GameStop: what it reveals about the US stockmarket
Вставка
- Опубліковано 28 тра 2024
- The frenzied rise of GameStop’s share price baffled Wall Street and panicked the US Treasury. What does the GameStop story reveal about American stockmarkets? Our experts answer your questions.
Chapter titles:
00:00 - GameStop surge explained
00:55 - Was Robinhood right to restrict trade?
01:56 - Short selling and short squeezes
03:05 - Is the stockmarket fair?
06:03 - Will it lead to more regulation?
06:51 - Is the US stockmarket overheated?
10:09 - Is this a trend?
Further content:
Sign up to The Economist’s newsletter to stay up to date with our coverage: econ.st/3tgaHl5
Find all of our finance and economics coverage: econ.st/3pujLQM
Read more about the GameStop frenzy: econ.st/2Mz9kwO
Why retail investors often learn the wrong lessons from success: econ.st/36oEdeq
Why you should ignore the siren call of market timing: econ.st/3cmm4S9
What explains investors’ enthusiasm for risky assets? econ.st/3afbSID
Why stocks are still cheap relative to bonds: econ.st/2YpjrXw
Should you buy European shares? econ.st/2MgUtHp
Why value investing is struggling to remain relevant: econ.st/2KYsZ8S
First-time investors are flooding Brazil’s stockmarket: econ.st/3acWXPb
Shares in emerging markets have hit a record peak: econ.st/2NNYbJa
Meet the data firms cashing in on the quant-investing boom: econ.st/2M6lvS1
Have banks now got too much cash? econ.st/3acBGFn
Is the financial establishment coming round to bitcoin? econ.st/2YpiK0m
Will central-bank digital currencies break the banking system? econ.st/2MfkwyS
What the Big Mac index tells you about currency wars: econ.st/3t8fqF9
The market v the real economy: econ.st/3af25Cq
What is the economic cost of covid-19? econ.st/39wsv3w
Why a surge in inflation looks unlikely: econ.st/3r3XSbk
she didn't address why Robinhood only halted the "buy" feature and enabled the "sell" feature on the stock essentially leveraging one side of the trade and driving the price down
Because seller side needs security as a collateral not cash and they probably wanted to allow people to close their positions
@@tadeuszd1234 💩💩💩💩
@@by6567 very intelligent answer
@@tadeuszd1234 that's not a justification for preventing buying and interfering with the free market is it. it's not (ostensibly) the job of a trading platform to protect hedgefunds lol
Which is stock manipulation!
I think Robinhood should be forced to change their name to SheriffOfNottingham.
Lol spot on!
"ThankYouForNothingHam"
@@liquidminds bit of a reach that one mate
Or robin the hood
Wall Street Billionaire Hedge funds: "Only WE are allowed to manipulate the markets". 😈
evidently not anymore
Do you have evidence?
@@LooNciFeRx lol what is happening . No real free market but only for rich people
Let's see about that 😏
@@LooNciFeRx the 2008 stock market crash....massively shorting a stock with billions of dollars in order to single handedly drive the stock into the ground...boy have u not been paying attention lol? If a hedge fund managing BILLIONS of dollars in funds enters into one position with it, how is that not manipulating?
Not a single word of shorting the stocks over 140% of available supply!!
@@torokmark3180 2 subscribers. Nice bait.
It's because these securities were shorted multiple times
And not a single word that reddit is owned by Tencent, a CCP tech aligark.
@@boonedocksfl2012 I am sure that the CCP co-opted millions of redditors to bankrupt a few hedge funds an lose them a few billion
@@boonedocksfl2012 my 2 pence is worth more🤣
"Should small investors have access to these highly leveraged derivatives?" - I think the better questions are, do these highly leveraged derivatives add any production to society? (Spoiler, most of them don't) And should they even exist? Buying puts has a defined loss and allows you to bet against a stock. This fills the role of price discovery. Short selling, especially on margin, is incompetently risky and maybe shouldn't be allowed for any "investor" in the first place. But the hedge funds knew this and did it anyway. Isn't the capitalistic response to let them fail for their bad choices?
