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If you’re new to high finance, then the concept of “shorting” is bizarre and convoluted. People actually make money from stocks falling? How is this possible? Why is it legal? Does this contribute anything to society? Am I missing out? Here’s how shorting works.

Let’s say you have a neighbor who is a cat lady that collects Beanie Babies. She has one prized beanie called Roary the Lion, worth \$5000 (according to the intellectual darkweb, where these things are traded). Unfortunately, she’s got some bills coming due this month and she doesn’t want to be forced to sell Roary. So you offer to borrow Roary from her for 3 months in exchange for \$200. She’s happy, because she’ll get her doll back in a few months and she now has enough money to cover her bills. The second you walk home with the beanie, you go online and sell it to the highest bidder. You manage to get the asking price, \$5000. Now fast forward 3 months. Suddenly Beanie Babies aren’t worth as much as they used to be. You see a mint condition Roary the Lion for sale at only \$100. You buy it, and give it to your neighbor. Done deal. It’s not the same doll your neighbor loaned you, but she can’t tell the difference. So during this whole process, you’ve only shelled out \$300 and you’ve made \$5000, for a total profit of \$4700. Your neighbor would have lost the value of Roary anyway because of the market crash, but at least she got to use that \$200 to pay her bills. This is shorting.

In the world of stocks, shorting is fairly common. You can find daily updates on the “most shorted” stocks, and see that hedge funds and individual traders are regularly making and losing millions of dollars by finding distressed or scammy businesses and shorting them. Occasionally short sellers will provide the markets with a valuable service — they will hire private investigators to go spy on businesses to make sure they are telling the truth about their operations. Sometimes the investigators will uncover major fraud, so the hedge fund will heavily short the company — sending a signal to other market participants: “Hey, check this out. It’s overvalued.” This is what some shorts attempted to do with Tesla. They flew drones over Tesla’s factories and storage lots, and reported that Elon Musk was hiding a bunch of unsold vehicles. This wasn’t exactly true, but the Elon-haters wanted it to be true, so they went with it. Tesla became one of the most shorted stocks of all time, forcing the price lower and causing Elon major headaches on top of his struggles with Twitter and the SEC. But the Tesla diehards believed in the company and trusted that demand for the vehicles would materialize eventually. When Tesla unexpectedly posted a quarterly profit, everything changed. The stock rocketed higher.

This brings us to another aspect of shorting that is a bit more interesting (and explains why it’s so dangerous). Let’s say you borrowed a bunch of Tesla shares at \$400 and immediately sold them because you expected the price to fall soon. But instead of falling, the price starts to climb. You are contractually obligated to buy these shares back before a set date, so you are sweating bullets. The higher the price goes, the less sleep you get. The only way for you to cut your losses is to buy the shares back immediately. But if you’re stubborn, you won’t do this. Surely the market will realize Tesla are liars, right? There’s no way electric cars are really that popular. If you went long Tesla (just buying and holding shares), your potential losses are limited to what you invested. So there’s a cap. But when you short, you could lose far more than 100%. Remember that you only paid a small fee to borrow the shares, you didn’t actually buy them. To close your short position, you have to buy the shares back, and that adds to the existing demand for the stock, which drives its price even higher. It’s like an insidious trap that clamps down harder on your foot the more you struggle. This is called a “short squeeze.” It can create a cascading effect where one unfortunate short buys back shares, forcing the price higher, which destroys another short above him, forcing the price even higher, destroying another short above him, and so on.

That’s what happened with GameStop. A ragtag group of Reddit daytraders called /r/WallStreetBets found an illiquid stock and noticed it was loaded up to the rafters with Minecraft TNT (shorts). So they set it on fire. It didn’t require a lot of money to make this happen, because GameStop is a small company and its market was thin. The price immediately shot up, forcing shorts to buy. The hedge fund Melvin Capital was in the eye of the hurricane because they bet billions on GameStop’s demise. The final amount of losses is not yet known, but it may exceed ten billion dollars, which could put Melvin’s Jewish founder Gabriel Plotkin out of business.

The usual suspects came out to defend the shorts, including a couple of angry billionaires complaining that working-class guys are manipulating the stock market using their coronavirus stimulus checks. But more alarmingly, we saw multiple brokerage firms halt trading on specific stocks mentioned by the Reddit crew, and even one unconfirmed case where brokers sold clients’ GameStop shares against their will. There is even word going around that the White House intervened, calling brokers to tell them to stop the buying.

The great irony of all this is that just a few years ago we were treated to regular articles in tech magazines and business newspapers lauding the advent of millisecond trading. Big-brained hedge fund managers lectured us about how they were providing a great service to society by creating automated trading bots that could buy and sell stocks hundreds of thousands of times per second. The greatest minds in computer engineering developed new and powerful optical networks to link these operations to Wall Street trading desks, achieving internet speeds exceeding a South Korean Netflix. But now we’re supposed to believe that in 2021, brokerages can’t handle a couple hundred thousand people buying shares of GameStop? Nonsense.

If this had been another hedge fund buying up GameStop to force Melvin Capital out, nobody would bat an eyelash. In fact, instigating short squeezes is an entirely legitimate hedgie strategy. What makes this frightening for the elites is that this was organized online and done in a fairly decentralized way. Once sympathetic populists got wind of what /r/WallStreetBets was up to, they instantly threw their hat in the ring (and many contributed by buying some shares). We saw the Winklevoss twins, Elon Musk, and nearly all of Bitcoin Twitter come out swinging in defense of this exciting sneak attack on Wall Street. Hilariously, a guest on Bloomberg said the incident was “as bad as the capitol riots.” Ben Shapiro appeared to straddle the fence on it, trying to keep his populist followers while also chiding them for having some lighthearted fun at the expense of his dual citizen cousins.

Frankly, we needed this. Even if it’s a one-off thing, it was a community experience that brought a lot of people together, produced a lot of hilarious memes, and created a memorable moment in an otherwise wretched sea of Oliver Twist slop. It also encouraged a lot of smart white men to research finance and economics, which is a plus.

Maybe this is the beginning of the end for the financial elites. A “stop” to their “game,” if you will.

(Republished from Counter-Currents Publishing by permission of author or representative)
 
• Category: Economics, Ideology • Tags: Corruption, Populism, Wall Street 
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  1. The lie at the center of this article is the word “borrowed”. The short-sellers did not “borrow” stock, they sold the fraud that they had borrowed stock to sell, when they did not. They did not have 140% of GME stock that they pretended to have borrowed, which is why the short was able to be squeezed. The shorts pretended to corner the market, but they were entirely naked.

  2. ‘Hilariously, a guest on Bloomberg said the incident was “as bad as the capitol riots.” ‘

    There are similarities, but not at all the ones the speaker seems to have had in mind.

    • Agree: Hibernian
    • Replies: @cranc
    , @Publius 2
  3. @Fozzy Bear

    Correct. Naked short selling is legal fraud. It’s difficult for honest people to understand why this is allowed.

  4. anon[263] • Disclaimer says:

    Best thing to happen to Wall Street, and the country. I hope this keeps up, brings down the whole damn thing. It’s already a sham anyway. Wall Street has been completely decoupled from Main Street for the last two decades.

    But even if this doesn’t keep up, it has struck fear into WS, that this could happen again at any time.

    Meanwhile, someone needs to sue Robinhood out of existence. How ironic that they named themselves Robinhood. Instead of robbing a few bad guys to give to lots of good guys, they rob lots of good guys to give to a few bad guys. The two founders of Robinhood, a couple of 35 year old Stanford grads, are already billionaires as the company was recently valued at \$6B. The good guys who got caught buying in too high can sue Robinhood to recover their losses.

    This whole episode exposes once more who the media, DC, SV and corporate America are for, not the little people, but themselves. Making money is a privilege for Jews only, everyone else can only bail them out through our taxes when they get too greedy and bring the whole thing down.

  5. Spanky says:

    Burn baby burn…

    Throw another \$100 (billion) on the pyre.

  6. WHAT says:

    Expect Michael Lewis to write a riveting book about it never.

  7. Bolteric says:

    Great article. You should also mention equity options as a way to play the down market. You buy a PUT option and that gives you the right to sell the stock (or put it on to the poor sucker who bet the opposite- that the stock would continue to rise.)

    The market is fascinating, gotta give credit to the Jews who made more so that way.

    • Replies: @Rev. Spooner
  8. polistra says:

    The stock market is a criminal gang. Everything that happens in the market is totally criminal by all conceivable definitions. Stealing a thing and selling it is a crime, no matter what you call it.

    • Disagree: Emslander
    • Replies: @Defcon
  9. nsa says:

    Put options are leveraged bets on future prices decreasing…..less efficient than futures but no margin calls and losses are limited to the price of the option. Retail traders (Robinhoodies) are considered to be the dumbest of the dumb money. As the old joke goes, there are two kinds of retail traders: those with losses and those that lie about it. Biggest mistake: holding an open position overnight and then getting trapped by a limit up or limit down at the next day opening……blowing through all the stops. Robinhood was actually caught selling stop data to inside traders………..

    • Thanks: Emslander
  10. Burn baby burn…

    Throw another \$100 (billion) on the pyre.

    I really do appreciate the sentiment. Blackrock/Fed or whatever their nom du jour is can add 100 trillion zeros to their accounts faster than it can be burned by noveau-deplorables, so WSBs need to exponentially accelerate the burn. I think the real trick would be to somehow remove scales from the eyes of the blind (normies) so they’d see the works of the mega swindler class in full living color. If this were to happen we might see some of the world’s nicest folks literally being burned at the stake … which would be so terribly, terribly sad.

    • Agree: Rev. Spooner
  11. @anon

    Right. The whole thing???Real estate,commodities
    politicians,the UNfederal no reserve,bond(debt markets)
    Asian governments,currency markets and the curtains
    these “superstar actors”hide behind. NCSWIC…
    Janet Yellin got \$800,000 in speaking fees alone.
    Million dollar book deals,grants,write offs, etc.
    Joe Biden and company wanted it,they’re gonna get it.
    Heaven help us

    • Replies: @Rev. Spooner
  12. Once upon a time, inventive and industrious men fabricated useful things. Then improved those things and the processes of fabrication. Then came the Jews.

    • Agree: phillip sawicki, Realist
  13. nickels says:

    Cool.
    So WallStreetBets is the new Q?
    Asking for a friend.

    When will the psyops end?

  14. The Talmudics will find a way to punish the goyim. Either by shutting this down for the future or somehow hijacking it and making it a way to line their own pockets. The goy must not be allowed to succeed.

    • Replies: @Whitewolf
  15. I would weep with joy if Xiden inherited a market crash rivaling the 1920’s! Go! Warp one, Sulu!!

    • LOL: chris
    • Replies: @anonymous
  16. Bert says:
    @anon

    The only way for you to cut your losses is to buy the shares back immediately. But if you’re stubborn, you won’t do this.

    The good guys who got caught buying in too high can sue Robinhood to recover their losses.

    LOL. Speculation requires discipline. Most people make decisions via emotions. No law protects such fools when they are making financial bets. Brokerage firms have the right to respond to market irregularities in order to protect themselves from customer defaults. That possibility is something any competent speculator should factor into his decisions. Greed generally outweighs fear among speculators, so the smoke goes up the chimney.

    Oh yeah, who is going to define “too high”?

  17. cranc says:
    @Colin Wright

    Joshua Browder (son of Bill) has stepped forward to lead a class action lawsuit against Robinhood’s blatantly illegal activity.
    Not someone I would personally trust to pursue justice or recompense.

    Could this thing be a set up trap like Capitol ?

    • Replies: @chris
    , @Street of wall
  18. Schuetze says:

    “Tesla became one of the most shorted stocks of all time, forcing the price lower and causing Elon major headaches on top of his struggles with Twitter and the SEC. But the Tesla diehards believed in the company and trusted that demand for the vehicles would materialize eventually. When Tesla unexpectedly posted a quarterly profit, everything changed. The stock rocketed higher.”

    Tesla is a fraud, but a fraud with a Fed put. As if wompy wheels, self-igniting batteries, suicidal FSD and the never ending drama of quality control deficiencies weren’t enough, it is Musk’s hucksterism, thuggery and blackmail of its employees that really tells the whole story. Musk should have been put in jail by the SEC years ago.

    About the only admirable thing Musk has done in his entire life is shaft California and move to Texas.

  19. Anonymous[401] • Disclaimer says:

    Some of the usual suspects in and around this comeuppance:

    Andrew Ross Sorkin…financial columnist for The New York Times

    Janet Yellen…Secretary of the Treasury

    Bill Ackman…founder/CEO Pershing Square Capital Management

    Gabriel Plotkin…Melvin Capital

    Steve Cohen…Point72 Asset Management

    All Amish folks.

    Right?

    • Agree: RedpilledAF
    • LOL: Realist, acementhead
    • Replies: @Irish Savant
    , @acementhead
  20. mcohen says:

    There is more to come except next time around it will be the hoods who will be robined.Be ready to stop the game.

  21. Har. SMAW only requires a crew of 2. Works great for light skinned armor.

    But can Gamestop or similar bust up Big Tech Media that put the firing squad to our 1st Amendment?

  22. JonT says:
    @Fozzy Bear

    Does that mean Gamestop never got the \$200 to pay their bills in the first place? RH had just sold the option? Is that correct?

  23. In the summer of 2008, I sat down with my then eight-year-old Chief of Research on my knee, and studied the Fortune 500, in terms of what companies were paying in quarterly dividends, and what percentage of share prices each dividend was.

    I was just about to pull the trigger that summer, when Bush II undertook the Great Billionaires’ Bailout. I held my fire, and resolved that if the feds were getting involved in the market, they would be picking winners and losers, and mostly people with insider information would make money.

    And that’s why I don’t play the market.

    But it gets better. As this episode shows, you have both private and public actors corrupting the market. So much for the SEC.

    • Agree: Marshal Marlow
  24. Dumbo says:

    So… I guess it’s to late now to buy GameStop stocks, right?

    I’m always too late and a dollar short.

    • Replies: @PsychelonB
  25. subversive says: • Website

    Thanks.

    Nice “Reactions to GameStop short squeeze” image !

  26. @Carlton Meyer

    Carlton! Morning. Good work in the New Year’s version of G2Mil. Always good to read ya.

  27. Chinaman says:

    a very large hedge fund lost 12% on that trade. 6% through Melvin. I have sources that said Melvin covered so I don’t know who is short here…l lost a bunch there..

    Was on a conference call with one of the protagonists ( S. C.) He said ” I don’t know what is going to happen” and “You Know” like 200 times and then said his traders are professionals. sounded like a complete idiot panicking.

    My advice is to buy some S&P puts, this ain’t going to end well. volatility spiking already.

    • Replies: @Happy Tapir
  28. Sirius says:
    @Carlton Meyer

    I don’t really see why it is allowed, other than perhaps it’s difficult to regulate. The way I understand it is that legitimate companies (not hedge fund gamblers) that are victims of shorting can be run out of business this way.

