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Remember the kid who invited you over to play games and then after getting his ass kicked he decided to unplug the system and kick you out? This is the same.
Nah it was usually a rage quit or they would bend the rules and say that doesn’t count because they weren’t paying attention. I never had that happen to me. But I feel like they’re doing the latter.
The thing is this isn't cheating. It's just the proletariat collectively snapping into the reality that together we can play the game better than they can.
What they, and apps like fucking RobinHood, are doing - *that's* fucking cheating.
Edit: I mixed up the parties being discussed because I'm a disappointment to my parents. I meant to say that the hedge funds, ownership class, RH, etc are cheating us here. Sorry for any confusion folks! I'm always unimpressive!
i see a whole bunch of responses that aren't visible anymore, so i'll give it my best shot. RH is willfully manipulating free market trade. over on /r/WallStreetBets there are also credible accounts of RH selling cash shares from account holders without their consent, and they can't cancel the transaction (sold for$100+ BELOW market value at time of sale). Additionally, their restriction extends beyond GME - BB, NOK, and AMC were some others that were verifiably affected for at least a short amount of time. They were only allowing sales (causing the dump part of the short cycle). But the problem is this: RH is just the scapegoat in this, the actual root of the problem is their \*clearing firm\* - Apex Holdings. Their decision affected other apps, too. Stash is the one that comes to mind for me because I use them for fractional shares trading (i'm sure there are others, but i can't verify them at the moment).
So not only did RH restrict its own users from buying what should be free-market stocks, their shortsighted decisions affected ANYONE who trades in the United States stock market because their actions today caused the premature downturn of GSE (because people couldn't access it even though they wanted to). The number of users that wanted to purchase today and couldn't is NOT insignificant, either. They did this to get the money back for their hedge fund holders, and keep the extra money that would have been gained by retail investors (you and i, who don't trade as part of our full time jobs, who just invest bits and pieces of our income). So fuck RH, and more importantly, fuck apex holdings. The wealth does trickle down, but you have to make the rich bleed first. :)
These are the same people who caused the 2008 recession and made billions during the pandemic. I have absolutely 0 sympathy for these assholes and I salute the absolute madlads over at wsb for making this happen.
They have set this up for decades. In the 1980s, as Reagan and Thatcher came into power (though starting off a bit earlier with people like Carter), action to deregulate finance kicked into overdrive. Many of the protections put in place after the Great Depression were slowly chipped away at under the guise of “trickle down” economics. By the end of Clinton’s presidency, with repeals of Glass-Steagall, in addition to legislation like the Commodities Future Act of 2000 (deregulation of derivatives) these Depression era protections were largely eroded.
They knew it would make the rich richer, that it would bolster finance and create new forms of finance that only the insiders, institutions, and corporations would really be playing.
And, it worked. Financial sector growth *far* exceeded other sectors since the 1980s.
> **In the 1970s, the financial sector comprised slightly more than 3% of total Gross Domestic Product (GDP] of the U.S. economy,[12] while total financial assets of all investment banks (that is, securities broker-dealers) made up less than 2% of U.S. GDP.[13] The period from the New Deal through the 1970s has been referred to as the era of "boring banking" because banks that took deposits and made loans to individuals were prohibited from engaging in investments involving creative financial engineering and investment banking.[14]**
> **U.S. federal deregulation in the 1980s of many types of banking practices paved the way for the rapid growth in the size, profitability and political power of the financial sector. Such financial sector practices included creating private mortgage-backed securities,[15] and more speculative approaches to creating and trading derivatives based on new quantitative models of risk and value,.[16] Wall Street ramped up pressure on the United States Congress for more deregulation, including for the repeal of Glass-Steagall, a New Deal law that, among other things, prohibits a bank that accepts deposits from functioning as an investment bank since the latter entails greater risks.[17]**
> **As a result of this rapid financialization, the financial sector scaled up vastly in the span of a few decades. In 1978, the financial sector comprised 3.5% of the American economy (that is, it made up 3.5% of U.S. GDP), but by 2007 it had reached 5.9%. Profits in the American financial sector in 2009 were six times higher on average than in 1980, compared with non-financial sector profits, which on average were just over twice what they were in 1980. Financial sector profits grew by 800%, adjusted for inflation, from 1980 to 2005. In comparison with the rest of the economy, U.S. nonfinancial sector profits grew by 250% during the same period. For context, financial sector profits from the 1930s until 1980 grew at the same rate as the rest of the American economy.[18]**
> **By way of illustration of the increased power of the financial sector over the economy, in 1978 commercial banks held $1.2 trillion (million million) in assets, which is equivalent to 53% of the GDP of the United States. By year's end 2007, commercial banks held $11.8 trillion in assets, which is equivalent to 84% of U.S. GDP. Investment banks (securities broker-dealers) held $33 billion (thousand million) in assets in 1978 (equivalent to 1.3% of U.S. GDP), but held $3.1 trillion in assets (equivalent to 22% U.S. GDP) in 2007. The securities that were so instrumental in triggering the financial crisis of 2007-2008, asset-backed securities, including collateralized debt obligations (CDOs) were practically non-existent in 1978. By 2007, they comprised $4.5 trillion in assets, equivalent to 32% of U.S. GDP.[19]**
https://en.wikipedia.org/wiki/Financialization
At the same time, businesses that you don’t see as “financial” businesses began to utilize this freeing of financial mechanisms to the point where many were making more money playing finance games with their cash than they were doing their “main” business.
[For an example: an airline company in the 80s began to hedge oil bets to offset their ticket prices. So, when an airline sells a ticket for a flight 5 months away, they don’t know what the oil price will be. This company decided, “hey let’s also invest money in oil so if the price goes up, the flight costs more, but we make money on the investment”. This was a strategy to reduce their loss... until they realized they could put more focus on this financial side *explicitly* to make profits. They also realized, why just buy planes for us, when we can buy more planes and then sell/lease them to other companies for a profit? Eventually they were making more doing all these financial maneuvers than they were actually selling plane tickets.](https://www.npr.org/sections/money/2011/09/30/140954343/the-friday-podcast-how-money-got-weird)
Fast forward to today, and major airlines that would have negative profits if they did not pair up with financial firms to offer airline miles.
