This is for topical issues effecting our fair world... you can quit snickering anytime. Note: It is the desire of the leadership of SFDebris Conglomerate that all posters maintain a civil and polite bearing in this forum, regardless of how you feel about any particular issue. Violators will be turned over to Captain Janeway for experimentation.
Pharmaceutical Giant: “This medicine costs $3 to make, but I’m selling it to sick people for $300 because I know that they can’t just refuse to buy it.”
Rich People: “That’s a smart business strategy.”
Reddit User: “These GameStop shares cost me $3 each, but I’m selling them to short investors for $300 each because I know that they can’t just refuse to buy it.”
Rich People: “THE HORROR!!! GOVERNMENT, PUT A STOP TO THIS!!!”
The $300 price point for the medicine might be because it cost a half billion dollars to bring to market.
The problem with what's happeneing with Gamestop share price has little to do with the actual viability of the company and more to do with the pleasure of putting the screws to a hedge fund. Eventually, Gamestop stocks have to descend to a more realistic evaluation of what the company is worth. The objection is what the redditors are doing are breaking the usefulness of the stock market to provide accurate information on the health of companies. On the other hand, the short play by the hedge fund is a similar kind of breaking, trying to make Gamestop seem less valuble than it actually is, so they do not deserve much sympathy.
A managed democracy is a wonderful thing... for the managers... and its greatest strength is a 'free press' when 'free' is defined as 'responsible' and the managers define what is 'irresponsible'.”
― Robert A. Heinlein, The Moon Is a Harsh Mistress
Mickey_Rat15 wrote: ↑Fri Jan 29, 2021 1:51 am
The $300 price point for the medicine might be because it cost a half billion dollars to bring to market.
My Blog: http://rocketboy1313.blogspot.com/
My Twitter: https://twitter.com/Rocketboy1313
My Tumblr: https://www.tumblr.com/blog/rocketboy1313
My Twitch: https://www.twitch.tv/13rocketboy13
Hedge funds shorted more than 100% of all shares of gamestop, to do this that means they had to sell more shares than actually existed.
The hedge funds never actually owned these shares to begin with because they were short selling so they never actually paid for them.
Redditors saw this and decided to buy up all these shorted shares to gamestop a company that wasnt failing that the hedge funds would then be forced to buy back as they never actually owned the shares.
The beauty of this is if you knew what to look for you could’ve seen this coming too. It isn’t mystical, it isn’t magic. They made these billionaires pay back more than what they basically stole by being greedy, this is a good thing.
"Believe me, there’s nothing so terrible that someone won’t support it."
— Un Lun Dun, China Mieville
I don't really get how that liability stayed active and is able to be inflated to billions of dollars. I would think any market, and even regulations in place today would recognize that the liability would be more bounded by the value of the commodity as borrowed out, not to the appreciated valuation of the current asset.
I get the possibility that the short sellers were doing something illegal and didn't want to get caught with red hands, but to the point where they'd have to pay like billions of dollars to give back the stock lol. Then again, they did get a helping hand from a private firm.
BridgeConsoleMasher wrote: ↑Sat Jan 30, 2021 5:33 pm
I don't really get how that liability stayed active and is able to be inflated to billions of dollars. I would think any market, and even regulations in place today would recognize that the liability would be more bounded by the value of the commodity as borrowed out, not to the appreciated valuation of the current asset.
I get the possibility that the short sellers were doing something illegal and didn't want to get caught with red hands, but to the point where they'd have to pay like billions of dollars to give back the stock lol. Then again, they did get a helping hand from a private firm.
I am trying to get in on this, personally. Robin Hood closed off sales for Gamestop and AMC but I'm trying out WeBull. Hopefully I too can become part of Stonks before the entire system gets rewritten to prevent this.
"Believe me, there’s nothing so terrible that someone won’t support it."
— Un Lun Dun, China Mieville
The halt on trades according to the ceo who was talking to Musk was that the holding company that processes all their shit determined they needed to up their backup reserves to match the surge in trading volume.
So, a few things. First, I am now a proud shareholder.
Second, it turns out the reason the hedge funds are freaking out so bad may just be because, oopsies, they are selling more borrowed shares than actually exist. Share counterfeiting is very illegal but also very hard to prove because the industry is pretty much regulated by itself. No one would be the wiser, unless, say, a bunch of reddit NEETs just decided to short squeeze you as a joke.
Also, have you seen the footage of these Hedge Fund puppy-molesters wagging their fingers and freaking out and crying foul on the news? xD It's hilarious! I'm so glad that Schadenfreude isn't a sin in my religion.
"Believe me, there’s nothing so terrible that someone won’t support it."
— Un Lun Dun, China Mieville
