I suspect it’s illegal if like, one person does it and directs others to do it. I suspect it’s not illegal if everyone just does it collectively.
Lol, fair enough. I mean, isn’t the solution to all this to get rid of naked shorting? Wasn’t that a proposal at one point?
I can’t even think of a way for these hedge funds to get bailed out but I’m sure they’ll try.
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enough of them fail to cause a financial crisis would
WSB is pushing AMC
i think basically the gist is, if you are doing it like this in public, in a collective, then you are generally ok…
but im sure this will be changed very quickly once these hedge funds weather this and then start squeezing their bought and paid for politicians.
They weren’t before, it’s not in WSB’s posts for the most part that I can tell.
One person did it and directed others to do it. That’s pretty much exactly how this got started.
I don’t know enough to know. All I do know is that I’ve read articles that the kind of predatory shorting going on in some of these instances is enough to have real world consequences on a company’s finances and can put jobs and the viability of the company in danger. Kind of like the whole vulture capitalist corporate raider stuff that scumbags got rich on in the past at the expense of jobs and communities.
For context
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GME $320 calls expiring 3/19 are selling for $170.
Can I really just click “sell 100” and get $1.7m credited to my account? And only lose if GME is trading over $490 on 3/19? Something seems fishy here.
I think its more a question of mechanism. In 2008 the Treasury bought distressed assets from banks because no one else would take them. What would they buy from the hedge funds? The short positions are being closed out at a loss. They don’t have a liquidity problem with their assets, their assets are gone.
What happens if GME trades to $700?
Chiefsplanet is mostly staying away. Still some suckers left out there.
You would need to own/buy 10,000 shares of GME to be able to cover it.
Lol, this. It’s not as though a collective hivemind formed with the thought “Let’s push Gamestop to the moon” at the same instant.
Dont think this is going to set off a financial crisis, but sort of depends who the hedge funds are borrowing from to get leverage and how much exposure those lenders have collectively. System isnt as stupidly leveraged as places were in 2007 but it is still leveraged, and failures in leveraged systems can be cascading and unpredictable
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Chamath is owning on CNBC right now lmao. I tuned in late but hopefully full video up on YouTube soon. Dunking on hedge funds / institutions