  29. “The final amount of losses is not yet known, but it may exceed ten billion dollars, which could put Melvin’s Jewish founder Gabriel Plotkin out of business.”

    And they told us Jews were the smartest people in the world…

    • Replies: @Realist
  30. unit472 says:

    Now if someone could find a way to take out those Private Equity vultures like WSB took out Melvin Capital America might get its industrial base back.

    • Agree: FLgeezer
  31. @Chinaman

    What are S&P puts?

    Could Melvin capitol have taken some sort of insurance on its positions to minimize or cover the losses? Would I be right in guessing this is all contrived and about giving money to one of these “guys” They are after?

    • Replies: @Emslander
  32. Publius 2 says:
    @Colin Wright

    Communists are evil. They really are.

    The entire point of the US constitution was to protect private property. All other rights are connected to that aim.

    Every “leftist” argument (and victory) the past 70 years has been about invading the property rights of the most productive people. It really is that simple.

    Forced integration, discrimination laws, “civil rights,” abortion, anti-family laws (no fault divorce), gay marriage and forced cake baking, transsexuals in girls bathrooms. It was all done to us on purpose.

    Heritage America did not vote for what has been done to us since 1945.

    The culprits are obvious. McCarthy was right.

    The culprits know that the people know. That’s why the extra hysteria since Trump came down the elevator.

    Every article here says it.

    The latest thing—GameStop short squeeze—again made them take off their masks (no pun intended). The usual suspects just humiliated themselves on TV. “Robin Hood” showed its ass when it was used to do what it’s name implies.

    “Big tech.”

    The question nobody will answer clearly: Exactly who is “big tech.” Lol. Everyone knows.

    Maddening.

    The same powers are big tech/media/finance/deep state/CIA/Hollywood.

    Robinhoodgate made the culprits compare these Reddit stock buyers to “1/6”. That’s an admission of guilt right there! They can’t have the “populists” benefiting from any type of collective action. “That’s not who we are.” “This is an attack on ‘our democracy’.”

    They don’t even pretend “our democracy” is anything other than elite control—the opposite of the popular will!!!!

    Do they think we are stupid, or they just don’t care?

    Everybody knows.

    What comes next?

    • Agree: Irish Savant
    • Thanks: Emslander, FLgeezer
  33. The funny aspect of this is that Robinhood’s business model is not based on commissions paid by clients, rather it is based on “payment for order flow,” and one of the biggest payors for that order flow is Citadel Securities, the same folks who bailed out Melvin Capital, their hedge fund client on the other side of the trade, after its shorts started going bad. So of course Robinhood (and they are by no means the only ones paid for order flow) is conflicted in that they can’t let one of their biggest sugar daddies take it in the shorts.

    Payment for order flow also meant that Citadel’s High Frequency Trading (HFT) systems had enough time to analyse and then front-run the order flow to profit from the knowledge of what was about to be traded, which works fine when the dumb money is buying very liquid large-float issues, e.g. Dow30 or most of the S&P100, but there was no way Citadel could frunt run on GameStop without adding to the hedge fund carnage. That’s not to say they didn’t, though. Remember they are profiting on both sides of the trade, though losing a few billion to insolvent hedgies is infinitely more damaging than losing retail order flow on a thin issue.

    Did Citadel lean on Robinhood? They didn’t have to, because Robinhood’s execs, being former HFT guys themselves, which is why they built Robinhood on selling order flow, knew exactly how things were unfolding throughout the value chain. The little people had to be stopped while the hedgies had time to lick their wounds, reload their shorts at the peak, and make up for the losses with the resulting downdraft from retail buys going bidless.

    One thing I doubt is that all the hedgies were losing. Sure, the guys with conviction were getting slaughtered. There had to be guys, however, who seeing retail size go against them, didn’t just close their short positions, rather they probably traded their position for a larger long position to carry the market with them and then sold at a profit higher up. And then, being greedy, reloaded their shorts, and got hit again by retail.

    It turns out democratising the markets isn’t such a good thing … for the criminal elite in the age of semi-unrestricted social media. Discount brokers and even “no charge” were a great thing when they lured dumb, disorganised money into the markets to be sucked up by the big boys, but now that a chink has been found in the armour, something must be done. That might be new regulations to prohibit collusion by market participants using social media; it would be interesting to see how that works out, given how HFT has made a mockery of front-running regs (Citadel got whacked for good, old-fashioned front running when they ‘misplaced’ customer orders while trading before ‘finding’ them, but not whacked for the HFT practises). Someone might also decide that higher retail commissions are a good thing … let’s go back to the 1970’s. You know … to protect the little people from themselves.

    • Replies: @Chinaman
  34. Emslander says:

    I’d guess that a lot of young guys thrown out of finance jobs at brokerages and hedge funds in recent years are at the center of these short squeeze operations.

    • Replies: @Marckus
  35. Defcon says:
    @polistra

    Not if a jew does it, might want to tone that antisemitism down a bit, wouldn’t want to risk being labeled a domestic terrorists would we?

    • Replies: @Rev. Spooner
    , @DrWatson
  36. Stefan says:
    @Carlton Meyer

    Even honest people easily understand the concept that selling something you don’t own is fraudulent. It happens in short selling because the SEC’s three day transaction settling time is a window of opportunity for this fraudulent trading practice (naked short selling) wherein the sell/buy transactions all happen within that 3 day window.

    • Agree: Realist
    • Replies: @ia
  37. Emslander says:
    @Publius 2

    I wish there was a button that says, “I agree a thousand times over.”

    A lot of truth is coming to the fore now that the rulers are out walking around with no clothes and pretending that they’re arrayed in new designs.

    Even the children can see it.

    • Agree: Old and Grumpy
  38. Mefobills says:
    @Carlton Meyer

    Correct. Naked short selling is legal fraud. It’s difficult for honest people to understand why this is allowed.
    ________________

    YEP. And the damage is much worse than honest people can comprehend. It is a systemic theft.

    At Robert Steele’s website phibetaiota there is a fair amount of content on naked shorts.

    • LOL: Marckus
  39. Emslander says:
    @Happy Tapir

    What are S&P puts?

    It’s a way to short all of Wall Street.

    • Replies: @Jiminy
  40. Mefobills says:
    @Schuetze

    Tesla is a fraud, but a fraud with a Fed put.
    __________________

    There is also a China put, and a California put, etc. There is a cross-over where batteries get cheap enough, and then ICE cars are road-kill.

    I guess BEV economics don’t work out, which is why GM, Volkswagen and others are comitting to electric? The “put” is only one factor in an mult-variable economic equation.

    https://www.gm.com/electric-vehicles.html

    GM is on its way to an all-electric future, with a commitment to 30 new global electric vehicles by 2025

    In Tesla’s case, they are not hypothecating cars, they are actually making them and building real physical infrastructure. The shorts were the market betting against Tesla’s strategy. The assumption is that Tesla profit taking was contingent on a government “put,” but that ignores the Battery cross-over point, where ICE cars are roadkill.

    In other words, an entire industry is being disrupted, so the profits will come later. This sort of shorting against Tesla is not naked shorting, but a simple gamble against a strategy.

  41. @Schuetze

    It’s only gonna get worse my friend. The electric car scam to soon be forced down all our throats.

    Accelerated Obsolescence
    https://www.ericpetersautos.com/2021/01/29/accelerated-obsolescence/

    • Replies: @Schuetze
  42. @Schuetze

    Agree completely.

    Add to that the utter narcissistic psychopathy evidenced by Muskrat towards the destruction of democracy in Bolivia when in 2019 Evo Morales was ousted in a US/OAS backed coup in Bolivia when Morales won in the first round of voting. Many people died in Bolivia protesting the open and obvious coup, and all Elongated Muskrat had to smugly declare was: “We will coup whoever we want. Deal with it”, thereby possibly confirming the rumors about it being US backed and in no small part to obtain the mining rights for lithium that Tesla and others were hoping to enjoy at sweetheart pricing: https://www.indepthnews.net/index.php/opinion/3735-we-will-coup-whoever-we-want-elon-musk-and-the-overthrow-of-democracy-in-bolivia

    I’m sure his satellite program “Starlink” will be completely benign and only there to simply bring oodles of peace and information freedom and rainbows to a world shortly to be saturated with 5G radiation…….. https://www.cnbc.com/2020/03/20/fcc-approves-spacex-to-deploy-1-million-antennas-for-starlink-internet.html

    • Thanks: Schuetze, Skeptikal
    • Replies: @Schuetze
  43. Did Colbert plagerize the Beanie Baby example from you?

  44. Marckus says:

    It is always fun when people get a taste of their own medicine.

    Short selling is legal and that’s all there is to it. Whether morally correct in another story. The goal of the investor or businessman is to make money and not indulge in questions of moral right and wrong. For sure this is an individual decision and again is reality. This individually chosen code of conduct is prevalent in all exchanges but in most cases is such that even the Devil would blush.

    Real Estate agents for example will happily tell you that the couple selling the house is going through a bitter divorce. Message ? Low ball the offer !. The salesman at the auto dealer will tell you with the saddest face that your trade in is worth \$500 and at that he is being generous. In the meantime he has not only jacked up the price of the new purchase but a few days later you see your trade in advertised for \$3,000.

    Hypocrisy enters the equation in that the house buyer will happily try to get the house for next to nothing in effect morally cheating the couple. However the same buyer manipulated by the car salesman will protest bitterly at the moral degradation of auto dealers and their staff.

    People who chose to play the Stock Market with real money soon find it is no video game. One is playing against the world so to speak with the sharpest minds at the table. Mefobills has an amusing cartoon to this effect. If you don’t know who is sacrificial pig then the pig is you.

    Anyway, while short selling is legal but may not be considered moral, the same result can be had by buying put options. Here the loss is limited to the purchase price of the option and this eliminates the unlimited loss that could be realised through shorting the stock.

    In any case I am very happy that the small guy stuck it to the Wall Street crew. Name it in James Brown style “The Big Payback”. If we continue to stick it to the powers that be in other ways, the elite may be more cautious and respectful toward the little guy. We use their own tools legally or morally right or wrong against them !

    This episode shows that we have a lot more power than we think we do. Part of this is our own belief but part is also the illusion of fear Big Brother projects. Bullies can be defeated when the Nerds form their own gang and chimp out !

  45. Realist says:

    People actually make money from stocks falling? How is this possible? Why is it legal? Does this contribute anything to society? Am I missing out?

    No there is only one reason why shorting was started…greed…there are no benefits to free markets or to society.

    Ava Rice is a greedy bitch.

    • Replies: @El Dato
  46. Marckus says:
    @Emslander

    Quite right.

    Its inherently unfair when you work as hard as the partner but at yearend you get \$200K and he gets \$20M plus perks like blow jobs, lap dances, Dom Perignon, caviar, and high end hookers, Caribbean vacations via the Corporate jet and top of the line condos in Manhattan.

    Revenge is sweet especially when you play by the other guy’s rules and win. Kudos to the youth for fucking Wall Street.

    • Replies: @DCThrowback
  47. Chinaman says:
    @The Alarmist

    , but now that a chink has been found in the armour, something must be done.

    Citadel down 2% this month…this Chink is invested…since 2013

    they have to lend to Melvinand take the hit so they themselves don’t have to liquidate their short books. Whole world deleveraging. More pain ahead.

    • LOL: The Alarmist
  48. Jiminy says:

    Thank Christ the loss didn’t turn out to be 6000 000 dollars. I couldn’t stand listening to any more griping.

    • LOL: Old Brown Fool
  49. El Dato says:
    @Fozzy Bear

    Yes. This article made me laugh but also needs a few diagrams depicting the flow of money, the flow of obligations and the flow of shares.

    Today: Gamestop, Market Distortions, and Manipulations

    Do not be afraid of naked shorts

    2008-0811: Short-Sale Restrictions Are an Exercise in Naked Power

    On July 29, the SEC announced that it would extend its original 10-day restriction on “naked” short sales of 19 major financial companies through August 12. Analysts across the board agree that this particular SEC rule, by itself, will have little effect except to raise transaction costs for those wishing to short Fannie Mae, Freddie Mac, Goldman Sachs, JP Morgan, and other powerhouses.

    However, in conjunction with the Fed’s recent lending operations to investment banks and Fannie and Freddie, the restriction on naked short sales makes perfect sense as part of a process of getting the public used to federal/private partnerships that would have been unthinkable before the credit crisis — especially from a “laissez-faire” administration.

    [MORE]

    Unfortunately, naked short selling is not nearly as exciting as it sounds. It simply refers to a situation where a trader short sells a quantity of shares before he has actually borrowed them from an owner.

    Some of the commentary on naked short selling has become downright silly. The naked short seller is not violating the laws of logic; certain bloggers write as if we should fear a rip in the space-time continuum centered on Wall Street. If a particular stock is illiquid, and a trader wishes to speculate on an anticipated hourly move in the share price, nothing is harmed by allowing him to sell 1,000 shares and then buy them back 45 minutes later; the broker can simply debit or credit his account accordingly.

    Of course, what is really happening here is that the broker is extending a form of credit to the trader, and the buyers of the “naked” shares (i.e., the counterparties to the initial short sale) are in turn trusting the brokerage. Because those 1,000 shares weren’t actually located and borrowed before the short sale, that transaction can’t be completed until the trader closes his position and buys back 1,000 shares (possibly from other individuals). At that point, any of the counterparties to the original short sale who maintained their purchase, can gain title to the shares out of the 1,000 the trader bought back when closing his position.

    This raises an interesting question: if the restrictions on naked short selling won’t do anything except throw red tape into the works, then why did the SEC do it?

    By itself, the move doesn’t really benefit the fat cat Wall Street bankers, because (as we’ve argued above) an insolvent institution won’t be helped much by bans on short sales, especially if those bans only apply to naked short sales

    The answer, it seems, is that the government is gradually eroding the remaining barriers between an explicit federal/corporate partnership with large, politically connected firms. With the bailout of Bear Stearns, the announcement of possible Fed purchases of Fannie and Freddie equity, and the restrictions on naked shorting of nineteen financial firms, the government is, step by step, desensitizing the public.

    In light of what has already happened, a basically irrelevant move to prohibit naked shorting of nineteen firms won’t lead to riots. But it is a necessary step along the way to announcements that would have led to massive protests had they occurred at step one.

  50. Schuetze says:
    @Mefobills

    “I guess BEV economics don’t work out, which is why GM, Volkswagen and others are comitting to electric? The “put” is only one factor in an mult-variable economic equation.”

    Of all UR commenters, I would have expected you, Mefobills, to understand that this entire BEV bubble is due to central banks. Largarde has already made fixing global warming part of the ECB mandate. Mark Carney is out shilling for it like a cheap whore. I believe Powell has also been blathering on about it. Meanwhile Musk commutes all over the planet in his gulfstream, daily.

