Gamestop

[ousdahl]

Here’s something I’ve never quite been able to understand:


why are hedge funds a thing?

[jfish26]

https://twitter.com/FredTJoseph/status/ ... 1286472705

Wait, I have questions.

Are we now being critical of entrenched wealthy and generally-advantaged people using self-created and self-policed rules and policies to keep the people below them (off whose backs they got wealthy, from a general perspective) from sharing a bigger piece of the pie?

[Deleted User 89]

Us folks see right through this.

We will outlast the internet deviants and malcontents.

gold

[PhDhawk]

Is there any good that comes out of short-selling? Serious question. I mean, what is the benefit of it other than someone profiting off a stock's loss?

Because if not, this seems like if people used jaywalking to combat criminals who had committed assault, and now trading companies are pissed about jaywalking for interfering with all the assaults.

[CrimsonNBlue]

Robinhood definitely needs a name change now.

[NDballer13]

I'm not financial advisor by any means, but to my understanding the profit of a stock's loss is the main point. That's why the companies that are being suspended from buying right now are all companies that basically on the brink of nonexistence. Gamestop was on it's way to joining Blockbuster for the holidays, so the billionaires bet on that happening. The little people said fuck that starting buying up all the stock, and now you have all those said billionaires throwing fits like a toddler until they get their way. And because this is America, and the almighty dollar trumps all, they are getting that with buying being suspended.

[PhDhawk]

I'm not financial advisor by any means, but to my understanding the profit of a stock's loss is the main point. That's why the companies that are being suspended from buying right now are all companies that basically on the brink of nonexistence. Gamestop was on it's way to joining Blockbuster for the holidays, so the billionaires bet on that happening. The little people said fuck that starting buying up all the stock, and now you have all those said billionaires throwing fits like a toddler until they get their way. And because this is America, and the almighty dollar trumps all, they are getting that with buying being suspended.

Yeah, but my question is what's the benefit in rich people doing that? Like why is that good for society, or the economy or whatever? Why is short-selling even a thing?

[ousdahl]

I don’t get it, except in the context of anything goes in white collar Merica.

Let’s make the stock market more about simply investing in a company you want to take ownership in cuz you think it’ll grow, and less about the game-within-itself get rich quick scheme it’s become.

[PhDhawk]

I don’t get it, except in the context of anything goes in white collar Merica.

Let’s make the stock market more about simply investing in a company you want to take ownership in cuz you think it’ll grow, and less about the game-within-itself get rich quick scheme it’s become.

I agree.

[NDballer13]

I'm not financial advisor by any means, but to my understanding the profit of a stock's loss is the main point. That's why the companies that are being suspended from buying right now are all companies that basically on the brink of nonexistence. Gamestop was on it's way to joining Blockbuster for the holidays, so the billionaires bet on that happening. The little people said fuck that starting buying up all the stock, and now you have all those said billionaires throwing fits like a toddler until they get their way. And because this is America, and the almighty dollar trumps all, they are getting that with buying being suspended.

Yeah, but my question is what's the benefit in rich people doing that? Like why is that good for society, or the economy or whatever? Why is short-selling even a thing?

It's like NBA owners wanting to pay the players less. It's a thing because, to the people with all the money, the only thing that matters is getting more money.

[NewtonHawk11]

This reminds me that the stock market is not a true value of the health of the economy.

[jfish26]

I'm not financial advisor by any means, but to my understanding the profit of a stock's loss is the main point. That's why the companies that are being suspended from buying right now are all companies that basically on the brink of nonexistence. Gamestop was on it's way to joining Blockbuster for the holidays, so the billionaires bet on that happening. The little people said fuck that starting buying up all the stock, and now you have all those said billionaires throwing fits like a toddler until they get their way. And because this is America, and the almighty dollar trumps all, they are getting that with buying being suspended.

Yeah, but my question is what's the benefit in rich people doing that? Like why is that good for society, or the economy or whatever? Why is short-selling even a thing?

Take all of this with whatever-sized grain/brick/boulder of salt you'd like.

https://www.investopedia.com/articles/i ... elling.asp

Short selling is perhaps one of the most misunderstood topics in the realm of investing. In fact, short sellers are often reviled as callous individuals who are only out for financial gain at any cost, without regard for the companies and livelihoods destroyed in the short-selling process. Worse, short sellers have been labeled by some critics as being unethical because they are betting against the economy.

The reality, however, is quite different. Far from being cynics who try to impede people from achieving financial success—or in the U.S., attaining the “American Dream”—short sellers enable the markets to function smoothly by providing liquidity and also serve as a restraining influence on investors’ over-exuberance.

Excessive optimism often drives stocks up to lofty levels, especially at market peaks (case in point—dotcoms and technology stocks in the late 1990s, and on a lesser scale, commodity and energy stocks from 2003 to 2007). Short selling acts as a reality check that prevents stocks from being bid up to ridiculous heights during such times.

