Author Topic: The GameStop Saga Isn’t About Finance, It’s Part Of The Ongoing War Between Elites And Populists  (Read 638 times)

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Online Right_in_Virginia

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The GameStop Saga Isn’t About Finance, It’s Part Of The Ongoing War Between Elites And Populists
The rules here are simple: Heads Wall Street wins, tails you lose.
The Federalist, Jan 29, 2021,  Sean Davis

<Snip>

Think about it this way: If you buy a stock for $25, the most you could possibly lose if the entire investment went belly up and the price fell to $0 is $25, the price you paid for the stock. On the flip side, your gains are potentially unlimited, because who knows how high the stock price could go.

Shorted stocks are the exact opposite. If you short a stock at $50 — you borrow the stock, and immediately sell it at the current price of $50 — the most you’ll earn is $50. When the stock approaches $0, you’ll buy it for pennies, return the share back to the investor from whom you borrowed it, and the difference is your profit.

However, if the stock price goes up, so do your losses. If it goes to $100, you have to buy it at $100 in order to return it to its rightful owner. But what if it goes to $1,000, or $10,000? Your losses could be infinite. The same goes for the various baskets of options and stock derivatives that can be used to mimic the payouts of stock shorts.

This brings us back to GameStop. A major hedge fund had a massive, and very public, short position on GameStop. Enter Reddit. A bunch of Redditors who followed the stock market realized that this billion-dollar hedge fund had a problem on its hand: Due to a combination of factors, GameStop somehow ended up with more short positions than outstanding shares.

The Redditors realized they could pull off what’s known as a “short squeeze”: If they started buying up GameStop stock and refusing to sell it, they could crush the hedge fund as its short positions came due, potentially even driving it into bankruptcy, all while profiting in the market by purchasing a stock that was once in the single digits and watching it approach $50 and then $100 and $200 and even $300.

At one point, it was estimated that the losses accumulated by GameStop short-sellers approached $5 billion. Melvin Capital, the now-notorious hedge fund with the huge GameStop short position, eventually required an infusion of $2.75 billion in cash from an even larger hedge fund to cover its possession and remain solvent.

And that’s when the Wall Street empire struck back. Suddenly, the federal Securities and Exchange Commission, or SEC, which purports to be a Wall Street regulator but instead operates as little more than a Wall and Broad soothsayer to a public skeptical of Wall Street’s power, weighed in and intimated that it might investigate or even shut down the trading of GameStop stock to prevent the price from getting even higher.

Then the Wall Street-backed trading apps and the Wall Street brokerages joined in, announcing they would no longer allow their users and retail investors to buy GameStop stock. The result? When you can no longer buy a stock, its price can only go in one direction: down.

More:  https://thefederalist.com/2021/01/29/the-gamestop-saga-isnt-about-finance-its-part-of-the-ongoing-war-between-elites-and-populists/

Online Right_in_Virginia

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Davis's explanation of what happened is one of the clearest I've read  pointing-up   --- so is his thesis on "elites v populists".

Online Right_in_Virginia

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FTA

Quote
The real story is how “retail investors” — the industry term for regular people who day trade now and then or have a small brokerage account for retirement or to buy stocks every now and again for fun — figured out how to take down a financial leviathan. It’s not that Wall Street dislikes retail investors, it’s that Wall Street views them as little more than commission factories for the big brokerage houses.

Online mountaineer

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Alexander Muse  @amuse
Shortly after Elon Musk criticized Biden for delaying the mission to Mars and stopping trading in GameStop, DOJ announces investigation into billionaire.
7:52 PM  Jan. 29, 2021
Quote
Justice Department investigating Elon Musk’s SpaceX following complaint of hiring discrimination
Published Thu, Jan 28 20216:11 PM EST
Updated Thu, Jan 28 202111:42 PM EST
Michael Sheetz


The U.S. Department of Justice is investigating SpaceX over whether the company discriminates against non-U.S. citizens in its hiring practices and said Elon Musk’s company is stonewalling a subpoena for information, court documents revealed Thursday.

The DOJ’s Immigrant and Employee Rights Section received a complaint of employment discrimination from a non-U.S. citizen claiming that the company discriminated against him based on his citizenship status.