    Musk’s “earnings” were not GAP, but the result of all kinds of dishonest and illegal balance sheet and income statement manipulation. Without all the massive subsidies Tesla never would have gotten started, it if had, it never would have been able to open a plant. He has waged a ruthless and what should have been illegal war against his critics on twitter, and even went so far as calling the Australian diver who rescued the Thai spelunkers “pedo guy”. I believe this is the only time Musk has lost a case in court, which is more evidence that the Kazarian tribe of usurers has his back.

    As far as GM, VW or anybody else being forced into the BEV market being evidence that this is the “future”, time will tell. I believe this is just another facet of the deliberate Cloward and Piven strategy to destroy European civilization.

    As a final note, Bill “save the planet from carbon” Gates has been in a bidding war for a giant jet leasing company. All these pedo-crypto jews have yaughts and private jets and multiple houses across the planet. They clearly aren’t worried about carbon pollution. Barry Sotero has seaside houses in Martha’s Vinyard and on Oahu. If you cannot figure out that they don’t believe in global warming from all their hypocrisy, then you really deserve to have Elon Musk as your idol.

  51. Realist says:
    @Fozzy Bear

    The lie at the center of this article is the word “borrowed”.

    Exactly correct, it is naked short selling and is common in the stock market and the precious metals market.

    • Replies: @The Alarmist
  52. You are contractually obligated to buy these shares back before a set date

    Not exactly.
    Shorting does not involve a deadline.
    But the shorters may get a margin call when their losses get too big relative to their starting balance.
    Margin call means that either you deposit more cash, close your positions, or your broker forcibly closes your positions.

    • Replies: @The Alarmist
  53. Jiminy says:
    @Emslander

    Don’t forget the r- soles who had “puts “on the airlines that flew into the three towers. Sheer audacity. They made a killing, but as far as I know they haven’t collected.

  54. Schuetze says:
    @Mustapha Mond

    Starlink is just pure unadulterated evil. How many times has his mars launcher blown up? Its as fake as the moon landings….

    Musk’s “boring company” tunnel under Las Vegas is another cheap and disgusting fraud. That the author of this article is so ambivalent about Musk says a lot about his lack of common sense.

    • Replies: @Schuetze
  55. El Dato says:
    @Realist

    No there is only one reason why shorting was started…greed…there are no benefits to free markets or to society.

    Much as we like a good comeuppance, this just isn’t true.

    • Replies: @Realist
  56. Speaking of selling stock you don’t own: in commodities markets cash-settled futures are legal. That means it is legal to sell commodity you don’t have!

  57. Schuetze says:
    @Johnny Walker Read

    I actually have a 2017 BMW I3. They are practically giving used ones away, depreciation on them is hellatious. I don’t use it for anything other than local trips and have a solar system so I get some of the power for it from the sun.

    Another important point about Teslas is than in order to get the range on them, Musk completely ignored how the batteries could be recycled. Other BEV manufacturers have taken this into consideration, not Tesla. Those batteries are even worse recycling nightmare than old wind mills.

    As an aside, I am renting a parking space to a Tesla owner. After thinking about all the spontaneously combusting Tesla batteries, I called up my insurance agent and now pay extra for additional coverage in the case that his car catches on fire.

    • Thanks: Johnny Walker Read
  58. Realist says:
    @Sirius

    I don’t really see why it is allowed,…

    It is allowed because it makes the wealthy, more so.

  59. cdelz says:
    @Fozzy Bear

    and there is where the regulators have failed.. as they do many times.

    Should not allow more then 100% to be borrowed. By allowing to do so is ‘watering down the stock’

  60. Well done lads. This is what it might have looked like if #OccupyWallStreet had been living in the 21st Century instead of the 1960s.

    • Agree: Charles Carroll
  61. anon[263] • Disclaimer says:

    Coincidentally, I’m currently reading Neil Barofsky’s Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street.

    Two chapters in and it already had me thinking, if a few meteors came down tomorrow, simultaneously struck and leveled NYC, DC, Hollywood and Israel, the whole world would actually be better off.

    Meanwhile, the Reddit vigilantes are doing what Occupied Wall Street and Osama bin Laden couldn’t. These guys are real heros, and smart ones too. Defeat the (((greedy pigs))) at their own game.

    • Replies: @Charles Carroll
  62. @Fozzy Bear

    “The shorts pretended to corner the market, but they were entirely naked.”

    Correctomundo!

    Naked short selling is supposed to be illegal. But the captured “Regulators” at the SEC have been looking the other way for years.

    “The Story of Deep Capture”

    https://www.deepcapture.com/wp-content/uploads/2009/08/deepcapture-the-story-v1.pdf

    What is really pathetic is the members of Congress acting like this is all news to them. When in reality they too have been personally profiting from naked short selling for years.

  63. Catdog says:

    The next target is physical silver to squeeze silver shorts. Some people claim that silver shorts are 500x the amount of physical silver. I don’t know if that’s true or if it will work, but I bought some. Silver is already up 10% since wednesday. Premiums for physical silver probably even higher if the supply is getting low.

  64. Realist says:
    @Temporary Insanity

    And they told us Jews were the smartest people in the world…

    Somehow the taxpayers will foot the bill.

    • Replies: @Gordo
    , @Larchmonter420
  65. The big plays today, according to WallStreetBets are BB, AMC, GME ,NAKD and NOK.

    https://www.reddit.com/r/wallstreetbets2/new/

  66. Realist says:
    @El Dato

    Much as we like a good comeuppance, this just isn’t true.

    List the benefits to society of short selling?

    • Replies: @The Alarmist
  67. Glenn Greenwald has a very good take on the Gameplay/Melvin Capitol ordeal.

    • Thanks: FLgeezer, Levtraro, Skeptikal
  68. @Mefobills

    GM is on its way to an all-electric future, with a commitment to 30 new global electric vehicles by 2025.

    It will be interesting to see where they think people are going to get all the electricity … heck, California can’t even keep its lights and A/C going in a normal summer.

    • Agree: Spanky
    • Replies: @mark green
  69. @Realist

    Exactly correct, it is naked short selling and is common in the stock market and the precious metals market.

    Which is why gold is still affordable … to make you think it is going nowhere.

    • Replies: @Realist
    , @Schuetze
  70. TKK says:

    • Thanks: FLgeezer, Skeptikal
    • Replies: @Bert
  71. @Realist

    Short-selling disciplines management of otherwise zombie companies, who take it in the shorts since much of their comp is in stock and options, to either improve the company’s prospects, sell to a another, or liquidate the company. Small investors would ordinarily take the hint and avoid the company’s stock rather than defend a dying company by pumping money into the hands of those taking the opportunity to flee.

    GameStop’s longer term prospects are dismal. It will probably die … almost certainly go into a bankruptcy that, even if the company survives, will see the equity wiped out. So, even if the WallStreetBets gang do extract billions from hedge funds … assuming that doesn’t trigger the collapse of the financial system … they will have to sell at some point to realise their gains, and given there is little underlying value for the next greater fool to buy into, there will be a river of tears for those who are the last ones holding.

    This was what was baffling last summer when the Robinhood crowd piled into Hertz last year even as it was entering bankruptcy. In fact, management considered issuing new equity with a prospectus that literally told new investors they would most likely lose all their capital.

    It sounds great to take on the hedgies (it’s much more fun to fire one), but you better choose your exit points when you put on your position.

    • Replies: @Realist
    , @MGB
    , @Poco
    , @Craig Nelsen
  72. F. Galton says:

    Shout out to Dave Ramsey and Index Funds. Kill your debt, starve the banks, and watch the turtle win your race.

  73. This should be a huge deal. It should be a great revelation. This is how to occupy Wall Street. More effort should be exerted in the future to do this and make it a trend. It should be our duty to organize and fight these bastards who are really our enemy. Seek out clubs that plan to do this again. I would gladly gamble \$1,000 to get back at them and keep doing it. They hollowed out our manufacturing base and made China a great power. They manufacture financial crises so that the Fed can bail them out with trillions.

    They are at war with us. The middle class lost trillions from this last manufactured crisis with the COVID shutdown. The billionaires made the same amount as the middle class lost. They are waging total spectrum dominance against us with financial warfare, bio-warfare, pharma-warfare, 80,000 Americans now OD every year, tech-warfare which knows everything about us and manipulates our minds, terrorism with 911 and its occult symbolism, the twin towers represent the gates to hell, and now they are going to wage a hot war against the American people the way they have been doing to the rest of the world now that they are going to fight “domestic terrorism.”  

    We need to keep thinking of ways to defeat them.

    • Replies: @Sollipsist
  74. @Carlton Meyer

    Yes it is fraud. As usual, we all know it is allowed because the middlemen make good money off it.

    We could accomplish the same bet by having the stock casino across the street from wall street stock exchanges.

    No “short selling” (gotta love those gimmicky phrases). Instead you enter the stock casino or access it online and place your bet. No short squeeze, no losing more than you bet. No distortion of the stock market. Everybody is happy except the brokers.

  75. You’re laughing, Jews are losing money on holocaust remembrance day and you’re laughing. You folks are heartless, worse than the Nazis. What do we need to do, disappear?

    • LOL: nokangaroos
    • Replies: @HeebHunter
    , @Alexandros
  76. Mefobills says:
    @Schuetze

    I thought about it and you have a good point. I stand corrected.

    • Thanks: Schuetze
  77. @Bolteric

    The trading on the stock market should be straightforward and not a casino.
    Why are you cheering? You are an idiot to say “The market is fascinating, gotta give credit to the Jews who made more so that way.

    • Replies: @SaneClownPosse
    , @Bolteric
  78. @goldgettin

    Whenever you see a name like gold, silver, pearl, think Amish.These are not their real names, they all wear camouflage and have blended in with the population. If you have doubts about someone, do a search.

    • Replies: @Hibernian
  79. Schuetze says:

    As is quite often the case, Andrew Anglin has the best explanation for what happened to Gamestop:

    “These Jews set up the “short sell” swindle believing that only Jews (or soulless scumbags who work for Jews) would ever have the ability to operate on the stock market at scale. They knew they wouldn’t ever rip each other off, elsewise they’d get dragged in front of the rabbinical council.

    You see: there is nothing preventing people from doing this, other than rabbinical councils. And guess what? Goyim don’t even know that those rabbinical councils exist! The only time you ever hear about it is when some Jew mentions it offhandedly, or it comes up in court that some Wall Street swindle was “supposed to be settled by the rabbis.”

    The most high-profile example is probably when Jared Kushner said that Chris Christie should have left his father’s crimes to the rabbis.

    Just in case you were sitting there, wondering why it is that no other Wall Street firm ever thought to get together and loot another for leaving themselves open like this – that’s why. Because Wall Street, like most other industries, is literally governed by rabbinical law.

    Yes, they do compete – but they compete to see who is best at screwing over the goyim. They invented this idea of allowing private people to do trades because they just thought they’d suck up everyone’s money, like any other online casino – then, the goyim pushed back.

    The rabbis, obviously, do not have the ability to call randos from the internet to one of their councils, so they have to use other things Jews control – such as the media and the government – to shut this down.

    But they sure are having a confusing time explaining to the goyim why it needs to be shut down. They’ve pretty much just resorted to calling them Nazis.

    Basically, the Jews are claiming that they’ve already gotten out of GameStop, and they’re done. But there is no evidence that is true. Andrew Left says he took a “100% loss,” which isn’t even possible, given the math here.

    • Replies: @acementhead
    , @Skeptikal
  80. nickels says:

    The whole narrative is baloney.

    Somehow the power of the 99% of the people went up against the big guys in the market and won!!!!
    Yay!!!!

    Wait.

    The 99% have %0.000001 of the money. Lots of them, banding together, are NOTHING.
    But they bullied wallstreet.

    Ok, yeah right.

    Just any one of these hedge fund managers have enough cash to send every last gen Z and millennial on a boat to China for organ harvesting.

    Not the true story.

    Players behind the scenes.

  81. ia says:
    @Sirius

    Naked short selling is illegal:

    Per SEC regulations, participants in naked short selling activities can be charged with a crime. In fact, in 2014, two Florida State University professors were charged with using a naked short selling strategy in 20 companies to earn more than \$400,000 in revenue.

    https://www.investopedia.com/terms/n/nakedshorting.asp

    The way I understand it is that legitimate companies (not hedge fund gamblers) that are victims of shorting can be run out of business this way.

    Short-selling cannot destroy a business if it’s making money. The point of shorting a stock is to make money in anticipation that the price of a company’s stock will go down. Profits or losses for a company are not the same thing as the price of its stock; but are usually related.

    • Replies: @FLgeezer
  82. Realist says:
    @The Alarmist

    Short-selling disciplines management of otherwise zombie companies, who take it in the shorts since much of their comp is in stock and options, to either improve the company’s prospects, sell to a another, or liquidate the company.

    Investors…large and small should do their homework before investing. That would eliminate the need for short selling.

  83. Realist says:
    @The Alarmist

    Which is why gold is still affordable … to make you think it is going nowhere.

    Yes, indeed. Gold is anathema to the lovers of fiat money.

  84. Charles says:

    I will check back to see if anyone is interested in answering this (and if no one is, too bad for me I guess), and I’m asking it here b/c there are a lot of Unz commenters more knowledgeable than I am, but the question is: will someone explain – at the level of “See Spot. See Spot run” – exactly what happened/is happening, and also would you define ALL of the financial terms being used? And a sarcastic “thanks” to everyone who tells me to “Google it”.

    • Replies: @JoeFour
  85. Schuetze says:
    @The Alarmist

    “Which is why gold is still affordable”

    The naked shorts on gold, and silver, are far more crass than Gamestop. Every bank that offers unallocated gold and silver accounts has “naked shorts”. Every central bank that has leased out its gold has “naked shorts”. Every gold and silver ETF that has paper gold and silver in their books backing investors that have the legal right to claim physical gold in effect has “naked shorts”.

    In the gold market this is known as rehypothecation, and it is claimed that gold has been rehypothecated, or naked shorted, up to 100x, or 10,000%. Gamestop was only shorted 130% of the number of is shares, or float.

    In principle, banks across the planet have massive dollar “naked shorts”. The Eurodollar market is dollar loans that are only backed by rehypothecation of Treasury bills, in some cases also approaching the level of gold rehypothecation This is like a chain around the necks of all the European banks, and whenever a European country misbehaves the US jerks on this “dollar naked short” chain. This also applies to all South American banks, African banks and Asian banks. Only Russia and China appear to be un fettered by this naked short dollar chain.

    Nathan Rothschilds famous quote is:

    “I care not what puppet is placed on the throne of England to rule the Empire, …The man that controls Britain’s money supply controls the British Empire. And I control the money supply.”

    Rothschild said this when the English pound was still the planet’s reserve currency. Now the Rothschilds have control of the dollar supply and every central bank across the entire planet.

    • Thanks: al gore rhythms
  86. ia says:
    @Stefan

    It’s more a problem with “failure to deliver” (FTD), rather than a settlement period, isn’t it?

