I am posting this for the benefit of our readers . Ben explains exactly what is happening with GameStop and all the drama in the news. But before you watch, I want to tell you some things. One, short selling is a good thing and is NOT the problem.
Outside of the Bruce example given here. Short selling is a good way for retirement and industrial inventors to “hedge” against volatility in the markets. It’s called “The perfect hedge”. So trust me, if YOU have a retirement or pension plan, you DO NOT want to ban short selling.
Here is a an extreme real world example to prove a point: You are 55 and looking to retire at 60. But the next 7 years of the markets really take some major hits. Do you want to be 60 years old looking at your pension fund and thinking, “I can’t retire because my pension valuation yo-yo’ed like the price of ammo”.
I think not.
Why is this happening to GameStop? And the following is my opinion only. Not fact.
- Gamestop is a trash company. It’s the next Blockbuster.
2. As such, it’s total market capitalization is so small, Reddit users and move it around with volume buys.
3. Hedge funds looking to short Gamestop and Reddit users seeing this is happening isn’t rocket science on either’s part. Gamestop sucks in a world of downloadable apps. Just like movie rentals. So whatever. Nobody is a genius here.
4. Try doing this with a real company with real valuation. Reddit ain’t got deep enough pockets. And most hedge funds don’t either. So again…whatever.
5. Major irony alert. We now have a large number of Reddit users holding GameStop stock at inflated prices. Those who get in early can sell for a profit before the market corrects. Those who got in late and paid “high” will lose their ass when market corrects. Unless they sell.
6. It will be SUPER INTERESTING to watch the Reddit guys start to sell privately even when they are publicly saying things like “Hold the line”. Because hashtag trend lines aren’t money. Money is money.
7. So if an actual commie who wants to burn down the Hedge funds, individually decides to sell his stake and ends up making money. Are they still a commie?
8. As for why Robin Hood decided to stop trading on this stuff? I don’t know. I also don’t care. I have always thought these micro-stock apps where junk to begin with.
9. Also discord and Reddit shutting down these groups in the name of “hate speech”. Har Har. Welcome to the party, Pal. Ya’ll should subscribe to our website with an RSS reader and sign up for our mailing list.
If you don’t and we disappear off a social media platform? And you don’t care enough to find us even then? Were you somebody who I really wanted to “reach” anyway? Or just a vanity metric?
And that’s keeping it real.
“Shooting Guns & Having Fun”