Month: February 2021

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Article: Market manipulation or David vs Goliath? Unpacking the Reddit trader phenomenon — podcast

Article - Media, Publications

Market manipulation or David vs Goliath? Unpacking the Reddit trader phenomenon — podcast

Gabriel Friedman, 03 February 2021

David Goldreich is a professor of finance at the University of Toronto’s Rotman School of Management; and Pauline Shum Nolan is a professor of finance at York University’s Schulich School of Management, and also the chief executive of Wealthscope, an investor analytics company.

GameStop’s incredible ride isn’t over, but it’s clear that a group of small investors used the internet to band together and stake out a position that put them at odds with several deep-pocketed hedge funds. In an inversion of the usual power dynamics, at least a few hedge funds have reported deep losses, and at least a few of the smaller investors are reporting big gains.

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Article: Senator Elizabeth Warren Tells The Securities And Exchange Commission To ‘Get Off Their Duffs And Do Their Jobs’ And Stop The ‘Rigged Game’ Of Market Manipulation

Article - Media, Tweet

Jack Kelly | 21.02.02

In a blistering interview with CNN, Senator Elizabeth Warren was incensed over the trading activities last week, saying the market “is a rigged game.” Warren boldly called out the Securities and Exchange Commission (SEC), the premiere Wall Street regulator, admonishing the agency “to grow a backbone” and “get off their duffs and do their jobs.”

Warren said, “We need more regulation about market manipulation.” She also decried the practices of “pump and dumps” and stock buybacks that enrich the CEOs and executives. The senator added, “The SEC needs a broader look at how hedge funds and corporations manipulate the market.”

Continue reading “Article: Senator Elizabeth Warren Tells The Securities And Exchange Commission To ‘Get Off Their Duffs And Do Their Jobs’ And Stop The ‘Rigged Game’ Of Market Manipulation”

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Article: ‘Wolf of Wall Street’ Jordan Belfort Lauds ‘Brilliant’ Stock Revolt: ‘This is a Paradigm Shift’

Article - Media

Yael Halon | 21.02.02

“My hat’s off to them…it’s brilliant what they did.” — Jordan Belfort

The share price of video game retailer GameStop surged dramatically last week after a group of Reddit users teamed up to buy up the struggling retailer’s call options – hurting market short sellers.

“I believe this is a paradigm shift right now,” Belfort, who spent 22 months in prison after pleading guilty to charges of securities fraud and money laundering, told host Tucker Carlson.

Continue reading “Article: ‘Wolf of Wall Street’ Jordan Belfort Lauds ‘Brilliant’ Stock Revolt: ‘This is a Paradigm Shift’”

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Article: In the ‘Reddit vs Wall Street’ Battle, Muddy Waters sees a Smokescreen of Internecine Warfare Between Hedge Funds

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SCMP | 21.02.02

“When we get tagged as establishment, you can’t be more inaccurate than that,” he said. “It’s almost funny if it weren’t for the fact that I now have all these people trying to troll me.” What Block agrees with is the growing sense that financial markets are overvalued and predominantly small investors will be hurt when the bubble finally bursts. He faults the Federal Reserve for pumping in too much liquidity, allowing for too much credit extension and too much leverage.

Continue reading “Article: In the ‘Reddit vs Wall Street’ Battle, Muddy Waters sees a Smokescreen of Internecine Warfare Between Hedge Funds”

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Article: Short Squeeze Stockbrokers And Hedge Funds Face Proposed Antitrust Class Action

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Joseph Saveri Law Firm | 21.02.02

On January 28, many brokerages abruptly and unilaterally restricted retail investors’ ability to buy long positions—in some cases removing the option to buy shares of the relevant securities while openly permitting them to sell their existing shares or prohibiting users from viewing the tickers for some or all of the relevant securities.

Continue reading “Article: Short Squeeze Stockbrokers And Hedge Funds Face Proposed Antitrust Class Action”

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Hedge Funds are Getting Crushed by the Worst Short Squeeze in a Quarter Century

Article - Media
Matt Egan | 21.02.02
A mob of traders on Reddit’s WallStreetBets page have sent GameStop (GME), AMC (AMC) and other stocks skyrocketing in recent days. GameStop lost a quarter of its value Monday but it’s still up nearly 1,200% on the year. WallStreetBets successfully triggered an epic short squeeze, where investors that bet against GameStop have been forced to unwind their bets and buy the stock back. That in turn has driven GameStop even higher, creating even more losses for short-sellers.

