Investing in the stock market

[Jastall]

I'd be surprised if GME goes much further up. I think we're at the point where it sells off back to somewhere closer to where it was originally. In general, I think this whole trend is probably dead - with maybe a few surges across different stocks as Elon and/or the WSB crowd try to find new things to make pop.

It's kind of sad to read the WSB threads of regular Joes saying this is "Occupy Wall Street" and they're "sticking it to the suits." This was "Occupy The Richer End Of Wall Street By The Lower End of Wall Street But It's Still All Wall Street." Millionaires made the money, common folks may have got a few bucks out of it but probably mostly just lost money, and maybe a few very lucky folks on the lower end saw a little bit of return... because ultimately, even this event just shows how fucked the American wealth system is; even to make money here you had to have money, and the 60% of Americans living paycheck to paycheck didn't exactly have a mountain to throw at GME and played little part in moving the numbers. And all the while, the billionaires will remain billionaires, even if they got a minor ding in their play streak that they'll forget about a month from now.

Yeah, it's really not average Joe sticking it to the Man, it's the littler Man making money while sorta sticking it to the bigger Man a bit in passing.

The guys who actually profited from this are kinda like Di Caprio's gang in Wolf of Wall Street- sure, they're not the biggest kids on the block, but hardly small-time traders either, they know the score and are several cuts above the random dude putting a few thousand's worth of his savings in stocks that he barely begins to understand.

[Draco-Onis]

I explained it. The DTCC jacked up the increase margin at the NSCC, a Margin Liquidity Adjustment Charge. RH froze trading because it was too successful and couldnt cope with the liquidity needed for deposits which is why its raised so much capital in the next like 10 hours after that happened and opened back up (along with a bunch of others)

So why did the CEO lie on several occasions about it? why did the other platforms including those who are banks do the same thing at the same time. Your explanation even if true would apply to only one case it doesn't explain the coordinated blockage.

[jonnysensible]

So why did the CEO lie on several occasions about it? why did the other platforms including those who are banks do the same thing at the same time. Your explanation even if true would apply to only one case it doesn't explain the coordinated blockage.

On Jan. 28, after days of turbulence, the DTCC demanded significantly more collateral from member brokers on their GameStop trades. A spokesman for the DTCC wouldn’t specify how much it required from particular firms but said that by the end of the day, industrywide collateral requirements jumped to $33.5 billion, up from $26 billion.

blah blah its all in that article and it makes sense.

[Draco-Onis]

On Jan. 28, after days of turbulence, the DTCC demanded significantly more collateral from member brokers on their GameStop trades. A spokesman for the DTCC wouldn’t specify how much it required from particular firms but said that by the end of the day, industrywide collateral requirements jumped to $33.5 billion, up from $26 billion.

blah blah its all in that article and it makes sense.

Blah blah blah banks have liquidity problems in 2021 makes sense /s

[jonnysensible]

Blah blah blah banks have liquidity problems in 2021 makes sense /s

what are u talking about banks for i didn't realize rh was a bank

[Draco-Onis]

history has already proven it will be forgotten.

" past performance is no guarantee of future results"

I applaud you though after 2020 being audacious enough to have certainty, I am no Nostradamus and just along for the ride.

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what are u talking about banks for i didn't realize rh was a bank

You clearly aren't reading so let's just ignore each other I have been asking you the same question for several posts now and you are laser focused on only RH. I can only assume you have some association with them because you can't see distinguish the forest from the tree.

[jonnysensible]

You clearly aren't reading so let's just ignore each other I have been asking you the same question for several posts now and you are laser focused on only RH. I can only assume you have some association with them because you can't see distinguish the forest from the tree.

again ive told you the DTCC was doing stuff. now you are spinning another conspiracy lol.

[Draco-Onis]

again ive told you the DTCC was doing stuff. now you are spinning another conspiracy lol.

As I said forget it you can't even read, RH is getting the heat because of its marketing but it's not the only one.

[Edge-]

https://arstechnica.com/tech-policy/...ary-investors/

But while there won't be a big transfer between short sellers as a group to shareholders as a group, there will be big wealth transfers within these groups. People who bought GameStop early and who had the good sense to sell near the top of the bubble will make a lot of money. People who buy into GameStop near the top and don't sell until after the stock starts to fall will lose money.

