Stock market, reddit mob

Just curious if anyone else is paying attention to what's happening in the stock market this week.  It's been earth shattering.


I have some take aways that I've learned;

The populist sentiment continues to increase. The peasants are FURIOUS at the elites. They are fighting a war with real money against elite billionaire hedge funds, and wall street and the brokerage houses conspired against them to protect the hedge fund shorters.  The unintended consequences from this could be shocking.

They instantly created a "folk hero class" of those who are raging against the machine and taking on the elites. The populist movement is no longer limited to politics.  

A bunch of forum users are trying to throw real money at bankrupting billionaire hedge funds think of that.  It's a tsunami.

The elites are still predictibly trying to keep control. This is further increasing the resolve of regular retail investors.

When the elites decided to change the rules of the game when they were losing many in the reddit mob were outraged.

I think we are reaching the point where people no longer want to play a rigged game and might just go galt or withdraw or actively seek to subvert it



Now america is in a populist political crisis and economic crisis.  

You guys need to be paying attention the peasants are getting the pitchforks ready. Sooner or later....


I also remember this ted talk. This is a pretty astute billionaire. It's worth a listen I think this is maybe 2-3 years old

https://youtu.be/q2gO4DKVpa8

I haven't listened to the "Ted Talk" thing but will add this in.

It seems the volume of trade caught Robinhood flat footed, and the reason the stopped trade, temporarily is the brokerage house got into a position they couldn't cover. Had they continued, it was Robinhood, along with some of their Reddit clients who would have been forced into bankrupsy.

I think trade is back on a (somewhat) level playing field.

The sad thing about this is, that if they bankrupt a couple of the Hedge funds, it is likely the Government will bail them out, as they did in 2008.

Even worse, the government is "looking into this" and is likely to make what they are doing illegal.
Stuart Varney's segment with Huckabee
https://video.foxbusiness.com/v/6227403816001#sp=show-clips
and Dennis Gartman
https://video.foxbusiness.com/v/6227422107001#sp=show-clips

I've tried to follow the short selling and it's not easy!

Robinhood and other brokerages restricted selling, some speculation was to keep them from going broke, some speculated a call from the WH caused limited trading.

One thing for sure, there is a LOT of anger out there directed at WS and the Banksters. Some Patriots suggested a consumer led crashing of the economy. Not buying anything but groceries, pay off all debt, etc.

Some finance forums suggesting selling all stock holdings, not contributing to 401k's, etc.

One thing for sure, our current government wants you to be the peasant/debt slave they created.

Robinhood and other brokerages restricted selling, some speculation was to keep them from going broke, some speculated a call from the WH caused limited trading.

You are far from the only person (even some of the financial insiders) who thinks the White House is to blame. But I think it goes higher than the White House, and I don't think the WH is involved, this time. I "dislike this administration" (watching my words) as much as any real American should, but I think that if there was a call [an inappropriate, back office call], the call came from the Hedge Funds, or possibly the Federal Reserve Bank.

Here is the other possibility, and there are some Wall Street Watcher types who believe this:
https://www.gwinnettdailypost.com/news/business/robinhood-gets-1-billion-infusion-signaling-cash-crunch/article_0f816979-80e9-5e88-9b5e-c13920565273.html

Robinhood raised $1 billion from existing investors just hours after it halted purchases of GameStop, suggesting the free-trading app faced a potential cash shortage.

The startup faced a bipartisan backlash Thursday for its decision to limit trading — a move that ran counter to its stated mission of democratizing investing.

"This is a strong sign of confidence from investors that will help us continue to serve our customers," Robinhood said in a statement.

...

Facing a backlash from investors and lawmakers, Robinhood later explained that the market turbulence created financial pressures. That's because whenever investors buy stocks, brokerages like Robinhood must make a deposit first at a clearing house. To protect investors, regulators require brokerages to keep a certain amount of capital on hand.

These cash requirements can go up, sometimes dramatically, during times of market stress and heavy trading.

The only troubling part of this statement are the terms "existing investors" and I wonder who they are, and what kind of conflict of interest could be there.

Here is, I think, a fair analogy of what is going on in the trading world. The analogy assumes corruption in the brokerage houses, which we have suspicion of, but no proof. In this analogy, the brokerage houses and Reddit would be the referees. (Also, be aware, that while I know the rules of basketball, I know nothing of the sport, itself)

This is a Junior Varsity vs Varsity game, and for once the JV team, at halftime, had the upper hand. So the ref's decide on a new rule, the JV team can't touch the ball in first half of the third quarter, and in the second half of the third quarter they have to play with a patch over one eye.