You're spot-on and your comment is underrated.
People should look beyond the "retail investors vs hedge fund" blame game reported by the MSM to ask why the stock was overshorted in the first place.
Stock shorting either shouldn't be allowed or should be more restricted.
It seems short selling has a mathematically infinite risk. I don't see why we let people or parties in society take risk that can potentially go infinite and without any insurance or risk cap behind it (and where thus the government has to step in when it goes wrong). Politicians only seem to look a market volatility which is not the important issue. The important issue are non-foreseeable or very low probability events that can result in unbearable losses. Without risk insurance/capping the financial system is open to martingale betting strategies where benefits go to the big investors and the losses are finally covered by the government/public.
You are right this is not true capitalism et el Adam Smith. This is a non productive activity called the casino. All this financial instruments is just a drain on true productive capitalism.
I’ll have what you’re having👍
So stock options doesn't add to price discovery? Are you for real?
Its a reminder that if people unite, they can do the unthinkable!!!
It's unimaginable what can't be thought
*slides to communism
I really think that this stock can actually break the entire system. if millions buy it how can they pay? They can't. What happens when it goes to 10000? I do believe that the options markets are completely fraudulent and leverage is a mistake in trading it in itself is manipulation. That is the problem
People just wanted a even playing field..if things don't change wall street will be punished
Labour unions for poor workers.. Stock-marked unions for capital with no hope of a better future.
After a terrible 2022, shell-shocked financial backers have a lot to think about and losses to recover from. An expansion report and a wealth of other data did little to alter assumptions that the Central bank would likely keep raising interest rates regardless of whether the economy slows down. This implies that portfolios will experience more losses during the first quarter of 2023. I'm currently at a crossroads deciding whether to exchange my $250k security/stock portfolio; how might the continuous market volatility work to my advantage?
@@maryshea9781 In fact, ever since Coronavirus, I've been in regular communication with financial examiners. Nowadays, buying moving stocks is quite easy; the trick is knowing when to buy and when to sell. The section and leave orders for my portfolio are made by my counsel. accumulated more than $550,000 from a $150,000 savings that was initially stale.
@@maryshea9781 She is MARTHA ALONSO HARA, my consultant. Since then, she has devoted section and leave attention to safeguards that I have been keeping an eye out for. You can locate information about the chief online, on the off chance that you're interested. I made no regrets about substantially adhering to their exchange strategy.
The people who made put options against the housing market prior to the 09' market bubble popping, the main dude who shorted the most is now shorting the entire market, our entire economy.
Basically:
Hedge Funds do it: "we think is nice"
Normal people do it: "heeeey, that is illegal, regulate that"
Do you have evidence?
It is a shame that, as a profesionals, you guys missed the big picture here. It is one sided story. Why no one ever mentioned that big funds has short shell up until 140%? It is their greedy that ruined them. Anyone who knows about such facts will rush to buy, thats the nost logic thing. Why? Because those who short HAS TO BUY. But there are not enough stocka to cover that greedy 140% amount. Besides, the short sell appreantly already happen since a couple of years ago. The big funds, HAS CORNERED the company so that they dont have access to fund due the equity keep decreasing. What they do with such aggresive short sell is to drive previous share owner away, thus the price will keep going down. It is a market manipulation
Bias reporting. shame
Are you surprised? The Economist has always been "pro-market", exactly the stance of those hedge fund cronies.
Gamestop doesn't have a business model. Accept this and move on with your life.
@@phamnuwen9442 did you even read the comment you replied to?
High short interest was mentioned TWICE.
IT'S NOT ABOUT MONEY IT'S ABOUT SENDING A MESSAGE. EVERYTHING BURNS 🔥
Hedge funds and institutional investor owns most GME. Who exactly is getting burned?
