What started out as a few brokerage house thinking they could force Gamestop in bankruptcy for an easy killing are in for a rude awaking.
-
This is bigger than a Robinhood group. The dollar amounts is beyond them.
-
This will kill the brokerage houses that shorted them and the banks that back them.
-
The brokerage houses and banks now have to sell/short into the buyers trying to save themselves. It is not working and just making their losses worse.
-
Whoever is the backing this has a plan to destroy some big players and it's working.
-
Once this is done, there will be another and another.
-
Enjoy the show.
This is exactly how the market is supposed to work. it's all a gamble, some high risk. You can have high gains, but also big losses.
And because of this and people learning how to use the system, the banks will learn.
The free market is a wonderful thing when it is free. It is almost always self-correcting with very few exception (Amazon is too big now and making their competitors rely on them, then crushing them....).
Amazon isn't too big. IBM used to be too big. Bell System used to be too big.
Just wait, they will start stacking up their losses and in a few years or maybe decades we'll look back and think about how crazy Amazon used to be.
That said, it doesn't help that these big companies are now being bailed out by our tax dollars. The system is supposed to self correct by letting the losers lose and giving their assets to other players in the market.
You're not thinking about Amazon in the right way. Amazon is not a web shop, it's a logistics company that has a web shop. Amazon can move an item from point A to point B cheaper than anyone else, making competition virtually impossible.
The thing is Amazon can't actually move things cheaper than other companies, they just have fuck you money for this power play. But it's only a matter of time until it catches up with them. They have a bit of an advantage as far as having both the warehouses and means to move product working together, but ultimately they are still forced to pay the same costs for transport. Infact prices on Amazon with "free" shipping are starting to get higher for quite a few things vs just buying directly from the manufacturer including shipping.