Wallstreet: The Short Squeeze of Gamestop, AMC, and other Stocks [2021]

manux said:
Think of it as a giant auction with multiple brokers.
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Multiple brokers of varying ability to get a good price for you, especially since nowadays to brokers you are more the commodity they are selling than the customer.

Unless they let you trade with direct market access for a commission ... then the ability to get a good price is only on you. Dunno how easy that is any more though, after Navinder Sarao played the players I assume it's much harder.
 
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Gubbi said:
Funny how the media spins the Redditors buying as market manipulation, but the extensive shorting pushing GME's market cap below half its liquidation value is not ?

Melvin and Citron really b0rked themselves over with this.

Cheers
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I think the thing that is really crazy is how the media is spinning that reddit is pushing silver. It's not, it's completely manufactured. There's no talk of silver squeeze anywhere on reddit. Most of this is coming from mainstream media, and it's suddenly everywhere to buy silver.
 
Yup, it's Melvin and Hedgies trying to steal the movement to get folks to buy what they're long on, such as Silver.
 
WSB @ Reddit said:
TLDR: 5,074,937 shares (around 10% of the free float) were failed to deliver during the first half of January. This is not a tiny amount for which can be classed as an "error" with clearing, but rather signifying the fact that our thesis that they were naked short-selling was correct. This is a crime. The proof is there, literally, in the data. Since the figures change on each day, and they don't distinguish between new fails and other fails I have just assumed that they're new fails. The real number may be less as a result, but don't be mistaken that the naked shorts go into the millions to say the least.
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Edit 1: I added up the aggregate balance on each day reported. The reason I have added them all up is because such large numbers cannot be due to clearing errors. I am an autist so I might be wrong, but I read that it was measured as an aggregate balance. I think the data makes sense because we know there was 140% short interest, so there must have been huge amounts of naked shorts and thus failures to deliver. Lots of people set limit orders and asked their brokers not to lend their shares which must have contributed to this. Someone please tell me if I'm wrong.
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https://www.reddit.com/r/wallstreetbets/comments/lac6gk
 
I would not be surprised in the least if its found out in the future that it was some 'wall street guys' who was actually behind all this to start with, and a lot of the redditors instigating it were set up a long time ago exactly to play out this trick
The trick being
transfer money from the small fish (and some hedge funds) -> the large fish

Smart people have seen with cryptocurrencies and the rise of populist leaders ala trump, how easily the general public can be manipulated
 
I listened to this podcast today
https://www.npr.org/2021/01/25/960454567/cant-stop-gamestop
with one of the 'small guys' from wallstreetbets. he brought $300,000 of gamestop shares (so obviously very poor) he cashed out for just under $4,000,000. Though he had to pay like $2 million tax. I didnt realize ppl pay so much tax in the USA for share gains, in NZ its a lot less I think its a 5% tax rate on your capital gains
 
Part of that is because of Short Term Gains versus Long Term Gains.
 
zed said:
I listened to this podcast today
https://www.npr.org/2021/01/25/960454567/cant-stop-gamestop
with one of the 'small guys' from wallstreetbets. he brought $300,000 of gamestop shares (so obviously very poor) he cashed out for just under $4,000,000. Though he had to pay like $2 million tax. I didnt realize ppl pay so much tax in the USA for share gains, in NZ its a lot less I think its a 5% tax rate on your capital gains
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Short term gains are taxed as regular income.
 
zed said:
I listened to this podcast today
https://www.npr.org/2021/01/25/960454567/cant-stop-gamestop
with one of the 'small guys' from wallstreetbets. he brought $300,000 of gamestop shares (so obviously very poor) he cashed out for just under $4,000,000. Though he had to pay like $2 million tax. I didnt realize ppl pay so much tax in the USA for share gains, in NZ its a lot less I think its a 5% tax rate on your capital gains
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Oops.

Capital gains can be hit with both a federal and state tax. So if the bet is made in Cali, expect a tax hit of ~50% on gains (if you make enough to be in the top income tier) of short term investments.
 
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This is why you need tax cuts for the rich.

If people can't make a quick and honest mint by scamming scammers, how will society survive??!
 
nutball said:
This is why you need tax cuts for the rich.

If people can't make a quick and honest mint by scamming scammers, how will society survive??!
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It's not only the super rich who have it pretty good in usa.

The system is pretty great for people who don't make that much money in USA. For example if you have no other income and made 50k profit in long term stocks you pay less than 1000$ taxes. This makes something like downshifting/fire quite feasible once you have enough investment on the side. Somewhere else like in finland one would pay 15k taxes on similar profit. The healthcare insurances etc. of course cost money but that's another discussion alltogether. For a single person in USA that 15k difference in taxes between usa vs. finland for example goes a long way. And that's before considering food, cars, gasoline etc. is cheaper in usa.

Live in misery of silicon valley a while and downshifting options are great in usa. Misery in sense, that one would have to minimize expenses to save significant money. That means really poor living conditions, old car, way too much work etc.
 
nutball said:
This is why you need tax cuts for the rich.

If people can't make a quick and honest mint by scamming scammers, how will society survive??!
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LOL. I'm not rich but the idea that the US gov't holds out its hand to take 50% of the profit of any endeavor seems difficult to swallow. Nevermind, that's a superficial assumption on my non-wealthy part that anybody of real wealth pays those levels of taxes. There is enough loopholes to keep people out of the street with RLM (rich lives matter) signs or large group hedge fund managers from barging into the capital trying to overturn an election.
 
zed said:
https://www.nytimes.com/interactive/2019/10/06/opinion/income-tax-rate-wealthy.html
TLDR = the richest people in the USA pay the least perctage tax

MAGA, make america great again, return to the 1950s tax rates.
Seems like back then 3/4 of ppl paid 20% or less tax

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No need to worry about trump anymore. House and senate have democratic party majority. President is democrat also. They can change things more easily than trump did things during his term. It's the nature of 2 party systems. Things tend to flip/flop as the powers to be change.
 
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manux said:
No need to worry about trump anymore. House and senate have democratic party majority. President is democrat also. They can change things more easily than trump did things during his term. It's the nature of 2 party systems. Things tend to flip/flop as the powers to be change.
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Iirc the Republicans controlled both house for the first 2 years of his term, same with Obama iirc
 
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