Scholarship table
I'm sure everyone who works at a hedge fund is a saint
Hedge funds aren’t illegal. They are even immoral on their face. People just don’t like them because they seem shady and are run by wealthy people.
Good to hear that she sees the world for what it is. Men in big buildings producing nothing robbing the average person blind on a daily basis.
That’s why I’ve been bemused in this thread earlier about people fawning over them and their “crusade”. They are out to make money and screw those against them, in this case it’s hedge funds which make them media darlings. It’s certainly not altruistic or with any greater sentiment of “good”There is some good insight from some people, like DeepValue quoted earlier. But most threads and most members are like any gambling subreddit. They call any bearish investors or positions a “(rainbow emoji)(bear emoji)”. It’s exceptionally juvenile, crude, and antagonistic.It’s hilarious to see AOC jumping on board their “mission” cause ive seen that sub absolutely brutalize her repeatedly in a pretty harsh manner, and that’s coming from someone who largely can’t stand her
While I agree with you pretty much 100%, the fact remains that millions in this country feel the wheel is rigged against them and when those who benefit from the rigged wheel get their comeuppance people those folks will celebrate. The enemy of my enemy is my friend syndrome.
Hopefully this opens the eyes of the brokerage firms and the regulators and forces them to address these kinds of possibilities in the future. If this article is accurate, though, I'm guessing any investigations into the decisions made this week won't find anything to punish the brokerage firms for. https://finance.yahoo.com/news/robinhood-dash-cash-traders-took-053007442.htmlEdit - here's another story with the CEO of Webull explaining their decision to stop allowing trading yesterday. I doubt many people will end up reading through these kinds of articles because they're not nearly as flashy as most of the headlines, but sharing this information is important. There's a lot to be learned before people wind up on CNBC and demanding prison time for the heads of these brokerages. https://finance.yahoo.com/news/we-bull-ceo-explains-why-trading-was-restricted-amid-the-game-stop-market-mania-172539318.html
I think most people who are rooting against Melvin right now don't have any idea how hedge funds actually work or what kind of people work there. A lot of the animosity comes from a lack of understanding and/or negative assumptions. To be clear, there's plenty to dislike about big money pushing people around, but I don't see many people talking about WHY they have a grudge against the hedge funds outside of the fact that they have a lot of money.With all this fallout, I'm curious to see if any of the big investors in these fund will face any pushback from their client bases to pull their money out. I know unions and endowment funds tend to put a chunk of their assets into more aggressive investments like hedge funds. I wonder how these typically liberal members feel about their money being run by these guys who tend to be viewed so negatively.
I looked over these today, because I was curious as to the logic why the heads of these companies were not out of line, acting illegally. Two things caught my attention. The first article notes that the requirement for more collateral in the central clearing house resulted around 10 AM on Thursday after GME started to crater. It cratered because RH and others blocked all buys of GME before the open on Thursday. So RH and others created the collateral problem. You can't use a situation you caused as justification for a possibly illegal action. Second, they could have taken different actions. They could have blocked margin buys across the board, for instance. But they didn't take other more universal actions, rather they explicitly targeted buys of companies, whose stock price increases were crippling their biggest revenue stream (e.g. hedge funds). So their actions were designed to benefit their largest patrons (Citadel), at the expense of their clients, and despite the fact it would create a large capital call on them...which was bailed out by venture capital.On its face, it definitely appears illegal, and even if it isn't criminal, they are liable for damages, because running a company poorly does not acquit you for your actions.
As far as endowments go, I doubt it will have much impact. Hedging is important and the people making those decisions aren’t as liberal as you think.
I'm not defending them, but I'm surely not going to lump them all into a group. Quite a bit of money has been donated from people's gains. Generally, their 'schtick' is awful.I think it's okay to defend what they are doing and not condone their juvenile pathetic behavior. They all think they're Jordan Belfour. They have nothing in common.
I didn't see anything in those articles, or any of the others I've read, that would suggest Robinhood caused the collateral call. It happened to several brokerages, and it seems like this is a highly unusual circumstance. Maybe they should have seen this coming, but I'm getting the impression that this past week included a lot of unprecedented events.
The difference is both WSB and hedge funds are doing the EXACT same thing. Trying to exploit market inefficiencies and situations to make as much money as possible. The difference is hedge funds are being made out to be evil capitalist sharks while WSB is the noble do-gooders who are fighting for the little guy. Which is just silly media spin.
85% of the stock market is owned by the top ten percent of households by net worth - top 1% own half. I think you are underestimating this fact when dismissing the issue as 'media spin'. David vs. golliath is always an interesting story -- even more-so in the time when populism is on the rise.
Here's another chance for me to illustrate my ignorance, and hopefully someone on here can answer a question for me.Regarding the GameStop situation, assuming those who shorted GME have already covered their margin calls, is there any reason that they can't just sit on their paper losses and wait out the investors? I assume that absent any real business performance revelations which might result in investment, the only way the stock continues to climb is if people continue buying. But I think that "normal" investing at this point is unlikely because I think everyone can probably agree that the stock is overvalued based upon any normal valuation.So, can the hedge funds just wait out the WSB investors? Or are there time limits by which they have to cover those shorts? I suspect in the coming days and weeks, the hysteria over GME will die down, the number of new GME investors will dwindle, and a lot of the people who threw cash at it will start looking for an exit strategy. I acknowledge that some of the WSB investors say that they are going to hold to stick it to the man, but I suspect as time goes by, the number willing to do that will dwindle and people will be looking to either lock in their gains or cut their losses.Thanks.
The silver thing didn't start on WSB. It sure did take over the news cycle though, pretty wild. WSP is 100% GME right now. AMC/BB/PLTR have all faded into the background in the past week.I bought a bunch of IPOE today.NET earnings in just over a week and I'm looking forward to seeing the numbers, I'm long either way.
Everything is so juiced. April $45Ps are $16. That’s insanity, the IV is out of a control. The stock takes a 50% haircut and you are still very red on those puts. Just not worth playing outside of commons right now.
Just took a stroll past WSB this morning. It is not a pretty sight this morning.