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I don’t invest in the stock market and my understanding of it is rudimentary at best. I’ve read a couple articles from here about what’s happening but don’t really understand.

Can y’all help me understand what’s going on in layman terms?

I don’t invest in the stock market and my understanding of it is rudimentary at best. I’ve read a couple articles from here about what’s happening but don’t really understand. Can y’all help me understand what’s going on in layman terms?

(post is archived)

[–] • 5 pts

Hedge fund managers sold borrowed gamestop stock, betting it would go down, at which point it would buy it back so they could could return it and keep the difference. Small investors saw what was happening and bought up as much stock as they could, increasing the demand and driving the stock through the roof. Hedge fund looses billions because it cost so much to replace borrowed stocks that skyrocketed. Also, they shorted excess of 100% of their stock (140%). They were attempting to manipulate the market and got caught with their pants down.

[–] • 0 pt

Thank you.

[–] • 5 pts (edited )

X22 Report covers it. Also Tucker Carlson had a great segment two nights ago.

https://rumble.com/vdd9kf-ep.-2390a-cbds-exposed-to-all-the-entire-system-is-rigged.html

Here's the gist:

  • Melvin Capital, a hedge fund, bought a huge amount of "shorts" on GameStop stock to Drive down the price and make a killing. This would have put GameStop out of business if it worked.

  • A guy on a Reddit board for investors discovered Melvin Capital's short positions and convinced a bunch of small investors to buy the stock at a low price. (It also appears that some big investors jumped on the bandwagon too.) The high number of trades drove the stock up something like 1700%

  • The price zoomed higher after Elon Musk linked to the Reddit board discussing the GameStop trades (WallStreetBets)

  • Because the price rose rather than fell like Melvin Capital expected, they lost billions of dollars (reportedly upwards of $13 billion).

  • To staunch the losses by Melvin Capital, Robinhood trading platform and E*Trade suspended trades of GameStock (which is unheard of)

  • A whistleblower at Robinhood posted on one of the boards that Robinhood stopped trading AFTER they received a call from the White House asking them to do so (likely Treasury Secretary Janet Yellen)

  • Melvin Capital is owned by Citadel Hedge Fund (one of the largest in the world). Janet Yellen received $810K in speaking fees from Citadel in the past few years. So it appears she intervened on the behalf of Citadel

  • Melvin Capital is insolvent at this point -- but the losses would have been much worse if the trades were allowed to continue as they should have in a free market system

  • Yesterday Elon tweeted about the rigged system. He clearly exposed the game on purpose. Read it here: https://twitter.com/elonmusk/status/1354890601649610753

The bottom line is that the system is rigged for the elite and well connected. Elon & the day traders from Reddit exposed this BIGLY.

[–] • 1 pt

Yes, this is hopefully an eyeopener for many people on how corrupt the system is!

Hopefully they see the connection to the Dems and the rest of the cabal...

[–] • 1 pt

Thanks for the information, maybe because it is in bullet form; I finally understood. Do we know if the Reddit group was trying to save GameStop?

[–] • 1 pt

WallStreetBets

.

Just saw this one. Adding to the list.

Elon Musk drove the price even higher after tweeted a link to the Reddit board:

https://www.cnbc.com/video/2021/01/27/gamestop-jumps-elon-musk-tweet-link-reddit-board-experts.html

He did it on purpose the expose the market rigging activity. See this tweet:

https://twitter.com/elonmusk/status/1354890601649610753

[–] • 0 pt

Interesting. I just posted an article of a fb group, banned as early as 7 Jan. The group was "wall street" investment group. I am glad they have made the exposure but with Yellen as Treasury Secretary, she has been paid big bucks for something and I cannot believe it is for her great amount of finance knowledge.

[–] • 0 pt

Great synopsis! Thank you. But why GameStop?

[–] • 1 pt

Because the guy on the Reddit board discovered the huge number of shorts against Gamestop and he saw an opportunity because the share price was very low. It could be any stock where the price was low and shorts had been placed against the stock.

[–] • 0 pt

Makes sense. I didn’t know if GameStop was a specific target or just a supposedly easy target. Thanks.

[–] • 2 pts

person 1 has an apple tree, person 2 sells apples, as its looks like the apple tree is going to have a bad year person 2 sells the apples in advanced to person 3, person 2 was wrong about it being a bad year for apples and now he has to pay a lot more per apple which he has to buy because he already sold them to person 3

just on a massive scale, so large that it has the potential to bring down the whole financial system

silver and gold have been slowly climbing as nerves grow, silver was 25p/gram yesterday, now its 27.6 or about a 6% increase in a day

[–] • 0 pt

I fully understand the apples.

[–] • 1 pt

Short Selling:.... Your broker (Robinhood, TD Ameritrade etc), borrows the SHARES from traders that already OWN Game Stop shares and re-sells them into the market at current prices (lets say $10) and that money goes into their account........ So as more shares enter the market, these dilute the share prices and price drops. Then the Short Seller will buy(pay for) the shares at a lower price and keeping the difference($10 - $6 = $4)... BUT when prices go up, the SHORT Seller loses money and will try to buy the shares back minimizes the loss ....at the same time this dries up those shares that were borrowed and prices quickly rise. NOW the brokers STOPPED the ability for traders to BUY more shares only SELL shares to favor the SHORT SELLERS. ..Short Sellers are needed in the stock market as they look for fraudulent accounting and SHORT the STOCK otherwise 1+1=9 and reporting numbers are all false.

[–] • 1 pt

What happens if the people who bought shares do not sell them?

[–] • 0 pt

And who, pray tell, might be one of the largest hedge fund "investor"? Nothing to see here.

[–] • 0 pt

Ramzpaul gives a short and very easy to understand explanation (complete with hand-rubbing and crying out as they strike you):

https://youtu.be/UtvJJZe_dfE

[–] • 1 pt

That helped.

Never trust greedy people, and don't fall for their get-rich-quick schemes.