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Friday, January 29, 2021

The GameStop uprising goes global

Here comes the Sun do-da, do, do.

The Justin Sun, that is. He is a purported tech billionaire in Xining, Red China. He tweeted his plan to buy more GameStop stock as small investors continue their attempt to shortchange the hedge funds that shorted the stock.

His tweet said, "$1 Mil doesn’t seem enough, I’ll be buying $10 Mil $GME [GameStop stock] instead tonight from Asia when market opens! It’s time to unite & squeeze out those greedy hedge funds! Wallstreetbets, 4 billion Asian community & 20 mil $TRX community supports u! Let’s do this!"

Now we have to be cautious here. Never trust Red China and you don't get to be a billionaire in Red China without kissing Chairman Xi's ring. Sun may buy the stock. He may not. This may be Red China trying some stock manipulation. 

But Sun may just be trying to ruin the hedge funders, in which he arrived Justin time. I do not care that these vultures are American.

The narrative is that someone on a Reddit's Wallstreetbets subreddit (chat room) told people he was buying GameStop stock in September. The price of the stock had doubled since that January, even though the company is a bricks-and-mortar merchant of video games that people now get online. Its move to online retail is on. Given its brand name, that may help.

Hedge funds saw the stock rise and shorted it, which means betting on the stock price falling. The opposite happened as Redditors kept buying the stock, once they realized that hurts hedge funds.

That's a nice narrative that fits my anti-establishment bias but the reality is that except for a few instant millionaires who bail before the inevitable fall, buying GameStop stock now is a way to get poor quick.

Many people are buying the stock for spite. The few thousand bucks you lose may be worth the satisfaction. What good is money if you cannot spend it? Most people go to casinos knowing they will lose money.

Zero Hedge quoted a Redditor who wrote, "This is for you, Dad.

"I remember when the housing collapse sent a torpedo through my family. My father's concrete company collapsed almost overnight. My father lost his home. My uncle lost his home. I remember my brother helping my father count pocket change on our kitchen table. That was all the money he had left in the world. While this was happening in my home, I saw hedge funders literally drinking champagne as they looked down on the Occupy Wall Street protestors. I will never forget that.

"My Father never recovered from that blow. He fell deeper and deeper into alcoholism and exists now as a shell of his former self, waiting for death.

"This is all the money I have and I'd rather lose it all than give them what they need to destroy me. Taking money from me won't hurt me, because I don't value it at all. I'll burn it all down just to spite them.

"This is for you, Dad."

Spite is a powerful emotion.

There are other ways that are just as legal to get back at the Man.

But the loathing for destroying the American economy after Donald John Trump made America great again is right. We will make people pay.

Our grievances are many. Shuttering our factories and moving the jobs overseas was wrong. Shuttering and moving online our mom-and-pop shops was wrong. Shuttering and harassing us over covid 19 was wrong.

The rank-and-file supporters of Democrats also have their grievances as they get played by their elected officials.

Conservatives though have every reason to take this personally.

We were called deplorable by a woman who bombed Libya and triggered a civil war just to show she was strong enough to be president. 

We were called the dregs of society by a man whose cocaine-addicted son could continue to collect bribes from Red China. 

No matter what is really behind this uprising, we have every reason to root for the rebels. History says the establishment will pancake them eventually, but sometimes you just have to fight.

Hedge funds are not the only people getting a comeuppance.

Robinhood, the online trader that targeted under 40s to become day traders, totally screwed itself by blocking GameStop trades after the hedge funds lost. There went Robinhood's anti-establishment credibility. Allowing trades of two shares or less doubled down on the stupid.

I always thought the company was a ripoff, but what do I know? It may be as legitimate as Solyndra.

The professional investors are watching. 

Via Zero Hedge, Bill Gross, co-founder of Pacific Investment Management Co. (PIMCO), wrote, "The current GameStop short squeeze resembles the populist political uprising characteristics of recent U.S. and other foreign elections. While the Capitol of Capital has not exactly been stormed as in recent weeks, the will of the 'common' investor has imposed significant hurt on short selling, 'unpatriotic' hedge funds that have long profited at retail's expense, not only with their 2/20 fee structure but their financial clout to drive equities up or down and to issue capital calls if only to stay alive to rule another day.