[PhDhawk]

I'm not financial advisor by any means, but to my understanding the profit of a stock's loss is the main point. That's why the companies that are being suspended from buying right now are all companies that basically on the brink of nonexistence. Gamestop was on it's way to joining Blockbuster for the holidays, so the billionaires bet on that happening. The little people said fuck that starting buying up all the stock, and now you have all those said billionaires throwing fits like a toddler until they get their way. And because this is America, and the almighty dollar trumps all, they are getting that with buying being suspended.

Yeah, but my question is what's the benefit in rich people doing that? Like why is that good for society, or the economy or whatever? Why is short-selling even a thing?

Take all of this with whatever-sized grain/brick/boulder of salt you'd like.

https://www.investopedia.com/articles/i ... elling.asp

Short selling is perhaps one of the most misunderstood topics in the realm of investing. In fact, short sellers are often reviled as callous individuals who are only out for financial gain at any cost, without regard for the companies and livelihoods destroyed in the short-selling process. Worse, short sellers have been labeled by some critics as being unethical because they are betting against the economy.

The reality, however, is quite different. Far from being cynics who try to impede people from achieving financial success—or in the U.S., attaining the “American Dream”—short sellers enable the markets to function smoothly by providing liquidity and also serve as a restraining influence on investors’ over-exuberance.

Excessive optimism often drives stocks up to lofty levels, especially at market peaks (case in point—dotcoms and technology stocks in the late 1990s, and on a lesser scale, commodity and energy stocks from 2003 to 2007). Short selling acts as a reality check that prevents stocks from being bid up to ridiculous heights during such times.

I guess I'm just dumb.

I don't see how you having stock that PepsiCo is gonna fail prevents me from buying stock of it at $140/share.

And how does it provide liquidity unless the company was short selling itself?

I'm still in naively in Ousdahl's utopia where you invest in a company cause you think it's a good company that will see increased profits and you don't invest in one you think is gonna fail. I don't see a difference between short-selling and sports betting.

[jfish26]

Yeah, but my question is what's the benefit in rich people doing that? Like why is that good for society, or the economy or whatever? Why is short-selling even a thing?

Take all of this with whatever-sized grain/brick/boulder of salt you'd like.

https://www.investopedia.com/articles/i ... elling.asp

Short selling is perhaps one of the most misunderstood topics in the realm of investing. In fact, short sellers are often reviled as callous individuals who are only out for financial gain at any cost, without regard for the companies and livelihoods destroyed in the short-selling process. Worse, short sellers have been labeled by some critics as being unethical because they are betting against the economy.

The reality, however, is quite different. Far from being cynics who try to impede people from achieving financial success—or in the U.S., attaining the “American Dream”—short sellers enable the markets to function smoothly by providing liquidity and also serve as a restraining influence on investors’ over-exuberance.

Excessive optimism often drives stocks up to lofty levels, especially at market peaks (case in point—dotcoms and technology stocks in the late 1990s, and on a lesser scale, commodity and energy stocks from 2003 to 2007). Short selling acts as a reality check that prevents stocks from being bid up to ridiculous heights during such times.

I guess I'm just dumb.

I don't see how you having stock that PepsiCo is gonna fail prevents me from buying stock of it at $140/share. In theory I guess, the existence of a short position should be taken as an indication that smart people think the stock is overvalued?

And how does it provide liquidity unless the company was short selling itself? I guess the point is that someone who makes money shorting, has that money to put into the market?

I'm still in naively in Ousdahl's utopia where you invest in a company cause you think it's a good company that will see increased profits and you don't invest in one you think is gonna fail. I don't see a difference between short-selling and sports betting. I think the right analogy is the don't-come line, right?

I'm not taking these positions. Just guessing.

[pdub]

Robinhood definitely needs a name change now.

Nottingham

[Deleted User 62]

Too bad Trump isn't here to pound his chest about how he saved Gamestop….

[ousdahl]

https://twitter.com/americascomic/statu ... 60067?s=21

[zsn]

I don’t get it, except in the context of anything goes in white collar Merica.

Let’s make the stock market more about simply investing in a company you want to take ownership in cuz you think it’ll grow, and less about the game-within-itself get rich quick scheme it’s become.

There are already multiple safeguards (if you view these as such) in place to discourage speculative behavior. Rules in the tax code regarding wash sales and short- vs long term capital gains address the get-rich-quick gaming.

However, some have figured out ways to game within the system. When that gets taken to absurd extremes people start paying attention. Short selling is a tool, much like a chef’s knife is a tool. That someone decided to use it to stab someone else isn’t the tool’s fault

[ousdahl]

https://twitter.com/rudy_betrayed/statu ... 61510?s=21

[TDub]

I don’t get it, except in the context of anything goes in white collar Merica.

Let’s make the stock market more about simply investing in a company you want to take ownership in cuz you think it’ll grow, and less about the game-within-itself get rich quick scheme it’s become.

There are already multiple safeguards (if you view these as such) in place to discourage speculative behavior. Rules in the tax code regarding wash sales and short- vs long term capital gains address the get-rich-quick gaming.

However, some have figured out ways to game within the system. When that gets taken to absurd extremes people start paying attention. Short selling is a tool, much like a chef’s knife is a tool. That someone decided to use it to stab someone else isn’t the tool’s fault

So how do you feel about guns.