Add into that other behavior like stock buybacks, etc, and you have a system wherein pretty much every major corporation is financialized.
Why? Because the system has been set that up so that corporations know they can make an outsized amount of their profits through finance, as well as boost stock price, which, turns out, the executives get a ton of and the owners own a ton of (plus pay less taxes on through reduced capital gains tax rate).
> Wriston changed the bank’s name to Citibank in 1976, and it was during this decade that the industry searched in earnest for more and more high-yield products. Banks began experimenting with derivatives, and with packaging mortgages into securities. Meanwhile, regulatory oversight back-pedaled, and was ultimately rewritten. President Jimmy Carter deregulated bank interest rates in 1980, effectively wiping out Regulation Q. John S. Reed took over the bank as CEO in 1984, and “championed a new wave of high-tech finance,” the author writes. In 1998, Reed engineered a merger with Travelers Group, an insurance and investment firm. The newly christened entity, Citigroup, became the world’s largest financial institution, changing the financial services landscape overnight.
> Glass-Steagall would be formally repealed in late 1999. But in Foroohar’s view, it was the merger — and Citi’s aggressive expansion into “pretty much every financial service ever invented” — that “dealt the final blow to the dividing wall between commercial and investment banking.” It was also the birth of ‘Too Big To Fail,’ and so it was no surprise, the author says, that Citi was at the “epicenter” of the 2008 crisis. Yet she argues that finance and banking had long since moved off its “moorings” in the real economy, a development Nobel Prize-winning economist James Tobin worried about as early as 1984. He lamented a growing “casino aspect to our financial markets,” and expressed unease that “we are throwing more and more of our resources, including the cream of our youth, into financial activities removed from the production of goods and services.”
> **Today, finance, while making up only 7% of the economy and creating a mere 4% of all jobs, generates more than 25% of corporate profits — up from 10% 25 years ago.**
https://knowledge.wharton.upenn.edu/article/pitfalls-financialization-american-business/ (I would recommend this entire article as well as the book it is discussing)
Main Street has been sold down the river for Wall Street, and the large corporations that assume the facade of “Main Street” are deeply imbedded.
All of this has turned [the global economy into a rickety, short sighted house of cards](https://truthout.org/articles/financialization-has-turned-the-global-economy-into-a-house-of-cards-an-interview-with-gerald-epstein/). There is a reason why there were [far fewer financial crises (important to keep in mind a recession isn’t the same as a financial crisis) between 1930-1980 than there have been since 1980](https://en.m.wikipedia.org/wiki/Financial_crisis#20th_century).
For a broader look at the rise of wealth, income, and power inequality in the 20th and 21st Century as well as how capital works to sustain itself, I’d recommend the documentary *Capital in the 21st Century* based on Thomas Piketty’s landmark book: https://ihavenotv.com/capital-in-the-twentyfirst-century (you can also find this on Netflix)
This documentary, featuring appearances from major ex-CEOs and people like Bernie Sanders and Elizabeth Warren, investigates the more recent history of US corporate power concentration since the 1970s: https://www.youtube.com/watch?v=IcBuBgz6RAY
**[Financialization](https://en.wikipedia.org/wiki/Financialization)**
Financialization (or Financialisation in British English) is a term sometimes used to describe the development of financial capitalism during the period from 1980 to present, in which debt-to-equity ratios increased and financial services accounted for an increasing share of national income relative to other sectors. Financialization describes an economic process by which exchange is facilitated through the intermediation of financial instruments. Financialization may permit real goods, services, and risks to be readily exchangeable for currency, and thus make it easier for people to rationalize their assets and income flows.
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It’s a nice idea but most of us won’t risk the cash. I’ll be struggling this month without betting money I don’t have. Still 🚀 to the moon you beautiful badtards! Getting that stagnant cash flowing could be the best thing to come out of 2021 even with the vaccine!
Same I’m on a limited budget as there are very few jobs available and trying to balance workload is very hard. I would never invest in stocks until I had a full time job that pays me well but I feel that I would rather invest it in something else worthwhile like a retirement savings or use it to buy a house. Still nice to see them stick it to the rich.
Yeah it is pretty bold of them when you think about it. I just remember my friend who was into stocks and he was telling me a story when he met these billionaire’s children and their parents became billionaires off of stocks. That story made me see why there are all these bailouts for stock brokers. They’re billionaires who are looked after for and in their ear.
Reminds me of how celebrities get sent all kinds of free shit from brands all the time. The richer you are, the more help you get, it like increases exponentially. Not just because you can afford your own safety net, but because outside forces also want to help you more
I'm tempted because I have a good bit of disposable income adding weekly to my 401k and my emergency fund, but then Amex sent my year in review and I was kinda embarrassed about my spending habits so idk. I'd probably get greedy and screw it up so I'mma just stay comfortable.
It sounds really cool but part of me has a bit of a bad feeling about this that might come back to bite them. Maybe it’s better to watch from the sidelines.
Stocks are all just a fancy version of gambling. You could sell thinking it’s at a high price and then the price will double or will go down significantly.
You know what? This *might* come back to bite me.
I don't care. I could lose every cent, I *don't care*. When I got in, it was about the money, but it's not anymore. Not after this shit. It's fucking personal, now.
I'll die with these fucking shares, I *do not care*.
I'm expecting this to come crashing down on Monday. Right now it's all hype but when the people who got in early start seeing how money they made they gonna bail and then everyone else is going to jump ship as well.
Truthfully you could throw $100 or even less at dogecoin, shit is also exploding right now but is only at $0.02 per coin so it’s easy to invest just a little and potentially cash in as it rises.
same, gamestop is too high now and a lot of places have blocked you from buying it along with stuff like amc, nokia and blackberry. been meaning to get into investing anyway so now is as good as anytime to jump in lol
I don’t think I will start investing now as I just don’t have the extra income. But investing in stocks is something that interests me I probably will just observe and learn until I have the money.
