GameStop: Global watchdogs sound alarm as shares frenzy grows
29/01/2021 | news | business | 1,130
Financial regulators in the US and UK say they are monitoring share trading and potential market abuse.
1
jay
29/01/2021 14:29:49 31 6
bbc
Traders should "ensure they are familiar with all regulations, including market abuse," the FCA said.

hmmm tell that to robin hood not us ,now to the moon !
31
x75
29/01/2021 14:38:37 5 21
bbc
Clearly, you are deluded.
2
29/01/2021 14:30:00 393 11
bbc
I do hope this kills short trading overnight.
57
29/01/2021 14:43:35 187 4
bbc
Maybe not quite overnight but there's no doubting the game's up.

No pun intended.
231
29/01/2021 15:31:38 11 5
bbc
Short trading has a use.

For instance, the first to spot that Enron was a fraud were short traders. The first to see the 2008 crash coming were short traders.

They have an incentive to see the bad in a company, and exploit it, so often see past management doublespeak better than anyone else.

I do hope that it sees less usage though, the greed over GME was insane.
426
29/01/2021 16:30:06 7 6
bbc
Short trading is a perfectly valid way of ensuring the value attached to an asset is genuine. Without it, any market correction will come at a far higher price to investors.
494
29/01/2021 16:55:27 7 0
bbc
There is no magic in shorting; it uses available pathways to bet on a share price falling.

There are plenty of shoddy instruments available, which exist solely for the purpose of creating a gain or a loss for the institutions, which gamble with them.

The same money flows between traders, creating gains on one trade; losses on the next, then reversing the following trade. No societal benefit.
507
29/01/2021 17:03:10 7 2
bbc
Its not 'short trading' that's the problem. Its market manipulation using the available tools, beyond what is equitable for all who wish to engage in the market. Popular press likes to simplify the technical & gets it wrong 9 times out of 10. Short selling is part of what gives a market liquidity. In short (lol) when everyone is fully invested who do you sell to when the rush goes the other way?
582
jay
29/01/2021 17:36:55 14 0
bbc
Doubt it will kill it but it will make them think twice about 140% shorts next time!
583
29/01/2021 17:38:30 5 10
bbc
Do you have a pension pot for your retirement? If so, where do you think the funds come from in order for it to increase? Some of the money comes from this type of trading, so be careful what you wish for!
685
29/01/2021 19:22:15 6 0
bbc
Short trading isn't a bad thing as such - as long as you OWN the shares you're selling to short.

Worst case secnario for the stock market if you own your shares is losing everything.

Worst case scenario for trading shares you don't own is losing hundreds of times more than you actually have - and only the wealthy are allowed to trade like this
810
29/01/2021 20:56:20 2 0
bbc
I do hope so, and if we could find a way to remove "pay day" loan companies at the same time even better.
869
29/01/2021 22:03:22 2 0
bbc
I agree totally.

'Borrowing' someone elses shares and then gambling that the company will lose value is frankly immoral as well as open to massive abuse from the big players.

Shorting is a stain and should be outlawed.
3
jay
29/01/2021 14:31:04 1004 20
bbc
hedge fund robs little guy ,nothing said ,people come together to shaft said hedge fund ,the rules change ,what a beautiful world we live in
13
29/01/2021 14:34:33 331 7
bbc
Even if the hedge fund loses it will be somebody else's money.
Just a smaller bonus for the managers.
26
x75
29/01/2021 14:37:31 7 23
bbc
.....understand your feelings, but we no longer live in a beautiful world as you are soon going to find out.
309
29/01/2021 15:55:11 2 13
bbc
No the rules don't change. It would be illegal for the hedge funds too.
372
29/01/2021 16:14:57 17 18
bbc
hedge funds are often investing the money of the little guy in his little pension which just got littler
384
29/01/2021 16:18:13 9 27
bbc
A hedge fund doesn't rob the little guy.
423
BBC
29/01/2021 16:29:08 7 1
bbc
Best story of the week
431
Bob
29/01/2021 16:32:01 11 2
bbc
Hedge funds don't rob money. And neither is 'nothing said'. You have blinkers on if you think no one has ever said hedge funds are bad, shorting is bad, and should all be stopped.
437
29/01/2021 16:32:49 29 3
bbc
Exactly. Hedge funds produce nothing, add no value and employ very few people. Commonly based in tax-free locations.

If I, as a retail investor, want to pony up a few hundred quid on a particular share that's 100% my own risk and I'm not doing anything illegal or unethical. If it just happens to take out one of these institutional gambling schemes that's a bonus...
439
29/01/2021 16:33:30 9 4
bbc
The problem is that it will not only be hedge funds that lose. By reversing the expected direction of the price, private investors have created a significant bubble. All bubbles burst eventually and a lot of small investors will loose out significantly.
517
29/01/2021 17:06:22 0 8
bbc
Ah, thought it wouldn't take long to see an antisemitic conspiracy theory comment. First in the list, too.
550
29/01/2021 17:23:05 4 2
bbc
I don't think you understand what's going on. The "little guy" is hoping to offload onto another "little guy" who will end up holding the baby at hundreds of dollars a share. People who "know a friend of a friend who says buy this", have no clue what they're doing, and get fleeced.
648
29/01/2021 18:36:16 4 6
bbc
Who exactly is the hedge fund 'robbing?? If anyone wants to shaft hedge funds buying a stock which is pretty much worthless is dumb. All that will happen when the stock goes bankrupt is the plucky investor holding a massive loss. The stock market is not a game It's about picking companies that will thrive longer term. GameStop is not one of those.
649
29/01/2021 18:37:14 0 0
bbc
Very simple Jay, but you really ought to know your place.
698
GDW
29/01/2021 19:30:48 1 3
bbc
Trouble is hedge fund is usually using your money to do it, your savings, your pension etc and the fund manager still gets paid but it's your investments that take the hit.
745
Jas
29/01/2021 20:14:33 0 0
bbc
Real question is what’s GameStop doing?

