Listening to “experts” on T.V. they are basically using the same argument they made to make online poker illegal. The poor idiots are going to lose money because they are stupid.
Of course what they really mean is lose money to the wrong people.
WSB came up with a way better gambling analogy of what happened than all of us 
Imagine you are a gambler enjoying a night at the casino. You decide to play Blackjack. Your hand is a ten and the dealer shows a 7.
“I would like to hit.”
“No sir. You are only allowed to stand or surrender.”
“That’s not the rules of the game. Aren’t you regulated?”
“Due to the votality your hand represents to the Casino, sir, you are only allowed to stand or surrender. These are extraordinary times.”
“…are you only allowed to stand or surrender?”
“No sir. In fact, we may double down.”
“Wait. What? You are the dealer, you can’t put more money in that I didn’t put in. That money doesn’t even exist on the table!”
“Sir, you have a gambling problem. We might have to report the commission on you for attempting to hit with your hand because your friend told you that you should.”
“Wait, are you trying to make me fold?”
“Sir, we reported you to the newspaper for being a degenerate.”
“You guys are crazy!”
“Sir, we have decided that in order to protect your interests, you have decided to surrender.”
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I would watch a whole movie of Jonah Hill’s character in Wolf of Wall St.
Wolf of Wall St. universe >>>>>>>>>>>> MCU
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I mean, their theory about the end result here isn’t wrong, it’s their theory about the way to fix the problem that is lol.
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Yeah somehow I made myself think they had already managed to switch & transfer their $ by yesterday, which was foolish. When the full army is finally back in the game (mon? tues?), I can easily see GME rising again.
At the same time, GME is the path of greatest resistance. Not only does the high price inherently make it harder to drive the price up, but people know they’re not gonna 10-20x their money buying GME at this price. A 50% gain is more realistic, which a lot of these people would consider weak and not worth the bother. I think that’s why AMC is getting as much talk now as GME. People can afford AMC shares and, given the current environment, aren’t crazy for expecting to 5-10x their money by buying now.
So the 
case, aside from lolfundamentals boomerbabble, is that it’s possible too many people will move on to the cheaper stonks like amc. As others have pointed out, most people are in this solely for the $ and couldn’t give two shits about inflicting pain on the hedgies.
TLDR: just one 
for GME.
Thus concludes my high-level DD
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The whole aspect of trading restrictions from Robinhood have probably has a sort of Streisand effect where it both drew much more attention to the short squeeze and tightened the resolve of many of the retail investors. The fact that price didn’t really crash and stay down leads me to think the retail investors are going nowhere.
The only thing that I think really will stop this is seeing some surrender by the shorts. If short % of float drops to like 80-90%, this is when people will realize that the squeeze is unwinding and they might be left holding the bag.
I expect it to be around $500 within a hour of open on Monday. Anyway I am watching form the sidelines, have enough brains or not enough stones to actually jump in for the ride, but anyway I have gotten so much entertainment value from this drama I feel like a winner anyway.
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I was just telling my GF this is my favorite story in a long time.
What?
Well this argument seems to have a lot of traction already. For example on some platforms you have to go through a fairly annoying process just to be able to trade options
.
If you want to trade options without knowing what you’re doing and you get hurt, then that’s on you. I’ve got no sympathy and no expectation that the broker should have tried to protect you from your own idiocy.
I mean the bear case is that the stock is actually worth like $1 (or whatever the fuck it was when this insanity started) and someone is going to be holding it when it goes back down.
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Fun fact: Jonah Hill in WOWS has the record for most swears in a film
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Newb question about Robinhood
I understand why Robinhood needed to draw down on credit and raise a bunch of cash, and I understand why the meme stonks create more clearinghouse obligation for them, but what was stopping them from totally halting trading of the meme stonks until they were more prepared instead of continuing to allow sells?
I suspect you already know the answer to your question. Search your heart…
I feel the same way as you, and you probably already know this, but it’s been like that for several (many?) years on most platforms. I think the brokers have to do that to protect themselves for being held liable for letting morons harm themselves. I believe the criticism with RH is that the process to demonstrate competency is really just set up to comply in the shallowest way possible.
Yeah, I mean my initial reaction to RH pausing buys was that it is the most nakedly corrupt bullshit I’ve ever seen.
Some finance bros have talked me down from that position a tiny bit, but I’m still very skeptical. I’m curious if anyone who understands this shit better than I do can definitively say that RH was simply trying to meet regulatory obligations and nothing more.
I have never gotten all the way through Wolf of Wall Street, just too disturbing. I know it is the point, but knowing there are millions of the absolute worst people ever who view it aspirationally is too upsetting.
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Stopping people from selling would be criminal. Imagine having your net worth tied up in GME and not being able to sell??
Not letting people buy just stops them from putting more money in, not letting people sell forces them to keep betting on the future of the stock…
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I imagine the vast majority of meme stonk investors would have preferred to halt trading for a day instead of continuing to allow sells and watching prices plummet.
Also, why didn’t RH take any action to raise money before getting to this point? Seemed fairly predictable, no?
Do we buy for a minute that the broader market losses are due to memestonks?
Because I don’t buy that for a second.
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