👏🏽
Make dollar bleed
@@JK12518 Well if they own it they should sell it now otherwise their friend will die in fain, but who cares the stock is still skyroketed lolll let him die for the sake of my stock price
We all just want to be able to sell stuff we don't own..seems reasonable
Hedgers shorted Gamestop by 140%, viciously intending to bankrupt Gamestop. Should be illegal. But they're crying foul, when they are squeezed on a greedy, imprudent bet.
Unbelievable short sellers are not to blame. Well done the economist. What a lot of BS.
Bluntly, Gamestock are bankrupt. Nothing wrong with shorting them. Nothing wrong with buying their share either.
The state tailing the brokers to ban trading - that's illegal
Colusion between brokers and people like Citadel, that's illegal.
@@Nickle314 True, but whether or not there was collusion, what happened was inevitable given the circumstances. I'm not an expert at this, but after hearing this story and the explanations given to me on UA-cam, it sounds like the solution would be to not allow shorting over a certain percentage of the total available stock (140% is crazy, anything over 100% is absurd).
@@DSAhmed Disagree. I've no problem with shorting over 100%.You can go and buy put options for example, way in excess of the stock.
Now if you want circuit breakers, for example for large volatility, you create the rules in advance and apply them across the board.
So a company can put that in their T&C. People then know they are exposed to a major risk of not being able to trade. They will switch to other brokers.
Spot on
The irony is that the one restricting the buy orders is called "Robinhood" 🤔😂
to protect the wealthy ones
They had to do it, bacause they didn't have enough liquidity to cover collateral requirements
@@tadeuszd1234 Are you telling me a $20 billion company doesnt have the liquidity?
@@tadeuszd1234 Not that simple.! Why are there certainly they are only allowed one way of trading? You need to do a whole lot of more research.
Isn't it obvious, they're robbing the hood.
Melvin Capital was shorting GameStop. They lost money so Citadel LLC bailed them out for 2.75 billion. Citadel is also heavily invested in Robinhood. That is why robinhood stopped letting people buy GameStop stock. That is also why the interm attorney general recommended that the department of justice should investigate all three for market manipulation.
Thank you - this makes things a lot clearer.
These are details the economist should have included in their report.
@@Mercury-Wells it's not true really. Citadel does business with Robinhood, but it does not invest heavily in them. They buy order flow from them.
RH halted opening of new positions, because they didn't have enough liquidity to cover raising collateral requirements to DTCC, not because any hedge fund told them to.
I was surprised to see such a weak answer from the economist on why Robinhood suspended GME stock. It looked like a guess...
@@jeromedemeyere1002 because it is a guess. As long as the investigation on Robinhood doesn't reach an outcome it will continue to be a guess.
@@tadeuszd1234 oh
It's very frustrating how hard it is to get a straight, unbiased answer about this stuff but thank you for trying to educate my feeble brain
It reveals: rich don’t want anyone else to be rich
BINGO
I just want to sell stuff I don't own and be rich too....seems reasonable...
These past few weeks has been crazy, I just saw my portfolio gained over 500points thanks to GameStop. Who would have thought a downgraded stock like GameStop which was tipped to me by my financial advisor would soar and be one of my best performing stocks in a few weeks.
It's really been a crazy week who would have thought these stocks would see a significant increase over a couple of days.
I don't know why I feel the market is hugely manipulated by these top hedge funds.
@@aldricklaurent9146 I think the top institution limited how much of GameStop you can own, like in Robinhood you can only exercise the sell options and not buy.
I really missed out on this stock, @Mark Cyrus how did you come by this stock.
@@anthonyfoster3799 few weeks ago it was recommended to me by my financial advisor Jeff Allen Dakin, I never knew much about gamestop before only that it's a stock with huge upside potential and can become big in a few months so I jumped on it.
I like the stock
Stonks only goes up.
This is the way.