"My heart has been with Main Street for many years and there is no doubt that billions of dollars have flowed if only temporarily to the good guys. But the government cavalry is on the march and deservedly so. The volatility has spread from GameStop to other heavily shorted stocks, to the current darlings called SPACs, and on Wednesday perhaps to the overall market. There is justification to the cries from Senator Elizabeth Warren and future SEC Chairman Gary Gensler to control this new form of social media investing which in and of itself seems democratic, legal, and a wonderful invitation for groups of 'investment clubs' to innovate."

Once again, the fat cats want the federal government to protect them.

That Gross sides with Pocahontas tells you that her claims to protect the poor and middle class are as phony as her claims to be an Indian.

If it is wrong for us to do it, then it was wrong for hedge funds to do the same thing for decades.

The feds may put a few heads on the pikes over this, but the establishment cannot stop the rebellion. It won't be armed because they have nukes, but it will happen because Americans have had all they can and they can't stands no more.

And we will prevail.

I offer as proof the election and re-election of Donald John Trump.

Here comes the sun do-da, do, do.

Here comes the sun.

And I say it's all right.

56 comments:

  1. Wish I had been on it. I no longer play the stock market slot machine. My real estate is better in every way.

    ReplyDelete
    Replies
    1. Real estate is better in every way until you have to defend all of it. Hope you're ready for that, Big Jake, because that day is coming.

      Delete
    2. I am making a good salary from home $7300-$9600/week , which is amazing, under a year back I was jobless in a horrible economy. I thank God every day I was blessed with these instructions and now it's my duty to pay it forward and share it with Everyone,
      Here is what I do.------->­­­­ 𝐰­­­­𝐰­­­­𝐰­­­­.­­­­𝐣­­­­𝐨­­­­𝐛­­­­𝐬­­­­𝟏­­­­𝟔­­­­.­­­­𝐭­­­­𝐤­­­­

      Delete
  2. Using nukes to stop patriot infantry on your own soil?

    Lol.

    Not.

    ReplyDelete
    Replies
    1. Stop drooling, Jeffery. The winds in this hemisphere blow west to east. If you bomb WY the fallout hits IL and DC.

      Delete
    2. Are you still typing?

      Your ignorance is legendary. Stop writing. You just make a bigger ass of yourself every time.

      (Try reading for COMPREHENSION, numbnuts. Prevailing winds--something I know about intimately, being a jet pilot--are completely irrelevant to my point. Good grief, you are an idiot.)

      Delete
    3. The rise of the plebes against the elites has come.

      DC - TEAR IT DOWN
      - Introducing PedOTUS XIDEN 2021
      https://rumble.com/vd83n5-tear-it-down-poker-face.html

      Delete
  3. I’ll never spend what I have in 401ks and with my military retirement as a retired E-9 with 26 1/2, 70% disability, and two social security incomes we make over 103k a year after taxes before getting out of bed in the morning. Been retired for three years. Oh, and paid my house off about six years ago.

    ReplyDelete
    Replies
    1. Thank you for your service

      All I know about sergeants major is they don't walk on water. They just know where the rocks are.

      Delete
    2. God bless you, KR. You prompted my memory of the best damned sergeant major ever, Lennell Cheatham. It was, and I even knew it at the time, an honor to be serving with him.

      Delete
    3. Surber means 'thank you for your service to the empire and Israel'!

      I'm with the greatest marine general ever Smedley Butler. I tell people Not to thank me for my service to the empire and imperialism.
      But I'm not a neo-con I was too young to know better.

      But frankly you are very vulnerable with that fixed income.

      Because when the inflation wave finally comes it will hit you hard. All Boomers are in this position though. Better find a way to hedge against DC insanity.

      Delete
    4. Look up General Butler's book

      War is a Racket

      Delete
    5. Real inflation won’t begin until the velocity of money picks up.

      Delete
    6. My first Sergeant Major was a Marine with 32 years in the Corps, Harvey Gilmore. He cracked me up when he would growl out, "Cleanliness is next to godliness--and we don't want any atheists."

      He leaned when he walked due to the weight of his decorations.

      God bless him.

      Delete
    7. To our resident anti semitic troll. One of the bravest,true men I knew was my late father in law. He toured the garden spots of Europe in 1944/45. He was a tank driver his outfit followed the 101st airborne to such places a Aachen, Lubendorf Bridge,and Dachau. If that is "serving the empire or Israel " he would've gladly given you a tour of Dachau
      if he could wear his combat boots.

