However since RH and Melvin and other others tried to manipulate the markets to mitigate their losses this is now class warfare. Shit won't end anytime soon.
Had they taken their licks like that asshole that did this exact same thing to Herbalife (and had the exact same thing happen, albeit at the hands of a different billionaire) this would have blown over, they could have quietly changed the rules later. But now we know and we can never not know. And we want them to burn for their betrayal of everything we thought the market stood for
This happened for one reason only. Because the hedge funds were greedy as fuck. You don't short a $4 stock of a company flirting with bankruptcy. The max upside is $3.99 per share on that short. Only a complete moron would short a low volume stock like that.
They never thought anyone would squeeze them because they are arrogant. They've learned they are not invincible. I doubt you'll see many funds shorting so recklessly again for a few years.
It's always been class warfare. Long ago I remember reading Reminiscences of a Stock Operator, it's a fictional book but based on the life of Jesse Livermore. The things that happened in the 1920s still happen today, they have just evolved.
You are correct, the big deal out of all this is how regular people were stopped from buying by the hedge funds and the fat cats.
You are also right, the WSBs trade was because the shorts on GME were excessive, it was a great target to try to cause a short squeeze and WSB had the combined capital to do that, whereas it is normally only funds that do.
There are a few outcomes I can think of. Normies can just pull out all their shit, after seeing this rigged shellgame play out. Or should this be allowed to slide somehow, these individual investors will only become increasingly militant on their trading strategies, freezing the market, strangling it slowly. Girdling it. All those eyes now watching will watch their every move to counter all these large portfolio managers. With a stalemate in the market, every move becomes and slow growing. Gains grind to a halt. Investors will actually have to use the market the way it was actually intended and actually promote good investments, but now they will actually have to compete with the awoken normies. Prettt much making these fund managers useless. Your average redditor will be able to grow your money just as effectively as these firms at much more reasonable rates.
Had they taken their licks like that asshole that did this exact same thing to Herbalife (and had the exact same thing happen, albeit at the hands of a different billionaire) this would have blown over, they could have quietly changed the rules later. But now we know and we can never not know. And we want them to burn for their betrayal of everything we thought the market stood for
This happened for one reason only. Because the hedge funds were greedy as fuck. You don't short a $4 stock of a company flirting with bankruptcy. The max upside is $3.99 per share on that short. Only a complete moron would short a low volume stock like that.
They never thought anyone would squeeze them because they are arrogant. They've learned they are not invincible. I doubt you'll see many funds shorting so recklessly again for a few years.
It's always been class warfare. Long ago I remember reading Reminiscences of a Stock Operator, it's a fictional book but based on the life of Jesse Livermore. The things that happened in the 1920s still happen today, they have just evolved.
You are correct, the big deal out of all this is how regular people were stopped from buying by the hedge funds and the fat cats.
You are also right, the WSBs trade was because the shorts on GME were excessive, it was a great target to try to cause a short squeeze and WSB had the combined capital to do that, whereas it is normally only funds that do.
There are a few outcomes I can think of. Normies can just pull out all their shit, after seeing this rigged shellgame play out. Or should this be allowed to slide somehow, these individual investors will only become increasingly militant on their trading strategies, freezing the market, strangling it slowly. Girdling it. All those eyes now watching will watch their every move to counter all these large portfolio managers. With a stalemate in the market, every move becomes and slow growing. Gains grind to a halt. Investors will actually have to use the market the way it was actually intended and actually promote good investments, but now they will actually have to compete with the awoken normies. Prettt much making these fund managers useless. Your average redditor will be able to grow your money just as effectively as these firms at much more reasonable rates.