I drink the tears of hedgefund managers for breakfast
💎🤲💎🤲💎🤲💎🍿🚀🌙
@@llatkinson6676 💎🙌
the irony, a stock named gamestop, stopping the game
And RobinHood
Brings new meaning to thier slogan
Power to the players.
And Power to the Players, their slogan matches this at best
It's apt.
Let's be honest robin hood blocked buying of gamestop stock because they wanted to give their buddies in the hedge fund time to get their act together.
This only happens when retail investors are making money. And they still let them sell, this isn't a "volume" problem.
A bit too conveinient in my opinion.
The fact that Citadel is such a big customer of theirs is a huge conflict of interest.
Nope, Robinhood had the liquidity problem, because they didn't have enough money to cover the collateral requirements to DTCC. That's why they had to open credit lines with banks and collect capital from investors.
Multiple platforms restricted buying, only selling! One overlooked thing is clearing house DTCC, which clears 95% of sold U.S. stocks, was asking the platforms to cover 100% of stocks prices instead of usual 1-2%!! Of course, one could argue, one of hedge funds influenced clearing house to put that limit up, so a platform couldn't physically sell, because otherwise people would sell a stock and get nothing in return, literally! System is rigged this much!!
This is a great narrative, but I haven't seen anyone provide any evidence for it, or even why Robin Hood would want to help out hedgefunds.
More internet conspiracies
Say no more, buying more GME 💎🙌
So Economist experts, I have asked this elsewhere, but have got no answer. WHY would I as a share holder, "lend" my shares to a hedge fund, knowing that they want the share price to plummet, and knowing that the shares are likely to be returned to me when they are worth a fraction of what I paid, also knowing that interest in the shares I hold by hedge fund means that the hedge funds are likely to manipulate the market (a bad thing only if done by reddit small investors and vigilantes of course) to force the share price down artificially, when this lower share price does not reflect the real worth of the company???
They pay you an interest over the stock you lend,and then they will return the stock to you. So you gain money and lose virtually nothing.
And if youre lucky you might get a stock back that that has gained value
That is an excellent point !
You (or at least your broker) gets paid (lending interest) to take a position *against* you ?!
The explanation seems that you get all the interest, while the downward pressure (and risk of not getting share back) is shared buy all stock holders. Problem.
@@Ali80076 Assuming that the hedge fund had shorted the shares, then if you got the shares back and they were trading for more than when you lent them, then your gain is a small amount of "interest payment" from the hedge fund, plus the share price increase.
But it would mean that the hedge fund would have lost money. This would be unlikely as we know that the hedge fund would be shorting shares with high confidence that they were going down (or could be manipulated down?).
@@migry Yes and they have the sheer volume and industry insight that small investors would not have. The psychological effects sometimes outweigh the actual value considerations.
This wasn't one brokerage that had an unforeseen circumstances this was a concerted effort by five or six apps that halted trading on certain stocks at the exact same time the evidence is right in front of everybody's face. Can anybody seriously argue that five or six brokerages happen to come to the same conclusion at the exact same time to Halt trading on certain stocks BS. Calls where made period imo
Hear, hear!
Yes. That happened on my brokerage. Robin Hood is the straw man.
@@JAMEYSIMMS
(I think you're looking for the term "scapegoat", not straw man, okthxbai :P)
‘ Vigilante ‘ ??? Gee, I wonder if you guys have any bias.
Hedge funds forgot to put on their big boy trousers.
I hope they sell more shares they don't own..because the people will buy them and hold..wall street pants for everyone. 😎
This just goes to prove what real investors were preaching for ages: there is no reliable way to predict short term market fluctuations, as they’re created by human emotions and not by changes in company’s performance. Day trading is gambling for people who’d like to pretend that they are doing something other than gambling.
agreed. day trading is sort a gamble. And large financial institutions call the shots. Unfortunately that is the way the market is structured. There is information asymmetry. Large financial institutions have better access to the market and more financial resources. So it is a fight between large funds and retailers. But this should serve a reminder to large funds about what retail investors can do.