In other words, the GameStop bubble will have the same practical effect as any other pump-and-dump scheme: transferring wealth from those who got into the scheme late to those who got into it early. The fact that there are short-sellers on the other side of some of these trades doesn't change the analysis.

More analysis on this. If you're not DeepFuckingValue and you jumped in late, you're probably gonna get hosed. By folks like DeepFuckingValue, not hedge funds.

[Vorkreist]

wait people get paid on this forum for posting???

Actually i do most of my posting from work so yah i am technically getting paid to spout "bullshit" too


do you have anything to actually add to the conversation or do you just have sand in your vagina and are blaming wall street and Zan for the sand???

All you do is regurgitate cnbc rotten takes.

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artificial bubbles are bad. Because like, they are, as they're a pretty unethical and often illegal way to attempt to make money.

Back to the good ol' its not unethical and illegal when the hedge funds do it.

[Zan15]

Why do all of you know more than the CEO of RH? You all seem to have figured out also feel free to explain all the other platforms who magically had the same issue at the same time including those who happen to be banks. Are you going to argue that in 2021 banks have liquidity problems now?

Its already been posted what happened in the links given above when you asked this to other people.

Know more than the CEO of RH? No but i know how to listen to what the actual CEO said, you should try it. He said it not me. they even put it in writing you can go read it on their press releases.

The other platforms too had to pause in order to figure out liquidity requirements, risk, impact to the overall business, etc etc.

you are blaming the platforms and not the Clearinghouses that put the increased requirements on GME and other individual stocks??
something clearinghouses do on a daily basis, weekly, monthly...

Are you going to argue that in 2021 banks have liquidity problems now?

You realize these are separate divisions in a parent company and they just don't willy nilly use funds from the bank side to fund liquidity needs on the investment broker side right?
Not to mention they had their own hundreds of billions of dollars of "problems" to deal with.


and LOL we are coming out of a huge liquidity problem with banks thanks to COVID/mini crash of 2020. Almost all banks had to increase their capital reserves. a lot were forced to suspend dividends by the FED. Had to suspend stock buy backs, forced by FED. Forced to put additional 100s of billions in loan loss reserves.
Had to increase restrictions on loans, on trades, on margins, etc etc etc

They are 'expected' to be allowed to resume somewhat normal operations starting in 1Q 2021, but that is still subject to final approval based on the economy and covid.

Banks have 99 problems, they sure do not need a 100th and the sure do not want to get involved in something that will piss off the SEC/FEDS/et all.
That is why they still operate under separate divisions. Good old plausible deniability

[Edge-]

Back to the good ol' its not unethical and illegal when the hedge funds do it.

Please quote me where I wrote that. Because I fuckin didn't.

Y'all are out here tilting at every windmill you don't like the look of, adamant that those windmills are indeed dragons.

[Zan15]

All you do is regurgitate cnbc rotten takes.

such as?

Back to the good ol' its not unethical and illegal when the hedge funds do it.

no one is saying that.

[gondrin]

All you do is regurgitate cnbc rotten takes.

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Back to the good ol' its not unethical and illegal when the hedge funds do it.

Ok, I think you need to reread the quote from Edge. They specifically said it was pretty unethical and often illegal. It doesn't matter who started the bubble.

[Zan15]

Blah blah blah banks have liquidity problems in 2021 makes sense /s

technically they still do till the regulators tell them they can go back to normal operations. See above ^^

[Draco-Onis]

You realize these are separate divisions in a parent company and they just don't willy nilly use funds from the bank side to fund liquidity needs on the investment broker side right?
Not to mention they had their own hundreds of billions of dollars of "problems" to deal with.


and LOL we are coming out of a huge liquidity problem with banks thanks to COVID/mini crash of 2020. Almost all banks had to increase their capital reserves. a lot were forced to suspend dividends by the FED. Had to suspend stock buy backs, forced by FED. Forced to put additional 100s of billions in loan loss reserves.
Had to increase restrictions on loans, on trades, on margins, etc etc etc

They are 'expected' to be allowed to resume somewhat normal operations starting in 1Q 2021, but that is still subject to final approval based on the economy and covid.

