The Gamestop Stock Market Boogaloo

[Atheris]

I’m actually optimistic in this regard. A bunch of ordinary people are just piling on this thing in spite of this being smeared as a white supremacist gamergate anti-elite trumpest financial insurrection.

And they vote.

Lets hope they don't take the 'well if you call me a monster, I'll be a monster' path that tends to occur.

You're not ending our plan, you're expanding it! Check the internet lately?

[Kowani]

Redditors file class action lawsuit against Robinhood

NEW YORK—In response to the online brokering app halting trading on GameStop ($GME) after a surge in activity, Redditors filed a class-action lawsuit this week alleging that Robinhood has been on some “bitch shit lately.”

“Robinhood willfully deprived investors of their hard-earned tendies,” read the brief in part, which also claimed that the online brokerage had left countless Redditors “holding the bag.” “This is the way. If every autist stands together, we’ll sue these Robinhood cucks out of house and home. Hold stronk. We’ll be buying the dip; they’ll be buying commissary in the clink.” At press time, a popular Reddit post urged “Euro retards” to show solidarity by filing class-action lawsuits in their countries of origin.

Just a full day late

[Diahon]

now is the time to quadruple, quintuple, and sextuple yikes, for there is no fucking way the larger economy can't be affected by that

ok liberal

yes, what is it?

[Borderlands of Rojava]

I’m actually optimistic in this regard. A bunch of ordinary people are just piling on this thing in spite of this being smeared as a white supremacist gamergate anti-elite trumpest financial insurrection.

And they vote.

Lets hope they don't take the 'well if you call me a monster, I'll be a monster' path that tends to occur. I've had enough of people being 'ironically' racist just because some dumbass says Pewdiepie is a Nazi.

Its a case of the boy who cried wolf. Certain folks have spent the last several years calling everything racist (digital blackface is an example that comes to mind) and then when a real bunch of racists came around (Trump and his movement), it was hard to convince people cause they'd already heard how everything else was racist. Calling Pewdiepie a Nazi is another example. Everytime a large group of people does this like this, it makes it harder to reveal actual racism to people because they're already skeptical. I was reluctant to compare Trump to a fascist till 2020 just because I knew people had called half of the conservatives before him fascists even if they weren't. I'm not supporting ironic racism, but it would be easier to fight racism if people saved their "this guy is a violent bigot" spiel for actual violent bigots. It isn't like there's a shortage of those.

[Borderlands of Rojava]

ok liberal

yes, what is it?

You're worried about this affecting the economy like any of us care. The fact of the matter is trickle down economics has failed and right now we are already doing horrible, so it can only get worse for those up top and not us. Rich people got alot richer last year. The poor got much poorer. A "good economy" 90% of the time means "rich people made money," and It doesn't matter if poor and middle class folks are doing okay. We're tired of playing with their asses. We're hitting them where it hurts.

[The Marlborough]

Marina and the Diamond Hands will make us all Primadonna Girls.

[Cordel One]

I'm hearing a lot of chatter-confirming what Seangoli and a few others have mentioned, that there's almost certainly going to be a liquidity crisis in Wall St. sometime in the next few days

now is the time to quadruple, quintuple, and sextuple yikes, for there is no fucking way the larger economy can't be affected by that

It will affect the economy to an extent, but it's worth pointing out that, while they are related, the economy is not the stock market. The stock market is a game for rich to conjure up money and a casino for everyone else, whereas the economy encompasses things of actual inherent value as well. Gamestop as a store is still a relic from 2007, and we can't eat money.


Also, I'm glad that some parasites are losing money. Maybe they can learn to code and cut the avocado toast out of their budgets.

[Diarcesia]

Guys...

guys

https://www.reddit.com/r/wallstreetbets ... _shut_off/

Robinhood Completely out of money - They Shut off Instant Deposits!

RH turned off instant deposits for the only thing that costs them money over the weekend.

There is only one reason possible for this, they are completely out of money in every way. This is the only weekend activity that they can stop that costs them money. I think they are just praying that when all of the books are settled, they have enough money to cover.

