Economy Discord Bans bans the r/WallStreetBets server,Wall Street is panicking over Gamestop?

[Poon Goon]

I'm getting a feeling that it's almost time for me to go ahead and buy.

 

[mkess101]

I'm getting a feeling that it's almost time for me to go ahead and buy.

 

[Poon Goon]

I thought that buying after people have been talking about something like this for several weeks was the smart play. Ground floor is for losers.

 

[mkess101]

I thought that buying after people have been talking about something like this for several weeks was the smart play. Ground floor is for losers.

 

[SBJJ]

If it's truly "rigged", sure. I just don't understand why an average person would try to beat professionals with real $. Yes you can rail about how unfair it is. Like a few years ago I remember the big thing was the big firms could buy buildings closer to the markets so their trades processed fractions of a second faster. The HFT traders were pissed. I guess maybe rightfully so...IDK.

To me, life is too short to bang my head against the wall with that stuff. I'd rather make steady gains and have a sweet retirement account. And it's insanely easy for ANYONE to do it. I'm not special at all. So if anyone can do it and make money easily this way...how is it rigged?

You don't know it's rigged til its too late. The employees and shareholders of companies heavily shorted(illegally) are victims. The fact it did not happen to you does not mean it does not happen to others.

Its illegal and immoral. And should be called out by everyone. I've never been or have family affected by drunk driving. But it still is a horrible thing and I will condemn it.

 

[calavera2]

You’re just triggered because you were corrected.

The emergency loan to RH (common knowledge) wasn’t for funsies, it was because they couldn’t cover the collateral in house. If they allowed unrestricted buying to continue, YES they would be tits up. Do you think they have an unlimited line of credit? NOPE.
In a case like this, as Rob kindly pointed out, there can be a dramatic swing between purchase price and actual execution price owing to the mechanics of the system.

There SHOULD be protections built in place to prevent blatant manipulations. Most folks would see that as a good thing as it ensures to continued viability of the market.
ie) We don't want to break the entire market, & have brokers go tits up because a certain group are trying to be clever cunts.

Well, the Robinhood CEO said his action was pre-emptive and that they had no liquidity problems. Those were his words not mine. He said it was to protect his firm and the investors (I'm assuming he was nobly protecting them from themselves). So riddle me this did the brokers that continue to sell GME not have the same problem? Or was it because they were on the other side of the equation of the pump and dump side of this mess. This was already pointed out on this thread.

I've had no skin in the game with GME so I've enjoyed this whole episode as a spectator. Also my take is worthless as I leave all my investments to the pro's and don't know what I'm talking about.

 

[mkess101]

You don't know it's rigged til its too late. The employees and shareholders of companies heavily shorted(illegally) are victims. The fact it did not happen to you does not mean it does not happen to others.

Its illegal and immoral. And should be called out by everyone. I've never been or have family affected by drunk driving. But it still is a horrible thing and I will condemn it.

The problem is, I'm not well versed enough in all of this to know exactly what happened. You and others are yelling that RH (and other brokers I guess) suspended trading to help out the hedge funds (I think that's the main point in the "rigging" accusations?) But I also see plenty of evidence that the extreme volatility led to liquidity being squeezed for these brokers and to meet SEC cash requirements they didn't really have a choice but to limit/halt buying of certain stocks.

Or am I getting it wrong, you just are against any short selling at all? Or it's the naked short selling that you have the biggest problem with? On its surface the naked short selling seems like a very bad thing to me too. And it's illegal in most cases is my understanding. If laws were broken on that front, then yes I agree they should be prosecuted. Basically that would mean the whole squeeze never happens to begin with, and WSB remain a fringe group of autists (well that's what they apparently are, except without this story they'd be the same thing except almost nobody would have heard of them).

 

[mkess101]

Well, the Robinhood CEO said his action was pre-emptive and that they had no liquidity problems. Those were his words not mine. He said it was to protect his firm and the investors (I'm assuming he was nobly protecting them from themselves). So riddle me this did the brokers that continue to sell GME not have the same problem? Or was it because they were on the other side of the equation of the pump and dump side of this mess. This was already pointed out on this thread.

I've had no skin in the game with GME so I've enjoyed this whole episode as a spectator. Also my take is worthless as I leave all my investments to the pro's and don't know what I'm talking about.

A bunch of other brokers limited/stopped buying of GME too. Some still allowed unlimited buying yes. Likely they hadn't already seen the massive volume that RH had, they may be better capitalized, etc.

 

[rob mafia]

re: sec wsb

november:

the problem with this one is some are just trying to turn wsb into a pump&dump scheme for a stock of the day/week for quick profits and some are truly trying to meme it into a $50+ stock by 2022. so even if you're the latter, the former will likely cause it to crash with the paper hands/dump.

regardless, i'm just worried that wsb's gonna get shut down (or even the sec making some charges) for the pump&dumps. they used to actually be good at somewhat self-policing this shit (ie: the lumber one that could have gotten out of hand [few weeks before "msft 200c," but the pltr shit's been completely out of control

sometimes, there's a fine line between an idea/dd/joke (msft)/people getting on board with the play and securities fraud. but the pltr shit looks way past that.

i mean, i'm worried that wsb gets nuked. it's the only subreddit i like and one of the few sites i'm super into... at least, when it's not just a giant pump&dump scheme for one ticker.

i've mentioned this well before then (5/2020?), re: "msft 200" and etc. (ie: when wsb went from ~200k to 1M+ users, after bloomberg/wsj/etc reported on us)

it's REALLY not a surprise that the sec would look into wsb posts, especially with the gme pump&dump, especially with the 'let's all buy/hold til $1k' shit.

