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"The White House’s economic team, including Treasury Sec. Yellen, is monitoring the Reddit-stock market drama that sent GameStop, AMC, and Blockbuster prices soaring"
Nothing really specific, just a few managers and analysts on CNBC.
You get the overall vibe from the narrative the media is playing that the institutions are lining their pockets. Everyone is blaming WSB, but no one is blaming shorts for cornering themselves shorting something over 100%. If anyone, WSB is smart for recognizing the opportunity. But you know, they're small guys, fuck em!
Chamath was on CNBC an hour ago and he really went to bat for retail traders.
I saw the segment with Chamath, the segment with the ex-regulator, and the followup guest.
Chamath ripped into the CNBC host & hedge funds today. He argued that retail is doing the exact same thing that these funds have always done. He called for clear transparency, equal opportunity, and a level playing field - what retail investors buy/sell is completely transparent, yet no-one but the "in crowd" is able to see what hedge funds are doing. The host was clearly uncomfortable with this, and tried numerous times to steer the conversation back towards retailers needing regulation.
The ex-regulator said that the entire market needs more regulation because of the undue risk to the entire marketplace. He argued that both these online forums & short selling should be reviewed & regulated. The host tried his best again to steer the conversation towards regulating/breaking up online forums.
The third guest brought up an interesting point. I'm not sure if I have the details correct, but here's the gist of it: The daily call volume yesterday was over 100%. The same call was being purchased & sold multiple times a day. (not sure if this is the correct way to say this). But essentially, he put out the theory that it isn't retail behind this lol (it's not, but that would ruin the narrative that they are putting out there), but backed off when the host became extremely uncomfortable at this suggestion.
But Wall St suits have been manipulating the market since forever.....Gotta hold down the middle/lower class right
This is basically an attack against free speech and the middle/lower class. Don't we dare get together and talk about anything that they don't want us to talk about.
Nothing really specific, just a few managers and analysts on CNBC.
You get the overall vibe from the narrative the media is playing that the institutions are lining their pockets. Everyone is blaming WSB, but no one is blaming shorts for cornering themselves shorting something over 100%. If anyone, WSB is smart for recognizing the opportunity. But you know, they're small guys, fuck em!
Chamath was on CNBC an hour ago and he really went to bat for retail traders.
Quote:
Originally Posted by Alpine
This is basically an attack against free speech and the middle/lower class. Don't we dare get together and talk about anything that they don't want us to talk about.
No one should have a problem with investors at any level being greedy and trying to make a profit. But we have to call this situation what it is... this is predatory market behavior and I wouldn't be surprised if regulators stepped in at a certain point to put more restrictions. If a bunch of institutional investors or market dealers deployed a similar type of strategy (collude to coordinate focused attack on specific names -> spread misinformation on platforms -> accelerate via options aka gamma squeeze), regulators would have a field day with them lol.
Still not sure why wsb community feels like hedge funds are their enemy or they won a fought against Goliath as David. Hedge funds suffering massive losses and closing shop is nothing new in the industry and no one in the industry feels bad for any of them, Melvin included. By design, they are supposed to swing for the fences, usually with leverage, on a specific investment strategy while hedging out other market factors, hence the name hedge fund. Some win big, and some lose a lot.
Is this not the opposite reaction to the predatory market behavior from short sellers? If regulators step in to put in restrictions, should they not be addressing both sides?
And while WSB is the narrative, they are not controlling the market. The amount of calls/shares WSB is able to buy is a drop in the bucket vs. what gets traded daily.
I’m in on BB, AMC, and NOK, riding that rocket! Lol
Imo all these funds and BNN etc are tripping about it but really, how the fuck is this any worse than this disgusting private equity BS like pre-release Airbnb IPO etc.
Frankly it seems like the fat cats are tripping because many are losing on the shorts and they fear the “every man” making money imo.
While this isn’t great for my managed portfolio it’s ducking hilarious to watch
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Dank memes cant melt steel beams
Is this not the opposite reaction to the predatory market behavior from short sellers? If regulators step in to put in restrictions, should they not be addressing both sides?
And while WSB is the narrative, they are not controlling the market. The amount of calls/shares WSB is able to buy is a drop in the bucket vs. what gets traded daily.
Trust me, regulators do look at the actions of institutional investors and have put it restrictions in the past. For example, hedge funds have to publicly report their positions through 13F filing on a quarterly basis. This is a requirement for higher transparency placed only on institutional investors. Now wsb is weaponizing this transparency against them (sounds mildly predatory?).
Short-selling is an extremely tricky and hard business to profit from. Its also not some special privilege accessible to only institutional investors. Most importantly, short-selling is not free and you pay an interest to borrow shares to short while having to put up margins as collateral. The higher the short interest, the higher the interest you pay. For example, couple of years ago the cost to short TSLA was about 20% due to the high amount of short interest. That meant, if the share price stayed the same for the whole year, you would have lost 20% all else being equal. Short-selling itself is not predatory, its the combination of coordination + spread of misinformation + cornering of market via options that makes it predatory.
I got in on 3 GME shares last week at $38. Even if I get out now, I'm still ahead, but there's still room for things to keep going up before anything crashes hard. I'm holding on until the end of the week at least.
I saw the segment with Chamath, the segment with the ex-regulator, and the followup guest.
Chamath ripped into the CNBC host & hedge funds today. He argued that retail is doing the exact same thing that these funds have always done. He called for clear transparency, equal opportunity, and a level playing field - what retail investors buy/sell is completely transparent, yet no-one but the "in crowd" is able to see what hedge funds are doing. The host was clearly uncomfortable with this, and tried numerous times to steer the conversation back towards retailers needing regulation.
Sounds like the host didn't do a good job moderating the discussion... I would've been interested to hear more specifics about what Chamath meant.
"clear transparency, equal opportunity, and a level playing field"
-all sounds nice but its too abstract... what changes does he want to see?
"what retail investors buy/sell is completely transparent, yet no-one but the "in crowd" is able to see what hedge funds are doing"
- what does he mean by retail trades are transparent? Is he talking about the actual technical aspects of the market? When trades occur on exchanges, the filled orders are tagged with a dealer/broker tag but that's about it. If I call up CIBC as a retail investor to buy 100 shares, the exchange data will show CIBC bought 100 shares at a certain price at a certain time. Same thing happens if a hedge fund buys 1million shares through CIBC (obviously not in one giant increment of 1 million shares). Hedge funds also report what they buy and sell through 13F filings. Retail investors don't have to reveal their portfolio to the public. Maybe he is talking about how "free-trade" platforms like Robinhood are routing client orders or selling client trade data to hedge funds? But this is not a secret, and is what you sign up for as a price for free trades lol.
Looks like that could be going on right now. WSB discord banned for allowing hateful and discriminatory content after repeated warnings. WSB reddit locked. WSB stocks dumping by > 20% after hours.
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