    Failure to deliver is critical when discussing naked short selling. When naked short selling occurs, an individual agrees to sell a stock that neither they nor their associated broker possess, and the individual has no way to substantiate their access to such shares. The average individual is incapable of doing this kind of trade, but an individual working as a proprietary trader for a trading firm and risking their own capital, may have the ability to carry out such an order. Though it would be considered illegal for them to do so, some such individuals or institutions may believe the company they short will go out of business, and thus in a naked short sale they may be able to make a profit with no accountability.

    https://www.investopedia.com/terms/f/failuretodeliver.asp

    The Securities and Exchange Commission (SEC) banned the practice of naked short selling in the United States in 2008 after the financial crisis. The ban applies to naked shorting only and not to other short-selling activities.

    Prior to this ban, the SEC amended Regulation SHO to limit possibilities for naked shorting by removing loopholes that existed for some brokers and dealers in 2007. Regulation SHO requires lists to be published that track stocks with unusually high trends in failing to deliver (FTD) shares.

    https://www.investopedia.com/terms/n/nakedshorting.asp

  87. @Defcon

    I think I’m going to report you to Massa Unz. I was at the cross road when them police got my guitar.

  88. These kikes are just mad the goyim beat them at their own game. Their Wall Street rabbinical council can go and shove a haram uncut salami slab up their ass.

    Goyim: based and made it
    Kikes: mad and broke for a while, before the muttmerica prints them another trillion green toilet paper.

    Post number 88? The last Messiah smiles upon me. Stay mad, yids.

  89. @nickels

    That is way too simplistic. The based goyim on leddit gained access to kike insider trading info, and got the jump on them. And most of them were young people with at least 100k in liquidity. So they werent helpless.

    This is a good story and one of the only few good things, if not the only good thing, that happened these days.

    We should rejoice. The kikes will need a few more generations of control to complete ban goyim from trading and therefore shorting. Anyone with the means should contemplate on his plans and gain resources to plan for the dark times ahead of us all.

  90. @Rev. Spooner

    I have several train ticket coupons for our affected Jewish friends, hehe.

  91. Finally, a revolutionary strategy that strikes at the core of the modern establishment! Instead of an establishment that hasn’t existed for 60 years to a century. I cannot say how gratified I am to see it.

    And two birds are being hoisted with their own stones: Wall Street and the lies it operates under the shield of; and ID politics. It is gratified to see a whole raft of former or ostensible left-wingers online fulminating against wokeness.

    On the other hand, I thought all you fuckers on here believed in the “free market.”

    When I said, many times, that there is no such thing as a free market, you huffed and you puffed and you threw a tissy-fit.

    I’ll say it again. There is no such thing as a free market. At any time in history. Corruption is a bug not a feature.

    I wonder how long it will take you fuckers to turn this episode around and make it about race.

    A trice? A milli-micro-trice?

    Yeah, it’s the Negroes who are robbing you. That’s right. Keep thinking that–and you’re no better than a woke leftist.

    • Replies: @Exalted Cyclops
  92. @Undocumented Shopper

    Short-sellers also pay a borrow fee rate on the borrowed shares, which for GME was over 80% earlier this week versus a more usual 0.3% on other issues. It gets very expensive to stay short at that rate.

  93. JoeFour says:
    @Charles

    Well, I’m not sure there is a simple “See Spot. See Spot run” explanation other than to say that capital requirements hit RobinHood right in the geezer. ZeroHedge has a lengthy article exploring this regulatory angle that posted this morning. Included in it was the following:

    “But here is SilentCal (@KralcTrebor) with the best explanation of what happened that we have seen:

    “Here goes…

    “Robinhood (RH) is a broker. They don’t execute stock orders themselves. They sign up customers, route their orders to executing brokers, and keep track of who owns what. RH is also its own clearing broker, so they directly settle and custody their clients’ securities.

    “Yes, RH is paid by Citadel to handle executing some of its order flow. This isn’t as nefarious as it sounds – Citadel Equity Securities is paying to execute retail orders because they aren’t pernicious (like having 500x the size behind them).

    “RH customers buy and sell stocks. Those trades don’t settle (settle = closing, the exchange of cash for security) until T+2, two days later. Depending on the net of buys/sells, RH is on the hook to pay or receive that net cash. That’s credit risk.

    “NSCC is the entity that takes that credit risk. It matches up the net buyers and sellers, post-trade, and handles the exchange of cash for security. To mitigate the credit risk that one of the clearing brokers fails, they demand the brokers post a clearing deposit with them.

    “The NSCC is required to do this by SEC rule, tracing to Dodd-Frank. Here’s the details: sec.gov/rules/sro/nscc…

    “Everyone posts, and if a broker fails, then NSCC takes any losses out of that broker’s deposit, then some from NSCC, then from everyone else (the other brokers).

    [MORE]

    “This is a post-crisis idea encoded in Dodd-Frank that making everyone post collateral reduces the credit risk and systemic risk and such.

    “So how does the NSCC clearing deposit get calculated?

    “It’s basically Deposit = min( 99% 2d VaR + Gap Risk Measure, Deposit Floor Calc) + Mark-to-Market … math and jargon!

    “Let’s use an example. Say Fidelity has clients who bought 2bn of stock and sold 1.5bn of stocks. First, net down buy/sell between customers in the same stock.

    “Say that leaves 1bn buy and 0.5bn sell. Run some math to answer “that won’t move more than X with 99% odds in the next 2 days.” Let’s say that’s 3% of the net, so 3% * (1bn-0.5bn) = 0.15bn = 15m. That the 99% 2d VaR.

    “Next, we ask “is any one stock net more than 30% of the net buy/sell” … and if it is, then we take 10% of that amount and add it as the Gap Risk Measure. So if Fidelity customers bought 200m IBM, then add 20m to that 15m. That’s Gap Risk Measure.

    “Deposit Floor Calc is some thing that looks at the 1bn buy and the 0.5bn sell and does a small calc and adds them, so that if the first calc (99% 2d VaR + Gap Risk Measure) is small, then this floor will keep the overall from being tiny.

    “Then, last, you add Mark-to-Market. Basically if your customers bought IBM at 140/shr and it goes to 110/shr before it settles for cash at 140/shr, the NSCC has 30/shr of credit exposure to the clearing broker and that amount gets added to the required collateral posted to NSCC.

    “There are some other items, but that’s the basic idea – full details are here: dtcc.com/-/media/Files/…

    “The NSCC sets the framework, but it is spelled out in Dodd-Frank that they have to do so by law.

    “These deposits are held in the Clearing Fund at the NSCC.

    “Financials are here: dtcc.com/legal/financia…

    “They had 10.5bn in the Clearing Fund as of Sep 30, 2020.

    “This is the regime post-Dodd-Frank. NSCC updated it’s rules in 2018 to improve the VaR calc and to add the Gap Risk Measure.

    “How did this impact Robinhood?

    “Well, let’s say Robinhood had \$20bn of client assets starting 2021. Those customers used to trade \$1bn/d say. What is the context for Clearing Deposit? Say 2 days it’s a little unbalanced and it’s 1.2bn buy and 0.8bn sell. Ok, that’s probably around 12m, maybe 20m deposit.

    “If they take in \$600m of new deposits and say \$400m wants to buy GME. Plus of their \$20bn existing, say there is \$400m of GME buys over the past 2d. Then the picture could look like 2.0bn buys and 1.0bn sells, which might normally be 30m deposit. But volatility went up. A bit.

    “Now 99% 2d VaR is much higher. It should be 20x higher for their net portfolio, but the formula will smooth it out some. Maybe it’s ~4x bigger. So just on VaR, they have to post 120m now. That they should have.

    “The Gap Risk Measure is what kills them.

    “If GME is over 30% of their net unsettled portfolio, then they are required to post 10% of all the GME buys. So if that’s 800m, they have to post another 80m. And there is no limit to it. As long as their clients are up P&L, the mark-to-market covers it.

    “But if RH takes in 500m of new money and 300m buys GME, then at minimum they are looking at posting 30m+ from just that exposure at NSCC. They cannot use client money – RH has to use their own resources to post. And if GME stock drops, RH has to post the loss pre-settlement.

    “This would also explain why RH drew its credit lines and said vague things about clearing requirements. bloomberg.com/news/articles/…

    “The policy goal here is to avoid the central plumbing entities from taking credit risk. In reality, such regulations raise costs and create barriers to entry. It raises profits for entities like DTCC (which owns NSCC and is itself owned by Wall St)

    “RH offered to open up stock market investing more broadly. They succeeded, clearly. But the regulations didn’t change – there are still pro-Wall St, pro-incumbent rules and capital requirements. It’s one of the most highly regulated industries in our nation.

    “So @AOC is right to ask how it can be that Robinhood stopped its clients from buying certain securities. And what she’ll find is that the reason is that Dodd-Frank requires brokers like RH to post collateral to cover their clients’ trading risk pre-settlement.

    “And it isn’t the Fed or SEC who sets the rules. It’s the Wall St owned central clearing entity itself, DTCC, that makes its own rules. So when the retail masses decided to squeeze the short-sellers, in the middle of crushing them, it was govt regulations which tripped them up.

    “All of which leaves us wondering, with risk only having increased yesterday (from a VaR and thus capital perspective), regardless of who Robinhood borrowed the money from, or where it is now, it is ‘we, the people’ who are essentially the last line of defense against a complete financial implosion (and just like they were yesterday, will be sacrificed at the altar of Wall Street to ensure survival).”

    • Replies: @Charles
  94. @Publius 2

    Let me get this straight. The stock market is communist? Well, then, I guess socializing everything is capitalist! So you should be in favor of it!

    • Replies: @The Alarmist
  95. @anon

    A thread I think needs to be pulled hard is whether the WH actually did call brokers to stop selling. THAT is the bomb that could bring down the Biden regime by shattering the Democrat communist element.

  96. FLgeezer says:
    @ia

    Your typical hedge fund and your typical hedge fund manager (note the surname):

    https://www.foxnews.com/us/paul-singer-sidney-nebraska-cabelas-bass-pro-shops-merger

  97. The markets exist, at this point, for one reason and one reason only: to give money to rich people. It is an insider game, and if you’re on the inside you essentially can’t lose.

  98. Mikael_ says:

    A good and at times hilarious article,
    but marred by the presentation of Elon Musk as “a good guy.”

  99. @obwandiyag

    Privatise the gains, socialise the losses.

    Solidarity Baby !

  100. Gordo says:
    @Realist

    Somehow the taxpayers will foot the bill.

    Always.

  101. Bert says:
    @TKK

    At the time of Ackman’s appearance on CNBC the market was within three days of bottoming. Coincidence? Hardly.

    • Agree: TKK
    • Replies: @TKK
  102. @nickels

    This seems to have caught them off guard. They will probably hijack this method and group to win back their losses and destroy their enemies, the common people.

  103. AAAAAAAAAAAAAAAAAAAAAAA
    Stock market!
    Those who are part of the group who has insider information, They win.
    Individuals generally loose.
    Although there are some very rare exemptions.

  104. MGB says:
    @The Alarmist

    ah, yes, the collective hive mind genius of the market. just like evolution, an irresistible natural force. but you left out the part about hedge fund buddies intentionally running companies into the ground to the benefit of the shorts, or the chop shop parasites buying profitable businesses and selling off the hacked up bits because the collections of bits are more lucrative for certain investors.

  105. @Fozzy Bear

    You’re correct but it’s a bit of a push to say the author propagated a lie.

  106. anonymous[108] • Disclaimer says:
    @Cthulu Smith

    I laugh at you. Let the market crash, buy the dip. Biden and the market will rise like a Phoenix. Then you can kiss you Q ass goodbye.

    • Replies: @MGB
    , @Getaclue
  107. @Fozzy Bear

    The lie at the centre of this article may be this:

    …could put Melvin’s Jewish founder Gabriel Plotkin out of business.

    Correct me if I’m wrong, but brokers do not buy shares for themselves, they do it for others, from there the “other people’s money” thing. The broker makes his income from fees and skims. When the market busts, his customers lose money, the broker’s income was saved in a safe place. His company may be bankrupted, but tomorrow he is back in business under another name.
    Now, how many people’s pensions did mister Plotkin use to bet on others’ misery, and ended up losing it? How many average Joes woke up this week, with no pension, no savings, no trust fund, and they do not even know it yet, may even have partaken in the fun of destroying their own future?
    Change my mind…

    • Thanks: Escher
  108. “sympathetic populists” with money to play the markets. Tell me another one. Is this article an exposé or a coverup?

  109. MGB says:
    @anonymous

    Biden will rise like a Phoenix.

    the laugh of the day! biden is in a coma, the message just hasn’t reached the outer territories of his corpus yet. joe’s brain pulses are still running down copper telegraph lines, not optic fibres. with his limited IQ, the increased capacity was never needed.

  110. @Schuetze

    As far as GM, VW or anybody else being forced into the BEV market being evidence that this is the “future”, time will tell. I believe this is just another facet of the deliberate Cloward and Piven strategy to destroy European civilization.

    Salam brother,

    Not to destroy European (Christians) civilization and Muslim civilization but to preserve them from parasites. But first, lately CEO of Toyota made a statement that they the Toyota don’t see much future in electric vehicles and he listed several reasons for it. He also mentioned that Toyota has dabbed in it to keep their loyal customers satisfied.

    1. No benefit to environment as the batteries are charged by fossil fuels.
    2. The cost of batteries is very high which hoovers around \$20,000 per vehicle, making the vehicles very expansive for mass market.
    3. Battery have shelf lives, and have to be replaced every so often.
    4. Long downtime when during charging the batteries. It is not Gas’n’Go.

    Last years Elon Musk has sold slightly less than half a millions vehicles, in comparison to 82.5 million total vehicles sold. A drop in a bucket.

    Very early the parasites figured out creating mammon from thin air. Prince of Peace Jesus (as) warmed us about it. Every time, the mankind destroy parasite locally, but left the enriched mammon environment untouched in other places. So, the parasites moved to a new environment, the new host being full of mammon. The problem was shipped to next door. To really destroy the parasites the wealth of the world has to be destroyed and nothing less.

    Already Federal Reserve has become defunct and M1 has been destroyed with debit/credit and no money actually changing hands. Debit/credit; debit/credit; debit/credit. Covid-19 and Covid-21 is destroying all kind of investments. The only investment left is for investment sake in Stock, which also include crypto currencies, such as Bitcoin where no one has seen them or understand them now hoovering around \$35,000 a coin.

    Covid-19 has taught us that we don’t need much possession to survive and our daily needs are minutes. The rest is the greed for accumulation of mammon and the power which comes with mammon. The whole world is in cahoots to destroy this mammon, thus destroying the environment in which the parasites thrives. This is the only way to get rid of the parasites for a long, long time.

    A short clip is making rounds in the Middle East where two dogs (USA and Iran) are separated with metal guard. When the door is fully closed both the dogs are barking and trying to tear each other out through the guard. The door is then partially opened, and the dogs become calm and stay on their own side. The door is closed again, the barking and trying to tear each other out starts again. The door is partially opened again, and the calmness prevails. I believe you catch my drift.

