GameStop Stock surges due to meme traders

warmachine

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I really ought to study finance more. I'm fairly certain the problem with screwing short sellers as they're only forced to cover the short when their contract expires and the other party can accept a wide variety of durations. In the meantime, more and more long investors will realise the share price is over inflated and sell out, lowering share price. Buying can re-inflate the price but that costs. That is, short sellers can wait for months till the over inflators run out of money.
 

Silvanus

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By that notion, what is not a social construct?
As soon as you talk about "value", you're into the territory of subjectivity. And if that idea of value is agreed over multiple people, then you're looking at a social construct. So yeah, that includes currencies based on pure metal content, such as the Gold Standard, or trading societies based on steel and iron.

You cannot really have a currency without a socially-constructed value attached. But that doesn't just apply to money; it applies to traded commodities as well. Money just adds another degree of separation.

The important thing to note is that this doesn't actually devalue money. If you believe there are arbitrary elements in how the value is determined, then that's worth investigating and (possibly) debunking. But the very fact that the value is socially-constructed is almost unnavoidable.
 

Worgen

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Whatever, just wash your hands.
Not when it was made out of metals that you could melt into tools.
You do realize that the value of those metals is also socially constructed too right? Plus, a lot of money was gold, and gold is garbage for anything besides jewelry and semiconductors.
 

Trunkage

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Have you not heard about my new Toe Based Economy? It’s similar to 40k Orks tooth based economy. Each toe has three knuckles.. come on, you can afford it


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?
Most of the metal standards we had were based on the shininess, not its usefulness
 

TheMysteriousGX

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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?
Arbitrarily strict rules that never get updated because the people who do this shit either have Congress critter in their pocket or are literally *in* Congress.

After all, this guy isn't employed by GameStop nor did he get any information from GameStop sooner than anybody else. So it's no illegal.
 

crimson5pheonix

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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...
Because if you did that there literally wouldn't be a stock market and rich gamblers would have to rely on either games of luck or games of skill, only one of which they have and they burnt it all being born rich.
 

Kwak

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By that notion, what is not a social construct?
That's the question enlightenment seeks to answer. Subtract everything false and what remains must be Truth. Turns out you can pretty much subtract everything.
 
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Gergar12

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Damn it whether it's bitcoin, Tesla, or Gamestop. You never know what company or commodity will be the next Amazon stock to invest in.

That said we should still break up Amazon. The CEO wanted to overthrow the US government over them switching contracts to Microsoft. Granted it's Trump.

Jeeze Jeff, I know you are in a midlife crisis which no life extension tech will solve, but being a slightly less rich person isn't going to kill you.

 

Trunkage

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Damn it whether it's bitcoin, Tesla, or Gamestop. You never know what company or commodity will be the next Amazon stock to invest in.

That said we should still break up Amazon. The CEO wanted to overthrow the US government over them switching contracts to Microsoft. Granted it's Trump.

Jeeze Jeff, I know you are in a midlife crisis which no life extension tech will solve, but being a slightly less rich person isn't going to kill you.

Just send the two rich jerks to the ring to fight it out.

And then put in laws so they stop fucking with the economy while they are knocking each other out
 

Avnger

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The CEO wanted to overthrow the US government over them switching contracts to Microsoft.
Uh... got a link? Your fortune article definitely does not say anything related to that.
 

Dirty Hipsters

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Just send the two rich jerks to the ring to fight it out.

And then put in laws so they stop fucking with the economy while they are knocking each other out
It would be a short fight. Bezos is jacked, probably from curling his wallet all day.
 

Seanchaidh

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That's the question enlightenment seeks to answer. Subtract everything false and what remains must be Truth. Turns out you can pretty much subtract everything.
This suggests that "Subtract everything false and what remains must be Truth" is probably false. Which further implies that there is probably a category of statements which are neither true nor false. And, given some other premises I won't bother enumerating here because they are contingent on history, that that third category of statements is actually in many cases more influential and important than the truth, for good or ill-- and it really can be either good or ill, not just ill.

Reasoning from premises which are neither true nor false is necessary to come up with moral conclusions if argumentative reasoning is to be used at all, as purely factual premises can make no moral claim nor can they by themselves justify a moral conclusion (Hume, 1751 ruthlessly paraphrased). Moral conclusions are in the category of statements which are neither true nor false even though when they are used as premises in deductive or inductive reasoning they typically function as if they were true statements. Statements about the value of an object (X has such and such a value) are neither true nor false if their scope goes beyond what will a particular entity (or group) exchange or how a particular entity regards the object; what a particular entity or collection of entities is willing to exchange for a thing can be a properly factual claim, the subjectivity of which is implied in the statement because particular subjects (those who are willing to make the exchange) are the object of inquiry (what the statement is ultimately about).

Value conceived of as something inherent to an object, event, or whatever else, lacks that anchor to any particular subject or group of subjects and thereby becomes neither true nor false; it can become true or false by appending "I say..." or "They say..." to its front, at which point it is no longer a general statement about the object or event but instead one of an uncountable number of possible statements about how a particular entity or collection of entities regards some object or event.

