North American stock market: what's happening?

[StocksAndScares]

Can anyone explain, or point to something that explains, what's happening in the US stock market?

www.instagram.com/p/CKj4f6VFXYP/?igshid=1oz7itz2ccinw

www.bbc.co.uk/news/business-55837519

Pretty clear description: imgur.com/gallery/JMJVWsh

WSB in the post above is r/WallStreetBets.

I threw a couple hundred in (that I could afford to lose). Treating it like the Grand National.

Somebody should do that to Jacob Rees Mogg’s hedge fund.

Just to add, doing this 'short selling' was made illegal in the US in 1934, because it is only good for fucking the stock prices of the companies targeted.

It was relegalised in 2007. Yay.

My son is trying to open an account . He says its gone nuts. I wish he would apply the same enthusiasm to his college assignments.

@Northernsoullover a lot of places have removed the option to buy but are still allowing sales (illegal market manipulation).

However, if he really really likes the stock, he could try Revolut.

Is it just this one company (the game shop) thought?

A bunch of Reddit posters are playing Wall Street hedge funders at their own game, manipulating the markets to make the WSHFers lose money.

@HoneysuckIejasmine

A bunch of Reddit posters are playing Wall Street hedge funders at their own game, manipulating the markets to make the WSHFers lose money.

If it becomes "a thing", it could lead to a slew of bankruptcies. And possibly a paralysis of the money markets at almost exactly the worst time.

The dangers of having too many clever people with too much time on their hands.

It might have been cheaper overall to have given the entire US a 1% pay rise ...

I remain mildly surprised that anti-terror laws haven't been used to shut down debate. I guess there's still time.

The company targeted by the hedge fund doesn't really matter - it has to be someone large enough to absorb the stock dump price drop, but large enough to recover.

It's a real vulture scheme, devised to make rich people richer. So naturally the rich people are complaining that they're not getting richer by shitting on (in the case) Gamestop.

"Illegal trading" my arse.

The real danger is if traders now can't trust market analysis anymore in case it's compromised. Be an end to the "heads we win, tails you lose" cycle of trading.

There are a couple of companies that they’ve been dojng this with, but Gameshop is getting the most publicity. While it is fun to screw over hedge funds, my concern is how they are going to get out of it - the “value” of the stock has been grossly inflated without the actual inherent value of the company going up. It’s a mini bubble. People are going to end up holding onto a worthless stock

@Absy

There are a couple of companies that they’ve been dojng this with, but Gameshop is getting the most publicity. While it is fun to screw over hedge funds, my concern is how they are going to get out of it - the “value” of the stock has been grossly inflated without the actual inherent value of the company going up. It’s a mini bubble. People are going to end up holding onto a worthless stock

Yes, but if it's spread across tens of thousands of investors in $10 chunks, then it's kinda balanced.

You see the problem is I would happily pay/lose $10 to smash capitalism. Or rather the corrupted venal form that passes for religion these days. If there are millions of other people like me out there, it starts to look like a simple Crowdfund To Smash The System.

Now I'm not that naive - I'm not buying any bridges. But even the mighty Nile begins as a few raindrops thousands of miles away.

My son is following this with fascination. He put some money in. It went up. He took out the amount he'd put in. Now he's sitting watching what happens, enthralled. He's covered his stake, and is in it for the excitement. He understands what's going on (to the extent any amateur does).

I've asked about the funds that will lose (worried about people's pensions and so on). He has no sympathy for the big players, says they should be more careful and discriminating when they short perfectly good businesses.

Well, something like that anyway. I'm enjoying his excitement, living vicariously.

I've asked about the funds that will lose (worried about people's pensions and so on). He has no sympathy for the big players, says they should be more careful and discriminating when they short perfectly good businesses.

Remember these are the high power geniuses who have to be given bonuses and tax breaks, or we'll lose their supernatural powers of prediction. So if they haven't spread their risk ...

Like I said, it's been "Heads we win/Tails you lose" for too long.

He took out the amount he'd put in. Now he's sitting watching what happens, enthralled. He's covered his stake, and is in it for the excitement. He understands what's going on

Does he understand though? The thing is, everyone selling to cover their asses makes the price go down. The point is to buy and hold. If everyone just buys and holds, the price goes up. Then it's the big guys who bet that it would go low who HAVE to cover their asses and buy it back at the high price.

It doesn't really work if everyone who gets in sells. 😂

This just in: people who make money through glorified gambling are upset that others are treating it like gambling.

@eatlovemerry

He took out the amount he'd put in. Now he's sitting watching what happens, enthralled. He's covered his stake, and is in it for the excitement. He understands what's going on

Does he understand though? The thing is, everyone selling to cover their asses makes the price go down. The point is to buy and hold. If everyone just buys and holds, the price goes up. Then it's the big guys who bet that it would go low who HAVE to cover their asses and buy it back at the high price.

It doesn't really work if everyone who gets in sells. 😂

He didn't sell it all (which is what the greedy response is).

Also, as the dealers try to source shares, they are driving the price up - which is kind of a self fulfilling prophecy.

They have been well and truly "had". And when the dust settles, it will be interesting to see it's a systemic problem, or just a one off. If it's systemic, and the entire futures market is tainted, then 1929 could look like a mild correction.

Never overestimate the intelligence of the rich. Because they really aren't.

@eatlovemerry he's bought 14 and sold 1 to almost cover his initial stake. He's all 'hold, hold, hold', but alongside a sensible 'cover your arse and don't spend more than you can afford to lose.

It's interesting.

And the big players doubling down on their initial short bet are the ones driving the situation. They could have got out earlier, accepting moderate losses. Now it's become a matter of principle, almost.

Caveat- I don't claim to understand it, I just get the gist from DS.

@picklemewalnuts sorry, didn't mean it to sound like I was attacking your DS or anything was more just giving the "general opinion" for anyone else following along.

Good for your DS! Tomorrow will be another day of crazy anxiety

@NuniaBeeswax

This just in: people who make money through glorified gambling are upset that others are treating it like gambling.

This.

Maybe people should do side bets on the outcome of what happens here - and then people can invest in funds offering such side bets.

Eatlove, he keeps coming down to update me. Then refusing to come down because it's too exciting to leave. Fidgets with his phone all through dinner. He's 20. Bless. It's nice to see him excited. Last time was probably Harry Potter film or something!