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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

to be glued to Gamestop this week!

95 replies

DiamondHanded · 29/01/2021 18:48

I can't be the only one, who else is hooked on #GME?

I'm quite surprised at how much influence Elon Musk has. Any experienced trader sorts care to suggest how this will pan out?

OP posts:
ElliFAntspoo · 01/02/2021 11:58

@MuchasSmoochas

It’s not silver as a commodity, it’s the iShares Silver Trust which Citadel is long in so they are pumping it to get more funds as they have lost billions in GME. Complete nonsense about going to jail, losing houses, come on. We just like the stock. 🤷‍♀️ 27@$78. Can’t stop, won’t stop, GameStop 💎 🙌
If a person buys GME they are buying as a freely independent investor.

If a person is a key individual posting on a thread that is critical catalyst in moving a market, and they have discoverable PMs and e-mails with other users indicating that they have encouraging collusion, and that the know that their posts are creating the market move, then they are breaking US law.

I think key people will be taken down and made an example of.

ssd · 01/02/2021 12:00

Is there an idiots guide to this?

ElliFAntspoo · 01/02/2021 12:00

@MuchasSmoochas

It’s not silver as a commodity, it’s the iShares Silver Trust which Citadel is long in so they are pumping it to get more funds as they have lost billions in GME. Complete nonsense about going to jail, losing houses, come on. We just like the stock. 🤷‍♀️ 27@$78. Can’t stop, won’t stop, GameStop 💎 🙌
So the commodity is decoupled from the ETF. The commodity is secured for industry, and people just argue over the dollar value of bits of paper. Nice one.
ElliFAntspoo · 01/02/2021 12:12

@ssd

Is there an idiots guide to this?
The GME thing. Most of it is just speculation - speculation in the sense that no-one really knows what is happening between the people betting on the stock going down (the shorts) and the people driving up the stock buy buying up promissory notes (the longs). None of these people have any stocks in GME. They all just hold betting slips for the wont of a better analogy. Until a person has a stock certificate in their name, they don't actually own anything. All that has happened is they have leant money to another company (Robinhood in some of these cases which is an App on your phone), and in exchange that company has placed an entry in their App saying that they are entitled to be paid by the company cash to the value of GME on the day they choose to cash out. No stock ever changes hands until someone actually decided they want to own stock in a company and asks for the stock to be registered in their name. At that point the broker tells they to FO and stop being so stupid and settles in cash. You cannot actually own stock in companies through Apps like Robinhood.
MuchasSmoochas · 01/02/2021 12:33

Well all my meme stocks are doing very well. If you want to talk about collusion, how about analysts’ downgrades that allow them to swoop in at lower prices? What about IPOs where retail investors can’t get in and the stock shoots up on first day of trading? Or the short attacks on direct public offerings where the ultra rich have not been able to get in first?

ElliFAntspoo · 01/02/2021 13:15

@MuchasSmoochas

Well all my meme stocks are doing very well. If you want to talk about collusion, how about analysts’ downgrades that allow them to swoop in at lower prices? What about IPOs where retail investors can’t get in and the stock shoots up on first day of trading? Or the short attacks on direct public offerings where the ultra rich have not been able to get in first?
I'm not saying the current financial regulations are moral of right. Nor am I even saying that they are followed or even enforced.

All I was pointing out was that there are trillions of dollars of very powerful interests, an entire banking industry, and many countries economies invested in making sure the status quo is maintained and operates in a way keeps economies stable and liquid.

They have mechanisms in place to restore the system, and Robinhood may get a public slap on the wrist and lose 8% of their profits this year. Citadel will then make a reciprocal investment in the company to placate shareholders, everyone will get their bonuses, everyone will get their dividends, and everyone will be happy. That is how the system works.

If that system is threatened by a minority outside of the system, it will be stamped upon. It has to be, because it is the only way the system can remain stable. So they will allege collusion, subpoena e-mail traffic and mobile phone data (its probably already been done, as in the companies have been asked to identify and secure the data and put it aside pending warrants), and they will prosecute those who colluded to move the market. Anyone they have a real chance of prosecuting. Then they will offer plea bargains and get them to sign NDAs, and those who refuse will go to court.

But justifying one crime on the basis that other people commit other crimes is a laughable position to take. I could say its acceptable for me to stab someone one the basis that the military kill non-combatants all the time. Just because one person commits a crime and does not get prosecuted for it, does not justify doing the same.

I could go an buy GME today if I wished to, and it is perfectly legal and I am not colluding with anyone. I would be bandwagon jumping. SO I am not saying anyone who jumps on a bandwagon is doing anything other than following their natural herd instinct. What the point was, is that getting together with others and co-ordinating your message, recognising, and with the of moving the market in a desired direction is absolutely against the law, and the stability of the stock market and trillions of investors dollars depends on that not happening again.