What could these weekend instant deposits amount to? 1M? 2M? This is after the1B cash infusion and emergency bank loans. Thursday. And limiting trading on 50 stocks Friday.

To put this news into perspective, when you are almost out of money you pay a large bill late or delay a big purchase. Then you stop eating out, buying extra things, cancel netflix, etc. This is the equivalent of going back through the trash to find the aluminum foil to turn in for pennies at the scrap yard that you walked to cause you can't afford the gas.

Edit: I do want to tell people that I don't think that RH is going under. I think they are standing on the precipise. But I think they will get any amount of emergency lending they need to stay solvent. (Too big to fail?)

You are SPIC insured, to 250K for stonks on RH. You won't lose your money. Don't sell and move you stocks, don't worry about it. Maybe open a backup broker, maybe move a little cash between the two over the next few weeks. Don't confuse anything I said for investment advice.

[Shrillland]

Guys...

guys

https://www.reddit.com/r/wallstreetbets ... _shut_off/

Robinhood Completely out of money - They Shut off Instant Deposits!

RH turned off instant deposits for the only thing that costs them money over the weekend.

There is only one reason possible for this, they are completely out of money in every way. This is the only weekend activity that they can stop that costs them money. I think they are just praying that when all of the books are settled, they have enough money to cover.

What could these weekend instant deposits amount to? 1M? 2M? This is after the1B cash infusion and emergency bank loans. Thursday. And limiting trading on 50 stocks Friday.

To put this news into perspective, when you are almost out of money you pay a large bill late or delay a big purchase. Then you stop eating out, buying extra things, cancel netflix, etc. This is the equivalent of going back through the trash to find the aluminum foil to turn in for pennies at the scrap yard that you walked to cause you can't afford the gas.

Edit: I do want to tell people that I don't think that RH is going under. I think they are standing on the precipise. But I think they will get any amount of emergency lending they need to stay solvent. (Too big to fail?)

You are SPIC insured, to 250K for stonks on RH. You won't lose your money. Don't sell and move you stocks, don't worry about it. Maybe open a backup broker, maybe move a little cash between the two over the next few weeks. Don't confuse anything I said for investment advice.

It is an important lesson, however. Don't have just one trading account if you can afford it, have three or four.

[Diarcesia]

Guys...

guys

https://www.reddit.com/r/wallstreetbets ... _shut_off/

It is an important lesson, however. Don't have just one trading account if you can afford it, have three or four.

Reading through the comments, SIPC will kick in so the people using it don't get totally screwed. But given what they are doing lately, they're burning money like they were an Abrams tank.

[Kowani]

Guys...

guys

https://www.reddit.com/r/wallstreetbets ... _shut_off/

Robinhood Completely out of money - They Shut off Instant Deposits!

RH turned off instant deposits for the only thing that costs them money over the weekend.

There is only one reason possible for this, they are completely out of money in every way. This is the only weekend activity that they can stop that costs them money. I think they are just praying that when all of the books are settled, they have enough money to cover.

What could these weekend instant deposits amount to? 1M? 2M? This is after the1B cash infusion and emergency bank loans. Thursday. And limiting trading on 50 stocks Friday.

To put this news into perspective, when you are almost out of money you pay a large bill late or delay a big purchase. Then you stop eating out, buying extra things, cancel netflix, etc. This is the equivalent of going back through the trash to find the aluminum foil to turn in for pennies at the scrap yard that you walked to cause you can't afford the gas.

Edit: I do want to tell people that I don't think that RH is going under. I think they are standing on the precipise. But I think they will get any amount of emergency lending they need to stay solvent. (Too big to fail?)

You are SPIC insured, to 250K for stonks on RH. You won't lose your money. Don't sell and move you stocks, don't worry about it. Maybe open a backup broker, maybe move a little cash between the two over the next few weeks. Don't confuse anything I said for investment advice.

