One important point is that it is the BROKER and *not* the Trader who gains the benefit of the loaned short... that's also why the Redditors are telling folks to set their shares to No-Loan. The individual trader never sees any of the Lender benefits... it's all BROKER money.
"In determining who benefits from lending shares in a short sale, we first need to clarify who is doing the lending in a short sale transaction. Many individual investors think that—because their shares are the ones being lent to the borrower—they will receive some benefit; but this is not the case."
Heh, Erick Erickson is turning into the No-Malarkey of the Right... he found the context... it seems there may have been some, er, context shifting. I mean, he still comes of as a 'bad spokesman' for the oligarchy... but not really specific to the Gamestop stuff. Alas.
I need your attention here a minute. Seriously. I went back and watched the full clip of this after a listener tipped me off. @disclosetv is smearing Leon Cooperman. If you pay attention, the clock jumps from 11:31 to 11:35. His "bullshit" comment is about Biden policies. https://t.co/lbmO1wvLY9
Unless there's another clip... I watched the clip and he doesn't say what Offenhartz quotes.
I mean, I was hoping he did... that's why I watched the clip... instead, at the 3:30 mark he gives a pretty self-serving and obviously silly take on the 2008 bailout, but basically just says that short selling is risky and obviously the shorts are very smart people who are going to be correct in the long run. Honestly, he seems fairly oblivious to anything that's happening.
But, as I say - unless there's another clip - he's not angry nor does he say the silly things above.
Well, the Winklevoss has spoken [but note, not invested] : #Holdtheline
Robinhood was never what it pretended to be. It built its business on selling Wall Street Bets order flow to the hedge fund Citadel. In the moment of truth, we learned which customer it cares about the most.
Yeah... my initial take was something closer to Michaels where this was a broad Market halt... but as Vikram is asking on Twitter... have we ever really seen a targeted group forced to sell and not buy - while the rest of the market (esp institutional players) can buy/sell as needed?
Basically by forcing Sell as the only option, it is signaling (more than signaling) it is *ending* the play and forcing the sell-off.
But, good news, we're informed by Biden's press Secretary that Janet Yellen is a woman.
Sure... this was the "give investors a chance to recalibrate their positions" without 'outsider' interference for that recalibration.
Laying bare the fact that Markets are 100% manufactured and man-made is fine by me... but don't expect Markets (TM) to survive this encounter with reality.
Let's say it's hedge fund on hedge fund violence. Unless this is constrained by some sort of secret Wall Street omerta then its actually worse (and potentially far reaching) than Reddit getting lucky.
The thing that protects Melvin Capital while *publicly* going massively short on GME is the fact that Rival-x is short on something else so the network can send a message if Rival-x starts squeezing Melvin by nudging their hedges.
If the Rival houses are going to 'consolidate' gangland style... then *that's* the real story.
We don't know.
But on a much more prosaic level, we do know that some large 'outside' players were part of the movement since 2019... it's not 100% reddit, it has some 'institutional' backing, but that backing was fairly above-board that the fundamentals were excessively shorted and gambled by investing and taking a long position to acquire board seats... that's when Reddit really started to see the gamble pay-off - when the price moved from $4 to $10 to $20 - but that took a year.
Me: 2nd time, this is too risky to get in early... pass
2nd Stock: Flies through roof, Redditors win
Me: 3rd time, this is too risky to get in early... pass
3rd Stock: Flies through roof, Redditors win
Me: Wow, this is really a thing... pushes in chips
4th Stock: Hedge Funds correct and crush movement
Me: Well, I didn't need *all* those chips anyway.
On “From Vox: The GameStop stock frenzy, explained”
One important point is that it is the BROKER and *not* the Trader who gains the benefit of the loaned short... that's also why the Redditors are telling folks to set their shares to No-Loan. The individual trader never sees any of the Lender benefits... it's all BROKER money.
From Investopedia
"In determining who benefits from lending shares in a short sale, we first need to clarify who is doing the lending in a short sale transaction. Many individual investors think that—because their shares are the ones being lent to the borrower—they will receive some benefit; but this is not the case."
"
Heh, Erick Erickson is turning into the No-Malarkey of the Right... he found the context... it seems there may have been some, er, context shifting. I mean, he still comes of as a 'bad spokesman' for the oligarchy... but not really specific to the Gamestop stuff. Alas.