    Very early the Bush Jr. removed Iran’s two enemies from power, Saddam and Taliban. And, Iran is in Syria now.

    Best regards,

    Mohamed

  111. @Realist

    Somehow the taxpayers will foot the bill.

    Salam brother,

    There is no such thing as taxpayers. In fact, it is the opposite! “Negative Income Tax” is being introduced under the disguised of Covid-19 and Covid-21. No more M1 (mammon) is being printed. It is all debit/credit; debit/credit; debit/credit where no mammon changing hands. It no longer matters how big the USA Federal deficit is. The deficit is only in the cloud!

    You file your taxes, and IRS will reimburse you money….

    Best regards,

    Mohamed

    • Replies: @Temporary Insanity
  112. TKK says:
    @Bert

    This sociopathic, premeditated predation is lauded by The Important People.

    A paid for egghead on Bloomberg said intervention by Robinhood was merited to “save the day traders from themselves.”

    Unbelievable!

    It’s gambling. People made informed bets and one side lost. That’s it.

    If shutting down trading because a billionaire hedge fund trader was taking a shellacking does not get people’s attention- it’s hopeless.

    Even Matt Tabili, Actual Journalist, said: These guys ever heard of a pitchfork?

    • Agree: MrVoid
  113. TKK says:
    @Fozzy Bear

    One of my dog’s name is Fozzy Bear.

    He’s a magnificent little fella! Body of a munchkin, heart of a lion.

  114. @Frank frank

    it wouldn’t simply because media wouldn’t report it and Conservatism Inc. would be too scared to bring it up.

  115. @Anonymous

    Pure cohencidence.

    • Agree: anarchyst
    • LOL: Sulu, GomezAdddams
  116. Hypothesis: it was an action orchestrated by big fish, the first step in a process of internal rearrangement in Wall Street before BrettonWoods 2.0. Not all investors went short, there were also long positions, 5 funds had + 50% of GameStop, BlackRock with 13.2% profited +2 Bn USD. They used Reddit to build critical mass. Control of Wall Street is consolidated in a few hands, in order to lead to a controlled demolition, where the narrative of the democratization of financial markets is functional to this process: the financial elites have been punished by the people, so now we can reset and start over.

    • Replies: @Catdog
  117. @Sirius

    The way I understand it is that legitimate companies (not hedge fund gamblers) that are victims of shorting can be run out of business this way.

    What you “understand” is wrong. A healthy company can not be harmed no matter how much its shares are shorted. Only scam companies that DEPEND ON RISING SHARE PRICES can be hurt by its shares being shorted.

    Volkswagen is a healthy company. A few years ago it was heavily shorted and there was a subsequent “short squeeze”. Volkswagen, the company, is still in fine financial condition. Below is the chart where you can easily see the squeeze.

    https://finance.yahoo.com/quote/VOW.DE/key-statistics?p=VOW.DE

    • Agree: Garliv, Kratoklastes
  118. Another day, another illustrated argument for secession from the federal mafia.

    • Agree: Charles
  119. Dutch Boy says:

    You had me at “which could put Melvin’s Jewish founder Gabriel Plotkin out of business.” Perhaps the poor fellow can learn to code.

    • LOL: Larchmonter420
  120. Getaclue says:
    @anonymous

    Nah — Biden or actually whoever is speaking thru him by the earpiece (“Salute the Marines”) will be crashing things so the NWO Great Reset — you eating bugs for breakfast — can take place — anyone not getting that what is planned is a complete serfdom for the Peons is a special kind of stupid at this point — and if you are not a Billionaire you are a Peon

  121. anarchyst says:

    Let’s “cut to the chase” and call it what it is…“jews are gonna jew”…it’s in their DNA.
    EVERY sordid and illegal scam involving money, the stock market, precious metals (gold, silver, platinum) and diamonds is run out of that “sh!tty little country” in the middle east–israel.
    Let’s not forget the forced “organ harvesting” from Palestinians, the “white slavery” (international underage prostitution) market and the outright fraudulent industrial espionage markets that are run by jews.
    It is long overdue for the jew “puppet masters” to be run out of country 110-the USA.
    A good example of parasitical jews exerting their “muscle” and double standards is that of “jews-only” communities that exist here in the USA. These “jewish communities” routinely flout civil-rights, fair housing, public accommodation, and yes, even business dealings as the “standards of normal decency and behavior” do not apply to jews.

    • Agree: Sulu
  122. @Schuetze

    “Without all the massive subsidies Tesla never would have gotten started, it if had, it never would have been able to open a plant.”

    Absolutely correct. Tesla owes its existence solely to moronic, lunatic-leftist politicians. Oh and also dullard ‘scientists’ such as Tim Flannery pushing the “climate emergency” fraud. Flannery is so stupid that he couldn’t get in to a science degree course so did a degree in English Lit.

    • Replies: @Bert
  123. @Schuetze

    Andrew Left says he took a “100% loss,” which isn’t even possible, given the math here.

    Well Andrew Anglin is wrong. If one shorted at \$150 or less on the 26th and was bought in next day then there was only about an hour in which the loss was less than 100%. Most of the day it was significantly more. Opened at over 300 and reached a bit over 370. Next day higher still for an hour or so.

    tinyurl.com/y2ewsy3z

  124. @obwandiyag

    I don’t disagree with your observation that there is no such thing as a free market. In a strictly literal sense this is absolutely true. Another statement which is probably more apt to the current situation is that there is nothing free about a rigged market. The usual idiocracy on the so-called conservative side buys into this lie from the usual suspects all the time.

    The interesting thing is that our so-called “free-market” system in the Rotten Banana Empire is not so different from that of the old Soviet Union: a small oligarchy controls the whole thing – lording it over the proles and zeks. The chief difference is one of “marketing”. The old Soviet bosses liked to pretend they were the representatives of the proletariat while our Banana oligarchs like to pretend they achieved their massive wealth and power through intelligence and hard work. Both are lies.

    There is a legitimate reason for state regulation of markets: to reduce and counter the amount of market-rigging. Laws against usury were a traditional method to counter the games of the usurers (lending fictional money created from thin air). The former USA never had effective laws against the practice, though the constitutional gold standard mitigated it to an extent. It wasn’t enough though.

  125. Sulu says:

    What? The Jews just got screwed playing their own shell game? How ironic!
    No doubt they will have some bought politicians give them their money back in the form of our tax dollars. Still, it’s quite hilarious to see people that think they always have the right to come out on top in every transaction squeal like stuck hogs when they lose money. To hell with them, I say.

    Sulu

  126. Charles says:
    @JoeFour

    I appreciate that you took the time to post this.

    • Replies: @JoeFour
  127. @Carlton Meyer

    Difficult indeed. There’s vast web of similarly manifest frauds woven by the High Tech Wall Street Casino — the epitome of late-stage crony capitalism. When an “indispensable” hedge fund is at risk, key platforms block trading and even the SEC awakens briefly to issue an “advisory”.

    Some frauds may be too elephantine to see. For instance, why is the Federal Reserve not federal at all? Can any nation be a sovereign democracy if its money supply is controlled by a private banking cartel with little transparency or accountability?

    And why/how are corporations classified as persons with greater civil rights than human beings? Is democracy possible when corporate persons have no campaign finance limits?

    Only a moderate dose of common sense begins to render this web transparent, exposing the sociopaths behind it.

    • Agree: Spanky
    • Replies: @Garliv
  128. Hibernian says:
    @Rev. Spooner

    Many non-Jewish people have surnames that have been changed one or more times, including Nordic Protestants such as the Mundahls, who changed their name to Mondale, as in Walter. Names such as Goldstein, Silverstein, and Pearlstine do not exactly serve as camouflage.

  129. troof says:
    @Carlton Meyer

    Who is the injured party in the “fraud”? It sounds like a stock contract so who cares anyway. that’s the difference between those who can exploit the structure and those who just “complain” about what they do not understand anyway. There is nothing special and holy about the stonk mrket

  130. @The Alarmist

    It will be interesting to see where they think people are going to get all the electricity … heck, California can’t even keep its lights and A/C going in a normal summer.

    This is an important point. It is central to the glossed-over, million-dollar question concerning the financial and environment cost/benefit analysis of switching to all-electric vehicles. Curiously, the alleged ‘need’ for all-electric cars has been conflated with a phantom crisis involving the imminent (but unproven) ‘catastrophe’ called ‘climate change’.

    As it turns out, building all-electric, ‘zero emissions’ cars has huge environmental costs. Why isn’t this fact front and center in the (non-existent) debate over electric vs gas-powered vehicles?

    Electric cars (and their batteries) require numerous rare metals. Acquiring these metals necessitates enormous amounts of mining. This causes immense environmental damage.

    What’s worse, the most efficient machines for extracting these metals require massive amounts of oil and gas. This exacerbates the ‘greenhouse effect’. This entire process eats up and destroys land as well as animal habitat.

    Plus there’s the matter of efficiency and price. Oil is still abundant and relatively cheap. Oil is also very versatile since it can be transported easily, unlike electricity.

    And what about consumers’ pocketbooks? How much will the price electricity rise when tens of millions of cars in the US aloe require daily charging? Any predictions?

    An eye-opening documentary on this subject can be seen for free below. It’s called ‘Planet of the Humans’. I recommend it highly:



    Video Link

    • Replies: @The Alarmist
    , @anarchyst
  131. Here is the truth:

    “You will own nothing and be happy”

    You are seeing an operation to condition the population, and to ultimately shut down an old Western civilization system known as the stock market. You will not be allowed to participate in corporate ownership post 2020. They are starting with this gamestop narrative to blame it all on a coordinated internet group attack (just like they said a coordinated assault on the capitol). It makes no difference that THEY actually coordinated it. The results is all they care about. I believe they coordinated this reddit group too. The “little people” ARE NOT this organized and funded to make gamestop and several other stocks go crazy. They especially are not funded to do it. Most Americans have under \$500 spare cash….that’s not enough to buy 10 video games on a gamestop shelf.

    The brokers now have all capped ownership of many stocks to one share. Here is a link

    https://www.zerohedge.com/markets/robinhood-caps-maximum-holdings-36-stocks-just-one-share
    It’s not just RH, Robinhood was copying the moves TD Ameritrade made. Don’t think this about one brokerage…it’s much bigger

    I repeat, this is not a grassroots movement to attack a big hedge fund. It’s a counter-operation to make it look like a grassroots movement attacking a hedge fund while they proceed to keep the “little people” from buying shares!

    • Replies: @troof
    , @Corrupt
  132. @Marckus

    sounds like another viewing of JC Chandor’s “Margin Call” (2011) is in the offing

  133. @Publius 2

    Do they think we are stupid, or they just don’t care?

    Yes.

  134. Poco says: • Website
    @The Alarmist

    A lot of these people don’t give a damn anymore. It isn’t about making money. It’s about shitting on the money extractors.

  135. @Dumbo

    First off, you make your own calls, not financial advice,. You could investigate & follow the group doing this. Perhaps it can be replicated. Idk. There are people claiming to be working on software that de-centralizes their group to make them impossible to be censored/shut down (so long as Jews don’t go Cheka/NKVD, which they generally seem like they are working to do).

    The group organizing this stock buy up is at least claiming to not aim to get rich quick. They’re holding to actually hurt our enemies for a change. It isn’t a deathblow by any means to Jews foundation of their power. So long as their federal reserve hoax runs they have unlimited currency. Type it up into existence whenever they wish.

    • Replies: @troof
  136. Retroactively backdating stock is another sure way to earn millions overnight and it is legal.

  137. troof says:
    @Team of Donkeys

    an old Western civilization system known as the stock market

    Not that old; something which develops in cities. Also completely pointless, it ignores what it really means to “own” anything.

    • Replies: @Team of Donkeys
  138. troof says:
    @PsychelonB

    There is always “unlimited currency”, it’s just a bookkeeping system. The value is mostly in the demand for international reserve currency, aka “petrodollars”. Not a hoax, a real thing.

    You will never accomplish anything on your own, attention span too short.

  139. @mark green

    And then there is the environmental impact of disposing of EVs once they’ve reached their end of life, not to mention tyres.

    Joule for Joule, a diesel vehicle is more environmentally friendly than a comparable EV over the entire lifecycle of the two.

  140. anarchyst says:
    @mark green

    Far from being “fossil fuel”, hydrocarbons are not only plentiful but are being renewed by yet-unknown processes deep within the earth.
    The term “fossil fuel” was coined in the 1950s when little was known about the processes by which oil is produced. Oil is “abiotic” in nature, as even depleted oil wells are “filling back up” from deep below the earth’s surface.
    Oil interests are drilling wells at 5,000 feet, 10,000 feet, and 15,000 feet and deeper, and coming up with oil deposits way below the layers and levels where “fossils” were known to exist.
    As Russia gained much expertise in deep-well drilling and coming up with oil deposits far deeper than that of the level of “fossils”, abiotic oil at extreme depths was actually a Russian ‘state secret” for a long time.
    Not only that, but there are planetary bodies in which hydrocarbons are naturally occurring (without fossils).
    “Peak oil” and “fossil fuels” are discredited concepts that environmentalists and others are latching on to, in order to display their hatred of oil being a truly renewable resource as well as to push prices up.
    Follow the money.

    • Thanks: FLgeezer
  141. We just know Biden and the Government will put an end to this quickly, as Robinhood finally did.

    The Stock Market is only for the RICH to make money, and this will quickly be corrected and “regulated” (unlike what the REAL PLAYERS do.

  142. @Charles Carroll

    \$1k into GameStop in October would have given you \$57,920 this week. That’s a nice incentive for someone who wants to strike a tangible blow against ‘the system.’ Looks like it’s time to shift the focus from “raising awareness” and “political action” and concentrate on hitting them where it really hurts.

  143. It would seem Robin Hood isn’t all that into stealing from the rich and giving to the poor after all.

    He’s got an improved model.

    ‘Restrictions on Robinhood traders got tighter throughout the day on Friday, only allowing clients to buy a single share of GameStop.

    The stock trading app also expanded its list of restricted stocks from 13 earlier in the day to 50.’

    The whip is definitely coming down, ain’t it?

    • Replies: @Marckus
  144. Not only that, but there are planetary bodies in which hydrocarbons are naturally occurring (without fossils).

    Don’t even have to be a planet, a moon can do.

    “Titan hosts within its polar lakes “hundreds of times more natural gas and other liquid hydrocarbons than all the known oil and natural gas reserves on Earth.” ”

    https://en.wikipedia.org/wiki/Lakes_of_Titan

    Wikipedia isn’t always wrong.

  145. SafeNow says:

    “And they told us Jews were the smartest people in the world”

    My plumber and my electrician are the smartest people in the world.

  146. @Frank frank

    Are you referring to that “I work for robinhood but not in finance” email where the anonymous whistleblower said the WH interfered?