All of this is to say that there are a large number of very important statements which can (and often should) cause human action (or inaction, as the case may be) which logic and a dispassionate study of reality by themselves are insufficient to justify. The values of things are in that collection.
 
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Gergar12

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I want Jim Cramer to invite one of the Reddit kids on his show to explain to them that what they're doing is reckless and stupid, only to have the kid say "git gud, boomer" and start Fortnite dancing on air.
The problem with Gamestop is that it's a physical store when in reality we are moving to digital. Jim is right.

The other problem is that Reddit/wallstreetbets is a casino. People like me aren't going there to get investment advice to buy one stock. Even Amazon could get broken up by Biden/Harris's DOJ, or any government agency. We are going to Acorn, Fidelity, investing in 401ks, Roth IRAs, and so fore.

By the way full disclosure, I do have stocks/investments in Amazon, but I didn't pick them a Robo advisor did, and my stocks are in an aggressive portfolio designed to capitalize on the bull market and to retire not to gamble on one stock.
 

Dwarvenhobble

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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...
Well they did do an emergency suspension of trading of said stock because they thought "automated systems had gone wrong" as such. Or were trying to protect the big trader getting screwed over so badly it was crippling.


The economy is fake
*Always has been .jpg

No but seriously I used to play a thing called Celebdaq which was a fake stock trading game using celebrities. I used to just look on IMDB for upcoming films, then check the film reviews. If they were good I'd hold the stock longer, if they were bad I'd buy in early then sell just before the film came out. The whole thing showed it's all about what people think something is worth.

Netflix doesn't make money yet but it's valued at nearly $100 a share. Some little mom and pop outlet going public that makes $1,000 a month with a novel idea, probably in the penny stocks or worse valuation wise because it's not been heard of. It's all what people think it's worth and demand.


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?
Only counts if you're part of the company. Even then you can be a CFO announce a stock buyback (which pushes prices up) then sell your own stock, have the company buy only your stock then end the buyback

Not when it was made out of metals that you could melt into tools.
In the UK notes aren't even money. They're IOUs (if you're in the UK feel free to read what it says on the notes in your wallet now about how they entitle the bearer to good to the value of the note)
 

Dwarvenhobble

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I really ought to study finance more. I'm fairly certain the problem with screwing short sellers as they're only forced to cover the short when their contract expires and the other party can accept a wide variety of durations. In the meantime, more and more long investors will realise the share price is over inflated and sell out, lowering share price. Buying can re-inflate the price but that costs. That is, short sellers can wait for months till the over inflators run out of money.
They could, but often stuff gets called in by people who own the real shares who then want to sell for their own profit or automated systems basically tell them to buy before they lose more money on the trade or various institutions tell them they can't afford their present portfolio and need to sell stocks they do own to cover the short should the price not dip.

Damn it whether it's bitcoin, Tesla, or Gamestop. You never know what company or commodity will be the next Amazon stock to invest in.

That said we should still break up Amazon. The CEO wanted to overthrow the US government over them switching contracts to Microsoft. Granted it's Trump.

Jeeze Jeff, I know you are in a midlife crisis which no life extension tech will solve, but being a slightly less rich person isn't going to kill you.

I mean his divorce likely didn't help things. He probably needs to feel he's getting a win over Elon Musk somewhere as Musk has a family now and well Grimes, I wouldn't call her unappealing.

Some-one pointed out he follows very few people on twitter. One of them is his ex wife, who doesn't follow him back.
 

Dirty Hipsters

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Sure, it's a meme stock, but I'm still taking advantage.

Bought in yesterday at $86 and it peaked at $220 today, and will probably keep going up tomorrow. It's worth buying into if you have the cash on hand and aren't going to go broke if you end up losing it all.
 

TheMysteriousGX

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I really ought to study finance more. I'm fairly certain the problem with screwing short sellers as they're only forced to cover the short when their contract expires and the other party can accept a wide variety of durations. In the meantime, more and more long investors will realise the share price is over inflated and sell out, lowering share price. Buying can re-inflate the price but that costs. That is, short sellers can wait for months till the over inflators run out of money.
The fun thing about these short sells is that the person doing the short has to front 150% the cost of the shares they're borrowing. That way they can't just take the sale money and run.

What the inflators are doing is boosting the cost of the shares, meaning the short sellers have to put more and more cash into escrow or they lose the whole thing.

The short sellers have sold more stock than GameStop *has*. They resold their own shorts, trying to create a downward feedback loop. Now it's an upward feedback loop and they need liquid cash in the account to cover it all *now*. https://markets.businessinsider.com...ers-army-cohen-palihapitiya-2021-1-1030006226

And c'mon: gamers aren't well known because we're rational. 😈
0ECA038B-5C14-4701-AC5D-B6CAF195F2B4.jpeg
 

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