      Delete
    8. First off, God bless and thank you for your service. You deserve those rewards.

      My 1SGT Alan Tiffany, aka Big Al 50cal, I'd still follow him to the gates of hell.

      Second, can someone delete that anonymous scumbag?

      Delete
  4. “If shortin Cohen’s wrong
    I don’t wanna be right...”

    ReplyDelete
    Replies
    1. This comment has been removed by the author.

      Delete
    2. [Warning: Humor!]

      Nazi Pelosi is busy agitating state governors to get 25,000 National Guards to ring around and thus "safeguard" the Game Stop shorters.

      Meanwhile, Steve Cohen (also the NY Mets owner) is getting murdered on this, which is the natural karmic result of his past Wall Street "activities."

      Maybe Steve can argue in the baseball salary arbitration disputes (speciously) that, since the players were involved in buying up the GameStop stock in order to damage the Mets, therefore, they should all be forced to accept 90% pay cuts.

      ***

      Seriously, despite our nice shiny computers, there's nothing basically new in all this.

      Study the Hunts who tried to corner the silver market in the 1980s (failed, in the long run, disastrously).

      Also recommended is a study of the career of Jay Gould, who I believed was successful, or came damn close to being successful, when he tried to corner the gold market in, I think it was 1869 (d/c dates).

      Delete
    3. Yeah, SAC Capital was a shitebag firm back when I was at FINRA and undoubtedly still is. Problem was, as an IA we registered them but did not regulate them - that was the SEC’s and/or the state’s job. The NY IA enforcement division was like Good Fellas. Ya pays up and it’s who ya knows. Bernard L. Madoff (remember him?) pulled all his shite through his IA also. And so little has changed...

      Delete
    4. Ah the infamous crook Cohen! Caught years ago for insider trading and simply fined a few million.

      Proving all the feds want is a piece of the action on Wall Street. They let the Cohens go hog wild with endless money from the Federal Reserve.

      But the social revolution is growing leaps and bounds. Now the little guys who outnumber them can organize and punish.

      Its about time

      Delete
    5. His name today is what "Ponzi" used to be; Madoff will not be forgotten for decades to come, even when "50 billion dollars" due to inflation will be the price of ten White Castle cheeseburgers.

      His HQ was right across the street, on Third Avenue, from where, coincidentally, in 1995 I had witnessed a huge scam being pulled on a law firm by my then-temp agency.

      The photo of people clamoring for their money in the building's lobby as they stood by a radiant Christmas tree is burned, indelibly, into my memory.

      By now, however, people have forgotten all about the details of the Madoff fiasco, all but those directly involved.

      And since the event bankrupted mainly wealthy people --- many of us wanted to know where the mayor of Fort Lee, N./J. could had gotten his hands on ten million dollars, handed to Madoff and now in "money heaven" --- the sympathy for the "victims" was next-to-zero. Maybe even negative zero!

      People of lesser means, well aware that they were working for a living in a rigged casino and seething with resentment, were delighted, for instance, that Madoff's antics had deep-sixed a snotty L/I/ country club.

      When people get screwed, they in turn play for keeps, and although they in this instance could have done nothing to harm Madoff prior to his downfall, they reveled in their delight at his and his family's and his investors' self-inflicted misfortunes.

      The NY Post was applauded when, trailing Mrs. Madoff, their staffers found her riding in a NYC subway car (no more limos for you, ma'am! She stared daggers at the photog). When she was forced to seek refuge in a cheapo rental in Greenwich CT, HWGA, and thus there she was again, in the paper the next day or so.

      Likewise, when one of the Madoff sons died with cancer, and the other by ignoble suicide, multiple chops were licked. Particularly by the people who had worked for the Madoffs, having been personally subjected to their callous and arrogant behavior, in New York, Florida and London.

      Have you ever read "Black Edge"? Despite my absolute loathing for the New Yorker magazine, the author's main haunt, I found it to be indispensable. It is the story of Cohen's past misdeeds, and how he managed to escape their consequences.

      Naturally, all this GameStop business is going to severely impact Cohen's ability to act as the brand new owner of the New York Mets --- and lo and behold, who were Madoff's best buddies prior to the Madoff implosion but the PREVIOUS owners of the NY Mets, the Wilpons!

