once people get stuck holding GME they bought at 175 when the stock is back at 10 the momentum to swing from stock to stock will vanish
The last time there was this sort of crazy was not long after the first stimulus which seems like not a coincidence
The answer to how this ends is the stock will return back down to a reasonable valuation eventually. The institutional money will take their profits, the company will issue more shares of stock (why pay interest on debt when you can access capital at this valuation?) and more funds will line up to bet against it because the price is not justified in any way. How long that takes, who is left holding the bag, etc is anyone's guess. The market can stay wrong longer than those that are right can stay solvent often times.
I said in the OP that they were going bankrupt regardless. A ton of legitimate, very well respected commentators agree that the naked shorts against Lehman were either borderline fraudulent or just outright fraud by a handful of hedge funds who were involved. An ex SEC chairman flat out said what was going on was fraud. A day or two after Lehman went bankrupt the SEC initiated new rules against naked shorts. So we can agree to disagree but regulators don’t do that if there isn’t a fundamental issue with the instrument in manipulating the price of a stock when hedge funds pile in.
Before this I used Stash. Super easy. I would have $20 deposited each week and just put it into things I knew.
I literally opened a Robinhood account this morning and did it that way. I had a few bucks to play with so even if I lose it I’d chalk it up to entertainment value.
Which was a disaster for everyone but prop traders. It threw the options market out of wack and didn't do anything to prevent Merrill, Wachovia, etc from their ultimate fate. Dick Fuld being a stubborn asshole is why Lehman didn't survive.
This is starting to feel like the retail investors are being as reckless as the hedge funds, and it will ultimately backfire spectacularly. I’ve now done an hour of research and am basically a hedge fund manager, ama.
My deposit from this morning finally hit. Gainz down to only 65% but it hit during a dip so I'm grateful for that.
Now that Trump has been axed from social media and I guess has gone into hiding, it's hilarious to see a lot of that frantic Twitter scrolling energy is now on this story. A very entertaining start to 2021.
I think lost in the chaos yesterday is that it wasn’t just retail traders having fun yesterday. A couple of whales and people like Elon (he has a vendetta with some of the shorts who went after TSLA) got involved when they either saw the squeeze too or made it personal. not sure that’s going to replicate itself with these other meme Stonks
Dumped everything that wasn't GME for a small profit. Think those were just boosted on speculation and WSB is too invested in pushing Gamestop to effect those others in the same way.