@bob blob interesting. never heard of it. could you explain how it works ? and exactly what is meant by inaccurate assumption ? An assumption cannot be inaccurate, can it be ? It can either be true or false but not exactly inaccurate ?
@bob blob I do not agree with this. Let me tell you I always knew that Tesla and Apple were going to do well. And this has nothing to do with my emotions, or gender. I knew they were going to do well simply on the basis of my information and understanding. Unfortunately I did not have the time as duration or the resources to invest in them. The best thing an investor or a trader needs is experience. And some practical knowledge. Other than that its not very difficult.
It’s called a short squeeze. This isn’t a typical day trade. It actually makes sense
I will not hold through the entirety of this video, but I will for sure hold on to GME until infinity.
diamond hands brother!
Please leave your shares to your grandchildren 👌🏻
@@808State21 this is the way
Well done The Economist. The fund managers are not to blame. Disgraceful
@@torokmark3180 GFYself
It's rigged and ya'll knew it and did nothing.. "journalism"
Gamestop is endgame for Wall Street elites, sharks or wolves 🤣
try to compare value of gamestop stock with one day of trading on wall Street. maybe you'll learn something. It's just gimmick
@@arekd9769 sarcasm OK Wall Street is too big to fail 🤬
@@torokmark3180 we are heading into the world where brokers not needed , Accession ll start shortly , you feel it ?! Oh forgot you can not , you can just understand :D
@@remigijusjonaitis7533 💎🙌
the sad thing is, it's likely in the end they'll still get bailed out for taxpayers money...
Did economist think about interviewing anybody from the reddit page ? Or is that too much journalism....
"Halt trading" - No. They halt buying while allowing selling. Unprecedented way to crash the price.
Hold the line 💎👐 make them pay.
To the moon
"easy to villanize, not always the villan" LOL
Hedge funds maintained their short positions even when things got better for game stop...isn't this manipulation...they have huge resources at their disposal and manipulate prices rather than helping in discover them. This time, disappointed with the economist.
The best part is that they didn't even try that hard
That's the crazy. Imagine if they did
Yep, that's why the elite is talking about regulation now
1. The brokers all used the same excuse. That it was volatility
2. Problem for them, there are lots of examples of other stocks, with higher volatility, that they didn't curtail the trading.
3. They didn't curtail the trading for the hedge funds.
2 minutes into the video and I’m disgusting with the sneaky biased view point .... smh I’m out ✌🏽
I'm not sure, but I think the economist is owned or funded by the Rothschilds.... That should tell you something.
@@Cryptkeeper0311 msm is also funded by the 1%ers
I'm not gonna listen to their lies
‘Shortsellers are easy to villanize but not always the villain’. What a joke!
@@torokmark3180 Have him contact my Chief of Staff...
Several intelligent people are terrible investors because they face the market
With untrained physiology and untamed emotions . You need to keep raw irrational emotions under control.
Really wish I knew what I know now several years ago in my early 20s investing today is priceless because tomorrow isn't promised .
Trading Bitcoins , stocks , gold , silver and Crypto secures a better future
For us all..this I'm a testimony to.
This is correct. Look at it this way How many wealthy people or millionaires become wealthy by wages or salaries for saving in their bank accounts ?
I'm sure you do not have a correct answer to that 🤷♂️
Funny enough they do not know how the fiat money losses its value as the days go by . Our global economic value keeps declining .
Dollar will soon not be the safe haven we all thought it was.
TO THE MOOON AND BEYOND 👌😩⚡💥🔥
If Robinhood infrastructure was struggling to cope with demand, the restriction should have been applied equally throughout all stocks, not preferentially to favor the hedge funds. No investigation is necessary in that regard, the only question is how many hundreds of millions they should be fined and who needs to serve jail time.
Exactly. And why wasn’t silver regulated today?!
The Market is about BTC at the moment
My money is on BTC anyways
Why worry about which is better?