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Article: GameStop, other Reddit-favored stocks plunge as trading frenzy fizzles

Article - Media, Publications

GameStop, other Reddit-favored stocks plunge as trading frenzy fizzles

GameStop Corp. shares more than halved in value on Tuesday and silver prices retreated as the Reddit-driven trading frenzy that roiled stock and commodity markets appeared to fizzle, at least for now.

The videogame retailer’s shares, whose wild gyrations have made or lost billions of dollars for hedge funds and other investors in recent weeks, closed down 60% at $90. They are now worth less than a fifth of their high of $483 last week.

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GameStop Founder Is “A Spectator” In Short Stock Controversy

Article - Media

Matt Egan | 21.02.02

In a conversation with CNBC, co-founder of Babbage’s Gary Kusin revealed that he has mainly been an onlooker during the whole GameStop stock controversy. He has gotten the majority of his information about what is happening through his son, Ben, who is an experienced redditor. One of the subreddits Ben frequented was WallStreetBets, which allowed him and his father to watch the whole situation unfold from the very beginning. Continue reading “GameStop Founder Is “A Spectator” In Short Stock Controversy”

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Naked Short Selling: The Truth Is Much Worse Than You Have Been Told

Article - Media

Naked Short Selling: The Truth Is Much Worse Than You Have Been Told

By James Stafford – Feb 02, 2021, 3:20 PM CST, OilPrice.com

There is a massive threat to our capital markets, the free market in general, and fair dealings overall. And no, it’s not China. It’s a homegrown threat that everyone has been afraid to talk about.

Until now.  That fear has now turned into rage.

The naked truth is this: Investors stand no chance in the face of naked short sellers. It’s a game rigged in the favor of a sophisticated short cartel and Wall Street giants.

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Top 11 Reasons The Short Silver Squeeze Is Very Possible

Article - Media, Letter, Video

Alert Reader notes:

Shorting corporations and even governments has long been a means by which “loan” money sharks destroy and control creative money industry and governments.  Although a crime, this activity is never prevented – but rather regulated to protect and create advantage for the perpetrators.  So why not use this system of financial mass destruction against the destroyers? And, wouldn’t it be fitting that the common man’s money, silver, would be just the silver bullet needed to punish and return the market system to the people.  JP Morgan may have captured the silver paper market, but the bulls control the physical market – if only they will.

Maybe the century old suppression and manipulation of silver prices has finally found its savior — a silver short squeeze, now in progress.

Continue reading “Top 11 Reasons The Short Silver Squeeze Is Very Possible”

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The Worm Turns

Letter

21.02.01

Alert Reader notes:

I love the fact that the upcoming financial collapse will occur on the watch of the evil, and corrupt. Let CEO Biden have the appearance of being President, at least in the minds of those who live in the illusionary world created by the Fake News. At the fake oval office of Castle Rock studios, somewhere in California, as I understand, since the White House has been completely dark since January 20, 2021. Which has somehow gone completely unnoticed by the crack White House reporting staff at CNN. HAHAHAHAHAHAHAHAHA

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Another Thought on Silver by Jim Willie

Academic, Tip
Jim Willie | 21.02.01
Silver is up almost $3 from Singapore and soon Tokyo. I regard this entire Reddit Robin Hood movement as the Attack by the Lilliputians. Time to stampede over the JPMorgue zombies and take silver to $35/oz. Watch mining stocks to confirm the move of course, the Boyz can put it down with a paper barrage, but the Lilliputians might be in the tens of thousands and they smell blood. The GameStop was a trial run. 

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How Redditors Beat Hedge Funds at Their Own Game(Stop)

Article - Media

21.01.27 | By Eric Levitz

But the value of a company can’t be reduced to its expected future earnings. One must also consider a wide range of other factors. Among them: How much nostalgia does the firm inspire in users of the Reddit forum r/wallstreetbets? And would a rally in GameStop shares be funny? Which is to say, has the firm crossed the “so bad it’s good” threshold, as inadvertent comedic masterpieces like The Room or Troll 2 had done before it?

America’s top hedge funds failed to ask these questions. Fortunately, the collective wisdom of rational market participants ensured that they were eventually incorporated into GME’s stock price. And, as of 3 p.m. Wednesday afternoon, a share in the GameStop corporation attained its true, objective value of $321.14.

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THE DOLLAR HAS NO INTRINSIC VALUE : DO YOUR ASSETS?