AMC cinema chain saved / Reddit memes the stock market

[Robert Collins]

7 hours ago, Andrew Reid said:

Amazing isn't it.

Hedge funds don't fail, they simply get bailed out.

Strange that isnt it? It is almost as if the Fed (unlimited printing for free) is in bed with the hedge funds...

https://www.nytimes.com/2015/04/16/business/ben-bernanke-will-work-with-citadel-a-hedge-fund-as-an-adviser.html

https://slate.com/news-and-politics/2021/01/janet-yellen-paid-speeches-citadel-gamestop.html

[Marcio Kabke Pinheiro]

The million dollar question (literally) is to really know how much shorted shares and put options are still in the funds hands. The prices continues to drop, but looks like that the volumes are low (do not have a platform here capable to look volumes on NYSE and NASDAQ).

But all this are info coming from WSB - and there are very conflicting info going around there.

And shorted shares did not have a due date to come back to the original users, if you rent them again (paying a higher interest rate). Options yes, if you bought a put option there is a due date - that was yesterday or today for the options that the due date were friday.

But the morale in the WSB is kind of low.

[Andrew Reid]

12 hours ago, Robert Collins said:

Strange that isnt it? It is almost as if the Fed (unlimited printing for free) is in bed with the hedge funds...

https://www.nytimes.com/2015/04/16/business/ben-bernanke-will-work-with-citadel-a-hedge-fund-as-an-adviser.html

https://slate.com/news-and-politics/2021/01/janet-yellen-paid-speeches-citadel-gamestop.html

Yes, the dark side of the Biden administration right there.

They need more principals.

More like Bernie Sanders, who to be honest cuts an isolated figure in the top echelons of the party.

I think the whole thing now probably needs a independent public enquiry.

It is more likely however to just get a Netflix!

[Andrew Reid]

19 minutes ago, Marcio Kabke Pinheiro said:

And shorted shares did not have a due date to come back to the original users, if you rent them again (paying a higher interest rate). Options yes, if you bought a put option there is a due date - that was yesterday or today for the options that the due date were friday.

But the morale in the WSB is kind of low.

Yes the morale is down. Some went in far too deep at too high price. Many did not know what they were doing and gambled just far too much money.

However the real problem is the brokers preventing buys to protect their big clients and pals at the hedge funds. Sadly it wasn't just Robinhood. Almost the entire marketplace shut down the stock and blocked retail investors. That needs a massive legal enquiry.

People wanting to go in with their $100 should be allowed to.

[Marcio Kabke Pinheiro]

2 hours ago, Andrew Reid said:

Yes the morale is down. Some went in far too deep at too high price. Many did not know what they were doing and gambled just far too much money.

However the real problem is the brokers preventing buys to protect their big clients and pals at the hedge funds. Sadly it wasn't just Robinhood. Almost the entire marketplace shut down the stock and blocked retail investors. That needs a massive legal enquiry.

People wanting to go in with their $100 should be allowed to.

Agree with you - I use a very unknown brokerage and even them are blocking AMC and GME eventually.

And legal actions will be refuted in the sake of the "sistemic risk" and "liquidity of the markets" argument. I live in a country (Brazil) that make bails with this argument in each 3 to 4 years. The "club" is always protected.

And be sure that when this story were not in the front pages anymores, new "market manipulations" laws will be created to make WSB foruns unlawful (here a Telegram forum was created with the same logic and the creators shut it down in 2 days after a direct threat from the CVM, the local SEC).

[Andrew Reid]

Apparently SEC are going to go after individual Reddit users, accusing them of an illegal pump and dump scheme.

I have learnt that at least 80% of the internet is polluted by shills and lies.

And the biggest sponsors of it are rather higher-up than we might suspect.

[Robert Collins]

On 2/3/2021 at 11:03 PM, Marcio Kabke Pinheiro said:

Agree with you - I use a very unknown brokerage and even them are blocking AMC and GME eventually.

And legal actions will be refuted in the sake of the "sistemic risk" and "liquidity of the markets" argument. I live in a country (Brazil) that make bails with this argument in each 3 to 4 years. The "club" is always protected.

And be sure that when this story were not in the front pages anymores, new "market manipulations" laws will be created to make WSB foruns unlawful (here a Telegram forum was created with the same logic and the creators shut it down in 2 days after a direct threat from the CVM, the local SEC).

Look at the end of the day we will have the same arguments. The brokerages will argue that they stopped people buying at incredibly stupid prices in order to protect them and the investors will argue that they should be allowed to be as stupid as they wish.

But at what point does allowing people to do incredibly stupid things become incredibly stupid?

[Andrew Reid]

15 hours ago, Robert Collins said:

But at what point does allowing people to do incredibly stupid things become incredibly stupid?

Well, we saw an example of that point in 2008.

[IronFilm]

On 2/2/2021 at 2:48 PM, Andrew Reid said:

Who is dumping? Last time I looked GME is still above $250 and that's in spite of Wall Street trying to get it down.

A week later, it's at sixty bucks.