DR

GameStop exposes the rigged system

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(edited)

The story starts with an online trading system "supposedly" for the little guy. It was called RobinHood. When you dig a little deeper you see that this startup was financed by a Hedge Fund called Citadel. 

Citadel frequently shorts stocks, bets that they go down.  The process is you borrow the stock from a broker dealer at say $20 and sell it.  The stock goes down and you buy it back for say $10 and pocket the $10.  The broker dealer makes interest on the loan and commission on sale and purchase of the shares. 

However, the Reddit crew together started buying the stock . They ran the stock up from $20 to $400 in a couple of months.  Hedge Fund Citadel has to buy the stock to settle their account with the Broker dealer at the current price that was up to $400.  That would be a loss of $380 a share.  

So the Robinhood online trading system (financed by Citadel) closed off any buying of GameStop.  THAT'S ILLEGAL.  The price dropped and Citadel was able to cover their short at half the price.

WALLSTREET (Investment Banks, Hedgefunds, Private Equity) OWNS THE BIDEN ADMINISTRATION.  

Wallstreet used the "Carried Interest" loophole to avoid paying no personal income taxes.  Senator Warren (D-MA) is submitting a bill to correct.  I agree with her on this one.

Previous post below that explains the WALLSTREET'S sacred tax loophole.  This is how they become millionaires and billionaires.  

This article stating that repealing the "Carried Interest" tax loophole will cost 24 million jobs is such a bunch of bull.  

Then it goes on to argue " What makes the war on private equity so dangerous at this point is that it is expected to play a crucial role in the economic recovery from the coronavirus pandemic, according to experts."

What a bunch of hooey.  

Hedge Funds just pay your fair share of income taxes.  Is that too much to ask. 

What Senator Warren doesn't understand is that Wallstreet and Hedge Funds have paid for protection by contributing over $100 million to Biden's campaign.

Schumer used "Carried Interest" against Mitt Romney when he ran for President.  Then when Schumer ran for reelection he was the largest recipient of Hedge Funds campaign contributions and quickly backed down. 

Hillary was a huge recipient of Hedge Fund contributions to her campaigns and the Clinton Foundation.  Barry Diller's Interactive Corp put Chelsea on the board while she was still in college , worth $10 million in shares.  Avenue Capital Hedge Fund gave Literature major Chelsea a job worth millions.  Black Rock's Larry Fink put Hillary's lawyer and Clinton Foundation lawyer on their Board of Directors to please her. 

Goldman Sachs held a dinner at the Waldorf honoring Hillary a few weeks before she announced running for President. 

Liz Warren doesn't understand that Wallstreet had to approve Biden's VP pick.  Liz never had a chance. 

I'm rooting for Liz on this one. 

But the truth is it will all be for naught.  The Democrat Elites will find a way to kill it.  Just like Obama did when House Rep Levin introduced a bill when the Democrats last had the White House, Senate and House of Reps in 2009.  Hedge Funds rewarded Obama by contributing in 2012 and filled the coffers of his Obama Foundation which he started before he even left office.

 

Elizabeth Warren's War on Private Equity Could Cost 24 Million Jobs


 

Progressives won't back down from their efforts to raise taxes and create stricter oversight on private equity firms now that Democrats control Congress — moves that financial experts say could cripple the industry that employs millions of Americans and invests trillions into businesses. Massachusetts Sen. Elizabeth Warren is leading liberals' charge against private equity, which could lead to the loss of up to 24.3 million jobs.

What makes the war on private equity so dangerous at this point is that it is expected to play a crucial role in the economic recovery from the coronavirus pandemic, according to experts.

 

 

 

Edited by Roch
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The story always talks about the little guys ganging up ... but never mentions GME had 136% of shorts or something . So the shorters "started it" as the kids would say. I've had companies all of a sudden get huge shorts my multiples banks put on them (painted pony petroleum) . Went from 3$ to 19c then when gas picked up enough small bids got it to 89c in 2 months before getting pushed back down  to 45c and sold to cnx for 69c. Or 550mill all in (when land alone was worth 1.1B$. Long story short the big guys play dirty this is the equal and opposite reaction. 

That said I do t know what laws or bill will be helping this or not . I just use companies with active share buy backs to cancel shorts .

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(edited)

13 hours ago, Rob Kramer said:

The story always talks about the little guys ganging up ... but never mentions GME had 136% of shorts or something . So the shorters "started it" as the kids would say. I've had companies all of a sudden get huge shorts my multiples banks put on them (painted pony petroleum) . Went from 3$ to 19c then when gas picked up enough small bids got it to 89c in 2 months before getting pushed back down  to 45c and sold to cnx for 69c. Or 550mill all in (when land alone was worth 1.1B$. Long story short the big guys play dirty this is the equal and opposite reaction. 

