What's happening now with the market and $GME is, the first moves were Reddit bros, then came the noobs, then came smart investors who could see the tide rolling in and the progressive influencers, now we're seeing Wall St join in, while bitching about being last to the table.
Short funds are getting crushed and will die, which will impact those who invest with short funds. Billionaires are finally getting screwed by those they traditionally screw. The knock on effect will be heavy. But that's how it should be, if you want to take massive bets against.
If I want to short a company that's obviously terrible, I have to pay a premium because I'm just some guy, man. But a hedge fund gets to borrow millions of shares that don't exist, just cuz.
But if I'm betting on a GREAT company and it runs for a bit, the first thing that happens is big money comes in to fuck it, short it, drive it down, and then offer it expensive financing to get out from under the boot.
When a billionaire buys into $AAPL, they tell Wall Street and the stock runs, and that's okay. But now retail investors pull the same routine and we're supposed to be shocked, horrified, and say it's wrong.
Fuck that. This is game theory. Momentum investing. New world.
This is Fight Club, and Wall Street, which has been fighting dirty and smoking guys for years, just got LAID THE FUCK OUT by a skinny emo teen, and now wants the rules changed.
Guaranteed: Every short selling fund is closing out their positions this morning out of straight fear.
And those who think they can wait it out, that $GME will crash tomorrow and sanity will be restored, is risking everything. My 15 yr old kid is trading. All his friends are talking ticker symbols. And they will fuck a brother up for the lulz. Fear them.
Wall Street should be stoked the kids are now traders. That should be everything they'd hoped for for decades. But they're not playing nice and being happy being front run on their trades and fucked by shorters, like the boomers are. They're activists.
They're here to dominate.
For those who don't know: A short is when someone sells a stock they don't own & agrees to buy it back later and settle their debt. 140% of $GME shares were shorted when Reddit folks started buying it. That means for every share that existed, 1.4 shares were borrowed & sold.
That was apparently just fine. No problem.
The problem, at least as Wall St sees it, is when WE THE PEOPLE buy that stock and force them to close their deal.
That's, apparently, something that must be stopped. Not naked shorting. Not death spiral financing.
Wall Street isn't concerned with the how. It's the who. They don't want to be subject to the rules they subject us to. They don't want an opponent fighting back.
Fuck them all right down to minimum wage.
You can follow @ChrisParry.
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