:sicko-yes:
This could possibly bankrupt the financial system. There's no limit to the money they can lose here.
If the Fed starts printing money to hand to retail traders in exchange for GME, the USD is toast lol
Gamestop crashing the dollar would be the funniest thing in the universe. Impossible to top
Damn it, I thought I made an alt account with this username... maybe I did moderatetankie. Good minds think alike. Godspeed in your posting comrade
Like I feel the general dislike for this whole phenomena from most on this subreddit comes from not really getting the size of the opportunity here
Yeah, there's a lot of ignorance & hostility. I've been trying to explain the situation as much as possible with mixed reception.
The bourgeoisie could pull out more bullshit like today. But honestly, I just want to see them try to close this pandora's box.
I will say, I'm one of the hostile skeptics. I'm very skeptical of a lot about this. I definitely don't want to see comrades get hooked on this shit in the future. And in general, I don't like WSB talk on Chapo (at least you all have your own comm I can unsub too). I got out of a career in investments because I hate this shit. And I'm hugely, HUGELY skeptical this is going to turn finance bros into socialists.
BUT... I really really hope I'm wrong. Even if just some billionaires completely lose their shirts and that's all that comes of this, I will very gladly eat crow. I'll do it publicly. Gladly. I guess we'll have to wait and see.
It was $7b two days ago, and $14b today. $70b a shit ton. And it looks like their losses are growing exponentially.
There's no limit to the amount of money you can lose on a short position, so this could literally go to infinity.
Total.
$7 billion was lost between last week and two days ago.
Another $7b was lost by the middle of yesterday.
Another $56b was lost between then and now.
You just know they're terrified that the next round of stimulus checks are gonna go into GME.
I thought we were named after our predilection for fine French hats?
Spoken like somebody who has absolutely no idea what's happening right now.
You think the government is gonna just start being a neutral arbiter all of a sudden? Ha! They are playing with house money, their losses don't matter.
The government will absolutely not be a neutral arbiter. Again, you have no idea what you are talking about.
The options for federal government intervention are one of:
- The Fed opening a swap line to cover Hedge Fund losses, which will hyper-inflate the price of GME.
- The US government forcible seizing peoples' assets and handing them to Hedge Funds to cover short positions.
If you think either of these options can occur without extraordinary consequences for the financial system, you are deranged. US finance capital is already on thin fucking ice around the world between their use & abuse of the SWIFT system, and the dumping of USD into international markets. 2020 had the fastest rate of de-dollarization the world. The action necessary to cover this crisis will be the greatest accelerant so far to de-dollarization.
No investigation, no right to speak.
Yeah everything has extraordinary consequences for the financial system, best case scenario they might throw a body out the door and then make whole whoever needs it, excluding retail investors.
I don't know you keep responding.
I'm talking about material reality. You keep responding as if they are going to cast a magical spell to make all this go away.
Because that's their function under capitalism, to preserve property relations through the market. Did you forget about that material reality?
Because that’s their function under capitalism, to preserve property relations through the market
If you are talking about the bourgeois class, not some magically they you making up, then this is a miscategorization. The bourgeoisie don't "preserve property relations through the market." They use the market to turn commodities into money, which gets reinvested into capital.
The bourgeoisie do not have magical control of the market. It is anarchistic in nature and sows the seeds of its own destruction, as we are seeing right now.
I'm done responding. You are horribly ignorant.
I mentioned above the possible moves the State has. Again, the market is anarchistic in nature and sows the seeds of its own destruction. The State can intervene, but it cannot resolve the contradictions of Capitalism.
If you are a social democrat and believe the State can manage the contradictions of Capitalism, then we have fundamentally different understandings of the world.
Well I'm a socialist and not a Rosa Killer so I absolutely have a different fundamental understanding of the world.
If you think State intervention can resolve the inherent contradictions of Capitalism, then you are literally a social democrat.
Again, in reality, you are just ignorant and talking about shit you do not understand.
I never said it couldn't do that, but this is small ball so what kind of insane gamer revolt collapse fantasy are you harboring? Sounds like you are a spontaneity fetishist.
This isn't a mass movement. This isn't "spontaneity."
Again, it's clear you do not know what you are talking about if you think a financial crisis has anything to do with "spontaneity."
We are talking about a financial crisis. The fact that there's the masses are involved in the crisis does not make it a product of "spontaneity." It's a product of the anarchistic nature of the market. A market which allowed short sellers to buy 122% more shorts than there are shares in existence.
We are in the early phase of this crisis. After the intervention today, short sellers managed to clear up 5% their position while retail traders were barred from the market. However, several platforms have caved and re-instituted GME trading. The restriction only holds on RH still.
I'm begging you, read literally anything about the ideology you claim to represent.
Did you SNIFF forget the material reality SNIFF of magic?! :frothingfash:
History books in 2060 talking about the great game-stop collapse of 2021
I'm big dumb when it comes to stonks so sorry if this is a stupid question. But could the hedge funds just declare bankruptcy and refuse to pay anything? If they're doubling down again on top of already huge losses I'm worried about that
They can. If they do, their brokerage is liable for their debts, then their brokerage's bank, hen their brokerage's bank's bank, etc, etc. This might become the next housing crisis if it keeps bubbling up.
Although, the housing crisis involved collapsed housing prices due to subprime loans. This crisis involves GME stocks inflating due to extraordinary short options that have been put on the company. Unlike 2008, there is no limit on the losses that can occur here.
So ridiculous. It'll pretty much confirm my suspicion I've been in a coma since 2012 and all of it has been a weird dream since then. That, or my first DMT trip never actually ended.
Yeah it's mostly speculative losses so far. The problem for these short sellers is that they have not begun to cover their positions yet. When they do, things will start to get even more jokerfied.
Closing old short positions and opening new short positions does not address the root of the problem. They are still on the hook for 140m shares, regardless of the position they are at.
There has been no effort thus far to cover their shorts . Unless an extraordinary panic sell starts happening by tomorrow, these Hedge Funds are just digging a deeper grave. Even then, covering 140m shares with 30m shares freely circulating will take a long time.
They're paying back 10x as much per share as they bought by having to buy at 300, while the fact remains that there's STILL more shorted stock than actual shares in circulation. They must be squeezed more
