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  1. x65943

    OP x65943 the end is nigh, buy doge coin
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    Last week represented the largest hedge fund degrossing event since February 2009 (the height of last decade's financial crisis).

    As regular Joes have taken on wall street short sellers, there has also been a larger destabilizing effect on the market in general. Firms have been selling long positions to cover massive losses from shorts - and stocks across the board have taken huge hits. Tesla has lost over 10% of its value.

    Tomorrow markets reopen and there is no sign of this trend stopping. Despite investment apps working to limit sales of certain "stonks", prices have either continued to rally or stabilize - and there are a host of further stocks that continue to see rapid gains despite lack of any real world indicators of growth.

    So what do you guys expect to happen tomorrow, and how will this saga come to an end? Are we looking at the next financial crisis - this time brought to us by meme magic?

    https://www.reuters.com/article/idUSKBN2A00UH
     
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  2. Costello

    Costello Headmaster
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    If there's any crisis, you won't be able to put the blame on the average redditor/average joe's shoulders, in spite of what Bloomberg or the WSJ would like you to believe. These guys are spending a thousand or two each. Blame those big wall street firms for playing god with people's money, betting on companies going bankrupt, using funds they don't even have. They are the ones to blame for this crap. The game is rigged in their favor - they even get bailouts with taxpayer money after their crazy bets miserably fail.
     
  3. Lilith Valentine

    Lilith Valentine GBATemp's Official Cubi™ Genderfluid Gang!
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    "I could watch billionaires cry about losing money all day. I don’t give a fuck about billionaires" -Me from Friday.
     
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  4. Costello

    Costello Headmaster
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    I know right?

    - me, a millionaire

    j/k, i wish
     
  5. Taleweaver

    Taleweaver Storywriter
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    From the article:

    On Friday, Citron Research’s Andrew Left, who spent two decades building his brand as one of the world’s best-known short-sellers, turned his back on publicly detailing companies’ shortcomings, following an intense backlash against him and others who said video retailer GameStop’s stock was not worth its price

    Devil's advocate here :is Left wrong in his statement?
    Look... I really aplaud the move. A hedge fund shouldn't be able to bet more than available stock and I don't see their use (at least not in that scale) in the actual economy, so them losing billions is all good news to me.

    A new financial crisis? I don't believe so. If anything, rather the opposite. As it was, you could bet heavy against a company and if it was heavy enough, it would scare off others (why buy stock? Surely they do it for good reason). The way I see it, hedge funds had grown to a position where they basically decided the economy rather than followed.
    The move against them could be a wake up call for them. They 're getting published for their move, and not in a light sense. Sure, it also exposes that there's not really a law or ethics on the field, but... Is that new?
    And how could millions of people investing in stocks be somehow BAD for the economy? So... No. If anything, I'd say the market will only be better if in the short and medium term.

    But the long term? To get back at the original question (is Left wrong?), I've got to say he did have a point. I mean... GameStop? They're a US brand, but the most complimentary I've heard on this forums is they're a necessary evil. They charge to much and pay too little for used games. They treat their employees like garbage. And on a more global scale : online platforms (steam, console e-shops) are designed against almost literally against their business. And of course there's the pandemic limiting our closing the shops (where virtual platforms remain happily available) obviously ain't good.

    So... You tell me : why the fuck is their stock worth so much?
    Okay, maybe earlier gbatemp impressions weren't everything (sorry, but I've only heard about GameStop on these forums). Maybe their employees are awesome. Maybe steam, epic, uplay and all those other platforms are overhyped and are real stores and physical games the future. Could be. I don't believe it, but... Could be.
    So... If you ask me, the only reason it's so high because it was heavily speculated against. People bought into the belief that buying was good, which raised the price which started an upward small that ended in a massive "fuck you" against Melvin capital (and wall street in general). Again : congrats. But now what? You're going to hold on to your precious stock or cash in? Do you trust those millions of others to not cash in?

    And the literally million dollar question : do you really think GameStop has a future?
     
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  6. osaka35

    osaka35 Instructional Designer
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    for many, it isn't about profit. It is more like a donation to a cause. It's occupy wallstreet, but actually doing something. Diamond Hands, even if loads of people cash in, others will just write it off as a loss at the end. Plus they're still short-selling, expecting the bubble to pop on Monday. Diamond Hands and the line will hold.

    I say that, but I'm sure it's actually because they just like the stocks. You bet on your community, ya know?
     
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