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Gamestop and shorting on Wall Street


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I have no idea what this means.

 

With the best, thats a good bit of PR, though I would say the Bedford team, theres, like, you know, 13 blokes who can get together at the weekend to have a game together, which doesnt point to expansion of the game. Point, yeah go on!

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On the Aus Exchange, GME is a mining company unrelated to silver or Gamestop but it's up 17% today. Maybe there's a reason why the market uses the term "unsophisticated investors."

Silver was at $28 just before the March Covid crash so getting back to that level today may not mean anything. It is still slightly lower than 4 months ago.

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Looking at the Reddit group they haven’t recommended silver and think it’s the institutions doing this to try and cover their losses.

 Silver is an interesting case though as it’s believed many of the silver ownership bonds have been sold to multiple owners. Meaning that if people went to retrieve the silver they theoretically own there wouldn’t be enough silver to pay it out. 

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1 hour ago, RidingPie said:

Looking at the Reddit group they haven’t recommended silver and think it’s the institutions doing this to try and cover their losses.

 Silver is an interesting case though as it’s believed many of the silver ownership bonds have been sold to multiple owners. Meaning that if people went to retrieve the silver they theoretically own there wouldn’t be enough silver to pay it out. 

 

I hope small investors don't go full Gamestop on silver because there is a huge difference between the two situations: there is a finite number of GME shares. There is no finite amount of silver that can be put into the market. If the price goes beserk there are mines in 20 different countries that can just dig up more, certainly way more than small investors could ever afford.

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On 30/01/2021 at 11:17, Farmduck said:

Where did all these "little guys" find the sellers to sell them these $200 - $350 shares? Here are some of the average Joes who had big chunks of GME and thus may have made billions over the last week:

  • Black Rock Inc, the World's largest asset manager with assets under management of $8.6 trillion
  • State Street Global, the World's third-largest asset manager, with $3.5 trillion in assets under management
  • Fidelity Investments Inc, with $3.3 trillion in assets under management and a combined total customer asset value number of $8.3 trillion.
  • The Vanguard Group Inc, with about $6.2 trillion in global assets under management
  • Senvest Capital, a Canadian investment firm which barely even belongs on this list since they only have $C2.8 billion in total assets and that's Canadian moosebucks.

But, yes, it's all about the little guy screwing over Wall Street by encouraging other little guys to give billions of dollars to some of the World's biggest investment banks. Yes, that'll really show them.

 

For the record, I have no money at stake here so I don't care if I turn out to be completely wrong. If anything, I'm starting to feel very Dunning-Kruger about this whole episode. I see nearly every media mention of this event caught up in the romantic mythology and I don't understand why others aren't raising the same concerns I have. I believe the people who will get burnt the worst will be the small-timers caught up in the hysteria and mythology. Some of those people are still buying at $300+

 

I don't think anyone is arguing that they bought the GME shares from nobody, or debating that funds actually selling GME shares will benefit. However, those funds are rich either way. Driving up the price at least hurts some of the funds, i.e. the short-sellers. I would contend that there are quite a lot of people happy to lose $300 for the sake of giving some hedge funds a bloody nose, especially if you're someone who has grown up in the wake of the 2008 GFC and seen Wall Street bare a very limited share of the consequences. 

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Friends are suggesting some coordinated action on certain crypto (ripple?).

Don't understand most of it....

With the best, thats a good bit of PR, though I would say the Bedford team, theres, like, you know, 13 blokes who can get together at the weekend to have a game together, which doesnt point to expansion of the game. Point, yeah go on!

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2 hours ago, Farmduck said:

 

I hope small investors don't go full Gamestop on silver because there is a huge difference between the two situations: there is a finite number of GME shares. There is no finite amount of silver that can be put into the market. If the price goes beserk there are mines in 20 different countries that can just dig up more, certainly way more than small investors could ever afford.

The only way this would hurt the institutions is of all the buyers were to try and redeem their physical silver. This is why I suspect this is the institutions trying to jump on the bandwagon! They’d never risk out with gold, but silver isn’t going to upset too many applecarts!

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2 hours ago, Saint 1 said:

I don't think anyone is arguing that they bought the GME shares from nobody, or debating that funds actually selling GME shares will benefit. However, those funds are rich either way. Driving up the price at least hurts some of the funds, i.e. the short-sellers. I would contend that there are quite a lot of people happy to lose $300 for the sake of giving some hedge funds a bloody nose, especially if you're someone who has grown up in the wake of the 2008 GFC and seen Wall Street bare a very limited share of the consequences. 

Case in direct point

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1 hour ago, Bedford Roughyed said:

Friends are suggesting some coordinated action on certain crypto (ripple?).

Don't understand most of it....

I am heavily in to crypto. Ripple (or XRP as the coin is actually called) won’t get pumped for long, it’s got a lot of downward pressure on from Ripple labs constantly selling their supply and McCaleb constantly offloading selling his purse too... lump that in with the Sec during ripple and it’s difficult to see a sustained pump!

 That said it’sa good project with a solid use case.

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4 hours ago, RidingPie said:

Looking at the Reddit group they haven’t recommended silver and think it’s the institutions doing this to try and cover their losses.

 Silver is an interesting case though as it’s believed many of the silver ownership bonds have been sold to multiple owners. Meaning that if people went to retrieve the silver they theoretically own there wouldn’t be enough silver to pay it out. 

 

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1 hour ago, RidingPie said:

I am heavily in to crypto. Ripple (or XRP as the coin is actually called) won’t get pumped for long, it’s got a lot of downward pressure on from Ripple labs constantly selling their supply and McCaleb constantly offloading selling his purse too... lump that in with the Sec during ripple and it’s difficult to see a sustained pump!

 That said it’sa good project with a solid use case.

That didn't help....

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With the best, thats a good bit of PR, though I would say the Bedford team, theres, like, you know, 13 blokes who can get together at the weekend to have a game together, which doesnt point to expansion of the game. Point, yeah go on!

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26 minutes ago, Bedford Roughyed said:

That didn't help....

Ok to sum up quick XRP is a crypto that aims to replace swift as the way international banks transfer money between different currencies. The product which works on the xrp ledger (which is essentially the database that stores the transactions) is called ODL or On Demand Liquidity and allows the transfer of money across the world is seconds with tiny fees.

hope that helps a bit!

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Just now, RidingPie said:

Ok to sum up quick XRP is a crypto that aims to replace swift as the way international banks transfer money between different currencies. The product which works on the xrp ledger (which is essentially the database that stores the transactions) is called ODL or On Demand Liquidity and allows the transfer of money across the world is seconds with tiny fees.

hope that helps a bit!

Its definitely got huge potential, as does ethereum imo (but for different stuff obviously).

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3 minutes ago, Tommygilf said:

Its definitely got huge potential, as does ethereum imo (but for different stuff obviously).

Yes Eth has huge potential if the things they want to deliver in eth 2.0! Otherwise one of their competitors, like Cardano or Polkadot could take over. Eth’s biggest problem at the moment are the ridiculously high gas fees. I do love the concept!

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