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

[mkess101]

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.

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

They care about volatility insomuch as that crazy price spike is what led to their cash being squeezed. So maybe "volatility" isn't the perfect word, but the insanely fast runup is something they weren't ready for. For sure they want buyers to be able to buy if possible, but they don't want them piling into one equity and driving the price so high that (as you said) they can't meet the cash requirements to cover the collateral. With a slow climb, they don't get squeezed like that because the other assets being bought and sold cover whatever cash they need.

So yeah, we basically agree other than that maybe I played a little fast and loose with the word "volatility". If the price was spiking up but then crashing and it was a yo yo, I guess they'd have the cash they needed because they'd have the influx when it was sold.

I'm far from an expert in this stuff. I have a rudimentary understanding, but that's it.

 

[HockeyBjj]

We Bull suspended GME purchasing as a spike was occurring?

 

[rob mafia]

jartek'd again

 

[PEB]

 

[Hellowhosthat]

So this doubled again yesterday. Anyone still got diamond hands?

 

[m25105]

This whole wallstreetbets / gamestock debacle just adds weight to the argument of decentralised finance where your assets are transacted through smart contracts with a reliable oracle to feed correct data.

 

[mkess101]

So this doubled again yesterday. Anyone still got diamond hands?

Yes. His name is Deepfuckingvalue. He just got hours on TV in a congressional hearing last week and has made a fortune already. And he's still holding plenty of GME.

Fucker gonna buy an island, and he's laughing his ass off at getting another spike here that he'll cash out for millions.

I mean, good for him but of course gonna be bagholders again this time that lose their asses when it tumbles.

 

[Prefect]

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.

Robinhood has commission free trading. They make their money selling trading information to Citadel and others.

 

[Prefect]

This is the basic response by anyone unwilling to hold anything because they can't handle daily volatility. There was a huge window that anyone could have bought into and they just had to wait it turns out a month.

 

[mkess101]

This is the basic response by anyone unwilling to hold anything because they can't handle daily volatility. There was a huge window that anyone could have bought into and they just had to wait it turns out a month.

Huh? Almost my entire portfolio is buy and hold LMAO. Diversified, long term investments. Not a meme stock that's trading at best at 3x what it's actually worth based on fundamentals. So no I don't care much about daily volatility, that's different than seeing a stock stupidly overvalued and saying "So what? Diamond hand forever brah!!!"

 

[boxingskills]

So this doubled again yesterday. Anyone still got diamond hands?

Yes sir.

 

[Prefect]

Yes sir.

I papered out today to have more money for my business. I am probably going to regret it some. I don't know. I might have given away a golden ticket.

 

[RidenWitBiden]

Reddit's doing it again. Unbelievable.