If the goal is to attain financial security then
their is a need to for you to diversify your
investments
@having multiple streams of
passive income is what guarantees financial
security
TSLA,WKHS they are all in my investment
portfolio,not taking any chance
The Gamestop "problem" was caused by over leveraged hedge funds AND shorting >100% shorting >40% is a problem...
Simply the Hedge funds took on to much risk, that is unprofessional, if they had not done that they could not be squeezed.
Freedom is an illusion
Yes, we're all slaves to the corporate overlords.
Deep
Out of curiosity, if the non-Jewish people of the world unite, just who do you intend for them to be uniting against?
"RH was exposed to the dynamics" Can anyone be a bit clearer? Does it mean that Robinhood would have to buy shares to cover defaults from short positions? By stopping buying and allowing to sell, is RH effectively rigging the retailers?
"Regulators are concerned retailers will lose money" - really? Why now and not in 2008?
How does shorting 140% of stock helps the market?
Why are people still looking at edge funds as the "pros" when financial markets are totally disconnected with the real economy?
RH had the liquidity problem, because this stocks are really volatile and DTCC raised collateral requirements. RH didn't have enough cash to cover this collaterals.
@@tadeuszd1234 it makes sense but the RH CEO said many times it was not a liquity problem..
People learned lessons since 2008. It's a bit of a dumb argument to say that regulators shouldn't have taken any lessons from the biggest financial crash since WW2
@@sinfo881 he probably didn't want people to know they have liquidity problem given that they planned an IPO. I guess that's why his explanations were really vague, but he did mention sec capital requirements and collateral.
If there is actually positive news about a company, short sellers will be the first to buy because of their risk exposure, so the market will react faster to information. On the other hand, if there is reason to believe that a company is failing, shorting is one way to move capital to more promising investments.
The Economist defending crooks, not a surprise.
How are they defending them?
@@salokin3087 By dancing around the reason why RobinHood restricted people from buying GameStop shares.
Most economists are crooks anyway. They act like their discipline is a 'science', but in reality is just a fraud. Ask any mathematician or logician and they can see the BS right through.
The last time I was this early tulips were the stonks
elite comment
What a generally uninformed response, peppered with obfuscation and then overlaid with a light word salad of investment lingo that by pure chance and luck manages to skirt all of the important issues that this US market event has highlighted.
Which Is why I didn't bother finishing this video. Tell me straight up.
*Hedge Funds: I bet a billion dollars GameStop’s stock will keep going down*
*Redditors: Hold my Caprisun*
5:44 "unlikely that that will be repeated again" they said the same thing about 2020
Couldn’t happen without the over leveraged shorts selling imaginary fabricated shares beyond 100% of actual outstanding shares. Why? To crush your local video game store.
I don’t think the idea was to crush a local video game store lol, as the consumers already crushed gme (I can’t remember the last time I even bought a physical copy of a game). They were heading towards bankruptcy with or without the shorts. Short sellers just wanted to take advantage of that knowledge like how wsb took advantage of a short squeeze scenario.
It doesn't actually make a difference if the short difference if above of below 100%, since shares can be shorted multiple times.
Oh wow and i thought US was supposed to be capitalist
I drink the tears of hedgefund managers.
Hedgefunds want to be the only ones that can manipulate the market.
This was some stinky content
TLR out here keeping the honest and making sure they don't finesse us....
that stanky stanky
*It's best if GameStop went bankrupt.* That way, a majority of Americans would agree. Why can't Congress be "like the Repo Depo" and take their funds away to satisfy investors once again?
@@kckallup906 I don't like you. You glow.
@@popepiusxv I'm not surprised you'd say that. Thank you for stating that and my Anti-Liberal views.
I love that the economist is always able to give an interesting but most importantly an unbiased analysis of current events. I wish I could write for them.
The comment section, offers more interesting ideas and topics than the interview.
Right, Robinhood stopped the trades because of technical problems. Like we are going to believe the establishment’s mouthpiece The Economist.
