GameStop Stock surges due to meme traders

TheMysteriousGX

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In an event worthy of Eve Online itself, mem day traders has successfully squeezed short selling professionals by boosting GameStop's stock price, earning themselves some fat stacks of cash.

Basically, "stock pros" saw that GameStop hasn't been doing too well lately and shorted stock: selling stock when its high on credit while banking on the stock's price falling so that they buy the stock at lower than what they already sold it for.
A Reddit group caught onto the scheme and started buying GameStop stock, causing its price to rise...then the people who shorted stock had to buy to cover their sells (at a loss, because the price to buy was higher than they sold it for), causing the price to go up even higher.
 
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tippy2k2

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I'll be very curious to see the ripple effect this might have.

Used to be you needed particular skills and/or knowledge to really game the stock market but now a lot of those "tricks" that Wall Street uses to make their money can be turned right against them as all it takes is one dude on Reddit to notice shit goin down and alert everyone else.

The game of The Stock Market is changing as anyone now can throw some chips onto the table and throw the dice. I'll be interested to see how everything adapts because I can't imagine this is going to be the first time something like this happens. Pandora's Box is open; there's no putting the lid back on...
 

Dalisclock

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All those societies that ask permission of a priest or shaman to plant their crops are silly and primitive. We, on the other hand, are directed by The Line.
To most of us, Capitalism is something we live with. To some, it's a religion that must not be questioned or the Communist demons will appear and the sun won't rise tomorrow.
 

MrCalavera

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The Meme Economy...

All those societies that ask permission of a priest or shaman to plant their crops are silly and primitive. We, on the other hand, are directed by The Line.
Blessed be The Line, The Invisible Hand and The Red Suspenders. Stonks
 
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09philj

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Stock trading has gone from being a casino for large groups of wealthy people who kind of understand the rules but have no real winning strategy, to being a casino for anyone with some spare cash and really no idea what they're doing. Things are going to get weird.
 

tstorm823

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I've been watching this, and it's been a fun ride. I don't think this is going to fundamentally change the stock market, but it may make big finance groups hesitate to try and manipulate markets with tweets while short selling stocks.
 
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tippy2k2

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Good. I hate the practice of shorting stock; it requires a business to do badly in order to succeed, and the people who do so have every incentive to make that business run into trouble. And then hard-working people lose their jobs, because since when do executives ever feel the pain?
I don't even see how it's legal. The article talked about that Left fella; he shorts stocks and then goes onto Youtube to his huge audience and purposefully trash talks the company to get them to just crater out and implode.

Like...how is this not stock manipulation?
 

Avnger

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Not when it was made out of metals that you could melt into tools.
No, even then. What's the worth of one tool? How does that compare to the worth of another type of tool? What is the ratio of iron's worth to copper's worth?
 

Agema

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Good. I hate the practice of shorting stock; it requires a business to do badly in order to succeed, and the people who do so have every incentive to make that business run into trouble. And then hard-working people lose their jobs, because since when do executives ever feel the pain?
My general feeling is that a great deal of financial trading is societally useless. It's just a bunch of twats gambling with people's pensions.
 
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Bedinsis

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No, even then. What's the worth of one tool? How does that compare to the worth of another type of tool? What is the ratio of iron's worth to copper's worth?
By that notion, what is not a social construct?