...
I'd noticed a bit of a ruckus but had been out of the loop until now.