That said I do t know what laws or bill will be helping this or not . I just use companies with active share buy backs to cancel shorts .

The Reddit crew is now going after those shorting the distressed oil stocks.

https://www.bloomberg.com/news/articles/2021-01-28/tiny-driller-skyrockets-959-after-reddit-craze-spreads-to-oil

Edited by Roch
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2 hours ago, Rob Kramer said:

The story always talks about the little guys ganging up ... but never mentions GME had 136% of shorts or something . So the shorters "started it" as the kids would say. I've had companies all of a sudden get huge shorts my multiples banks put on them (painted pony petroleum) . Went from 3$ to 19c then when gas picked up enough small bids got it to 89c in 2 months before getting pushed back down  to 45c and sold to cnx for 69c. Or 550mill all in (when land alone was worth 1.1B$. Long story short the big guys play dirty this is the equal and opposite reaction. 

That said I do t know what laws or bill will be helping this or not . I just use companies with active share buy backs to cancel shorts .

If we have another meltdown in the stock market (dotcom or 2008 style) they'll conveniently be able to blame the little guys, the MSM are talking about this a lot.

That last announcement of another two trillion 'stimulus' did little to push the markets higher which must be the first time in the last year or so. My feeling is people know the markets are way over priced and getting very cold feet even with the incentive of low interest loans.

 

 

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Won't somebody think of the hedge funds?

 

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4 hours ago, Rob Kramer said:

The story always talks about the little guys ganging up ... but never mentions GME had 136% of shorts or something . So the shorters "started it" as the kids would say. I've had companies all of a sudden get huge shorts my multiples banks put on them (painted pony petroleum) . Went from 3$ to 19c then when gas picked up enough small bids got it to 89c in 2 months before getting pushed back down  to 45c and sold to cnx for 69c. Or 550mill all in (when land alone was worth 1.1B$. Long story short the big guys play dirty this is the equal and opposite reaction. 

That said I do t know what laws or bill will be helping this or not . I just use companies with active share buy backs to cancel shorts .

OK, so if big hedge funds ruthlessly attack companies to make profits why is that even legal. I understand there is a lawsuit because Robinhood is owned by Citadel, a major hedge fund, and it was warned what was happening. What will happen from here?

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(edited)

20 hours ago, ronwagn said:

OK, so if big hedge funds ruthlessly attack companies to make profits why is that even legal. I understand there is a lawsuit because Robinhood is owned by Citadel, a major hedge fund, and it was warned what was happening. What will happen from here?

Isn't short selling illegal in some countries? I think it probably is but is that good or bad...I don't know.

In a way I understand that the US system is so much more brutal but they don't get through their recessions etc much faster than other countries. I'm not sure what the best system is.

I still think we're going to see a huge implosion in the US stocks, 20-30% maybe, the volatility is off the charts. And potentially quite soon but predicting anything at the moment especially after 2020 is getting very much harder.

Maybe Fed action can delay things even longer than most people thought possible.

Edit! I meant - I understand that the US system is more brutal but they do seem to get through their recessions much faster than other countries. I'm not sure what the best system is.

Edited by El Nikko
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4 minutes ago, ronwagn said:

OK, so if big hedge funds ruthlessly attack companies to make profits why is that even legal. I understand there is a lawsuit because Robinhood is owned by Citadel, a major hedge fund, and it was warned what was happening. What will happen from here?

The very same game was played with Ford in 2003/2007..Ford survived that, This gaming Co will end soon. It does expose how a few work the market in ways most citizens never had a clue. 

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1 hour ago, El Nikko said:

977136676_photo_2021-01-29_17-13-33(2).thumb.jpg.8ff09e79ec8fe99714974359c3dcf554.jpg

So she is on board with the rest of the crony gang now?!

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6 minutes ago, Eyes Wide Open said:

The very same game was played with Ford in 2003/2007..Ford survived that, This gaming Co will end soon. It does expose how a few work the market in ways most citizens never had a clue. 

Well after 2007-2009 if people don't have a clue then I don't even know what to say.

Surely it's not an extreme position to think that the GFC never really ended and central banks started something that had never happened in modern history?

 

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6 minutes ago, ronwagn said:

So she is on board with the rest of the crony gang now?!

They probably just do what they are told...why bite the hand that feeds you

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5 minutes ago, El Nikko said:

Well after 2007-2009 if people don't have a clue then I don't even know what to say.

Surely it's not an extreme position to think that the GFC never really ended and central banks started something that had never happened in modern history?

 

What is or was the GFC? 

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(edited)

11 minutes ago, El Nikko said:

Well after 2007-2009 if people don't have a clue then I don't even know what to say.

Surely it's not an extreme position to think that the GFC never really ended and central banks started something that had never happened in modern history?