    Definitely worth investigating.

  147. mcohen says:

    thanks for the explanation.only a matter of time before this financial warfare would fire up.I believe that this all has its origins in the September 2019 Bank rescue by the fed.

  148. Many people name the Fed, Wall Street, Citadel, RobinHood, and etc, but few are openly naming the Jew.

    This is really Jewish Power circling the wagons. Jews in Wall Street, Jews in D.C., and Jews in Big Media all working together to keep their game going.

    Ben Shapiro says Wall Street is not like a casino, and he’s right. A casino is more fair. Whether billionaire or regular Joe, everyone plays with the same odds at the crap or roulette table.

    But in Wall Street, it’s rigged to favor the big players over the little guys. It’s worse than a casino.

    Anyway, if people would name the Jew, they’d be better able to connect the dots as to why such and such company and such and such institution are working together to stick it to the little guy. Who controls Wall Street, Big Tech, Big Media, and Big Government? Jews.

    Just like Stratton Oakmont wasn’t some blue blood company but a Jewish scam operation, all these brands and labels just obfuscate the obvious truth: Jews got it all and wanna keep it all.

    And as long as people don’t call out on Jewish Corruption, they won’t get to the heart of the problem.

    Money Corruption stems from Moral Corruption of the Jews. But as long as we can’t call out on JEWISH moral corruption, Jews get to keep rigging things so that they take all the money.

    Name the Jewish Factor in the moral corruption, and the world of money will be much cleaner.

  149. nickels says:

    False flag.

    Chinese money coming in through reddit.

    https://www.pscp.tv/w/1yNGaWnBZvrxj

  150. Lagertha says:

    more to come! Love it! Youngsters vs. pedo Banksters!

  151. Lagertha says:

    Pedo Banksters must be destroyed!

  152. Lagertha says:

    more to come! Love it! Youngsters vs. pedo Banksters! Deplorables 1 ; Elites and Bankers/Pedos 0

  153. Skeptikal says:
    @Sirius

    Absolutely. It’s an old trick, dating back to the robber barons. Especially John D. Rockefeller.
    They played Wall Street like a violin to drive competition out of business, drive up their own share prices, corner markets, start runs on stock for their advantage and competitors’ disadvantage—or, make that ruin.

    You learn about all of this in the very readable “The Robber Barons” by Matthew Josephson.

  154. @Fozzy Bear

    this is 100% correct.

    it is naked shorts.

    it is fucking up the hedge funds.

    they all fucking deserved it.

    and this is another proof that news is fucking fake and owned by the corps.

    i was too afraid to dip my toe in this mess. still am. but it is the greatest entertainment since 2019.

  155. Skeptikal says:
    @Schuetze

    “They invented this idea of allowing private people to do trades because they just thought they’d suck up everyone’s money, ”

    Well, they also sucked up their data, to use to create algorithms and who knows what else.

    It is a form of cannibalism. These companies are not *offering* anything; they are *stealing* the personal data of anyone who uses their app for whatever the eff it is.

    FaceBook, Robinhood—cannibals.

    I don’t see what the point is of Robinhood. Why don’t people use online discount brokers such as Ameritrade and others?

    I wonder whether Ameritrade is data mining . . .

    • Replies: @Schuetze
  156. chris says:
    @cranc

    Interesting point, but I think a trap would not have involved billions of \$s in loses. A trap would have been more like the Capitol protests, involving little actual damage but lots of propaganda photo-ops.

    Still, for me, the Wall Street insurrection does look a lot like the antifa riots, where you have the cops playing Keystone roles and you’re looking for the puppeteers.

    In the age of public theater, it’s hard to believe in well coordinated but undetected spontaneous acts.

  157. Garliv says:
    @Doug Hillman

    You say it well. It boggles the mind why such key institution like Federal Bank is not actually Federal. That somehow Wall Street essentially operate Stock markets like mobsters’ casino.
    Unfortunately the level of awareness among the public in the US and Europe and everywhere else is so brainwashed that these cartels have nothing to fear. The political leaders and mainstream media are well paid and or blackmailed by the cartels to do anything.
    We are doomed for another 100 years.

  158. Jiminy says:

    What I found surprising was jews don’t charge other jews interest. Listening to ex moneyman, now rabbi “ what’s his name” on the Internet, he said that when giving loans to fellow jews, it’s wrong to hit them up for interest. Alright to charge the White sucker though.

  159. @Rev. Spooner

    What do we need to do, disappear?

    It would save us a lot of trouble.

  160. Oy Vey! Six billion shekels. It’s another Shoah!

  161. Bert says:
    @acementhead

    Tim Flannery predicted that the Central American Amerindians will replace the European-Americans. When I read that, I detected a smile of satisfaction on his face. Clearly he is dumb. He doesn’t understand what happens when you heat a closed can of soup to 500 degrees in campfire.

    • Replies: @Skeptikal
  162. @cranc

    Read Wall Street on Parade for an interesting take.

    • Replies: @James Forrestal
  163. Whitewolf says:

    As someone who likes a gamble I don’t see anything wrong with what the hedge funds or the reddit guys are doing. Up until the RH started doing shady stuff like limiting buy access for stocks and selling people’s shares without permission it was all just good fun.

    The hedge funds should take the haircut they set themselves up for. If that means some billionaires go broke then so be it. They made a bad bet and lost. They should pay up just like any other gambler on the stock market does when they lose. I get the feeling that RH itself won’t be around long and will be one of the biggest losers.

    • Agree: MrVoid
  164. @troof

    It is old, stocks go back to 1606. That is the cradle of modern western civilization.

    Just consider the implications of not being able to financially invest. No retirement options, you are a slave working for mega corporations for ubi, the old system is being “reset”

    You are a little wrong on your understanding that stock ownership isn’t “owning something”. Things have changed that have hijacked the system to a great degree but the concept of taking ownership of the company still exists. If you buy 51% of a company stock I promise you they will take your phone calls.

    • Replies: @troof
    , @Onan the Barbarian
  165. DrWatson says:
    @Defcon

    Right on. Haaretz already noticed: https://twitter.com/haaretzcom/status/1355120525119393792

    The video game store sits at the center of a dramatic “short squeeze” that has market watchers wondering whether stock trading could forever be changed. Multiple prominent Jewish money managers are involved in the saga, on both the winning and losing sides. Online antisemites have noticed, seizing the opportunity to connect it all to age-old stereotypes about Jewish manipulation of the financial world.

  166. Skeptikal says:
    @Bert

    Revenge—or return?—of the Neanderthals.

  167. Catdog says:
    @Perifractal

    My finance guy told me that none of the three firms that own more than 10% of GME are allowed to sell right now. You can only buy/sell once every six months when you own that much of a company.

  168. @Larchmonter420

    Mammon worshippers have been given the earth and it’s being valued by them at such a number, say, a gazillion trillion, that it is no longer important how much money they print because the rest of us are here only to enjoy their assets (the earth) momentarily; i.e. eat, shit, reproduce (more slaves) then at last die but the world remains theirs for the eternity. What a magical formula!

  169. Whitewolf says:
    @RedpilledAF

    The Talmudics will find a way to punish the goyim. Either by shutting this down for the future or somehow hijacking it and making it a way to line their own pockets. The goy must not be allowed to succeed.

    Anything they do to attack the reddit guys will only hurt the reputation of tbe US stock market. A short squeeze is a legitimate play regardless of who does it. The world is watching this thing and I don’t see how they can hurt the reddit guys without hurting wall st. If they were just running a pump and dump operation on the reddit guys that would be fine. Brokers like RH not letting them buy stocks to help out hedge funds is just plain cheating. In a fair market the hedge funds would have been destroyed.

    • Agree: MrVoid
  170. Schuetze says:
    @Skeptikal

    Likely a large part of Robinhoods appeal to idiot millenials is “the app”. Shiny bling conquers shallow narcistic stooges every time. Tic Toc anyone?

    TD Ameritrade (it now belongs to Toronto Dominion Bank IIRC), Schwab and Etrade were all forced to offer “free” trading because of Robinhood’s model. This kind of (((predatory))) capitalism has happened in waves over the last few decades. In the cases of Google, Twitter, Facebook, Amazon and Youtube we must recognize that the usual kazarian gangsters used their jewish power and control of the government to offer bandwidth and infrastructure for free, legal protections and regulatory capture, and of course free promotion through the cabal owned media and Hollywood. The competition had no hope of being able to meet the massive multi-spectrum subsidy. The game was rigged by the (((usual suspects))). The discount brokers were forced to capitulate and likely will disappear in the next decade.

    In the case of Facebook they were able to demolish myspace for no understandable reason. Google was able to demolish altavista and others in the same fashion. Ditto youtube and Amazon. It wasn’t due to better talent or better product, it was just kazarian gangsters looting and pillaging.

    It is this collusion from within the chosenite tribe that works against the goyim in all facets of our civilization. Universities, banks, justice departments, legal bars, medical profession, “science” are all first cracked using charges of racism and the culture of critique, and once the jewish trojan horse has arrived the flood gates are opened. As each region of our civilization falls to the kazarians, the situation becomes even more hopeless.

    Of course the shabbez goyim will start blathering about “good jews” while ignoring their blatant and crass in-group preferences because the jews that own them lie so well. Jews themselves will kvetch and fling holocaust spittle at goyim so impudent as to mention what is happening right underneath everyone’s noses.

    • Replies: @Skeptikal
  171. @DrWatson

    Haaretz already noticed:

    Yeah, that same piece is on the Times of Israel and JTA as well.

    Bronze Age Pervert makes a good point:

    Back to the piece that you linked… looks like this narrative is something of a kosher sandwich — or perhaps even an entire deli:

    “The main squeeze victims in this story are Steve Cohen and Gabe Plotkin, two Jewish investors who are also two of the most successful hedge fund chiefs on Wall Street.”

    “But they aren’t the only Jewish characters involved. Ryan Cohen, founder of the successful pet products company Chewy, is the largest stakeholder in GameStop, with about 9 million shares, making him the big winner of the week. As of Wednesday, he had made \$3 billion in a matter of days from the fallout.”

    “Then there’s Jewish troll extraordinaire Dave Portnoy, founder of the hugely popular blog and social media company Barstool Sports, who has emerged as one of the leading public advocates for the mass of small investors who mostly remain anonymous on sites like Reddit.”

    Also noteworthy for those unaware of the deeply semitic nature of antifa — the author of the Haaretz piece quotes a notorious antifa operative, doxxer/ riot organizer “AntiFash Gordon,” characterizing him as a “world authority” on the so-called “far-right” [aka normal White people].

    “AntiFash Gordon,” of course, is entirely on the side of the hedge funds — as are a number of other prominent antifags.

    “Anarcho-communism” in action:

    • Replies: @DrWatson
    , @RedpilledAF
  172. @Rev. Spooner

    I took that as /sarc.

    They are always finding ways around any law/regulation, whether it’s their God’s or Man’s.

    Each Passover, they are supposed to sell their dishware, (why I don’t know, some archaic rule from the distant past). This practice has evolved to a scheme, where the Jew sells his dishes to his rabbi for \$x, then after Passover, the Jew repo’s his dishes for some multiple of \$x that goes directly into the rabbi’s retirement fund. The dishes never leave the cupboard, just the “title” is passed back and forth.

    Second example, in Brooklyn, there will be a inert wire strung around a block for the purpose of enclosing the block as one contiguous “household”. This is to get around Sabbath restrictions on what one can do outside of one’s household.

    Both of these examples were related to me, without irony, by practicing Jews.

    • Replies: @Skeptikal
  173. troof says:
    @Team of Donkeys

    1606 is not the “cradle” of anything except modern capitalism, and it doesn’t seem that old to me at all. There are no implications to “financial investments” it’s just a mirage of stories about trading shares in nothing. Real “ownership” of things and places starts with actual possession, so “the concept of taking a company” is meaningless. Possession is 9/10th the rule and this “stock market” relies on huge swathes of mental indoctrination to survive and keep the workers in line.

    What counts is what I have in my hands, and UBI is hardly a form of “slavery”. We are all “enslaved” to our dependency on technology and socially organised economies, but that’s true with or without stock corporations. If you think “freedom” consists in relying on an ephemeral “stock market” to magically “invest” digits on a computer screen that mostly relates to nothing anyway… since 1606 most wealth has been held in the form of real capital, like houses, farms, local business, tangibles, and meaningful relationships with other people who reciprocate in turn.

    A constitutional guarantee of subsistence and general protection is essential to all “investments”, just like in the capitalist age the whole FIRE sector is really an extension of any government, and cannot exist outside of the State itself.

  174. @Street of wall

    Read Wall Street on Parade for an interesting take.

    That is interesting. That guy (originally doxxed by CNBC, I think) is likely to get thrown under the bus by the time they wind up this whole narrative, and his backer(s) will never be publicly identified. In the meantime they’ve got a great “little guys band together to take on the hedge fund oligarchs! David vs. Goliath! Robin Hood!*” vs. “muh ‘antisemitic’ nazis/ bro culture” dialectic going.

    Looks like the main beneficiaries are Ryan Cohen, Michael “Big Short” Burry, and…

    “Reuters is reporting that the giant asset manager, BlackRock [aka the Fed/ the Treasury Dept], “owned about 9.2 million shares, or a roughly 13% stake, in GameStop as of Dec. 31, 2020,” and could have made upwards of \$2.4 billion on the rise in the stock since the end of December”

    Though the significance of that is unclear, given BlackRock’s sheer size. They probably own 13% (or more) of a lot of corporations.

    *The trading app “Robinhood” is at the core of the narrative, of course. And Joshua Browder — son of notorious (((American/ British/ Russian))) oligarch Bill Browder — who is involved in a class action lawsuit against Robinhood? He’s been hyped as the so-called “Robin Hood of the Interwebz” by various “news” outlets in the past.

  175. Bruno says:

    Very clear.

    It’s the same crowd as Jordan Peterson followers. Young mostly white males in their 20-40 and with a low expectations to potential ratio.

    That kind of human material makes extraordinary movements possible and could bring welcomed dramatic change.

  176. Did I just hear that Biden’s DOJ announced that the small investors that bought GAME STOP, will be investgated? Bizzaro world.

  177. Schuetze says:
    @James Forrestal

    Here is the wallstreetonparade article:

    https://wallstreetonparade.com/2021/01/gamestop-promoter-keith-gill-was-no-amateur-trader-he-held-sophisticated-trading-licenses-and-worked-in-the-finance-industry/

    “The largest brokerage firms on Wall Street would never allow a Registered Rep to use multiple anonymous user names and promote a \$5 stock to a mass public audience because there would be no way to know if it was a suitable investment for the level of risk the individual person could afford to take. The bulk of lawsuits that are brought, and won, against brokerage firms are for “failure to supervise.”

    Gill’s YouTube videos did offer a scrolling statement at the end to the effect that this was not meant to be personal investment advice. But if it wasn’t, why was he putting it out on a mass medium like YouTube.

