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thanks @allegate !
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What the fuck?Originally Posted by allegate
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Topless Winklevii at that.
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There are gonna be a whole bunch of broke people at the end of this.
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there's already a bunch of broke people so will the percentage really change all that much?
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The hedge fund people usually have enough money to lose and still be rich.
Not so much for the rest of the world.
This reminds me a little of the dot com bubble. I hope most of the Reddit people bought when it was really low.
Edit: On the other hand, it appears that they’re looking long-term, here.
Nothing would make me happier than a bunch of bankrupt hedge fund managers.
Last edited by allegro; 01-28-2021 at 11:27 PM.
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Yeah she later tweeted something like you tried to murder me so get my name outa yo mouth.
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^ "... and that game came undone."
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I don't think most people realize how much this is really going to very likely result in the complete collapse of the world economy.
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agree, but quite honestly, that may very well be the plan.
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The economy and the stock market are two separate things, though, totally unrelated.
https://www.bloomberg.com/opinion/ar...-any-yardstick
see this: https://www.chicagotribune.com/news/...svm-story.html
The Reddit investors essentially fucked the hedge fund managers and invested in retail.The hedge funds bet against the companies by borrowing shares in them from a broker and selling them, with the idea that they would buy the shares back when the prices fell, keep the difference and return the shares to the broker. However, the funds were caught in a squeeze as small investors piled in and drove up the price. That has forced some funds to swallow huge losses.
Great article:
https://www.nytimes.com/2021/01/28/t...e=articleShare
Last edited by allegro; 01-29-2021 at 02:38 AM.
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yes. they are different.
like when Trump would say "the economy is doing great because the stock market is at an all time high"
1) the stock market indexes CONSTANTLY reach all time highs, regardless of who's president. it is not indicative of how the nation is doing as a whole.
2) if the "economy" was doing so good in Trump's eyes, then why was there a devastatingly high number of bankruptcies in 2020?
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Do yourselves a favour though and don't go read the reddit threads...they're just idiots trying to screw over a hedge fund without realizing that losses at this size aren't that uncommon for hedge funds, and they're also going to screw themselves over too.
It's just stupid really.
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Like we said, stocks and the economy aren’t related; Trump’s Federal Reserve was buying corporate bonds of big companies that didn’t need help.
https://www.cnbc.com/2020/06/29/the-...-over-why.html
The “economy” is the GDP:
Last year’s shrunk by 3.5%, the worst since 1946.
Last edited by allegro; 01-29-2021 at 09:50 AM.
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yes, of course they're different things, but they're all dominos that will hit each other when the system falls apart. The worldwide impact of the stock market truly collapsing is unimaginable. I'm pretty much on the verge of taking out all my stock investments, and I can't be the only one.
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I don’t know why you feel that way.
What happened with GameStop is no indication of the health of the stock market. It’s an indication of the health of the typical brick-and-mortar retail market, which is dying. Hell, most retail right now is suffering due to the pandemic.
If your portfolio is diverse, you should have zero worries. Don’t invest in retail.
My portfolio is up from last year.
Panic selling is the newbiest thing you can do. Stock portfolios are meant to be long-term investments.
This is NOT like the securities-backed real estate crash. NOT.
Last edited by allegro; 01-29-2021 at 11:10 AM.
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Yes, and even the GDP is a facade. From the book Enough (currently reading) by Vanguard Founder and inventor of the index fund, Jack Bogle:
"Government: Making Sure the Numbers Fit
It turns out that our GDP includes so-called imputed income, such as the assumed value of income from living in our homes, the benefits of free checking accounts, and the value of employer-paid insurance premiums. Such phantom income accounts for fully $1.8 trillion of our $14 trillion GDP"
In other words, things are even WORSE than they seem with the economy.
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What worries me more are the personal debt levels, but experts seem to think they’re okay because interest rates are low. I think experts are just full of shit.
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I don't call panic selling a "noob" thing, and I wouldn't call myself a complete noob here. But when you're up, you cash in. None of that money is real until you do that. It's all just hypothetical cash.
I also don't really "bet" with the stock market. I diversify and lean towards stocks that give some kind of dividend, and I get how this works. What I'm saying is, almost nobody knows where this is going. And to your larger point, yes, you're going to see a lot of noob buying and selling, and noob panic selling... and the noobs panic selling gamestop are the patsies at the table.
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as someone over 120K in student loan debt, yes, they are full of shit.
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I don’t even have stocks, my IRA is in this.
Warren Buffet taught me to put my money in something with medium risk (or blue chip stocks) and forget about it until retirement and I trust Warren Buffet so that’s what I did. *edit: FWIW, Buffet also recommends index funds.
I also have real estate.
I’m more worried about minimizing debt and increasing cash reserves at this point in my life.
This day-trading that these guys are doing is gambling, plain and simple. It’s no different than video poker. Except now the volume is fucking with all trading.
Lemme tell ya a little story about panic selling:
Back in the olden days, when mutual funds started and ordinary people who didn’t have stockbrokers could buy into mutual funds, many many people did just that.
Then Oct 19, 1987, happened, also known as Black Tuesday.
And many many people panic-sold. And lost everything.
But ... many people didn’t. They let it ride. And THOSE people, today, are very very rich.
The end.
G works with guys who got out of their retirement funds a few years ago (paid a penalty) and put it all in GOLD, because the financial apocalypse was coming and money would be worthless and only gold would be worth something. Like, we are gonna be using gold bars at the grocery store? They won’t even take my silver dollars. G told them, if the apocalypse happens, what you’re gonna need is guns, not gold; ‘cause we all gonna be in deep shit.
Last edited by allegro; 01-29-2021 at 07:46 PM.
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Anyone else tired of hearing about Marjorie Taylor Greene?
Expel her and move on.
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