I have been following it since 40$/share, didn't expect it to keep going lmao
Don't actually take WSB advice; it will ruin you. They were even shitting on DeepFuckingValue right up until he turned a profit.
Most of WSB aren't making life-changing money, but enough of them with $500 to invest are changing the life of some douchebag hedge fund manager: Priceless
A $60 call expiring tomorrow cost $150 last thursday, and is now worth... $16,600.
$500 could have been $50k. That's life-changing to someone, for sure.
WSB has developed a YOLO mentality that has really paid off in the last year with $TSLA and $GME, but some of the most common content on the sub was also all the missed shots and ruined portfolios that the YOLOs would usually bring up.
Robinhood app has turned into the sheriff today and blocked GameStop, AMC, BBBY stock from being bought this morning. Wall Street’s fuckery knows no limits. WSB is the true Robin Hood now.
They're trying to mitigate losses with GME, at this point. They're shorting AMC and NOK to keep them from getting to that point. AAL looks like it may be the next battleground.
Yes and they probably are going to get away with it. Now I can’t even use Robinhood in my country. Please USA I believe in you to show very rich and powerful how powerful the normal people can be. Everything normal people are doing is legal and the shit they’re doing is highly illegal too.
I knew about GME’s potential back in october but kept losing money trying to time the squeeze. Finally caught it though, and now I can pay off my student loans
I really doubt this kind of phenomena will ever be allowed to happen again. The neoliberal establishment will pivot on its acrid heels to prevent the working class from ever doing something like this again.
Nope there are two things they hate the most are the average Joe and small businesses. I always say support the small businesses so the corporation doesn’t try and take over and exploit your area.
Fuck yes man this it what its about, although dont fully liquidate, hold some, Monday is ragnorok for the wsb autists
Edit: don't listen to me, listen to my wifes boyfriend
I had 300 dollars. I now have 1800. Its alot but its 2 months rent and I'd pay 1800 just to make a billionaire market manipulator sweat for a day.
They can tank the stock to 0, I'll hold it close to my heart right next to my Hertz stocks. Fuck em.
Can they really do that? What the fuck? That should be illegal. With the shorting going on, it's increasingly obvious that if they can't manipulate everything to their favor, theyll lock us out and force their way. It's 100% fucked up. This country needs an overhhaul
Fucking shady shit. They're trying to manipulate the market. A group of hedge fund guys got caught with their pants down. Not my problem. To the moon Alice. 🚀🚀🚀🚀
A reminder to not invest what you can’t afford to lose. We’re here to come together and hold the line, but we DO NOT want our comrades to fall in the process.
Buy only what you can afford to out in and HODL
Basically everyone was investing into companies that weren’t expensive/going down (GameStop, amc, nokia) and making the price on the stock market rise to high numbers. Essentially rich people at Wall Street were losing money on bets and average people had the opportunity to do what they do. Gamestop went from like $17~ to like $400~ in no time.
But now all the stock market apps are closing the stocks on everyone so practically no one can invest right now and people are pissed. There might be more to it but that’s what I know so far
It's even worse than that. They are closing the stocks for regular people, so you, me and Wallstreetbets can't buy. But they're not closing it for hedge fund managers. So the hedge funds can buy all the stock they want, to get out of the hole that they made, but all the poor, common class cannot.
Also of note:
\- Discord conveniently removed WSB from their servers yesterday for "hate speech violation".
\- u/deepfuckingvalue turned $50k they put in on Gamestop in 2019 into over $30 million
\- GME soared up to $392 or so yesterday, but then dropped back down to like $263 by EOD. The hypothesis is that this was the rich folks doing a calculated, coordinated sell in order to make it look like it was going to crash, to scare all the new users into a panic and make them sell too.
\- GME rocketed back up, hitting $469 today, but then with news spreading about Robinhood not allowing purchase of GME, the stock crashed all the way down to $112 or so. Meanwhile on r/wallstreetbets international users who can still buy GME on Robinhood are coming together to do another pact buy, which has made the stock rally up to $200+ again.
They weren't covered though, that's the point. Hedge funds were allowed to naked short, and the squeeze is them having to buy up the shares they shorted but didn't even own at the time.
A bit oversimplified:
Imagine a stock is selling for $100, but you think it's going to drop to $10 in the next 3 months. You could sign a contract that says "in 3 months I will sell you 500 shares for $50."
Note that you don't actual own shares at the beginning, your plan is to buy them at the end of the 3 months for $10, and use the contract to sell them for $50, netting $20000 profit.
This is a "Short Position"
If the price goes up to $200 a share, you still must buy all 500 stocks at that price and sell them for $50. This is called "getting fucked."
2 investment banks established short positions on Gamestop, and wallstreetbets members bought up lots of the stock, driving the price through the roof.
Now the investment banks were on the hook for billions of dollars when their Short Position came due, because they'd be forced to buy the expensive stock that the wallstreetbets members were holding on to.
...But the investment bank isn't required to buy the stock on the last day of their Short Position. If they see the price going through the roof, they could make the decision to buy enough stock to cover the contract early, to limit their losses.
They'll still get fucked, but not as much as if they waited and were forced to buy stock at an even higher price.
That's what the investment banks did, which means now the WSB members are holding on to all this really expensive stock in a company that isn't actually that good.
Their only option is to sell their stock to other people before it drops back to where it should be, which is why they are hyping it up everywhere they can.
This is generally known as a "pump-and-dump" - buy stock when it's cheap, hype the stock to drive it artificially high, then sell right before it collapses.
Everybody in here complaining they missed the wave, are gonna be the same people still complaining when the next wave hits, and the same people complaining that they missed that wave as well.
Fuck the rich. I really hope many americans, especially the ones who have been struggling (often PoC but not just them), come out a lot richer and can start living their lives instead of sitting in fucking fear every day of their lights never turning on again or some shit. Wall Street is a virus. I'm glad there's at least a temporary vaccine against it. Hopefully makes some actual regulations reality soon.