“The charge alleges that on or about March 10, 2020, during the Charging Party’s interview for the position of Technology Strategy Associate, SpaceX made inquiries about his citizenship status and ultimately failed to hire him for the position because he is not a U.S. citizen or lawful permanent resident,” DOJ attorney Lisa Sandoval wrote in a court document filed Thursday. The document was a request for a judge to order SpaceX to comply with an administrative subpoena for documents related to how the company hires. ...
CNBC
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Online Hoodat

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There is a valid similarity between these Reddit retards and Trump's deplorables.
If a political party does not have its foundation in the determination to advance a cause that is right and that is moral, then it is not a political party; it is merely a conspiracy to seize power.

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"The [U.S.] Constitution is a limitation on the government, not on private individuals ... it does not prescribe the conduct of private individuals, only the conduct of the government ... it is not a charter for government power, but a charter of the citizen's protection against the government."

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Online mountaineer

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https://twitter.com/ZULUMALE/status/1355621153793073154
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Marianne Williamson  @marwilliamson
Jen Psaki saying at press conference yesterday that Biden economic team not addressing Robin Hood issue because his team is working on what really matters to the American people, which is Covid relief bill, makes both her & him seem incredibly out of touch with what’s happening.
9:30 AM · Jan 30, 2021·
« Last Edit: January 30, 2021, 09:07:47 pm by mountaineer »
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Online Hoodat

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Candid explanation of what is happening and why.


If a political party does not have its foundation in the determination to advance a cause that is right and that is moral, then it is not a political party; it is merely a conspiracy to seize power.

-Dwight Eisenhower-


"The [U.S.] Constitution is a limitation on the government, not on private individuals ... it does not prescribe the conduct of private individuals, only the conduct of the government ... it is not a charter for government power, but a charter of the citizen's protection against the government."

-Ayn Rand-

Offline thackney

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Candid explanation of what is happening and why.

That was good, thank you for sharing.
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Offline IsailedawayfromFR

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GameStop Lets You See the Matrix
Kurt Schlichter|Posted: Feb 01, 2021


There’s nothing more tiresome than hackneyed references to The Matrix, except for the constant propaganda we’re hosed down with by the Establishment and its media lackeys about how everything is groovy in our totally free, free enterprise paradise of freedom and happiness and more freedom. Some of us have been woke for a while, having realized the undeniable truth that the system is rigged for the benefit of a garbage ruling class, whose sole accomplishment is to perpetuate a paradigm in which they maintain power and prestige by controlling institutions they didn’t create or build. Instead, they are cultural trust fund babies, the equivalent of third generation Kennedy brats with substance issues who got into power by getting into the right schools and modeling the right SJW attitudes. These oligarch overseers rely on us to toil in their figurative fields while they sit on their figurative porches, sipping locally-sourced figurative mint juleps.

I say burn it all down and rebuild America into what it is supposed to be, that is, what they tell us it is when they lie to us.

I’m not alone. We’re primed for some conservative anarchy. The normals’ resistance cannot be quelled; the revolution will be Telegrammed. Everyone’s gobbling up red pills, the one medication our incompetent Establishment is fully capable of distributing efficiently and effectively. You drop one and you see the Matrix. You see the lie. You see that it’s all rigged.
  https://townhall.com/columnists/kurtschlichter/2021/02/01/gamestop-lets-you-see-the-matrix-n2583952
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington

Offline catfish1957

  • Laken Riley.... Say her Name. And to every past and future democrat voter- Her blood is on your hands too!!!
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There is a valid similarity between these Reddit retards and Trump's deplorables.

I have often said that money is power, and that we as a conservative bloc have failed miserably in leveraging our wealth toward fighting the left wing agenda. If I was 25 years younger, and had more energy, I'd organize a faction like the Retards. Except instead of fighting Hedge Fund villians, I'd configure it to fight back the elements that are shoving SJW and Climate Change down our throats.

I mean I feel like the Lone Ranger here.  Example?  Last week, when I called Black Rock to complain as an investor about requiring "Climate Change" goals in the companies of their portfolio, the PA contact said I was the first to do so.  ARHHH!!!!!!
I display the Confederate Battle Flag in honor of my great great great grandfathers who spilled blood at Wilson's Creek and Shiloh.  5 others served in the WBTS with honor too.