 

[CatchnShoot]

Well, the Robinhood CEO said his action was pre-emptive and that they had no liquidity problems.

Yeah, and he was full of shit. If they didn't have a liquidity problem, they wouldn't have needed a $3.5 Billion loan.

[QUOTE="calavera2]So riddle me this did the brokers that continue to sell GME not have the same problem? Or was it because they were on the other side of the equation of the pump and dump side of this mess. This was already pointed out on this thread.[/quote]
As has already been mentioned, RH wasn't the only, or the most restrictive broker. Those that continued either didn't have the volume to deal with, or were long on the stock, so selling for them was printing money.

 

[CatchnShoot]

--can't fix on account of... teh Dubs.

 

[calavera2]

Those that continued either didn't have the volume to deal with, or were long on the stock, so selling for them was printing money.

So you agree those brokers on the other side of the pump and dump had no problem continuing to allow buys unlike RH who for all intents and purposes was in their best interest to limit buys. Only thing I think we can agree on is the the RH CEO was less than truthful in his interviews.

 

[brackis1]

lolz @ a group driving up volatility on gme and then trying to bitch about the repurcussions of said volatility... and instead of taking responsibility for their part, resorting to tin foil bogeyman.

*ding * ding* </paddy accent>

 

[Rational Poster]

iLLeGaL naKeD shORtS

 

[mkess101]

So you agree those brokers on the other side of the pump and dump had no problem continuing to allow buys unlike RH who for all intents and purposes was in their best interest to limit buys. Only thing I think we can agree on is the the RH CEO was less than truthful in his interviews.

It's not just in their best interests, it's also about capital requirements if I'm understanding it correctly. As in...they legally didn't have a choice in order to meet SEC requirements for capitalization. You know the CEO was coached by PR and his attorneys on phrasing. "Preemptive" meaning "We are in compliance with SEC cash requirements and we need to make sure we keep it that way".


If other brokers were long GME, of course they'd sell shares of it at absurd prices. If you had a fruit stand and people were lining up to pay you $100 for a lb of apples...you'd probably sell all the apples you could right? Esp when you paid the orchard $2/lb for them?

 

[evergreenrider]

I hope the diamond hands are still holding strong!

 

[calavera2]

It's not just in their best interests, it's also about capital requirements if I'm understanding it correctly. As in...they legally didn't have a choice in order to meet SEC requirements for capitalization. You know the CEO was coached by PR and his attorneys on phrasing. "Preemptive" meaning "We are in compliance with SEC cash requirements and we need to make sure we keep it that way".


If other brokers were long GME, of course they'd sell shares of it at absurd prices. If you had a fruit stand and people were lining up to pay you $100 for a lb of apples...you'd probably sell all the apples you could right? Esp when you paid the orchard $2/lb for them?

I think we agree for the most part (high five) except for RH's motivations to limit buys. My uneducated retard guess is RH sought to limit buys to crash the stock. There ain't no do overs and nobody's getting their money back no matter what happens after so RH had little incentive to keep the momentum going on the squeeze.

 

[mkess101]

I think we agree for the most part (high five) except for RH's motivations to limit buys. My uneducated retard guess is RH sought to limit buys to crash the stock. There ain't no do overs and nobody's getting their money back no matter what happens after so RH had little incentive to keep the momentum going on the squeeze.

I think RH's motivation was to meet the legal requirements of the SEC and remain a viable business honestly. I don't think RH inherently gave a shit about the stock price of GME, they just needed the extreme volatility to stop and the only control they had over it was to limit buying on that stock.

 

[Rational Poster]

I think we agree for the most part (high five) except for RH's motivations to limit buys. My uneducated retard guess is RH sought to limit buys to crash the stock. There ain't no do overs and nobody's getting their money back no matter what happens after so RH had little incentive to keep the momentum going on the squeeze.

This is just wrong and dumb. RH is a broker. They make money on every transaction no matter how stupid the person buying stock is. It's entirely in their interest to let idiots keep buying junk stocks.

 

[Rational Poster]

I think RH's motivation was to meet the legal requirements of the SEC and remain a viable business honestly. I don't think RH inherently gave a shit about the stock price of GME, they just needed the extreme volatility to stop and the only control they had over it was to limit buying on that stock.

They don't care about volatility either. The collateral requirements were just high and the amount of new smooth brain buyers was literally unprecedented. They needed more liquidity to cover the collateral required on an unprecedented number of simultaneous buys.

They make their money per transaction. It's entirely in their interest to let unprecedented numbers of new buyers buy whatever they want.