It is no wonder the JV team thinks this is unfair, and most of the crowd does, also.

Blondie wrote:...
One thing for sure, there is a LOT of anger out there directed at WS and the Banksters. Some Patriots suggested a consumer led crashing of the economy. Not buying anything but groceries, pay off all debt, etc.

Some finance forums suggesting selling all stock holdings, not contributing to 401k's, etc.

One thing for sure, our current government wants you to be the peasant/debt slave they created.

The Banksters have been selling a product, and Americans buying, it for so long that most people forgot, in the 60's that there was another way of life. As we progressed into the 21st century, that other way of life has become more and more difficult, and "the powers that be" are trying to make it impossible. (But that is another story.)

"a consumer led crashing of the economy"
No way. Americans don't have the discipline. In fact, most of them don't have a clue what is going on. They are so used to just getting out their plastic (I am told that this is now old fashioned) and walking out with their purchases, that many of them don't even look at their statements, other than the current balance and how much do they have until their credit is maxed out.

"not buying anything but groceries, paying off all debt"
Ummm, isn't that the prudent thing to do, anyway?

"selling all stock holdings and selling 401's"
Unless they are talking about moving into buying land and other physical commodities, that would be committing financial suicide. A far better strategy is to get some education in the game (or know someone who is educated on it) and improve your own position. Buying land and physical silver and other tangibles can help, but you can't move 100% into them alone (because of taxes and other legal issues).

"our current government wants you to be the peasant/debt slave they created"
I think this is more Deep State and Globalist Elite than current government. I think the current government is just a puppet. (That is why they hated Trump, he refused to be their puppet.)

Wow. This has been a learning curve. Even though I have been (somewhat) studying global economics all my life, I have been on a learning curve, to the point where I had to go back and edit all of the posts I made this morning, after looking through my morning new feeds.

And if you think Gamestop was fun, wait until the silver market opens later tonite.

Watched a few minutes of a podcast last night discussing how to crush the paper market for silver by buying the PM itself.

Blondie wrote:And if you think Gamestop was fun, wait until the silver market opens later tonite.
Watched a few minutes of a podcast last night discussing how to crush the paper market for silver by buying the PM itself.

I have been wondering why silver isn't already above $30 an ounce. Had I known, last summer, before it went over $20 an ounce, I would have bought a few pounds. My "buy" price, right now is just under $26, and the price, last time I looked, is just over $27. (I have no sell price, as I never intend to sell.)

I need to look into that market, a bit more.

TRex2 wrote:

Blondie wrote:And if you think Gamestop was fun, wait until the silver market opens later tonite.
Watched a few minutes of a podcast last night discussing how to crush the paper market for silver by buying the PM itself.

I have been wondering why silver isn't already above $30 an ounce. Had I known, last summer, before it went over $20 an ounce, I would have bought a few pounds. My "buy" price, right now is just under $26, and the price, last time I looked, is just over $27. (I have no sell price, as I never intend to sell.)

I need to look into that market, a bit more.

I posted, last year about buying silver, under precious metals, I think.

The last two years I've stocked up on silver, I've bought it as low as $$14.00/troy ounce. I have bought several pounds, at one time. I've even thought about selling some now since it's climb. Maybe I'll just wait now.

Silver is up almost 90% in the last 5 years and 54% since last year:

https://www.kitco.com/charts/livesilver.html

Moved silver discussion to:
https://emergencyhomeprep.forumotion.com/t1117-prescious-metals-general-info-for-gold-silver#10982

TRex2 wrote:Here is, I think, a fair analogy of what is going on in the trading world. The analogy assumes corruption in the brokerage houses, which we have suspicion of, but no proof. In this analogy, the brokerage houses and Reddit would be the referees. (Also, be aware, that while I know the rules of basketball, I know nothing of the sport, itself)

This is a Junior Varsity vs Varsity game, and for once the JV team, at halftime, had the upper hand. So the ref's decide on a new rule, the JV team can't touch the ball in first half of the third quarter, and in the second half of the third quarter they have to play with a patch over one eye.

It is no wonder the JV team thinks this is unfair, and most of the crowd does, also.

OK, Robinhood has their funding, and then some. They are still sandbagging, so they no longer have an excuse. The brokerage houses are obviously in, on the side of the Hedge funds, and keeping the JV team's hands cuffed behind their back. I don't know if this behavior is legal, but it is immoral.