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Politics Wall St - Above the Law

...It appears that naked short selling, on the part of the hedge funds, was taking place on at a fairly high level and they got caught, not by the regulatory agencies that were supposed to catch it but by a bunch of Reddit users. The Reddit users decided to band together and slap the hedge fund users around, giving them a bit of punishment that they have well and truly earned based upon their history of bad behavior.
...

Short selling isn't illegal (despite the wishes of certain billionaires cough cough Elon Musk) so there's nothing for regulators to catch. Selling short the shares in a company is the market reflecting that they have a crappy business model and are unlikely to be turning that around any time soon. And when short sellers guess wrong, they've always stood to lose money, sometimes lots of money.

If there was insider trading going on that would be a completely different kettle of fish.

The real losers here in the longer run are going to be the people who bought into a classic bubble. There is nothing that suggests that GameStop is or will ever be worth the price most of them paid.
 
Short selling isn't illegal (despite the wishes of certain billionaires cough cough Elon Musk) so there's nothing for regulators to catch. Selling short the shares in a company is the market reflecting that they have a crappy business model and are unlikely to be turning that around any time soon. And when short sellers guess wrong, they've always stood to lose money, sometimes lots of money.

If there was insider trading going on that would be a completely different kettle of fish.

The real losers here in the longer run are going to be the people who bought into a classic bubble. There is nothing that suggests that GameStop is or will ever be worth the price most of them paid.
It is correct that short selling isn't illegal, but naked short selling is, at least in the US. Since 140% of the total number of the outstanding GME shares have been shorted, either there was some naked short selling taking place or there was some sketchy workaround to the spirit of the law, which I guess can possibly be done, but....

You are also correct that the people who have now bought the stock are going to be the ones losing the money. I still go back to my premise however that many of them have bought that stock for the entire purpose of helping bring down the hedge funds and don't give a toss if they lose their entire "investment".
 
I’m definitely in the Robinhood ‘insolvency risk due to exponentially rising DTCC collateral requirement’ camp.

But I can also see one or more sharks trying to run or fund an arms length info op, effectively building a human meat robot attack array consisting of naive pawns with temporarily aligned interests.

Or exploit one that already exists.

IOT devices get hijacked en masse for ransomware DDOS attack arrays on websites.

Humans on Reddit/Robinhood can be influenced en masse to “take down the fat cats” as part of the growing cultural narrative.

A big short on a low market cap equity that is a fond childhood memory of most Robinhood users = a relatively easy to activate attack array?

For some reason, I’m reminded of two past events:

1) CIA AFL-CIO discrete support for Solidarity in Poland:
https://www.iwp.edu/articles/2019/03...nd-solidarity/

2) The biggest & most expensive online gaming battle in history:
https://en.wikipedia.org/wiki/Bloodbath_of_B-R5RB

An existing indigenous non violent social movement against authoritarianism or a rigged system can have its momentum amplified by external actors(#1,the former) leveraging the existing culture of mass digital gamification platforms to effect the desired endstate(#2,the latter).

Looking back on Tea Party and Occupy Wall Street, the former was hijacked and failed and the latter were an amorphous blob that failed.

It will be interesting to see how this Reddit/Robinhood meat robot attack array evolves.

If I had to guess, odds are one or more sharks with influence behind it will be profit taking at the expense of the meat robots.

But perhaps there is an opportunity to make a stand to protect and defend a few short targets via hybrid real world/MMORG gamification?

Like Solidarity/Poland example, you can’t just make what you want happen, specific conditions including a viable indigenous movement are essential.

Are those specific conditional requirement analogs for equities common to allow occasional/frequent repeats?

Or will it be like Moneyball, just a highly effective one time disposable weapon?

Pretty interesting possibilities, including a few positive cool ones, but I suspect human nature will move the needle in the direction of the lowest common denominator.

——-

Nearly everyone between the age of 21 and 50 has social gaming experience.

Nearly everyone between the age of 21 and 50 has little to no trust in large financial institutions, news media, or Congress...regardless of political partisanship.

Gamifying hybrid civic action?

A new form of flash mob?
 
I bought into it, because it is an idea who's time has come. There will always be a different set of rules for the elite and those in the club, will they survive this? Of course. But every now and then a few villages must burn. Now maybe they wont be as rampant next time.

Will I be making money? Maybe or maybe not. I do love watching villages burn
 
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Absolutely no conflict of interest there. ?

Edit: I'm deeper into this interview and this is the first time in a veeeeerrrrrrry looooooooooong time that I'm actually agreeing with a MSM story.
 
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I'm reading the "Reddit Army" caused a loss of 3.2tn in global market cap (+- Germany's GDP) this week?
 
Bernie is clearly over joyed in his twitter comments. The forthcoming fervent commy inquisition hadn't foreseen this rebellion. Its as well he hadn't passed his tax on them otherwise he'd only succeed in creating another billionaire tax write off, thereby luckily avoiding screwing himself.
 
I'm reading the "Reddit Army" caused a loss of 3.2tn in global market cap (+- Germany's GDP) this week?

Do you have a link?

It’s odd as the Reddit Army(more like a DDOS meat robot array) is going long and it’s the hedge funds with large need short positions that are/were betting on decline.

I could see efforts to try and portray Reddit/Robinhood users collectively as financial arsonists/disrupters/insurgents, but the simple reality is that they are more akin to volunteer fire fighters not only putting out arson attempts by a hedge fund, but building a temporary fortress around the building previously being burnt.

My opinion is that if mass media, government, and large financial institutions blame Reddit/Robinhood users it will achieve 2 things:

1) embolden the same to find the next bigger and better target

2) inspire more to join #1, because very few trust the mass media, government, and large financial institutions
 
Do you have a link?

It’s odd as the Reddit Army(more like a DDOS meat robot array) is going long and it’s the hedge funds with large need short positions that are/were betting on decline.

I could see efforts to try and portray Reddit/Robinhood users collectively as financial arsonists/disrupters/insurgents, but the simple reality is that they are more akin to volunteer fire fighters not only putting out arson attempts by a hedge fund, but building a temporary fortress around the building previously being burnt.

My opinion is that if mass media, government, and large financial institutions blame Reddit/Robinhood users it will achieve 2 things:

1) embolden the same to find the next bigger and better target

2) inspire more to join #1, because very few trust the mass media, government, and large financial institutions
As Jungle Jim said some times its fun to watch villages burn especially if rich wall st bankers live in those villages ?
 
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