Is it for all things? "cause so far, I've only seen them shut it off for crypto

and twitter chatter doesn't say anything different-

[Diarcesia]

Guys...

guys

https://www.reddit.com/r/wallstreetbets ... _shut_off/

Is it for all things? "cause so far, I've only seen them shut it off for crypto

and twitter chatter doesn't say anything different-

Crypto only

[Shrillland]

It is an important lesson, however. Don't have just one trading account if you can afford it, have three or four.

Reading through the comments, SIPC will kick in so the people using it don't get totally screwed. But given what they are doing lately, they're burning money like they were an Abrams tank.

Oh, I didn't mean that the traders themselves would get screwed, I'm talking about if something like this happens again and the brokerage firm runs out of money. This way, you'll have a backup to keep going if needed.

[Kowani]

Is it for all things? "cause so far, I've only seen them shut it off for crypto

and twitter chatter doesn't say anything different-

Crypto only

okay, yeah, that's what i thought

[Albrenia]

Lets hope they don't take the 'well if you call me a monster, I'll be a monster' path that tends to occur. I've had enough of people being 'ironically' racist just because some dumbass says Pewdiepie is a Nazi.

Its a case of the boy who cried wolf. Certain folks have spent the last several years calling everything racist (digital blackface is an example that comes to mind) and then when a real bunch of racists came around (Trump and his movement), it was hard to convince people cause they'd already heard how everything else was racist. Calling Pewdiepie a Nazi is another example. Everytime a large group of people does this like this, it makes it harder to reveal actual racism to people because they're already skeptical. I was reluctant to compare Trump to a fascist till 2020 just because I knew people had called half of the conservatives before him fascists even if they weren't. I'm not supporting ironic racism, but it would be easier to fight racism if people saved their "this guy is a violent bigot" spiel for actual violent bigots. It isn't like there's a shortage of those.

Yeah. I remember early 2016 and I highly doubt Trump would have made it across the victory line without the likes of Buzzfeed, 'decolonialise math' and other such stupidity making it hard for people to see who the real bigots were.

[No State Here]

AMC seems to be next week’s WSB pick. Many people have begun putting orders in and there will likely be a huge market opening on Monday

[The Lone Alliance]

It'll be a shame to go back to shouting at each other after we've all bonded over this.

Well with politics like they currently are right now it's likely we can be united under this for awhile at least.

At least until the next culture war issue pops up and we're ranting about that.

[No State Here]

now is the time to quadruple, quintuple, and sextuple yikes, for there is no fucking way the larger economy can't be affected by that

It will affect the economy to an extent, but it's worth pointing out that, while they are related, the economy is not the stock market. The stock market is a game for rich to conjure up money and a casino for everyone else, whereas the economy encompasses things of actual inherent value as well. Gamestop as a store is still a relic from 2007, and we can't eat money.

The stock market isn’t gambling, contrary to what many people think. Stock trading is similar to gambling, but the real money comes from value investing, accumulating stocks and generating large passive income from shares

[Fahran]

It'll be a shame to go back to shouting at each other after we've all bonded over this.

When I go back to shouting at you, think of it as warm and well-meant shouting, you absolute carpet.

[Saiwania]

The stock market isn’t gambling, contrary to what many people think. Stock trading is similar to gambling, but the real money comes from value investing, accumulating stocks and generating large passive income from shares

That seems about right, finally another person who gets it. Just because someone never bothers to learn how to invest and trade effectively within the stock market, doesn't mean there aren't other people who're modestly if not very successful in building up a good portfolio which will enable them to retire comfortably in due time, if not accomplish some financial goals they have; if they cash out in selling some stocks they have.

You take advantage of the information thats available and do the math, and yes- its very possible to make informed enough decisions on where to invest such that, you'll do well overall. Its not a given that you'll make a profit but it isn't a given that you'll lose money either. Its essentially all on how good the companies you picked are.

The only main advantage the rich have over a retail investor is simply that they can buy more shares because they have more money to begin with. No duh they'll have a greater return or a greater loss than someone with fewer shares.