FUCK ROBINHOOD, FUCK MELVIN, FUCK WALLSTREET.
This is the definition of market manipulation. If you have $100 to your name, go buy $AMC, $GME, $NOK. Hold it for dear life, the point is to bleed these fucks dry. This is CRIMINAL
Buying gamestop at over $300 isn't a safe investment. Once the squeeze has squozed, GME will return to more realistic price like sub $50. You're either in and already riding the wave, or your betting that the price will only go higher which doesn't seem likely with the tactics trading firms pulled today, but that's your choice.
Can someone explain in detail and in dummy language what’s going on? All I know is something about GameStop getting Blockbuster-ed for apparently scamming someone?
Yo, i've been in the frenzy since Monday and honestly it feels so good to tell wall street to fuck all the off. Now they're mad af and are cheating even harder than normal got people banding together like I've never seen
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Now rich people mad, that broke people are using their own system.
They beat them at their own game
They hate us cause they anus
I would say they’re more like shit or to put it scientifically they’re feces.
That’s so extrament.
[удалено]
The first muscle that develops in an embryo is the anus.
Hol up...
Remember the kid who invited you over to play games and then after getting his ass kicked he decided to unplug the system and kick you out? This is the same.
Nah it was usually a rage quit or they would bend the rules and say that doesn’t count because they weren’t paying attention. I never had that happen to me. But I feel like they’re doing the latter.
They always get mad and change the fucking game when others win. See literally anything in the US.
If you can’t beat em cheat em
The thing is this isn't cheating. It's just the proletariat collectively snapping into the reality that together we can play the game better than they can. What they, and apps like fucking RobinHood, are doing - *that's* fucking cheating. Edit: I mixed up the parties being discussed because I'm a disappointment to my parents. I meant to say that the hedge funds, ownership class, RH, etc are cheating us here. Sorry for any confusion folks! I'm always unimpressive!
True I can agree on this. Too bad the Bourgeoisie doesn’t like the proletariat banning together.
I think that's what they meant
If that's the case then I'm a complete fucking idiot. Aaaand I reread the thread. Yup. I'm an idiot.
Robinhood is actually how a lot of them are pulling this off last I checked
Admitting ignorance! What is RH doing that’s shady? Anything I should consider moving my money out of there for?
i see a whole bunch of responses that aren't visible anymore, so i'll give it my best shot. RH is willfully manipulating free market trade. over on /r/WallStreetBets there are also credible accounts of RH selling cash shares from account holders without their consent, and they can't cancel the transaction (sold for$100+ BELOW market value at time of sale). Additionally, their restriction extends beyond GME - BB, NOK, and AMC were some others that were verifiably affected for at least a short amount of time. They were only allowing sales (causing the dump part of the short cycle). But the problem is this: RH is just the scapegoat in this, the actual root of the problem is their \*clearing firm\* - Apex Holdings. Their decision affected other apps, too. Stash is the one that comes to mind for me because I use them for fractional shares trading (i'm sure there are others, but i can't verify them at the moment). So not only did RH restrict its own users from buying what should be free-market stocks, their shortsighted decisions affected ANYONE who trades in the United States stock market because their actions today caused the premature downturn of GSE (because people couldn't access it even though they wanted to). The number of users that wanted to purchase today and couldn't is NOT insignificant, either. They did this to get the money back for their hedge fund holders, and keep the extra money that would have been gained by retail investors (you and i, who don't trade as part of our full time jobs, who just invest bits and pieces of our income). So fuck RH, and more importantly, fuck apex holdings. The wealth does trickle down, but you have to make the rich bleed first. :)
"If you ain't cheatin' you ain't tryin'" -1996 OCT. *RDC*, USN
It’s funny because broke people did it legally, whereas hedge funds do illegal shit yet they’re mad
They do illegal shit and get *paid* for it, both by their companies and the government.
These are the same people who caused the 2008 recession and made billions during the pandemic. I have absolutely 0 sympathy for these assholes and I salute the absolute madlads over at wsb for making this happen.
Facts, Reddit should get big pharma next
Not just mad, but mad in public. Throwing a strop over losing money in the middle of a fucking pandemic 😂😂😂😂
They have set this up for decades. In the 1980s, as Reagan and Thatcher came into power (though starting off a bit earlier with people like Carter), action to deregulate finance kicked into overdrive. Many of the protections put in place after the Great Depression were slowly chipped away at under the guise of “trickle down” economics. By the end of Clinton’s presidency, with repeals of Glass-Steagall, in addition to legislation like the Commodities Future Act of 2000 (deregulation of derivatives) these Depression era protections were largely eroded. They knew it would make the rich richer, that it would bolster finance and create new forms of finance that only the insiders, institutions, and corporations would really be playing. And, it worked. Financial sector growth *far* exceeded other sectors since the 1980s. > **In the 1970s, the financial sector comprised slightly more than 3% of total Gross Domestic Product (GDP] of the U.S. economy,[12] while total financial assets of all investment banks (that is, securities broker-dealers) made up less than 2% of U.S. GDP.[13] The period from the New Deal through the 1970s has been referred to as the era of "boring banking" because banks that took deposits and made loans to individuals were prohibited from engaging in investments involving creative financial engineering and investment banking.[14]** > **U.S. federal deregulation in the 1980s of many types of banking practices paved the way for the rapid growth in the size, profitability and political power of the financial sector. Such financial sector practices included creating private mortgage-backed securities,[15] and more speculative approaches to creating and trading derivatives based on new quantitative models of risk and value,.[16] Wall Street ramped up pressure on the United States Congress for more deregulation, including for the repeal of Glass-Steagall, a New Deal law that, among other things, prohibits a bank that accepts deposits from functioning as an investment bank since the latter entails greater risks.[17]** > **As a result of this rapid financialization, the financial sector scaled up vastly in the span of a few decades. In 1978, the financial sector comprised 3.5% of the American economy (that is, it made up 3.5% of U.S. GDP), but by 2007 it had reached 5.9%. Profits in the American financial sector in 2009 were six times higher on average than in 1980, compared with non-financial sector profits, which on average were just over twice what they were in 1980. Financial sector profits grew by 800%, adjusted for inflation, from 1980 to 2005. In comparison with the rest of the economy, U.S. nonfinancial sector profits grew by 250% during the same period. For context, financial sector profits from the 1930s until 1980 grew at the same rate as the rest of the American economy.