    Gill has another potential problem. According to media reports, Gill was posting copies of his brokerage statements at E-Trade showing his GameStop position making millions of dollars in a short span of time while he was employed at MassMutual. Under FINRA Rule 3210, a licensed broker must first get permission from the broker-dealer where they are employed to open a trading account at another firm. ”

    Keith Patrick Gill has the typical kazarian schnoz and he certainly behaves like one:

    • Replies: @James Forrestal
  178. THE HEDGE FUND CRIES OUT AS HE SHORTS YOU…

    • LOL: mark green
  179. @DrWatson

    Kristalstock: Never forget the six million shares.

  180. Cowboy says:

    Brillant! A popular castration. They’re addicted to liquidity so you drown them with it until they choke and die. Sound familiar ? Call it the Sackler strategy.

  181. @James Forrestal

    Didn’t Ryan the Chewy guy mount some kind of boardroom putsch against the remarkably non-tribal Sherman setup? But adroitly dodged being in the hot seat if and when it all goes t1ts?
    Did he and his associates start this whole pumping operation back in November or thereabouts?
    https://marketinsider.net/ryan-cohen-open-letter-to-gamestop-board

    • Replies: @James Forrestal
  182. DrWatson says:
    @James Forrestal

    I looked up this Antifash Gordon person and he is a real lowlife. He is employed by St Lawrence Univ at Canton, NY where his father is a retired prof, it seems: https://thehillnews.org/news/thao-nguyen/st-lawrence-university-and-christian-exoo-facing-lawsuit-for-doxing

    He works as a building superintendent. How appropriate, in Hungary building superintendents used to report on the tenants to the secret police in the 50s, the most brutal Communist era here.

    Look at his avatar at twitter https://twitter.com/AntiFashGordon and his real-life image at https://thepostmillennial.com/antifa-activist-encourages-people-to-steal-from-his-university-employer

    He, as well as St Lawrence U, also twitter was sued by the man D’Ambly, whom he doxxed and harrassed by his many followers (see link above and here: https://www.law.com/njlawjournal/2020/09/21/twitter-faces-lawsuit-by-man-doxed-as-white-supremacist/?slreturn=20210031061751).

    There is a collection of info on him here: https://patriotfriends.club/index.php/your-profile/video/86-christian-exoo-aka-quot-antifash-gordon-quot-accused-of-blackmail-saying-the-n-word-and-creepy-behavior-towards-underage-girls?fbclid=IwAR3UYiJxqaKqYFQWIpYnLiZUdkWZ081bHm71qtQwk11sgK3pNnX0fFFadaw

    He was once an aspiring actor, appearing in a sex scene, having oral sex with a decapitated head.

  183. I’ve used put options to short stocks that I already held long in my portfolio in order to take advantage of what I thought were short-term price fluctuations. Last March was a perfect time for that strategy.

    • Replies: @Marckus
  184. @Schuetze

    “@elonmusk is the greatest entrepreneur of our generation. He’s trying to save Planet Earth with sustainable energy…”

    Muskrat hasn’t said a single word about where the electricity for his bumper cars is supposed to come from, nor how it is to be transported (we would require at least 10× the current capacity in terms of both generation and transmission), nor how the rare earths in the batteries are sourced, nor how they can eventually be recycled (battery composition is kept secret); and at closer scrutiny, his “business” is mostly selling CO2 certificates to people who are actually producing cars and are now being screwed over by Greta Tunastink and her ilk.

    It would be fairer to say he is the greatest charlatan of a very lost generation, trying to save his obviously damaged self-esteem with very unsustainable scamming, adored by people whose knowledge of science and technology does not cover the difference between radio waves and radioactivity, and whose knowledge of economics focuses on Scrooge McDuck.

  185. @Mefobills

    Didn’t you forget to mention the Battery cross-over point, where ICE cars are roadkill.?

    • Replies: @Skeptikal
  186. @Team of Donkeys

    Corporations and financial participation existed in Sweden as early as the 13th century (then it was mostly about mining), without any Wallstreet flimflam.

    • Replies: @Team of Donkeys
  187. @El Dato

    At that point, any of the counterparties to the original short sale who maintained their purchase, can gain title to the shares out of the 1,000 the trader bought back when closing his position.

    How does this work out when the original short involves 140% of the shares on the market?

  188. @anon

    Meanwhile, someone needs to sue Robinhood out of existence.

    They’d be better off filing a bunch of individual arbitration claims. Vox Day has had some bad takes in the past (he got pretty deep into Qtardianism, for one), but he’s got a good point here:

    https://voxday.blogspot.com/2021/01/breaking-robinhood.html

    “Unlike AAA, FINRA has no rule allowing an arbitrator to declare an arbitration to be “frivolous”, and furthermore, the right to file even frivolous arbitrations is protected by the Federal Arbitration Act and the Supreme Court rulings Steelworkers and Schein.”

    “Robinhood’s terms of use specify California law. CCP Section 1284.3 prevents any consumer from being charged anything for an arbitration proceeding beyond the initial filing fee.”

    Seems to be a number of Robinhood customers claiming that their positions were closed out involuntarily by RH:

    https://www.theverge.com/2021/1/28/22254857/robinhood-gamestop-amc-shares-sold-surprised-users
    “On Wednesday, Robinhood warned some investors with options in GameStop and AMC that it may automatically sell off their stakes to reduce risk, the spokesperson said. But these investors told The Verge they didn’t have options in GameStop or AMC and hadn’t purchased the stocks on margin. They had purchased the shares outright, they said, and were planning to hold onto them.”

    Sounds pretty shady if true. Maybe they were cash transactions, but from a margin account?

    • Replies: @JamesinNM
  189. bayviking says:

    Whose 401K portfolio has gone up 400%, like the stock market over the last decade? The market is rigged so that those profits flow up to a few at the top. When a group of Redditt investors gave those market manipulators a taste of their own medicine, they whined and trading was suspended. But when they do the same to the masses on a daily basis it is just considered a natural market, which should not be interfered with. One rule for hi-speed traders and other insiders, another rule for the masses.

  190. Marckus says:
    @Hapalong Cassidy

    Puts on Gamestop are now very cheap. Everyone thinks the Reddit crowd is going to prevail and the amateurs are driving the price up, in my opinion, paying enormous amounts for a company that loses money.

    One young guy I know sold his pickup and bought on Friday luckily earning \$13K. He thinks it is going to explode to \$1000 / share so he is holding. In typical fashion when if it gets to \$1000 the prediction will be \$1500/ share. It might but when the crash comes, the novices with stars in their eyes will have tears in their eyes.

    I remember when every expert was predicting gold at \$5K an ounce and oil at \$500 a barrel LOL

    It may be morally wrong for Wall Street to plunge a stock but I am sure the fellows with the clean white shirts will exact a terrible revenge. When their billions are on the line they dont fuck around.

    In the meantime my put options stand ready to capture the crash and burn scenario. Time will tell !

  191. Marckus says:
    @Colin Wright

    When one gets into a rumble with a biker gang discretion is the better part of valour. Stick around too long bragging and boasting is dangerous. It is best to steal that one bike or bag of weed and disappear.

    The kids playing with the Wall Street devils are in the arena with fellows who appear normal, polite and affable but are even more ruthless, well connected and vengeful than any criminal.

    In the coming weeks RobinHood will feel the weight of the Devils of Wall Street and the “revolutionaries” still holding stocks like Gamestop are going to have their skins flayed off their backs. Intelligent players should take their profits and invest a small part (they can afford to lose) in put options and then wait for the price to crash.

    A guy who just lost \$1B is going to call in all his favours and crucify the upstarts. Fifteen guys who are down billions will definitely have a very toxic response to their opponents. Robin Hood may find that the modern Sheriffs of Nottingham are indeed serious players. I am not condoning Wall Street and their shenanigans but it pays to be cautious when entering a dangerous area.

    Right now there are a lot of fresh faced kids smoking big cigars, toasting with champagne and impressing their friends with their investing acumen.

    Turkeys who gobble, display their feathers and raise their heads are the first ones on the barbecue spit.

  192. @The Alarmist

    ” the collapse of the financial system”

    This is the same threat that was used to terrorize the public into bailing out the banks in 2008, but what does it mean, exactly? If the financial system “collapses”, does it mean that when I go to buy a gallon of milk tomorrow, it won’t be there?

    Won’t productive people doing productive things still be creating wealth which will be measured in dollars which will be traded for the productive results of the efforts of others? How does a hedge fund billionaire getting wiped out make that process impossible? If anything, freeing our productive labor from the hedge fund parasites would improve the financial system, not “collapse” it.

    • Agree: Twodees Partain
    • Replies: @The Alarmist
  193. @Schuetze

    The largest brokerage firms on Wall Street would never allow a Registered Rep to use multiple anonymous user names and promote a \$5 stock to a mass public audience

    Interesting that a relatively obscure blog like Wall Street on Parade is quick to point out the obvious issue — this Gill guy is a licensed professional actively employed in the industry, who’s anonymously hyping stocks that he has a personal stake in, while posing as an “amateur investor.” But accounts from mainstream “news” outlets? They seem to ignore it entirely, presenting very sympathetic profiles of Gill:

    https://heavy.com/news/keith-gill-roaring-kitty/
    https://www.telegraph.co.uk/business/2021/01/29/top-wallstreetbets-investor-roaring-kitty-unmasked-financial/

    Including the WSJ:

    https://www.wsj.com/articles/keith-gill-drove-the-gamestop-reddit-mania-he-talked-to-the-journal-11611931696

    Maybe he’s not gonna get thrown under the bus…

    Is this solely a profession ethics/ license issue? Or a legal one?

  194. Skeptikal says:
    @Schuetze

    Interesting. I certainly welcomed the advent of free trading on TD Ameritrade! Which gobbled up Scottrade, where I had my first account.

    TD Ameritrade has now merged with Charles Schwab.

    No doubt about it, free trades really free one up to experiment! Or even do a bit of day trading. Especially in IRA account. No obvious downsides that I can see. For now.

    I have wondered what Ameritrade’s business model is.

    Perhaps being “data-mined” is a worthwhile barter for not having to pay fees and commissions of all kinds.

    Regarding the Khazarian bandit capitalism you describe, I do think the originator of this form of “growing” a corporation sprang from the forehead of John D. Rockefeller. And J. P. Morgan.

    But perhaps the seeds were planted by wayward Khazes.

  195. Kapyong says:

    Have they started calling WSB ‘economic terrorists‘ yet ?

    • Replies: @James Forrestal
  196. Skeptikal says:
    @SaneClownPosse

    “Second example, in Brooklyn, there will be a inert wire strung around a block for the purpose of enclosing the block as one contiguous “household”. This is to get around Sabbath restrictions on what one can do outside of one’s household.”

    Oh, yeah, they have done this is a whole neighborhood in London. I can’t recall the name of this Jewish “joke” either.

    They can get around anything! Any rules! They are constantly pulling a fast one of Yahweh. Makes you think “Yawweh” actually means “Bwa ha ha ha”!

    I think there is actually a Yiddish name for this this brand of Jewish chicanery.

    OK here it is:
    ” An eruv is a symbolic boundary created with a string of fishing wire typically hung from a series of utility poles or other structures. The eruv creates a safe space for Orthodox Jews to carry certain items they otherwise would be forbidden to carry while outside the home on the Sabbath.”

    If they were on friendly terms with their neighbors they could ask their Goyische friends to carry these items—such as food— for them. What idiots.

  197. @El Dato

    From your second link:

    Suppose stock XYZ is trading at \$50, but Jim the Speculator believes tomorrow’s news will contain something very unfavorable for the stock — and the rest of the market isn’t seeing things the way Jim is.

    Or suppose that Melvin the hedge fund manager knows that tomorrow’s “news” will be unfavorable for the stock — cuz he’s gonna be on CNBC talking s–t about it…

    Jim [Melvin] can borrow, say, 100 shares of XYZ from a stockholder

    This description is significantly misleading in at least two ways. Melvin doesn’t borrow the shares — he rents them. And he doesn’t rent them from the stockholder (we’ll call him “Mike”); he rents them from Mike’s broker — typically without the stockholder’s knowledge or consent. (Specific consent, that is — it’s probably buried in the TOS somewhere). Sure, margin accounts make the issue of “ownership” between the client and the broker a little cloudy, but it still seems pretty questionable.

    Let’s look at a more concrete analogy to illustrate how strange this is in terms of how the concept of ownership is typically understood:

    -David owns a combination parking garage/ used car dealership.
    -Mike buys a car from David and pays to park it in the garage.
    -While Mike is on vacation, David rents out Mike’s car to Melvin, pockets the money, and doesn’t tell Mike.
    -Meanwhile, Melvin’s rental contract with David gives him the “right” to sell Mke’s car to Jeff (or anyone else) during the rental period — which he promptly does.
    -Until Mike comes back from vacation, somehow both he and Jeff “own” the car.
    -When the rental period ends/ Mike comes back from vacation, Melvin is obligated to return an equivalent car (same make, model, and year) to David, so that Mike can continue to “own” and use his car.

    Wut?

    This is a pretty good explanation of how the system works (and doesn’t) in the GameStop case:

    Thread reader version

    Interesting to note that your average sports book has a better system for laying off risk than Robinhood. RH’s problem is not just the volatility, it’s that too many of their customers are “betting on the same team,” exposing them to excessive risk if that team loses. Bookies aren’t gamblers — they just want to collect the vig.

    Though as long as Robinhood can still raise enough funds to cover its obligations, it appears that any publicity is good publicity:

    https://www.cnbc.com/2021/01/29/robinhood-investment-apps-dominate-app-store-rankings.html

  198. @anon

    Making money is a privilege for Jews only, everyone else can only bail them out through our taxes when they get too greedy and bring the whole thing down.

    You mean like Ryan Cohen?

    And BlackRock, which is the biggest single shareholder of GameStop?

    • Agree: JamesinNM
    • Replies: @JamesinNM
  199. JamesinNM says:

    This is just getting started. Real Americans will unite and clean Wall Street’s clock.

  200. @James Forrestal

    Reuters is reporting that the giant asset manager, BlackRock [aka the Fed/ the Treasury Dept], “owned about 9.2 million shares, or a roughly 13% stake, in GameStop as of Dec. 31, 2020,” and could have made upwards of \$2.4 billion on the rise in the stock since the end of December”

    BlackRock downsized its ownership of GME stock in December, selling when it was \$18.84 per stock. They’re making money off the squeeze but less than they would have if they’d held.

    Your point is?

    • Replies: @James Forrestal
  201. JamesinNM says:
    @James Forrestal

    Selling shares people own outright I consider theft at a minimum and attempted murder at a maximum, depending on the situation.

    • Replies: @acementhead
  202. JamesinNM says:
    @Paperback Writer

    Read Romans 2:28-29 for the definition of real Jews and then read Revelation 2:9 and 3:9 for the definition of false Jews. Do not be deceived.