Not because of technical problems, but liquidity problem. They didn't have enough cash to cover required collateral for these transactions.
@@tadeuszd1234 🤮
The alternative explanation is conspiracy, which is a strong accusation to make.
@@kylechalve Well, thats exactly what short selling is : conspiring. Normal for Wall Street.
0:09 “over $400” -> shows graph with units in thousands and without legend...
The legend is at the top. It's normalised starting from November 2nd 2020.
one of robinhood's new owner is also a co-owner of a major hedge fund that's shorting GME...
answer in less than 10 sec.
Name it here. Who is that co owner.
Swapnil Shinde Citadel
It shouldn't matter how much "exposure" they have. Seriously, that sounds like a reason that should be illegal.
In all seriousness, neither of these two has any clue what they are talking about! Go to r/WallStreetBets n do some homework first before you go on TV please..
I found this video completely misses the issue. Many brokers who blocked buy orders did so because they couldn't afford the margin calls made by the clearinghouses, who were scared that the big hedge funds (who are leveraged to the max) on the other side of these call options could go under. The hedge funds know this, so yet again we have another example of "too big to fail" where the little people always pay the price.
TLDR: the presenters don't know what they're talking about, WSB has done the market a favor by exposing how rigged the system is - something you'd think they should be interested in as economic journalists....
restricted *trading* you mean, they banned buying and allowed only selling, for retail investors, while funds where able to buy and sell
Be honest: RH is having a liquidity crisis. They didn't have the money. They could go under.
Yes, that’s correct. Alice’s explanation is not sufficient. The real reason RH had to stop trading is because they are required to have sufficient funds in their DTC account. Because there’s a time lag to settle the trades, brokerages need to have have money in that account to buy/sell the share transactions on their trading platforms. The Economist is supposed to add clarity to these types of important questions, not gives muddled answers!
@@kingpin3795 Right? They're carrying water, obvi.
They deserve to go under.
Read that one of the owners of RH is part of a major hedge fund that was shorting GameStop
The stock market is a perfectly balanced game with no exploits.
BROOO ARE YOU DUCKING SERIOUS?! "it's easy to villainise short-sellers".
THEY LITERALLY MAKE DUCKING MONEY ON KILLING THE BUSINESS AND HANDING THEM THE DEBT.
HOW IS THE ECONOMIST SO DUCKING SMOOTH BRAINED.
DUCKING SELL OUT
1:17 "struggling to cope with the sheer volume..."
Well why would they only restrict buying, and not selling if this were the case? Seems pretty clear that this is more likely a move to drive down the price
Q. "Why did trading platforms like Robinhood restrict people from buying GameStop shares"
A. To help their hedge fund buddies from getting even deeper in the hole, because the stock price was pushed up by the people who wanted to sh-ft the hedge funds (rather than necessarily make a profit)
I think economist will destroy the world
So they think they gave out too much stimulus?? lol the government barley gave 5k max! please that's a lame excuse then there's so many people struggling they been spent that money on food.
In overvalued stocks... no food.
The problem with the American system is that we give hedge funds too much power and do not allow the normal investor any power.
Last Wednesday R could handle the high volumes, but R could not handle the high volumes on Thursday and Friday. That is not the real picture. R just wants to protect the short sellers.
The fact that both people in this video went out of their way to defend short sellers, just proves they're desperate to gate-keep the market and protect their corrupt friends on Wall Street. They're not even trying to hide their agenda.
Or maybe, just maybe, you may be wrong about short-selling? Maybe financial journalists are slightly more knowledgeable than you are about the markets?
Mine are all wild guesses of course.
HOLD IT BOIS 💎💎💎💎💎💎
"they have more resources and software and you're never going to be able to match that" Im pretty sure between this and the flash crash story, hedge funds do not have any edge over the new breed of retail traders, and this is why the only way they are maintaining an edge is the most blatant market manipulation scene since the stock market began.