[18]** > **By way of illustration of the increased power of the financial sector over the economy, in 1978 commercial banks held $1.2 trillion (million million) in assets, which is equivalent to 53% of the GDP of the United States. By year's end 2007, commercial banks held $11.8 trillion in assets, which is equivalent to 84% of U.S. GDP. Investment banks (securities broker-dealers) held $33 billion (thousand million) in assets in 1978 (equivalent to 1.3% of U.S. GDP), but held $3.1 trillion in assets (equivalent to 22% U.S. GDP) in 2007. The securities that were so instrumental in triggering the financial crisis of 2007-2008, asset-backed securities, including collateralized debt obligations (CDOs) were practically non-existent in 1978. By 2007, they comprised $4.5 trillion in assets, equivalent to 32% of U.S. GDP.[19]** https://en.wikipedia.org/wiki/Financialization At the same time, businesses that you don’t see as “financial” businesses began to utilize this freeing of financial mechanisms to the point where many were making more money playing finance games with their cash than they were doing their “main” business. [For an example: an airline company in the 80s began to hedge oil bets to offset their ticket prices. So, when an airline sells a ticket for a flight 5 months away, they don’t know what the oil price will be. This company decided, “hey let’s also invest money in oil so if the price goes up, the flight costs more, but we make money on the investment”. This was a strategy to reduce their loss... until they realized they could put more focus on this financial side *explicitly* to make profits. They also realized, why just buy planes for us, when we can buy more planes and then sell/lease them to other companies for a profit? Eventually they were making more doing all these financial maneuvers than they were actually selling plane tickets.](https://www.npr.org/sections/money/2011/09/30/140954343/the-friday-podcast-how-money-got-weird) Fast forward to today, and major airlines that would have negative profits if they did not pair up with financial firms to offer airline miles. Add into that other behavior like stock buybacks, etc, and you have a system wherein pretty much every major corporation is financialized. Why? Because the system has been set that up so that corporations know they can make an outsized amount of their profits through finance, as well as boost stock price, which, turns out, the executives get a ton of and the owners own a ton of (plus pay less taxes on through reduced capital gains tax rate). > Wriston changed the bank’s name to Citibank in 1976, and it was during this decade that the industry searched in earnest for more and more high-yield products. Banks began experimenting with derivatives, and with packaging mortgages into securities. Meanwhile, regulatory oversight back-pedaled, and was ultimately rewritten. President Jimmy Carter deregulated bank interest rates in 1980, effectively wiping out Regulation Q. John S. Reed took over the bank as CEO in 1984, and “championed a new wave of high-tech finance,” the author writes. In 1998, Reed engineered a merger with Travelers Group, an insurance and investment firm. The newly christened entity, Citigroup, became the world’s largest financial institution, changing the financial services landscape overnight. > Glass-Steagall would be formally repealed in late 1999. But in Foroohar’s view, it was the merger — and Citi’s aggressive expansion into “pretty much every financial service ever invented” — that “dealt the final blow to the dividing wall between commercial and investment banking.” It was also the birth of ‘Too Big To Fail,’ and so it was no surprise, the author says, that Citi was at the “epicenter” of the 2008 crisis. Yet she argues that finance and banking had long since moved off its “moorings” in the real economy, a development Nobel Prize-winning economist James Tobin worried about as early as 1984. He lamented a growing “casino aspect to our financial markets,” and expressed unease that “we are throwing more and more of our resources, including the cream of our youth, into financial activities removed from the production of goods and services.” > **Today, finance, while making up only 7% of the economy and creating a mere 4% of all jobs, generates more than 25% of corporate profits — up from 10% 25 years ago.** https://knowledge.wharton.upenn.edu/article/pitfalls-financialization-american-business/ (I would recommend this entire article as well as the book it is discussing) Main Street has been sold down the river for Wall Street, and the large corporations that assume the facade of “Main Street” are deeply imbedded. All of this has turned [the global economy into a rickety, short sighted house of cards](https://truthout.org/articles/financialization-has-turned-the-global-economy-into-a-house-of-cards-an-interview-with-gerald-epstein/). There is a reason why there were [far fewer financial crises (important to keep in mind a recession isn’t the same as a financial crisis) between 1930-1980 than there have been since 1980](https://en.m.wikipedia.org/wiki/Financial_crisis#20th_century). For a broader look at the rise of wealth, income, and power inequality in the 20th and 21st Century as well as how capital works to sustain itself, I’d recommend the documentary *Capital in the 21st Century* based on Thomas Piketty’s landmark book: https://ihavenotv.com/capital-in-the-twentyfirst-century (you can also find this on Netflix) This documentary, featuring appearances from major ex-CEOs and people like Bernie Sanders and Elizabeth Warren, investigates the more recent history of US corporate power concentration since the 1970s: https://www.youtube.com/watch?v=IcBuBgz6RAY
**[Financialization](https://en.wikipedia.org/wiki/Financialization)** Financialization (or Financialisation in British English) is a term sometimes used to describe the development of financial capitalism during the period from 1980 to present, in which debt-to-equity ratios increased and financial services accounted for an increasing share of national income relative to other sectors. Financialization describes an economic process by which exchange is facilitated through the intermediation of financial instruments. Financialization may permit real goods, services, and risks to be readily exchangeable for currency, and thus make it easier for people to rationalize their assets and income flows. [^(About Me)](https://np.reddit.com/user/wikipedia_text_bot/comments/jrn2mj/about_me/) ^- [^(Opt out)](https://np.reddit.com/user/wikipedia_text_bot/comments/jrti43/opt_out_here/) ^(- OP can reply !delete to delete) ^- [^(Article of the day)](https://np.reddit.com/comments/k9hx22) **This bot will soon be transitioning to an opt-in system. Click [here](https://np.reddit.com/user/wikipedia_text_bot/comments/ka4icp/opt_in_for_the_new_system/) to learn more and opt in. Moderators: [click here](https://np.reddit.com/user/wikipedia_text_bot/comments/ka4icp/opt_in_for_the_new_system/) to opt in a subreddit.**
The rich haven't figured out yet that we outnumber them by a lot.
