Melvin's Wonky Shorts

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Marina
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Melvin's Wonky Shorts

#1 Post by Marina » 2 months ago

I don't fully understand this but something has happened with a hedgefund which tried to do shorts.

This is how it's getting explained
Wall Street traders are currently raging, as online "degenerates" successfully execute a massive short squeeze of GameStop, forcing hedgefunds to be bailed out for billions of dollars
Melvin took out a loan to short GME

It went up and now he has to pay up.

He liquidates his assets but it isn't enough.

Declares bankrupcy.

The bank he got the loan from is on the hook for his bad decisions. If they can't pay it back, because autists keep driving the price up, they go bankrupt.

Then the bigger banks are on the hook - and so on and so forth all they way up to the fed.

The federal government of the United States may literally have to print money to buy gamestop stock back from a bunch of nerds.
https://www.theguardian.com/business/20 ... all-street
Marina

Bobcat
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Re: Melvin's Wonky Shorts

#2 Post by Bobcat » 2 months ago

Interesting piece Marina. At the end of the article they said:
Safran has in the past warned that Robinhood, the vehicle many long-investors are using to make trades in GameStop, is behind investment strategies that financial planners generally warn against.

“It’s ironic to me and other professional advisers that over decades we have moved away from an individual stock-picking philosophy to broad stock diversification, and this is the exact opposite,” Safran says. “Investing is not just buying one stock.”

Safran says the strategy of driving up a stock in the hope of forcing a short-squeeze and riding an a individual stock are hallmarks of a conflict between the new, individual investment strategy and the old guard that recognized financial success requires diversification.

“Someone’s got to be wrong, but that’s what makes a market,” Safran says. “I think it will be an education for some and a good story for everyone else.”

It is a case of 'putting all your eggs in one basket' (GameStop) and trying to leverage the weight of that one big basket.

I personally think that all this will end up being just a side note in a much bigger black swan event (the pandemic). This GameStop manoeuvring might be the financial comparison to a scramble for food or other physical commodities that one might see as access to those commodities threatens to dry up. (Compare with this post from 5 years ago.)

Too bad that so many people's pensions, social security, etc, are all tied up in the games these financiers play.


Bobcat

Bobcat
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Re: Melvin's Wonky Shorts

#3 Post by Bobcat » 2 months ago

Here is a video someone posted on another forum:





The thread where this was posted had a number of posters pointing out the underhanded nature of stock trading and manipulation.

I know some JWs that have gotten beaten up (financially) in various markets. It is a trap for many. Like trying to swim in a tank with sharks. The sharks know what they are doing. They live and breathe for this kind of stuff.


Bobcat

Marina
Posts: 2139
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Re: Melvin's Wonky Shorts

#4 Post by Marina » 2 months ago

Thanks Bobcat

I've just seen this quote - I don't understand this stuff very well like I said, but I think this man does.
To be clear, the problem isn't so much that THEY HALTED TRADING.
It's that these brokers HALTED BUYING ONLY FOR RETAIL INVESTORS!

You can still SELL and drive down the price for the hedge funds of these short sell stocks if you want. Sure that's "volatility", just "volatility that favors big money"!!

THEN, to really drive home just how corrupt America has become... The Biden admin REQUIRED brokers allow "people" (ie the hedge funds) to be able to buy stock if it is to close out short positions!!!
He also said this
DON'T SELL. Institutions manipulate the after-hours and dark pools, where most small traders don't have any windows.
Work together and you'll expose the real market power.

Blackrock and Vanguard, with the ETFs in everyone's 401K. They are the biggest stock holders of half the stocks in the market. The market drifts up mostly because of those bi-weekly 401K ETF buys.
Marina

Bobcat
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Re: Melvin's Wonky Shorts

#5 Post by Bobcat » 2 months ago

Hi Marina,

Here is Peter Schiff's take on all this. The video is 55+ minutes long, but from 2:30 to about 14:00 is his description of what's going on (with GameStop etc) and the effect on the little investor. There is also a lot of trading terms he uses, but he intersperses it with plain language also. Peter Schiff manages EuroPac Capital Inc. (About him here.)





Bobcat

Bobcat
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Re: Melvin's Wonky Shorts

#6 Post by Bobcat » 2 months ago

And another interesting 15 minute video on this topic:





Bobcat

Bobcat
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Re: Melvin's Wonky Shorts

#7 Post by Bobcat » 2 months ago

And yet another 10 minute video that is related to all this, but of a more basic nature:





The problem that many of these type of videos share is that they don't realize that history is being controlled by God and Christ. Meaning that the overall flow of history is controlled by them. (Ac 17:26; Rev 17:9, 10) Jehovah and Jesus have an agenda for the earth and mankind.


Bobcat

Marina
Posts: 2139
Joined: 5 years ago

Re: Melvin's Wonky Shorts

#8 Post by Marina » 2 months ago

Thanks Bobcat - starting to hear rumors options trading system has vulnerabilities the GameStop lot know how to use.
Makes me wonder about every island and mountain... Revelation 6:14. Who knows, it is a fast changing scene out there.

Marina

Marina
Posts: 2139
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Re: Melvin's Wonky Shorts

#9 Post by Marina » 2 months ago

Ah so this is what really happened!

It was Roaring Kitty.

https://www.zerohedge.com/markets/reddi ... stop-stock

YouTube username Roaring Kitty.
Marina

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