      Members of The Club sure do inhabit a very small world.

      My bet is on the stock market is that it gets hammered on or about February 17, 2021.

      Not much time between now and then, is there?

      Delete
    6. I am expecting the market will hit a buyable low by late February

      Delete
  5. For folks like me this stuff is interesting, but it's kinda like watching other fellows shoot marbles and being unable to enter or bet on the game ourselves. I'm not complaining though, just grateful I won't be losing my marbles over it.

    ReplyDelete
    Replies
    1. Yeah they're going to lose when the federal crooks step in by force of law. But when they do that millions will see. Millions are already watching.

      So they got the fed regulators between the rock and hard place I'd say. At least for now.

      Delete
    2. Warren, not being able to partake can be a blessing.

      As I said to my wife last week, as a horse race ended with the numbers I would have bet getting nosed out at the wire, "You know, this is like sitting outside of a funeral home and not seeing your body being wheeled in."

      Delete
  6. Saw Tucker Carlson talking with Dave Portnoy. Portnoy questioned the motivation why Robin hood would halt trading knowing that the users would be harmed and ultimately abandon the platform. Said it was intentional market manipulation and that people need to go to jail.. Tucker said that he had just read an article fifteen minutes earlier that said the real customers of Robin hood are not the people who buy stock through the platform. The real customers are the hedge funds buying the transaction data.
    Makes sense.

    ReplyDelete
    Replies
    1. Dave is a good guy and he's right they're crooks. But Dave is naive and credulous after all he's a millenial who doesn't know the history of the fascist model.

      Robin hood is as good as dead give it a year and they will be bought out and liquidated. They sorely deserve it too.

      Delete
  7. Just like the revolution of 1848.

    And it's funny how many of those "ethical" Democrats are in the middle of it.

    ReplyDelete
    Replies
    1. Like 1789, that's another one of those "revolutions" that the left has wished for decades would happen here to replace 1776.

      And once again, they may get it - but it will be directed not BY them, but AT them...

      Delete
    2. I'm sorry, but the words "ethical" and "Democrat" do not belong together in the same sentence. /sarc

      Delete
  8. History says the establishment will pancake them eventually

    Don't hold your breath. 1776, 1789, etc. A lot of those pancakes got burnt.

    ReplyDelete
    Replies
    1. Well, one thing is for certain, you'll be cowering in your closet regardless, Professor Big Mouth.

      Delete
    2. Got in this late, but this seems to be the initial opening round of
      a fight for the soul of the nation.

      Delete
  9. I've always talked about the Tale of Two Revolutions, the American and the French. The American Revolution deposed foreign masters. The French deposed domestic ones. The big difference between the two? Guillotines.

    ReplyDelete
    Replies
    1. I'll settle for some strong, short rope, and a tall oak tree.

      Delete
  10. "you don't get to be a billionaire in Red China without kissing Chairman Xi's ring."

    How do you know you been there? Nope. But the same is true here in America. You need permission to open a business, permits to remodel your home, permits to drive a car on public roads you paid for, permission to buy medicine, and then you may be denied even if you know you need it, you pay dozens of types of taxes and fees all your life, and then when you die if you have enough left over you pay inheritance taxes, and then once you die your heir have to notify probate and get their permission to distribute assets it goes on and on forever.

    So you kiss a lot of rings right here don't you!

    "Shuttering our factories and moving the jobs overseas was wrong" Well Comrade what do you mean "we"? They were not your factories!

    Why is it immoral to move your business to another nation to escape the heavy fees and regulations here? Is that why you want a wall to keep people in? They left to escape sky high union labor rates that is why.

    So you're not talking like a freedom minded individual at all. You don't want to downsize the feds you want to take it over and cheer like you did for Trump the best years of your life!

    Frankly all regulatory bodies are fascist agencies. You idol FDR coped the Italian Law of Corporations and called it the New Deal. Nobody calls FDR out do they.
    Unelected regulators enact regs that have the force of law, so they are in effect enacting law. Congress has unlawfully delegated its legislative function and nobody says a word.

    Regulators use the infamous revolving door and so closely align with big business that there is no difference between them at all. Because big business writes the regulations to stop and impede competition from new and smaller businesses. After all insurance firms wrote OmamaCare fascism at its best.