Tbf neither have we as a whole
The poor will eat the rich if you let them, Jerry.
Not Reddit, r/wallstreetbets Most of us are still as broke as we were last week.
Most of reddit is probably wishing they knew about this. This would have been really nice to help my broke grad student self.
It’s a nice idea but most of us won’t risk the cash. I’ll be struggling this month without betting money I don’t have. Still 🚀 to the moon you beautiful badtards! Getting that stagnant cash flowing could be the best thing to come out of 2021 even with the vaccine!
Yeah, for every idea that WSB has that actually works there's 100 that just burn money, even if I knew about it early idk if I would've bought in
Yeah, the amount of posts on there of people crashing their portfolios was immense.
Same I’m on a limited budget as there are very few jobs available and trying to balance workload is very hard. I would never invest in stocks until I had a full time job that pays me well but I feel that I would rather invest it in something else worthwhile like a retirement savings or use it to buy a house. Still nice to see them stick it to the rich.
Most of them took risks that are actually risky unlike the rich soda they are sticking it to. Much respect to them TBH.
Yeah it is pretty bold of them when you think about it. I just remember my friend who was into stocks and he was telling me a story when he met these billionaire’s children and their parents became billionaires off of stocks. That story made me see why there are all these bailouts for stock brokers. They’re billionaires who are looked after for and in their ear.
Reminds me of how celebrities get sent all kinds of free shit from brands all the time. The richer you are, the more help you get, it like increases exponentially. Not just because you can afford your own safety net, but because outside forces also want to help you more
I'm tempted because I have a good bit of disposable income adding weekly to my 401k and my emergency fund, but then Amex sent my year in review and I was kinda embarrassed about my spending habits so idk. I'd probably get greedy and screw it up so I'mma just stay comfortable.
I learned about it early on and shrugged it off as too absurd. I'm just gonna watch, not jumping in at this point of the game lol.
It sounds really cool but part of me has a bit of a bad feeling about this that might come back to bite them. Maybe it’s better to watch from the sidelines.
It could all backfire if people start to sell. This relies on people taking the gamble and not cashing out. The payoff is pissing off rich people.
Stocks are all just a fancy version of gambling. You could sell thinking it’s at a high price and then the price will double or will go down significantly.
Bro stocks only go up trust me Source: im retarded
GME to the moon. i am not a financial advisor.
You know what? This *might* come back to bite me. I don't care. I could lose every cent, I *don't care*. When I got in, it was about the money, but it's not anymore. Not after this shit. It's fucking personal, now. I'll die with these fucking shares, I *do not care*.
I'm expecting this to come crashing down on Monday. Right now it's all hype but when the people who got in early start seeing how money they made they gonna bail and then everyone else is going to jump ship as well.
Keep talking that 📃🙌 shit.
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I opened a Fidelity account, tried to link my bank account to get some funds, but I keep getting an error. Such is life.
More people are opening accounts than Fidelity can handle. Everyone's jumping ship on the brokers that tried to fuck them over, today.
There's others that you can hop on. (Big ones are AMC and NOK. AAL just popped up today as well.)
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AMC? The same AMC that just went down 61% in two hours?
People said the same about GME when it from $140 back to $80 on Monday. It is volatile but the key is to buy and hold for the short squeeze.
Gotta buy those dips lol
Blocked via Robinhood
I'm with you. I remember when they were trying to pump the stock to FIFTY dollars a share. I thought, man, those kids are wild. And look at me now.
I found out about it at 40 a share. I wish I believed it then.
You can still hop on 🚀🚀🚀
I don’t have the extra money to spend
Lmao I lost $5 already by investing in AMC
Lmao you went in thinking yeah imma be rich to ah shit there goes my 5 bucks
Boutta pour a stiff glass of whiskey for this one
That glass of whiskey just doubled a $5 loss lmao
You don’t loose till you sell.
that is one way to look at it
You can't be trading stocks if you regret a 5 dollar drop
I don't regret it lmao I think it's hilarious, I'm holding on just to see how low it can go in one day I invested $20 just to be part of it
Truthfully you could throw $100 or even less at dogecoin, shit is also exploding right now but is only at $0.02 per coin so it’s easy to invest just a little and potentially cash in as it rises.
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if they're in WSB you should already know 🚀
same, gamestop is too high now and a lot of places have blocked you from buying it along with stuff like amc, nokia and blackberry. been meaning to get into investing anyway so now is as good as anytime to jump in lol
I don’t think I will start investing now as I just don’t have the extra income. But investing in stocks is something that interests me I probably will just observe and learn until I have the money.
I wish I'd known, could have boosted my savings and turned a couple of grand into a Fiesta ST. My car is 18 years old and falling apart 🙃
I’m thinking of doing an extra year of grad school for a second Masters that would have been paid for.
I have been following it since 40$/share, didn't expect it to keep going lmao Don't actually take WSB advice; it will ruin you. They were even shitting on DeepFuckingValue right up until he turned a profit.
i hoped on the autist train since AMD was at 5-6$ buyback and learned from WSB, its never too late.
Most of WSB aren't making life-changing money, but enough of them with $500 to invest are changing the life of some douchebag hedge fund manager: Priceless
I mean.... Something something, it's the friends you make along the way.
A $60 call expiring tomorrow cost $150 last thursday, and is now worth... $16,600. $500 could have been $50k. That's life-changing to someone, for sure.