140%???....Not one mention.
There's a reason why I don't read the Economist.
Thanks for keeping me away with this little nugget.
What he say about our tiny stimulus checks 🤔 no sir... sorry... read up on how the small stimulus are cashed in by the working person across the US smh
How is short selling not manipulation of the market but doing the opposite is?
There is nothing manipulative about selling a stock because it makes less and less profit.
Wallstreet is like a casino, win too much and your out. No matter who you are.
Ok so a wild theory so bare with me: Imagine an entire country like (for Lack of a better example) Argentina or Lebanon which is hit by a perfect storm of Pandemic, economic downturn and some kind of Bank run or Shock in the financial markets so that large International institutional investores overextend themeself as badly by betting against set countries currency. Could a short squeeze involving entire national economies happen on a Forex exchange scale? Because I mean 14trillion USD of daily trading is about 10x the NASDAQs volume so even a small slice of that should be huge.
Robinhood has acted illegally by preventing users from buying Gamestop shares.
This is a terrible summary of the events. No mention of citadel or how robinhood manipulated the market by only allowing SELL and not BUY
This video should be called "gamestop : defending hedgefounds"
It shows that market is not free
This is great! We're harming the greedy billionaire oligarchs on Wall Street!
"The rich get richer, and the poor get poorer."
Not for long. Poor people can become rich now!
I hope that billionaire's wealth diminishes while poor people's wealth grows.
I swear there is no stronger force on earth then reddit.
Restricting trading on GME is exactly like a casino closing a table if you get too lucky. No tortured explanations are necessary.
Seldom do we hear mention of the real problem with short selling: Massive conflict of interest.
Q. Where do short sellers borrow the shares from? A. Prudentials and large funds who hold shares on behalf of many small investors. These funds lend OUR shares to entities whose explicit intention is to undermine the value of OUR investments. Fees for lending the shares are typically earned by the fund, not investors: They take fees to provide a service that damages their own clients' interests. Scandalous.
I do not trust a word that dude explained...
Soooo biased clearly u guys pick your side already. U only told one side of the story
Love how many people are now educated in this bs industry...the internet is never defeated and will one day bring balance
But they didn't halt trading ? They halted Buying, not selling.
Big fish eats small fish, what kind of fair trade in USA? Protecting the Super rich
I'm not selling my GME I like the stock
Sell it. Don't hold back. Once it comes down buy again. Make it a group effort.
You forgot to mention that Citadel "encouraged" Robinhood to stop trading to protect their business. And btw Janet Yellen (treasury secretary) was paid $800k in "speaking fees" from Citadel over the last two years!
For assistance or guidance on stock investment
W. H A. T. S. A. P. P.
+. 1. 2. 2. 6. 2. 4. 0. 2. 4. 8. .4.
So short sellers are not villains when they short a stock like Gamestop by 140 %. How is that fair?
The major difference between the rich and the poor is risk takin,the rich gets richer by investing. Think about it, 85% of millionaires today took the risk of investing
Absolutely 💯
And the one time people invest in a stock and start making some money, all of the sudden we are the bad ones and we shouldn't have access to the stock market anymore
When they do it, they are investors. When the average people do it, they are manipulators.
What is going on with Gamestop is definitely a case study and many people are really interested in understanding it. I even made a video on my page for an easy explanation. I really hope it can answer most of the questions many people have about the situation with Gamestop.
Economist always struggle when the motivation for an action is not financial. People are investing more and more based on their morals not financial gain. This makes no sense from an economic standpoint. if the customers of game stop liked game stop so much why don’t they pay a premium for the games they sell? That would push profits up and the stock would stabilise. IMO this is about people being angry and fighting. The younger generations are really angry, they are under employed, having to constantly move to keep their job, having to start and run their own business and they are doing in an environment where the older generations have it a lot better than them. I’m a nobody but my personal prediction for the next decade is all about disruption and the establishment is going to struggle to keep up.