Current Events > Economics
The GameStop market fiasco
enslaved1:
--- Quote from: Texacon on January 28, 2021, 02:40:06 PM ---They're not loopholes so much as different strategies of buying stock (or making money off of stock).
I read a pretty good dumbed down piece on how the shorts work. It was written so this guy could explain it to the 'apes'. You have to remember those who are selling short are using borrowed stock and have a date they have to give those back to the owner.
Here's the story for the apes;
--- End quote ---
FB friend posted this monkey story. :)
I have no problem with hacking the system (manipulating a system in different ways than it is intended to work, no bots or coding had anything to do with these events) by different people than the ones who usually do it, but some of the responses, like not allowing people to purchase specific stocks do, IMNSHO, constitute manipulation, like how the ChiComs make their markets look good outside the country and boost the apparent value of the yuan, and I'm worried about ripple effects. Right or wrong, our economy is heavily anchored to the stock markets, and if corporations or the feds start messing with things to cover their buddies losses, it may make things ugly for everyone down the road. We are already holding on by a string economically because of the lockdowns, Biden is destroying jobs with almost every pen stroke, if Wall Street crashes it may be Great Depression II.
Or I may be getting too apocalyptic in my old age.
J P Sousa:
I think shorting stock should be illegal.
Shorting stock is a rich mans way of screwing people.
Workover:
yet here it's the college student day traders who made the killings off the fund hedge fund managers, Guess which pig squealed first.
Drafe Hoblin:
I'm from the buy a stock, then sit on it school. -Sell, or cash-in down the road.
I remember being interested about day-trading in the 90's... but that was after the biggest purveyor at the time, Charles Schwab, actually sold his own business... then inexplicably bought it back a couple years later. I thought: Nah... there's something going-on in the background... and odds are, it's not going to benefit 'the little guy' that much.
DLR Pyro:
I watched this video last night. It gives an interesting explanation as to what happened with the Gamestop stock rush last month https://www.youtube.com/watch?v=YFQ-v1jCpF0
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