"
Still hovering at $250 as we approach closing bell... weird spike to almost $500 at 2:00... this is one manipulated beast.
"
Thanks... looks like he said the words... now I feel compelled to find the full un-edited clip to get the context.
"
Unless there's another clip... I watched the clip and he doesn't say what Offenhartz quotes.
I mean, I was hoping he did... that's why I watched the clip... instead, at the 3:30 mark he gives a pretty self-serving and obviously silly take on the 2008 bailout, but basically just says that short selling is risky and obviously the shorts are very smart people who are going to be correct in the long run. Honestly, he seems fairly oblivious to anything that's happening.
But, as I say - unless there's another clip - he's not angry nor does he say the silly things above.
Link to clip
"
#timetomoveonfromKennedyassassination
On “Locked Out”
Oh the lessons he'll learn.
On “From Vox: The GameStop stock frenzy, explained”
Waiting for the pivot from Comms to Policy - as they say these days.
"
This is why we need gifs here.
"
Well, the Winklevoss has spoken [but note, not invested] : #Holdtheline
"
Wow... sell-off from $476 down to $126 (plan is working) ... rebounds to $300 ... now plateauing ... what will Friday bring?
This is just will-to-power at this point.
[bad things will come of this, but still]
"
Yeah... my initial take was something closer to Michaels where this was a broad Market halt... but as Vikram is asking on Twitter... have we ever really seen a targeted group forced to sell and not buy - while the rest of the market (esp institutional players) can buy/sell as needed?
Basically by forcing Sell as the only option, it is signaling (more than signaling) it is *ending* the play and forcing the sell-off.
But, good news, we're informed by Biden's press Secretary that Janet Yellen is a woman.
"
When "The Man" manipulates the game and forces everyone to catch the falling knife?
Just get ready for the next iteration.
"
Sure... this was the "give investors a chance to recalibrate their positions" without 'outsider' interference for that recalibration.
Laying bare the fact that Markets are 100% manufactured and man-made is fine by me... but don't expect Markets (TM) to survive this encounter with reality.
"
Yes... fascinating.
Deplatforming stocks.
[It's not a thing]
[It's totally legal]
[It's more moral]
[It's what Free Market really means]
"
comment in moderation
"
See above... Robinhood is no longer offering GME (and other stocks) to buy... can only sell.
If the knife drops because of this... I can't even.
"
Let's say it's hedge fund on hedge fund violence. Unless this is constrained by some sort of secret Wall Street omerta then its actually worse (and potentially far reaching) than Reddit getting lucky.
The thing that protects Melvin Capital while *publicly* going massively short on GME is the fact that Rival-x is short on something else so the network can send a message if Rival-x starts squeezing Melvin by nudging their hedges.
If the Rival houses are going to 'consolidate' gangland style... then *that's* the real story.
We don't know.
But on a much more prosaic level, we do know that some large 'outside' players were part of the movement since 2019... it's not 100% reddit, it has some 'institutional' backing, but that backing was fairly above-board that the fundamentals were excessively shorted and gambled by investing and taking a long position to acquire board seats... that's when Reddit really started to see the gamble pay-off - when the price moved from $4 to $10 to $20 - but that took a year.
"
Heh, twitter reporting that Robinhood no longer offers GME and other stocks.
Can *only* sell, not buy... is this the "coordinated exit" you were expecting?
Time to catch the falling knife.
"
Heh... not sure if I'm supposed to say:
So much for Unity
or
This is how you get Trump.
Something like that.
"
Thinking of Shorting GME now that its at $339.
Who's with me?
"
Unless THIS is your broker... or you're seriously sandbagging your SES then, no... your money is nowhere near this. Yet.
"
It occurs to me if Occupy had done this and Paid off a bunch of student loans, the entire course of history would have been altered...
"
New prediction... RoaringKitty and dozens (hundreds) go to jail on SEC collusion charges; proves that Market is, indeed, fair and free.
"
Me: 2nd time, this is too risky to get in early... pass
2nd Stock: Flies through roof, Redditors win
Me: 3rd time, this is too risky to get in early... pass
3rd Stock: Flies through roof, Redditors win
Me: Wow, this is really a thing... pushes in chips
4th Stock: Hedge Funds correct and crush movement
Me: Well, I didn't need *all* those chips anyway.