Seems that the gambling on Wall Street is only OK if the gamblers work there? Is it good that the vice grip Hedge Funds have over companies -many of whom are really asset strippers- is being rocked? https://www.bbc.co.uk/news/business-55837519
I was reading about this earlier today and was going to make a thread but you beat me to it. It’s a wonderful piece of one-in-the-eye-for-the-rich-guy mischief making, though there’s a very serious side to it.
And the PTB will act, Reddit will block the account and threats and attempts to intimidate will be made by shadowy figures within the US government. The little man making money ? How very un american. Andy
I agree, already the screws are on or the Hedge Fund Fixers have stepped in. But is the Genie out of the bottle...? And what will it mean for Pension Funds?
Hopefully, short selling is too high a risk for pension fund investment, that area is very heavily legislated. Andy
It’s started, just read investment platforms are restricting the sale of Gamestop shares and the price has plummeted. Hopefully it’s too late for the short sellers. Andy
It’s already happened. The Robinhood app has banned them and blocked trading in the shares. As soon as billionaires starting losing a mere few millions the free market ain’t so free anymore https://www.theguardian.com/busines...robinhood-app-ban-blackberry-amc-nokia-reddit and “snap!”
This is what can happen when you put Robinhood share trade apps next to Candycrush in Google play. "BlackRock, the world’s largest asset manager, owned 9.2m shares in GameStop at the end of December, according to a regulatory filing. If it still holds all those shares, they were worth more than $3bn on Wednesday." https://www.theguardian.com/busines...t-shareholders-earn-over-2bn-amid-stock-surge "GameStop short-seller down 30% this year gets $2.8 billion bailout from the firms of billionaire investors Steve Cohen and Ken Griffin" https://markets.businessinsider.com...llion-gamestop-short-seller-2021-1-1030003305
Somewhere, someone else is about to launch a new Robinhood app. Using Bitcoins. Then there won't be any stopping of any trades. I don't know what I think of that.
My youngest son just bought a Gamestop share this afternoon, think he said he paid just over $200 for it, just too see where it goes tomorrow when they have to be bought back by the hedge fund? Will be interesting to see where this all ends up.
It will be very interesting. More than half of all Robinhood users own at least some GameStop stock. They are now unable to freely trade it; the app is only allowing users to close out their positions. "Robinhood users file a class action lawsuit against the company after it restricted transactions for various securities. After shares of AMC Entertainment and video game retailer GameStop rose to extreme levels on Wednesday, the trading company Robinhood placed restrictions on AMC and GameStop securities as well as other heavily-shorted stocks. Since then, AMC and GameStop shares have fallen by 50%. Other trading platforms like TD Ameritrade and Charles Schwab also blocked transactions for the same securities. The securities have seen heavy trading activity from users of Reddit's r/WallStreetBets this week. On Thursday, Robinhood users filed a class action lawsuit against the company’s decision to restrict the transactions of individual investors, while allowing hedge funds to trade the stocks freely."
He used Hargreaves Lansdowne here in the UK to buy it, not sure what will happen to the price tomorrow or if there will be any issues selling it. This whole issue may have big ramifications of the stock market going forward.
https://newsthump.com/2021/01/29/bi...ket-will-now-have-a-million-dollar-entry-fee/ “To prevent something like this happening again we formed Corporations Unhappy with Novice Traders – we’re pleased with the name as our market research indicates the acronym is already strongly associated with people like myself. “Speaking of acronyms, the ‘free’ in free-market actually stands for ‘Fat-cats Robbing Everyone Else’.
