The GameStop stock fiasco transparently shows you who runs things

I can't wait for a summer of hearings on Capitol Hill, concerning non-institutional 'manipulation' of the sacred stock market.

pauliewalnuts12 wrote:

Redditors did nothing (Legally) wrong with their GameStop shenanigans. They played by the same rules as the hedge funds.

But “institutional” investors who, you know, are professional and prudent and went to top MBA programs, well they actually know what’s going on. Can’t have the little guy pretend he knows how to manipulate a stock.

The fact that Robinhood and other trading apps are blocking trades of GameStock and other stocks shows you who’s really in command (hint - it’s not Reddit)

This country is a joke

I'm not going to defend the hedge fund people but it is a little more complex than you make it out to be. An example of the king of shenanigans going on here is an investor yesterday who had a long position in gamestop went on TV touting his position and the soundness of the stock. Then he dumped the stock once it has risen and made a bunch of money. This is illegal trading activity and should be prosecuted.

So some of the trading apps basis for this is they are trying to protect their users from being fed this false information and being the ones left holding the bag when the stock comes back to reality and crashes. There are individuals who have long positions who are trying to pump the stock price so they can dump their stock on the unsuspecting fool.

This is a lot more complex than the apps are trying to protect hedge funds. Also companies like Robin hood know an investigation is coming and the new administration LOVES regulation and any excuse to protect the people is the perfect reason for new regulations. They are trying to protect themselves as well.

Market manipulation is illegal, but everyone does it. When a stock goes from $43 to $469 dollars in less than a week, it is hard to argue with a straight face that it wasn't market manipulation. I guess in this case the argument would be that people are free to bet their money to save a company from short sellers. But driving up the price of a stock to defeat short sellers quacks like and duck and walks like a duck.

It's not the first time to happen, and it won't be the last -

Remember Piggly Wiggly?

https://memphismuseums.wordpress.com/2014/08/05/clarence-saunders-corners-himself-in/

“Of all the institutions in America, the New York Stock Exchange is the worst menace of all in its power to ruin all who dare to oppose it.”

Agreed.

This whole episode highlights that the stock market is and has always been gambling. People want to believe that it's not... that it's investing. It's a big pyramid scheme... always has been. Zero sum game... someone making money is taking it from someone else (who loses money). That's all it is.

And now that the 'little guy' has figured out how to manipulate the system those who normally control this for their own gain are upset. The result will be they (those who normally control) will figure out how to stop the little guy from manipulating things.... either that or the stock market will no longer be that 'safe long term investment opportunity ' they have peddled for years.

Welcome to the United States of Ken Griffin

Also worth pointing out, Robinhood and other platforms allowed limit purchase orders to go through in after hours Wednesday trading and prior to open Thursday, knowing FULL WELL that they were placing restrictions as soon as the market opened that would pummel all those new investors who bought at the highs.

Precious Roy wrote:

Market manipulation is illegal, but everyone does it. When a stock goes from $43 to $469 dollars in less than a week, it is hard to argue with a straight face that it wasn't market manipulation. I guess in this case the argument would be that people are free to bet their money to save a company from short sellers. But driving up the price of a stock to defeat short sellers quacks like and duck and walks like a duck.

Two or three time periods: 1975, first discount brokerage houses., 1997 or 1998, AOL offered flat monthly internet service. Before 1997, internet was a very expensive, similar to international phone call rates. Before 1997, no flat rate equity trades, broker-dealers. Last five to dozen years or so, no fee internet broker trades.

Full service financial advisors have always been held accountable. Anything from a bad letter in file from N.A.S. D. &/or N.Y.S.E. &/or S.E.C. to being fired to state or federal prosecution. This is a classic Pump & Dump (we have yet to see the dump) and Painting the Tape. Everyone does not do it.

clown world out there wrote:

Welcome to the United States of Ken Griffin

I fail to see what a former baseball player has anything to do with this? Maybe you meant his son Ken Griffin, Jr, who was a Hall of Fame baseball player?

Commoners sticking it to the elite 1%ers. Democrats should be thrilled except many of these hedge-funders are the hypocritical elite liberal Democrats.

CrispyChicken wrote:

Commoners sticking it to the elite 1%ers. Democrats should be thrilled except many of these hedge-funders are the hypocritical elite liberal Democrats.

So now rich capitialists are Democrats and not republicans? When did that happen? Seriously the donations and voting party is split pretty evenly. I would need to research these 2 specific guys to know which way they lean.

It is a fine line between legal and illegal stock manipulation and normally most stocks floats are big enough for this not to happen. The real fun will be the next time this happens. Next time the conditions might not line up and people will get slaughtered.

There are some legit reasons for stocks to go up 10x (i.e. surprise drug approval, large contracts in small companies, and so on). This one is just a game being played and eventually gamestop will go back to its fundamentals (i.e. 10-30 dollar stock). There will be some people who bought at 200+ that lose a ton of money.

Gamestop should change their business model into something more profitable and use these funds to kickstart it.

adsfdasfasfsafadfa wrote:

CrispyChicken wrote:

Commoners sticking it to the elite 1%ers. Democrats should be thrilled except many of these hedge-funders are the hypocritical elite liberal Democrats.

So now rich capitialists are Democrats and not republicans? When did that happen?

A long time ago. You have been fooled by your corporatist overlords.

Remember folks, corporatism is the road to your beloved socialism/communism... the ultimate corporation.

Still waiting on senators to be held accountable for their insider trading with the pandemic.

This country is great, but also horrible.

How about we just withhold judgement until we find out all the facts? There may be a lot more to this than meets the eye presently, and that's what i am holding out hope for.

Ever hear of a family by the name of Mezvinsky that cuddles up to a family by the name of Clinton; not to mention two dudes of the same ilk named Jim and Hunter who acquired the hedge fund group Paradigm Global Advisors?

People who want to manipulate the market know better than to go to their US broker to execute trades. That would be like trying to score meth at Walmart (not impossible, but highly unlikely). They use offshore brokers who are beyond the reach of regulators both jurisdictionally and practically.

I worked on death spiral securities cases in the 00s. The SEC couldn't catch most of the bad guys and only nailed the few idiots in the US who were willing to place trades. DOJ wouldn't touch it. Civil suits got dismissed because the companies were too small for shareholder class actions and corporations do not have standing to sue for market manipulation.

I am very upset about this whole situation. Establishment changed the rules to suit their needs. Wtf

MeHereYouWhere?! wrote:

clown world out there wrote:

Welcome to the United States of Ken Griffin

I fail to see what a former baseball player has anything to do with this? Maybe you meant his son Ken Griffin, Jr, who was a Hall of Fame baseball player?

Ken Griffin is the CEO of Citadel. Citadel is a massive hedge fund that pays Robinhood for access to their trade flows. That’s what enables Robinhood to offer a “free” trading platform with no trade fees.

Citadel helped bail out out Melvin Capital and also allegedly placed shorts on Wednesday...you know...maybe knowing the platform they have huge financial control over would be shutting down trading for the little guys the next day. Because maybe they told them too. Or maybe they wouldn’t do that because it’s not right and hedge funds always do the right thing