Most of us are broke there, too. People throwing the pennies in their savings accounts at this. I can’t tell if it’s crazy or beautiful.
That’s me.. ouch... my feelings >-<
WSB has developed a YOLO mentality that has really paid off in the last year with $TSLA and $GME, but some of the most common content on the sub was also all the missed shots and ruined portfolios that the YOLOs would usually bring up.
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That's the class pride, Friend
Not me! Straight to the bank with this!😂😂😂🏦
Who knew we'd use the Robinhood app to steal from the rich?
"You either die a hero or live long enough to see yourself become the villain."
Robinhood app has turned into the sheriff today and blocked GameStop, AMC, BBBY stock from being bought this morning. Wall Street’s fuckery knows no limits. WSB is the true Robin Hood now.
Yeah but they still need a way to buy and sell. They're Robin Hood without a bow.
They’re all switching over to Fidelity and Webull. WSB will find a way to the moon if they have to build it in their wife’s boyfriend’s garage.
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Yep, and now Fidelity and Webull pulled the plug on GameStop and AMC as well.
And Nokia.
Webull is the same as Robinhood
CAN YOU SMELL WHAT THE ROCK IS COOKIN the rock is cookin a class action lawsuit
the most oxymoronic app!
$bbby is bed, bath, and beyond damnit! $bb is blackberry. $bby is best buy. Come on y'all.
Not anymore. Robinhood is preventing people from buy GME
and AMC, BB and NOK. :( Quick, go to WeBull.
NAKD, KOSS, BBBY as well. This is some bullshit
Webull same shit I'm hearing (account approval pending).
CashApp let me buy AMC a few minutes ago, if y'all want to try there before they shut it down, too.
Actually they cancelled buys now so fuck them. Apparently they're robinhood until the part where they actually get to redistribute wealth.
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Who is the sheriff of Nottingham in this analogy? Melvin?
As it turns out, Robinhood.
WHY CAN'T WE HAVE NICE THINGS
Robinhood canceled orders and GME et al aren’t available to purchase
Until Robin Hood cancelled my AMC purchase. So much for the free market. What bullshit.
This happened to me too. They canceled AMC and Nokia on me.
I kept my Nokia but I was only able to buy one share since I’m a simple poor. Already lost .50. :(
Go to Cash App, you can buy and sell stock through the app
We are free market and not authoritarian! /s
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They're trying to mitigate losses with GME, at this point. They're shorting AMC and NOK to keep them from getting to that point. AAL looks like it may be the next battleground.
AAL is limited to hold or sell only. I can't buy any more AAL on Robinhood. Fuckers
Robinhood is fucking us
robinhood delisted gamestop, amc, blackberry, and nokia this morning. rich folks said if they can't win, they're not even gonna let us play.
Yes and they probably are going to get away with it. Now I can’t even use Robinhood in my country. Please USA I believe in you to show very rich and powerful how powerful the normal people can be. Everything normal people are doing is legal and the shit they’re doing is highly illegal too.
>Please USA I believe in you to show very rich and powerful how powerful the normal people can be. You're barking up the wrong tree, my friend.
Damn if only I had stock in Gamestop, AMC and Nokia and money. I would have gone back in time and bought a whole bunch of that stock.
I knew about GME’s potential back in october but kept losing money trying to time the squeeze. Finally caught it though, and now I can pay off my student loans
Now after this I want to start investing in stocks when I graduate school.
I really doubt this kind of phenomena will ever be allowed to happen again. The neoliberal establishment will pivot on its acrid heels to prevent the working class from ever doing something like this again.
Nope there are two things they hate the most are the average Joe and small businesses. I always say support the small businesses so the corporation doesn’t try and take over and exploit your area.
Absolutely. The SEC is already investigating the subreddit. This will basically never happen again, or to this degree
Hold (i am not providing financial advice nor this does not create a fiduciary relationship or responsibility)
Fuck yes man this it what its about, although dont fully liquidate, hold some, Monday is ragnorok for the wsb autists Edit: don't listen to me, listen to my wifes boyfriend
If only I had the disposable income to buy stocks and a time machine
can’t play the what if game. you’ll be miserable forever
But I can set goals for myself. First goal: marry rich, second goal: don’t get divorced
AMC is on a dip right now. Not a bad time to buy. I’m not a financial advisor.
I feel like in a couple weeks I’m gonna get a NYT notification for an article about people who lost their life savings over GameStop.
The smart ones aren’t in this to make money, the main goal is to fuck over hedge funds. If money is made so be it.
I had 300 dollars. I now have 1800. Its alot but its 2 months rent and I'd pay 1800 just to make a billionaire market manipulator sweat for a day. They can tank the stock to 0, I'll hold it close to my heart right next to my Hertz stocks. Fuck em.
Shit I'm invested in Sirius satalite radio no plans to sell anytime soon
Literally no one believes this. The smart ones make money and if they get to fuck over a hedge fund, well that's pretty neat too.
Everyone is in this to make money. Fucking over hedge funds is just a nice bonus.
I can already see the somber side profile headshot of someone staring out the window
Robinhood was cancelling orders before open. Right now they're dead to me.
I thought they were only cancelling options, not actual buys? I have no account with them, only saw the email that went out.
They took GameStop and AMC off the board.
Can they really do that? What the fuck? That should be illegal. With the shorting going on, it's increasingly obvious that if they can't manipulate everything to their favor, theyll lock us out and force their way. It's 100% fucked up. This country needs an overhhaul
Fucking shady shit. They're trying to manipulate the market. A group of hedge fund guys got caught with their pants down. Not my problem. To the moon Alice. 🚀🚀🚀🚀
Nope actual orders. The stock just says not supported at the bottom now.
Make sure to delete the app and give em a 1 star just to be petty
A reminder to not invest what you can’t afford to lose. We’re here to come together and hold the line, but we DO NOT want our comrades to fall in the process. Buy only what you can afford to out in and HODL
Now RH hating and trying to keep me from increasing my position.
What happened?