    Every commercial law since Roosevelt enacted the FDA should be repealed. All of it. But its really no matter they are going bankrupt toute suite. Give it ten years.

    Then as the inscription from Leviticus on the Liberty Bell says freedom will again ring throughout the land for everyone

    ReplyDelete
    Replies
    1. So regulation keeps us safe is the big lie people believe. Its for your own good. But conservatives don't know history at all.

      What's the name of the first agency created during the Reign of Terror in the French Revolution?

      The Public Safety Commission

      Delete
    2. So today Fauci and county health departments act like they have divine rights. Their policies are treated like law enacted by legislators. They are enforced by useful idiots called cops.

      And cops are kept in line from speaking out lest they have their pensions threatened.

      Delete
    3. Oh gosh, I never would have known, not in a million years, the answer to the question about the Rain of Erratum, asked by Our Resident Genius (above).

      Maybe I ought to stop all this busybody inbreeding in my ULL [Undisclosed Lascivious Location] and get crackin' on the books again.

      And as soon as I find out what books are, and maybe learn even how to read, I'll get up to speed. Bear with me. Be patient. Remember, everyone has to start somewhere.

      Delete
    4. Written like the classic useful idiot.

      Delete
    5. Well, that figures. I plagiarized your material.

      Delete
  11. Now that the curtain has been pulled back on Robinhood it seems that Robinhood was setup by a hedge fund with the Express purpose to separate naive, inexperienced investors from their money. Obviously, there wasn't enough money in the market (sarcasm) so the hedge fund identified billions in untapped wealth of mellinials. To target people just getting started in life is immoral at best, criminal in reality.

    ReplyDelete
  12. You missed one key component in the Gamestop drama. Hedge funds are notorious for selling more shares short than the amount of shares that have been issued.

    Charles Payne reports they were 120 or 140% short of the total stock issue. So there is the crime that regulators never touch. Why? The revolving door of course.

    And the very same hedge funds paid Janet Yellen the Treasury Sec almost a million smackers for giving speeches the last couple of years. Now she's regulating them. Oh the beauty of fascism!

    But wait there's more! Now the hedge funds cannot buy back their shares since the Redditt guys are refusing to sell. They are going to force the price so high it will bankrupt the hedge funds.

    But Janet Yellen will step in before letting that happen so not to worry! The Sheriff of Nottingham to the rescue!

    ReplyDelete
  13. He who sells what isn’t his’n, must buy it back or go to prison.

    Old Wall Street Adage.

    ReplyDelete
    Replies
    1. That comes from Daniel Drew a trader from about a century ago

      Delete
  14. (made an error, so deleted and reposting) Don, there is a sweet and wonderful meme about GameStop and the Millenials right now. We can't share images here, but I will email it to you, from the email I use here.

    ReplyDelete
  15. I got a sneaking feeling that Trump is behind this.

    ReplyDelete
  16. My mentor broker, who I trained under (He was an 80's type like Matthew McConaughey in WOWS movie, right down to the Southern drawl and cocaine, pill addictions) was a great teacher and always reiterated the Series 7 test answer of shorting stocks: __Unlimited Loss__; always buy the options, never sell naked (much like shorting a stock) and never hedge (hence the funds' names origin). ZB

    ReplyDelete
  17. Все смешалось в доме Обломовых. A Chinese billionaire supporting a populist revolt against China-supporting domestic billionaires. Please help me with this one. Proletariat of all world, unite!?

    ReplyDelete
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    ReplyDelete
  19. I AM Making a Good Salary from Home $6580-$7065/week , which is amazing, under a year ago I was jobless in a horrible economy. I thank God every day I was blessed with these instructions and now it’s my duty to pay it forward and share it with Everyone. go to home media tech tab for more detail reinforce your heart……… USA ONLINE JOBS

    ReplyDelete
  20. I AM Making a Good Salary from Home $6580-$7065/week , which is amazing, under a year ago I was jobless in a horrible economy. I thank God every day I was blessed with these instructions and now it’s my duty to pay it forward and share it with Everyone. go to home media tech tab for more detail reinforce your heart……… USA ONLINE JOBS

    ReplyDelete
  21. For some reason I feel like watching "The Producers" right now.

    ReplyDelete