    • Troll: Paperback Writer
  203. Skeptikal says:
    @Twodees Partain

    What is the battery cross-over point?

    What is ICE?

  204. @Skeptikal

    What is the battery cross-over point?

    What is ICE?

    ICE is internal combustion engine.

    Battery crossover point is a pure fiction, much like the “climate emergency” “tipping point(s)”.

  205. @JamesinNM

    If you buy some shares and don’t want your broker to lend them(as will be in your brokerage agreement) don’t leave them in “street name”, take delivery.

  206. @Expletive Deleted

    Didn’t Ryan the Chewy guy mount some kind of boardroom putsch against the remarkably non-tribal Sherman setup? But adroitly dodged being in the hot seat if and when it all goes t1ts?

    Yeah that looks like a threat of a hostile takeover/ proxy fight if GameStop management didn’t do what he wanted (multiple seats on board, more emphasis on digital, etc.)

    And guess what happened on January 11?
    https://www.sec.gov/Archives/edgar/data/1326380/000132638021000006/a991-gamestopxpressrelease.htm

    “GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today announced that it has entered into an agreement with RC Ventures LLC (“RC Ventures”) that will advance the refreshment of the Company’s Board of Directors (the “Board”). RC Ventures, which is one of the Company’s largest stockholders, is managed by Ryan Cohen. The agreement provides for the immediate appointment of three new directors – Alan Attal, Ryan Cohen and Jim Grube”
    [Grube and Attal are Cohen associates/ fellow Chewyites]

    Interesting timing…

    Did he and his associates start this whole pumping operation back in November or thereabouts?

    It would be pretty hard to prove that, since all of Cohen’s maneuvers are consistent with a takeover rather than a pump and dump scheme. The obvious way for him to realize a big profit would be to sell now, but even under the current system, that might be hard to pull off without consequences.

    What is fairly clear that several accounts on wallstreetbets were pushing GameStop pretty hard from Nov-Dec on:
    https://web.archive.org/web/20201208222656if_/https://www.reddit.com/r/wallstreetbets/comments/k9apx5/gme_q3_call_thoughts_on_the_clash_between_cohen/
    Calls Cohen a “boy genius,” “amazing businessman,” a guy who “beat Amazon,” “outworked and outsmarted everyone,” etc.

    https://web.archive.org/web/20201211050201if_/https://www.reddit.com/r/wallstreetbets/comments/kakxrm/gme_tribe_a_story_about_how_ryan_cohen_is_about/

    Cohen is going to be a legend because of it after he executes this plan, triggers the MOASS, and takes control of GME to convert it to a tech-first gaming juggernaut

    Any connection between Cohen and the guys shilling for him (and GameStop) on WSB? Who knows?

    But even if he holds onto his shares, the company he took over, and his plan for it, “just happened” to get an insane level of publicity out of this story — right after he moved in. Huh.

    Though Sherman’s not exactly being driven into the poorhouse by this, since he owns something like 1.2 million shares…

  207. @Paperback Writer

    Your point is?

    That some people are so emotionally invested in the continued hegemony of Larry Fink’s BlackRock/ Fed/ Treasury Dept organization, that they are immediately enraged by any mention of the simple fact that Fink’s cabal continues to own the largest stake in GameStop, and feel compelled to immediately (and histrionically) leap to Fink’s defense, whining “B-b-but he should have made even more billions!”

    Interesting.

  208. Sure would be great to see the economy and stock market collapse right after Pedodent Biden took over.

    I’ve been saying for some time that trump threw the election. He could have destroyed Biden by showing those many youtube videos of Biden groping and molesting little girls . But Trump did not do it.!!

    • Replies: @Skeptikal
  209. @Anonymous

    All Amish folks.

    I’ve seen it alleged that some Amish person was asked(paraphrased) “Why don’t you Amish get covid?”

    Answer: We don’t have TV.

  210. @Skeptikal

    As a prank do neighborhood trouble makers ever snip the eruv, causing those orthodox to sin and be forced to swing extra sin chickens on Yom Kippur?

    (Asking for a friend.)

  211. Skeptikal says:
    @acementhead

    What does “battery cross-over point” mean?
    Saying it is a fiction does not explain what it is.

  212. Skeptikal says:
    @Hang All Text Drivers

    ” He could have destroyed Biden by showing those many youtube videos of Biden groping and molesting little girls . But Trump did not do it.!! ”

    Interesting point.

    I kind of wondered what happened to those videos as the campaign season proceeded.

    I haven’t looked for them lately. Someone had made a compilation showing about 10 different incidents and other very weird public statements made by Biden. Like, is this guy crazy? Literally, out of his mind? Autistic? Doesn’t grasp how nutty he comes across, how far out of bounds?

  213. bayviking says:

    The dominant argument for capitalism in the 20th century after the 1930s Great Depression was that it “produced a great middle class.” Real U.S. wages had risen even during the Depression. However, the U.S. working class fought harder for major economic gains in the 1930s than at any other time in U.S. history. The Congress of Industrial Organizations (CIO) then organized millions into labor unions utilizing militants from two socialist parties and a communist party. Those parties were then achieving their largest-ever numerical strengths and social influences. That is how and why together the unions and the parties won the establishment of Social Security, federal unemployment compensation, a minimum wage, and a huge federal jobs program: all firsts in U.S. history. The second fact is that capitalists in the 1930s and afterward fought harder than ever against each and every working-class advance.
    No advanced economics is required to grasp that divisions, bitterness, resentment, and anger flow from such a persistently widening gap between haves and have-nots.
    In capitalist enterprises, tiny minorities of the persons involved occupy positions of leadership, command, and control. The owner, the owner’s family, the board of directors, or the major shareholders comprise such minorities: the class of employers. Opposite them are the vast majorities: the class of employees. The employer class determines, exclusively, what the enterprise produces, what technology it uses, where production occurs, and what is done with its net revenue. The employee class must live with the consequences of employers’ decisions from which it is excluded. The employer class uses some of its profits to buy and control politics.
    To solve the extreme inequality of U.S. capitalism requires systemic change, an end to capitalism’s specific class structure pitting employers against employees. Excerpts from Richard Wolff i

  214. @James Forrestal

    It is always a Talmudic dialectic.

  215. @Skeptikal

    Ask Mefobills. He’s the one who has to repeat that line twice in one short comment.

  216. @acementhead

    Exactly right. Repeatedly referring to that fiction ignores the obvious fact that the state of battery technology makes battery driven vehicles useless for most purposes regardless of whether battery production could be scaled up to produce as many as needed or that a grid sufficient to provide energy for even a partial replacement of all private vehicles existed.

  217. @Kapyong

    Have they started calling WSB ‘economic terrorists‘ yet ?

    Pretty close. Former SEC Commissioner Laura Unger claims that WSB, by recklessly violating the sacred temples of our shekelocracy, has committed a financial version of the insurrectionary, terroristic coup that destroyed Washington on January 6:

    • Thanks: MrVoid
  218. @James Forrestal

    I’m not leaping to BR’s defense at all. I want the redditors to win. I’m enjoying their gambit immensely. I hope they push Melvin & Citadel off a cliff.

    • Agree: acementhead
  219. @James Forrestal

    PS Why DID BlackRock downsize GME in December ’21?

    • Replies: @James Forrestal
  220. @Onan the Barbarian

    Thanks for the reply, if people stop and really think about what our company model has built for us/and what rights they are taking from us nowadays, they would understand a lot more about the pernicious reality of our businesses getting hijacked. All of Western colonies were largely built up by companies like the hudson bay colony, jamestown, the East India Trading Company, etc. These were large enterprises that built the backbone of international trade. Even early adventures of Marco Polo was business trade.

    Now thanks to Affirmative Action, and “Equal Protection Rights” our businesses have been taken over by those not serving the interests of Western Civilization.

  221. @Paperback Writer

    PS Why DID BlackRock downsize GME in December ’21?

    Hey, you’re the one who’s so quick to defend notorious oligarch Larry Fink. I’m not nearly as close to his BlackRock/ Fed/ Treasury Dept cabal as you seem to be. I can’t read Fink’s mind, nor am I privy to any internal cabal discussions. Why did Fink et al slightly decrease their massive stake in GME late last year, leaving them as still the largest shareholder, but by a smaller margin? Maybe you should ask your buddy the Finkster…

    • Replies: @Paperback Writer
  222. @James Forrestal

    Answer the question.

    Why DID BR downsize GME last December 31?

    • Replies: @James Forrestal
  223. Hibernian says:
    @Skeptikal

    If they were on friendly terms with their neighbors they could ask their Goyische friends to carry these items—such as food— for them. What idiots.

    Papa Joe Kennedy in his youth lighted stoves for Orthodox Jews on thee Sabbath – for a price.

  224. mcohen says:

    After epstein certain people became unhappy.the kind that did not like his taste in females but appreciated his genius for making money.

    a reckoning is coming.for sure

  225. @Craig Nelsen

    How does a hedge fund billionaire getting wiped out make that process impossible?

    By having so much leverage and derivative exposure to trigger system-wide collateral calls that wipe out the banks and freeze the payment processing systems, I guess. For those of us who still use cash and aren’t afraid to deal directly with farmers, that might not be such an issue. TPTB might hate us for our Freedumbs™️, but they don’t fear us as much as they fear what the FSA (not the former UK regulator) will do when their EBT cards stop working.

  226. Corrupt says:
    @Mefobills

    The lithium supply is more constrained than oil. There will not be enough lithium to convert to all EV. In addition, as was pointed out by another poster, you need electricity to charge your batteries. KKKalifornia can’t keep the lights on now, so how are they going to do it with an additional 10-20 million EV? How would you like to have your power turned off due to wildfires, and not have your car charged?

  227. Corrupt says:
    @Team of Donkeys

    “It’s not just RH, Robinhood was copying the moves TD Ameritrade made. Don’t think this about one brokerage…it’s much bigger”

    TD Ameritrade did not limit ownership or trading of the stock in question. It did LIMIT the sale and purchase of options and margin for buying the stock… completely different than what Robinhood did.

    • Agree: Skeptikal
  228. Bolteric says:
    @Rev. Spooner

    It was not my intention to cheer on, and I hope there is a little humor in everything I say. As @saneclownposse got from it.

    That being said I don’t think the market will ever not be a casino, and one member told me I had better odds at roulette than timing put options.

    With regard to the members, I generally try to hold “live and let live.” But you’re right the situation is no longer tenable.

    My usual advice and thoughts on the overall situation is usually as follows: preserve your wealth and judiciously grow it, have kids – many if possible, find the pews a few times a month or a meditation cushion if that’s your thing, be vigilant of course, but not paranoid, be informed and curious (sites like this are good and satisfying to the mind), see the country…

    You probably already know this. There are many greater thinkers and writers here than I, so I will try to finish what I’ve got to say here.

    Aside: I am more interested in Bitcoin these days. The Winklevoss twins seem like good guys, and I think their read on the long term stability and worth of the dollar is spot on.

    Whaddayouthink?

  229. gay troll says:

    I don’t know much about stonk trading, but I sure as hell know when people are lying on television, and the talking heads have been spewing relentless spin since this story hit the MSM last week. Today’s meme is that the “short squeeze is over”, meaning it happened last Friday. Interestingly, not only the MSM but also ZeroHedge says the squeeze is over and GME can only go down in price from here. I know ZeroHedge is an outlet for bullshit yet usually their bullshit is contrarian to MSM bullshit. Yet in this scenario they appear to have each others’ backs. ZeroHedge was instrumental in hyping the “silver squeeze” that was disowned by WSB yet served to cause disarray and confusion all weekend. Now ZH is spinning stories that WSB are actually useful idiots for Wall Street whales.

    If the squeeze happened on Friday, then it was interrupted and short-circuited by the brokerages imposing trading bans and restrictions. Which means that it didn’t really happen – either the squeeze was kneecapped by fraudsters OR it is yet to come.

    However if the squeeze ended on Friday, and the hedgies covered their shorts, and reduced their short exposure in \$GME from an impossible 140% of float to a merely untenable 50% of float, then why are they still lying so hard, and why is ZH now providing cover for Wall Street? At best a massive fraud was bailed out by an obvious crime. At worst the fraud has not yet been bailed out, and honest diamond handed retarded autist ape Redditors still stand to bankrupt the shorts. An honest bet made against a dishonest bet could now destroy the entire dishonest economy.

    This is not a financial advice.

    • Agree: MrVoid
  230. @Paperback Writer

    Why DID BR [He’s referring to Larry Fink’s BlackRock/ Fed/ Treasury Dept cabal] downsize GME

    It’s not clear why you believe so strongly that I share your claimed ability to read the Finkster’s mind. I suggest that you either:
    1. Explain any purported empirical basis for this odd delusion
    2. Exercise your supposed powers of mental telepathy to ascertain the answer yourself

    You’re welcome. Always glad to help.

    • Replies: @Paperback Writer
  231. The destructive effects of stock speculators are greatly exaggerated, particularly since most people don’t own many stocks. A much bigger problem is property speculation. The property market is bigger than the stock market and property booms and crashes have a much bigger impact on ordinary people’s lives.

    Property speculation is destructive because it makes housing less affordable for young couples and thus retards the native birth rate. The only way to curb it is to cut off the supply of easy credit to property speculators. The free market just doesn’t work with property because the supply of land is finite. If you want to buy rental property you should have to stump up a 40 percent deposit. No one should be allowed to buy a strategic or restricted asset with a 10 percent deposit.

    • Thanks: mark green
  232. @James Forrestal

    I’m asking a question. Can you answer it? If you can’t, just say so.

    I’m simply pointing out that unloading a stock at \$19 is stupid if you “know” that it will shoot up to \$430.

  233. I’m asking a question.

    Your question rests on a false assumption — that I simply must possess magical powers that enable me to accurately perceive the internal mental processes of Fink and his minions, thus allowing me to accurately discern exactly why they decided to slightly reduce their massive stake in GME. I’m flattered by your faith in my [nonexistent] powers of mental telepathy, but your question is simply not answerable in its present form.

    Now you answer my question: When did you stop beating your wife? Don’t dodge or evade — I want to know the exact date.. It’s a simple question — just answer it.

  234. @Publius 2

    Heritage America did not vote for what has been done to us since 1945.

    I question the date.
    1913 more likely.

    Read/listen to Michael Hudson
    Changes in Superimperialism
    https://www.unz.com/mhudson/changes-in-superimperialism/

    “They’re trying to do what the world began to talk about doing in 1933 at the London Economic Conference: “How do we make a fair system?””

    One of FDR’s first acts as president was to pull out of the London Economic Conference in 1933.

    As Hudson goes on to explain, USA’s agenda in WWI was to bankrupt/destroy Germany, from whom US stole gold and technology as well as lives; and in WWII US agenda was to finish the job — destroy British empire.

    The “greatest generation” were witting or unwitting accomplices to a great act of theft and destruction, and we, their progeny have been living off stolen loot all our lives.

    Now, the chickens are coming home to roost.

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