Can someone dumb it down for me? The GameStop/Robinhood thing?

[Anonymous]

Title says it.

I am just not fully understanding what happened here. Thanks.

[Anonymous]

https://www.dcurbanmom.com/jforum/posts/list/945211.page

[Anonymous]

Take the time to learn. It will take time. It will be worth it.

[Anonymous]

The big money guys screwed up and got caught with their pants down by a middle class dad from Boston. He then told a message board what he discovered.

Hedge funds gambled that the stock price of a mall retailer would drop. They were so confident in that bet that they borrowed millions and exposed themselves to unlimited downside. The internet nerds figured this out and took advantage.

[Anonymous]

Anonymous wrote:The big money guys screwed up and got caught with their pants down by a middle class dad from Boston. He then told a message board what he discovered.

Hedge funds gambled that the stock price of a mall retailer would drop. They were so confident in that bet that they borrowed millions and exposed themselves to unlimited downside. The internet nerds figured this out and took advantage.

Yeah but all the people buying at the top the past few days? Regular investors. Now that the price is crashing, they’re losing money.

So it’s not so clear cut as David vs. Goliath with David winning.

[Anonymous]

To add on to PP, a lot of these so called 'retail' investors (in other words, regular joes with a hobby) use Robinhood as their trading platform. RH is privately held and a big source of their capital is a hedge fund that was going to basically go broke because of their short sales of GME. Then yesterday, RH blocked buys of GME and others, only allowing holders to sell. Big big problem here, restricting free market activity. Class action lawsuit has already been filed and many in Congress and elsewhere are vowing to look into it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The big money guys screwed up and got caught with their pants down by a middle class dad from Boston. He then told a message board what he discovered.

Hedge funds gambled that the stock price of a mall retailer would drop. They were so confident in that bet that they borrowed millions and exposed themselves to unlimited downside. The internet nerds figured this out and took advantage.

Yeah but all the people buying at the top the past few days? Regular investors. Now that the price is crashing, they’re losing money.

So it’s not so clear cut as David vs. Goliath with David winning.

But is that the point? Are they losing money or gaining revenge? Are they losing their shirts by being taken advantage of? Or are they taking advantage of the HFs?

Maybe we don't want revenge trading (or pure speculation/gambling) in our stock market, but that's a different question.

[Anonymous]

Read this - it explains it well.

https://www.vice.com/en/article/pkdvgy/send-this-to-anyone-who-wants-to-know-wtf-is-up-with-gamestop-stock

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The big money guys screwed up and got caught with their pants down by a middle class dad from Boston. He then told a message board what he discovered.

Hedge funds gambled that the stock price of a mall retailer would drop. They were so confident in that bet that they borrowed millions and exposed themselves to unlimited downside. The internet nerds figured this out and took advantage.

Yeah but all the people buying at the top the past few days? Regular investors. Now that the price is crashing, they’re losing money.

So it’s not so clear cut as David vs. Goliath with David winning.

But is that the point? Are they losing money or gaining revenge? Are they losing their shirts by being taken advantage of? Or are they taking advantage of the HFs?

Maybe we don't want revenge trading (or pure speculation/gambling) in our stock market, but that's a different question.

this, they don't care. They are donating money to make hedge funds loos money

[Anonymous]

Anonymous wrote:

Anonymous wrote:The big money guys screwed up and got caught with their pants down by a middle class dad from Boston. He then told a message board what he discovered.

Hedge funds gambled that the stock price of a mall retailer would drop. They were so confident in that bet that they borrowed millions and exposed themselves to unlimited downside. The internet nerds figured this out and took advantage.

Yeah but all the people buying at the top the past few days? Regular investors. Now that the price is crashing, they’re losing money.

So it’s not so clear cut as David vs. Goliath with David winning.

I get the feeling the little guys mostly don’t care if they lose their money, as long as they’re sticking it to the hedge funds who were doing naked short selling. It’s very much an “eat the rich” moment, and the hedge fund guys should be glad they’re just losing their shirts, not their heads. One of their peers called them out for the unbridled greed that he was seeing, and how it was going to lead to civil unrest if it wasn’t corrected. He’s been shouting this from the rooftops since 2014, and now we’re seeing it come to fruition. https://www.politico.com/magazine/story/2014/06/the-pitchforks-are-coming-for-us-plutocrats-108014

[Anonymous]

The squeeze is still on. Bought 10 shares to support the movement. Better investment than when I donated to Bernies campaign. Come on in, join the good fight.

[Anonymous]

Ponzi scheme / pyramid scheme for day traders

[Anonymous]

Anonymous wrote:Ponzi scheme / pyramid scheme for day traders

That's ... not the right take.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Ponzi scheme / pyramid scheme for day traders

That's ... not the right take.

Agree. That’s a misinterpretation of what is happening.

[Anonymous]

Anonymous wrote:The squeeze is still on. Bought 10 shares to support the movement. Better investment than when I donated to Bernies campaign. Come on in, join the good fight.

Bought 20 yesterday