Banks have 99 problems, they sure do not need a 100th and the sure do not want to get involved in something that will piss off the SEC/FEDS/et all.
That is why they still operate under separate divisions. Good old plausible deniability

ROFLMAO oh come on now do you believe in the Easter bunny too? the separate division line died with Glass-Steagall.

As far as I know feel free to provide sources to correct me the liquidity issue wasn't the regulators but banks squeamishness due to the last financial crisis. Under the Trump administration liquidity requirements were greatly loosened as well as regulatory oversight.

[Zan15]

again ive told you the DTCC was doing stuff. now you are spinning another conspiracy lol.

I think he thinks RH is the only one who is impacted by the DTCC.

You know the entity that is responsible for something in the neighborhood of 2 quadrillion (YES quadrillion) and the vast majority of securities transactions in the WORLD not just the US.

Gee i wonder why their increase requirements, changes and actions would impact the whole market/industry????

Gee how is it that some companies are impacted and others are not, are they not all financially the same?

I mean its not like the top 3 brokers are not 50x the size of RH and the other "free" type brokers financially or nothing.

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ROFLMAO oh come on now do you believe in the Easter bunny too? the separate division line died with Glass-Steagall.

.

Guess the easter bunny knows more about the corporate divisions in full service financial entities that also include brokerage firms than you?

As far as I know feel free to provide sources to correct me the liquidity issue wasn't the regulators but banks squeamishness due to the last financial crisis. Under the Trump administration liquidity requirements were greatly loosened as well as regulatory oversight.

Go read about the stress test of 2020 then come back and we can talk.
Go read about the force requirements, the suspensions of normal operations, the capital requirements being doubled and tripled at some banks, tens of billions in share repurchase redirected into reserves.

If it was up to the banks they would not have stopped buy backs or dividend payments. That is one of the biggest reasons its taken longer for their stocks to recover then the rest of the market/financial industry. After they were told they might be able to return to FULL normal operations their stocks were up 25-60%.



then come back.

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So why did the CEO lie on several occasions about it? why did the other platforms including those who are banks do the same thing at the same time. Your explanation even if true would apply to only one case it doesn't explain the coordinated blockage.

huh?

If they all are operated through the DTCC and the DTCC increases their requirements why wouldn't there be the same effect downstream?? ? ? ?


Also they all did not do the same thing.

Fidelity's did not block trades.

TDameritrade did not fully block like RH did. If you were a current customer you could buy and sell. i posted screenshots of this directly from my account. They did however restrict new users and increase margin requirements to 100%.

Vanguard did not appear to block anything but did increase requirements of trade/purchase

etc etc.

Coordinated, No sorry.

[Draco-Onis]

Guess the easter bunny knows more about the corporate divisions in full service financial entities that also include brokerage firms than you

I am assuming you were in a coma when the arguments for repealing the law was made hint it's the opposite of what you are arguing.

Go read about the stress test of 2020 then come back and we can talk.
Go read about the force requirements, the suspensions of normal operations, the capital requirements being doubled and tripled at some banks, tens of billions in share repurchase redirected into reserves.

If it was up to the banks they would not have stopped buy backs or dividend payments. That is one of the biggest reasons its taken longer for their stocks to recover then the rest of the market/financial industry. After they were told they might be able to return to FULL normal operations their stocks were up 25-60%.



then come back.

Under Donald Trump Dodd-Frank requirements were loosened to a fraction of what they were, the fed also changed several criteria for these tests in order to mitigate any possible public backlash not to mention kill much of the transparency which resulted in most of these banks clearing the tests.

The banking industry liquidity crunch under Trump was very much self imposed, did you seriously think government Sachs was going to bring down the hammer because of the COVID-19 crisis?

[willtron]

P.S again for the second time i am jealous as fuck i don't have the balls to get into something like this, yes i admit it. Makes me angry :P

If it makes you feel better - I'm too stupid to know when to get out. I cant bring myself to do it, what if it goes higher?

[Very Tired]

So are they expecting to keep GameStop's stock up forever? If this meme ever ends and the stock crashes back something close to it's original price, what's to stop these big hedge funds from shorting the stock again and making back their losses?