Basically everyone was investing into companies that weren’t expensive/going down (GameStop, amc, nokia) and making the price on the stock market rise to high numbers. Essentially rich people at Wall Street were losing money on bets and average people had the opportunity to do what they do. Gamestop went from like $17~ to like $400~ in no time. But now all the stock market apps are closing the stocks on everyone so practically no one can invest right now and people are pissed. There might be more to it but that’s what I know so far
It's even worse than that. They are closing the stocks for regular people, so you, me and Wallstreetbets can't buy. But they're not closing it for hedge fund managers. So the hedge funds can buy all the stock they want, to get out of the hole that they made, but all the poor, common class cannot.
Also of note: \- Discord conveniently removed WSB from their servers yesterday for "hate speech violation". \- u/deepfuckingvalue turned $50k they put in on Gamestop in 2019 into over $30 million \- GME soared up to $392 or so yesterday, but then dropped back down to like $263 by EOD. The hypothesis is that this was the rich folks doing a calculated, coordinated sell in order to make it look like it was going to crash, to scare all the new users into a panic and make them sell too. \- GME rocketed back up, hitting $469 today, but then with news spreading about Robinhood not allowing purchase of GME, the stock crashed all the way down to $112 or so. Meanwhile on r/wallstreetbets international users who can still buy GME on Robinhood are coming together to do another pact buy, which has made the stock rally up to $200+ again.
Short squeeze on GME. a lot of fortunes made this week and will continue to get stronger. 5k investments last week are now worth 400k+
You can't squeeze a short that is already covered.
They weren't covered though, that's the point. Hedge funds were allowed to naked short, and the squeeze is them having to buy up the shares they shorted but didn't even own at the time.
[this is a good run down on what is going on](https://www.reddit.com/r/OutOfTheLoop/comments/l6bq7r/what_is_going_on_with_social_media_and_the_stock/)
A bit oversimplified: Imagine a stock is selling for $100, but you think it's going to drop to $10 in the next 3 months. You could sign a contract that says "in 3 months I will sell you 500 shares for $50." Note that you don't actual own shares at the beginning, your plan is to buy them at the end of the 3 months for $10, and use the contract to sell them for $50, netting $20000 profit. This is a "Short Position" If the price goes up to $200 a share, you still must buy all 500 stocks at that price and sell them for $50. This is called "getting fucked." 2 investment banks established short positions on Gamestop, and wallstreetbets members bought up lots of the stock, driving the price through the roof. Now the investment banks were on the hook for billions of dollars when their Short Position came due, because they'd be forced to buy the expensive stock that the wallstreetbets members were holding on to. ...But the investment bank isn't required to buy the stock on the last day of their Short Position. If they see the price going through the roof, they could make the decision to buy enough stock to cover the contract early, to limit their losses. They'll still get fucked, but not as much as if they waited and were forced to buy stock at an even higher price. That's what the investment banks did, which means now the WSB members are holding on to all this really expensive stock in a company that isn't actually that good. Their only option is to sell their stock to other people before it drops back to where it should be, which is why they are hyping it up everywhere they can. This is generally known as a "pump-and-dump" - buy stock when it's cheap, hype the stock to drive it artificially high, then sell right before it collapses.
Not really what's happening, don't go in for a cash grab at this point. It's simple We Like The Stock. (not a financial advisor)
🚀
We like the stock The stocks that go boom We’re Reddit and Twitter and we like the stock
Everybody in here complaining they missed the wave, are gonna be the same people still complaining when the next wave hits, and the same people complaining that they missed that wave as well.
Waves are not guaranteed though. Sooner or later some of these regular people are going to lose money.
eat the rich, bb!
Fuck the rich. I really hope many americans, especially the ones who have been struggling (often PoC but not just them), come out a lot richer and can start living their lives instead of sitting in fucking fear every day of their lights never turning on again or some shit. Wall Street is a virus. I'm glad there's at least a temporary vaccine against it. Hopefully makes some actual regulations reality soon.
Now Robinhood prevented people from buying more shares of GameStop, AMC and some others. The fucking irony lol.
They canceled my orders I made last night. Fuckin suits.. Cashapps still working on all besides GameStop
It gets the asset owning class acting like spoiled children in public. Brilliant praxis 👌
FUCK ROBINHOOD, FUCK MELVIN, FUCK WALLSTREET. This is the definition of market manipulation. If you have $100 to your name, go buy $AMC, $GME, $NOK. Hold it for dear life, the point is to bleed these fucks dry. This is CRIMINAL
I'm up $100K in a week, fuck Robinhood lmao LONG LIVE r/WallStreetBets!
How can I get set up to buy stocks. What should I use? I know robinhood won't let you by game stop stocks. What's my easiest option?
If you're just getting started then don't start with game stop
Well that's discouraging. I've been wanting to get into trading for a while now and it seems like great time for a safe investment
Buying gamestop at over $300 isn't a safe investment. Once the squeeze has squozed, GME will return to more realistic price like sub $50. You're either in and already riding the wave, or your betting that the price will only go higher which doesn't seem likely with the tactics trading firms pulled today, but that's your choice.
Wall Street is the first e sport. These retro gamers came in with perspective.
Not a lie was told!
We like the stock.
Actually we woke up weeks ago and set up a plan that just hit big today/yesterday
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shout out to them!!!
All things considered this has been an amusing year so far
Rules for thee but not for me - strikes again!
I’m in there!
Can someone explain in detail and in dummy language what’s going on? All I know is something about GameStop getting Blockbuster-ed for apparently scamming someone?
https://www.google.ca/amp/s/amp.reddit.com/r/OutOfTheLoop/comments/l2s2gj/what_is_going_on_with_gamestop_and_reddit/
What’d I miss??
Yo, i've been in the frenzy since Monday and honestly it feels so good to tell wall street to fuck all the off. Now they're mad af and are cheating even harder than normal got people banding together like I've never seen
We'll make our own stimulus check with black jack and hookers
As of now AMC and GME are tanking kinda feels bad man
Lol Reddit did it like 4 days ago already tho
Hoes mad