 

Shorting has a long history up until the mass consolidation of money blocks it was never a big issue, it is now out of control.

https://www.reuters.com/article/us-sec-shortselling-history/factbox-milestones-in-short-selling-history-idUSN1641520620080716

https://finance.yahoo.com/news/tesla-9-other-stocks-burned-171344785.html

The below failure turned into a real storm between Musk and wall street.

Tesla The Biggest Short Killer: Dusaniwsky said electric vehicle manufacturer Tesla Inc (NASDAQ: TSLA) was by far the worst short in the market in 2020.

Tesla short sellers lost more than $40.1 billion 2020, nearly six times the losses they endured betting against any other stock in the market.

Edited by Eyes Wide Open
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1 minute ago, ronwagn said:

What is or was the GFC? 

Sorry the Great Financial Crisis...which might have turned out to be a kitten...compared to what we might be about to see.

I would love to hear what @Jan van Eck thinks about this situation. Last year he thought we would see a deflationary spiral but it's complicated because we could be having inflation in some goods and deflation in other assets...or is that stagflation?

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3 minutes ago, Eyes Wide Open said:

 

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I like that guy because he just presents scenarios rather than the usual types who are trying to sell something or pump a market. 

 

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During the Carter stagflation I had to pay 12% for interest on a home! 

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Just now, ronwagn said:

During the Carter stagflation I had to pay 12% for interest on a home! 

I honestly now know that I will never retire and that my (and other people's) kids are probably screwed. I entered the workplace in the early 90s after the dotcom bust...it wasn't fun. 

It's a bitter pill to swallow unless I'm wrong and I really hope I am. I've read Zerohedge for many years and always saw them as being a bit conspiratorial but they're almost mainstream now...I think that speaks volumes. 

I'm growing food and doing what I can but the generations below me....I really don't know if they will be ok

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5 minutes ago, ronwagn said:

During the Carter stagflation I had to pay 12% for interest on a home! 

Yeh I remember coming home from school (I'm in the UK) and seeing my house up for sale...that was a shocker but I think it was in the 80s (maybe 90s??) when interest rates hit the same levels.

 

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15 minutes ago, Eyes Wide Open said:

Shorting has a long history up until the mass consolidation of money blocks it was never a big issue, it is now out of control.

https://www.reuters.com/article/us-sec-shortselling-history/factbox-milestones-in-short-selling-history-idUSN1641520620080716

https://finance.yahoo.com/news/tesla-9-other-stocks-burned-171344785.html

The below failure turned into a real storm between Musk and wall street.

Tesla The Biggest Short Killer: Dusaniwsky said electric vehicle manufacturer Tesla Inc (NASDAQ: TSLA) was by far the worst short in the market in 2020.

Tesla short sellers lost more than $40.1 billion 2020, nearly six times the losses they endured betting against any other stock in the market.

 

16 minutes ago, Eyes Wide Open said:

Shorting has a long history up until the mass consolidation of money blocks it was never a big issue, it is now out of control.

https://www.reuters.com/article/us-sec-shortselling-history/factbox-milestones-in-short-selling-history-idUSN1641520620080716

https://finance.yahoo.com/news/tesla-9-other-stocks-burned-171344785.html

The below failure turned into a real storm between Musk and wall street.

Tesla The Biggest Short Killer: Dusaniwsky said electric vehicle manufacturer Tesla Inc (NASDAQ: TSLA) was by far the worst short in the market in 2020.

Tesla short sellers lost more than $40.1 billion 2020, nearly six times the losses they endured betting against any other stock in the market.

I remember believing the short sellers and getting on the wrong side. Not as an investor though. 

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4 minutes ago, ronwagn said:

 

I remember believing the short sellers and getting on the wrong side. Not as an investor though. 

That George Gammon video I posted above is very good.

I know there's a lot of traders on here who understand this stuff so much more but it's scary stuff.

Again I am 99.9% sure we're going to see a crash but the longer it holds off the more worried I get....corrections are necessary 

Maybe it speaks volumes that the traders are quiet right now? Busy making money before the SHTF....Just a thought..

But what would I know

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9 minutes ago, El Nikko said:

I honestly now know that I will never retire and that my (and other people's) kids are probably screwed. I entered the workplace in the early 90s after the dotcom bust...it wasn't fun. 

It's a bitter pill to swallow unless I'm wrong and I really hope I am. I've read Zerohedge for many years and always saw them as being a bit conspiratorial but they're almost mainstream now...I think that speaks volumes. 

I'm growing food and doing what I can but the generations below me....I really don't know if they will be ok

I am storing food, and planning on staying home in any crisis. I will also store water and have a large water filter. Also studying wild edibles. We also have chickens on our acre. I could raise rabbits and chickens in my crawl space until I got caught. It is six foot tall. We are only allowed six. 

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