[Galloism]

Wall Street Journal suggests GameStop, Bitcoin, and QAnon all come from the same source: online cultish behavior.

Shut up WSJ.

[The Marlborough]

Wall Street Journal suggests GameStop, Bitcoin, and QAnon all come from the same source: online cultish behavior.

Shut up WSJ.

WSJ journos are just upset their wives boyfriends are going to make a killing off of GME while they crumble.

[Kowani]

Wall Street Journal suggests GameStop, Bitcoin, and QAnon all come from the same source: online cultish behavior.

Shut up WSJ.

THE SUITS ARE MALDING

[Kowani]

Okay yeah, so RH confirms they just straight-up didn't have the capital

With the extraordinary market activity this week, and the temporary restrictions we put in place on certain securities, we’ve received questions about how Robinhood works, trading, clearing and settlement, and clearinghouses. Here’s an overview of the mechanics—or the plumbing—behind your trades. Let’s dive in.

Settling trades

When you buy or sell a stock, Robinhood sends your orders to market makers that execute your trades. Market makers send a record of the trade to Robinhood Securities, which works with a clearinghouse to record the trade. It takes two days for the clearinghouse to transfer the stock to the buyer and funds to the seller. This is known as “clearance and settlement.” In other words: everyone getting what they agreed to when the trade executed. In the industry, this is referred to as the trade date plus two days to settle, or “T+2.”

Meet your clearinghouse

Clearinghouses are SEC-registered organizations that act as the central depository for securities. They keep a record of the stocks owned through a brokerage. Clearing brokerages, like Robinhood Securities, are members of clearinghouses. These clearinghouses have membership rules, approved by the SEC, that govern the activity of their members. Clearinghouses establish financial requirements for members including deposit requirements designed to reduce risk to the clearinghouse.

Clearinghouse requirements

To clear and settle customer transactions, each trading day by 10am ET, clearing brokers like Robinhood Securities have to meet those deposit requirements to support their customer trades between the trade date and the date the trades settle. We withdraw money on some days, and deposit money on other days, depending on that day’s requirement.

How do clearinghouses determine how much is required?

It’s pretty technical, but the process basically works as follows: clearinghouses look at a firm’s customer holdings as a portfolio. They use a volatility multiplier, looking at specific stocks, to quantify their risk. The clearinghouse may assign significant additional charges based on how much of one stock a firm’s customers hold. If a firm’s customers have more buy than sell orders, and the securities they’re buying are more volatile, the deposit requirement will be higher. Clearinghouses can also require additional deposits if certain thresholds are met.

What happened this week

The amount required by clearinghouses to cover the settlement period of some securities rose tremendously this week. How much? To put it in perspective, this week alone, our clearinghouse-mandated deposit requirements related to equities increased ten-fold. And that’s what led us to put temporary buying restrictions in place on a small number of securities that the clearinghouses had raised their deposit requirements on.

It was not because we wanted to stop people from buying these stocks. We did this because the required amount we had to deposit with the clearinghouse was so large—with individual volatile securities accounting for hundreds of millions of dollars in deposit requirements—that we had to take steps to limit buying in those volatile securities to ensure we could comfortably meet our requirements.

Our goal is to enable purchasing for all securities on our platform. This is a dynamic, volatile market, and we have and may continue to take action to make sure we meet our requirements as a broker so we can continue to serve our customers for the long term.

Rest assured, our position remains firm—we stand with our customers and will continue to provide you with the resources and tools you need to become a confident, informed investor.

(relevant portion bolded)

[Seangoli]

almost certainly

Good.

Think of it like this:

A lot of hedge funds and brokers are going to have to liquidate their long positions in order to for overpriced GME stock at a heavy loss on GME, as well as losing out on a lot of opportunity on the stocks they are anticipating will increase in price. They'll start with less attractive longs, but might have to migrate up to "good" longs.

If there isn't enough cash to cover all of this sell off, then we got the liquidity crisis. The only way out is either an injection of money in, or selling things for dramatically reduced price to get what you can while you can.