The only way to do that is to remove the discovery mechanism of who is shorting what, make it illegal to discuss stock trading on social media, or publicly destroy those who break the law, as an example to others not to do the same. The first is a step backwards, the second is impractical to the point of ridicule, although it is being discusses I understand, and the third is very possible, especially if key players have handed them their cases on a plate.

MuchasSmoochas · 01/02/2021 13:45

I absolutely agree they should destroy those who break the law and will be following the enquiry which AOC has said she will pursue re Robinhood’s relationship with Citadel and its decision last week to shut down trading. I also hope they will destroy the giant Wall Street firms who stake their positions on the data they buy about the little guys. Fingers crossed. Not especially hopeful after 2008 but hey.

chomalungma · 01/02/2021 14:19

I wonder if anyone shorted the Dutch tulip market back in the day?

ElliFAntspoo · 01/02/2021 14:22

@chomalungma

I wonder if anyone shorted the Dutch tulip market back in the day?
Everyone did, that was they problem.
ElliFAntspoo · 01/02/2021 14:28

@MuchasSmoochas

I absolutely agree they should destroy those who break the law and will be following the enquiry which AOC has said she will pursue re Robinhood’s relationship with Citadel and its decision last week to shut down trading. I also hope they will destroy the giant Wall Street firms who stake their positions on the data they buy about the little guys. Fingers crossed. Not especially hopeful after 2008 but hey.
ROFLMAO. I think C warned RH that they were were selling stocks that could not be delivered to their customers if their customers stood for delivery. If that is true, then R would have been breaking the law allow customers to make purchased and C would have been breaking the law to sell stocks it could not deliver. So I think you'll find the reality of what really went on re RH/C is very different to what the tin foil hat brigade believe.
PelvicFloorTrauma · 01/02/2021 20:30

I think it was counter party risk that caused Robinhood to suspend trading? Hence the need to inject more capital into it.

ElliFAntspoo · 01/02/2021 20:42

What happens if GME owner gets together with other major shareholders and agrees to dilute the shares?
What happens if Robinhood fold?
What happens if Citadel fold?
What happens if Robinhood or Citadel are a victim of a major cyber attack? Wipes their servers? Faulty backups. The Russians did it? The Russians did it?
Does anyone actually own a real share in GME?
If so, you're safe-ish.
If not, can you prove you hold a notional position in an account with Robinhood? Do you have the statements and/or printouts to prove it if their computer system doesn't have the information?
And have you invested enough money that it would be worth your while pursuing the debt if there were a problem in the system?
And do you have the money to pursue the debt if there is a problem in the system?

There are a lot of outs for the financial institutions here, and those are just a couple that cost a lot less than paying out on GME stocks.

Hell, if I were a hedge fund, it would be worth taking it to court just to create the time to strip the company of assets, and then pay out two cents in the dollar when I lose.

starfro · 03/02/2021 15:14

Well, shockingly that all ended as these pumps and dumps always do.

Who would have thought that buying something priced ten times what it was a week ago, just because you saw a meme, would end badly?

What I can't believe is that these idiots were parted from their money by telling them this was some grassroots political uprising, when the reality was it was just a way of making the instigators a lot of money at their expense.

apalledandshocked · 03/02/2021 15:23

This is like the business with the tulips all over again...

ElliFAntspoo · 03/02/2021 17:51

It is F'ing funny to watch though isn't it. I bet there are going to be more than a handful of losers having to explain to their spouses where the money went before this is over. It is amazing how sheep all follow one another pretending not to be sheep.

happinessischocolate · 03/02/2021 20:33

Surely the whole point was that you needed to be in at the start, anyone who brought options after hearing about it later obviously didn't understand what they were buying into.

And I say that as someone who never buys shares.

Buy low, sell high 🤷‍♀️ not buy when it's already rising and then hold

JellyBabiesFan · 03/02/2021 21:32

Anybody buying in on the way up was gambling not investing. They were gambling on more sheep piling in and allowing them to sell out with a profit. A lot of retail investors will have got stung badly here, but really its no different to putting money on sports betting.

ElliFAntspoo · 04/02/2021 10:56

That is why they call them sheep. They are simple dumb animals that follow the herd, and spend their lives in complete ignorance until they are slaughtered, and they never see it coming.

JellyBabiesFan · 04/02/2021 16:48

Thats an insult to the wooly fluffy animal that you see in fields.

ElliFAntspoo · 04/02/2021 17:37

Ah. A Petard. Lol.

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