Oh look Ben Shapiro is shilling for hedge funds
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I mean, he isn't wrong. There are actual forces behind market pricing. I could bore everyone with the details, but that'd be a waste of my time and those of you who read it.
Even $GME is technically not gambling, because the short squeeze is real. That's what gives it the value. Independent of moralistic virtue signaling, the $GME stock is a high risk, high reward position at the moment. If the price holds, Melvin Capital and all the rest will have to close out their shorts and push it to the stratosphere. That's what the price is based off - WSB aren't the only people pumping money into that stock. The major Gamestop holders aren't selling up either - they aren't stupid, they know that if this holds, they'll have more money than their wildest dreams as all the short positions are closed out.
Still, this whole incident isn't exactly free market, is it? Blocking buys and forcing sells to help Melvin + Citron? Is that what the stock market is now? Once you start fucking with the results, it's not even finance anymore. This isn't what stock trading is supposed to be and I'm ashamed of being part of the financial sector for the first time in my life.
$GME to $400 by close of trade tomorrow, we can do it.
We like the stock!
It's the whole blocking buys and forcing sells that really got me.
I actually sold off most of my Gamestop during the rise because I wasn't aware of what was going on, but I considered it to be probably overvalued. I'm not unhappy with the result even though I could have made substantially more.
But after the fuckery that's gone on in the past 2 days, I went ahead and put in an order for more GME because these guys can all go to hell.
Doubling down against the Internet? That's got to be the stupidest thing I've ever heard. It's criminal negligence.
Me too. Say what you like about 2008 and the bullshit bailouts, but this is worse in a way. They overplayed their hand and got bailed out. This time, they're just skipping the middleman and ripping the money right out of everyone's pockets. Worst of all, they're manipulating the market and lowering investor confidence just to save their own asses.
Melvin made a quite frankly ridiculous error that even a 12 year old would have seen as a problem, but the brokers do everything to cover for them. Nobody who decides to take a 140% short position should even be in the market, they deserve to go bankrupt - not because of some crusade against the sector, but because they're fucking morons who made a piss-poor decision that would have got me fired and sued for incompetence if I did it.
Doubling down against the internet worked to stop President Trump though.
This happens whenever products become overly abstracted. At some point you disconnect from palpable value and enter the realm of gaming, and gaming isn't governed by the pesky constraints of reality. If you then build important infrastructure upon your abstract products, you make everyone vulnerable to volatile collapse. This is what has happened to our financial industries. They are no longer connected to sustainable business, but those businesses are still made dependent on those financial institutions. We can't escape the game without triggering our own destruction.
Eh. Abstraction isn't a problem in and of itself. Abstractions are just tools. They ultimately do represent something real, or else they have no meaning. The problems start when people assign some meaning to the abstraction beyond what it represents, or think of it as a concrete thing. Or really just don't completely understand the abstraction.
Its like that SA Minister of Agriculture (or whatever he was) that said they didn't need farms because all their food came from the retail stores. The problem wasn't that they had abstractions. The problem is that they were too stupid to understand the abstractions they had.
These clowns at Melvin could have hedged this bet. They could have bought options in the other direction too so that they limited their exposure (that's assuming they could find someone willing to be on the other side of that contract, and if they couldn't, maybe that should have been a big clue that they were doing something retarded). Instead they took a position that had UNLIMITED downside. I'm guessing they just were betting that they'd be bailed out if they fucked up badly enough.