Can GameStop profit from this and get themselves out of trouble or is share-price immaterial to them?

Funny thing is they likely won’t see a penny of this chaos, yet every employee told “must look after our shareholders, at the monthly manager briefing!”
jay
30/01/2021 12:49:01 0 0
bbc
Just to add a dose of reality to this. The hedge funds are shorting a company that is going bust just like funds hold shares in a company that is trading well. The wrong here is that retail punters are being stopped from driving the price the other way. In an open market both extremes should be allowed.
4
29/01/2021 14:31:31 207 0
bbc
It's interesting to see what happens when traditional power structures are challenged in this way. You can see the ranks closing, and the attempts to preserve the status quo. It will be fascinating to see how this ends up.
317
29/01/2021 15:57:15 29 15
bbc
It is a zero sum game. For every winner there is a loser.

That the professionals use their influence to screw the small guys is predictable - if you can't stand the heat get out of the kitchen.
388
29/01/2021 16:18:32 4 30
bbc
Very similar to what we saw with the US Elections. Challenge the traditional power structures no matter how outrageous and we see increasing knee-jerk attempts to preserve the status quo. Nancy Pelosi is a classic example of that 'knee jerk' reaction calling a protest a riot leading a call for impeachment and a ban on further participation when it's down to voters to decide at the end of the day.
972
29/01/2021 23:46:15 0 0
bbc
It will end with a lot of 'ordinary' people losing a lot of money (to them) and 'the elite' losing a little (to them).
The status quo will be preserved at all costs.
5
29/01/2021 14:31:44 6 2
bbc
Someone is going to lose a lot of money...
82
29/01/2021 14:47:53 1 0
bbc
and a few people are going to make a lot of money by manipulating the market.
6
29/01/2021 14:32:47 8 2
bbc
I'm doing this, call my Broker's Winthorpe and Valentine esq

Anything to see those two conniving Dukes brothers in the poor house
16
29/01/2021 14:35:26 3 0
bbc
I was thinking just the same when reading the article! Trading Places.
7
29/01/2021 14:32:57 348 4
bbc
Ordinary people 1, hedge funds 0

This whole episode has been hilarious.

Pass the popcorn.
59
NM
29/01/2021 14:43:57 60 156
bbc
The thing is, a lot of hedge funds are made up of the ordinary people's pensions.
196
29/01/2021 15:20:51 6 28
bbc
Not so funny for those approaching retirement as the wider markets have been impacted. I am ok, I will just work for a few more years and deny some else a job.
351
Bob
29/01/2021 16:09:21 1 0
bbc
Except that's not the final score. The share is not worth the price. Never has been, never will be.

When the final whistle has been blown both sides will have faced defeat and a few instigators will be laughing.
653
29/01/2021 18:40:09 0 0
bbc
Unfortunately some of those 'ordinary people' are going to end up nursing massive losses. You never buy shares in a failing company. The world truly has gone mad and shows stock markets are insanely overvalued when 'ordinary people' buy shares because of something written on Reddit. Total madness
8
29/01/2021 14:33:01 222 3
bbc
Just goes to show the "free market" is not so free after all.
37
29/01/2021 14:39:08 137 8
bbc
The argument for Communism is that it's 'never been tried properly' I think this whole episode shows that the same could be said for the 'free market'

Just the tonic we needed after the last few years. Carry on memeing, guys! I hope you win big.
51
29/01/2021 14:41:06 20 0
bbc
It's a free market for the ordinary guy, socialism for the rich.
9
29/01/2021 14:33:27 3 3
bbc
There are many other ways of short selling without borrowing shares. Did the author of this piece enjoy the film Trading Places?!
20
29/01/2021 14:34:55 12 1
bbc
I'll bet you 1 dollar they haven't heard of Trading Places.
10
29/01/2021 14:33:32 17 0
bbc
Greed will be the downfall of many people, it's the little man that always gets screwed in the long run.
11
Dan
29/01/2021 14:34:01 8 3
bbc
I am altering the deal, pray I don't alter it any further.
42
29/01/2021 14:39:50 5 0
bbc
Don't worry, I noticed the genius of your comment ;)
12
29/01/2021 14:34:26 39 1
bbc
Notice all help being given to the greedy established businesses, who only exist to make themselves rich.
3
jay
29/01/2021 14:31:04 1004 20
bbc
hedge fund robs little guy ,nothing said ,people come together to shaft said hedge fund ,the rules change ,what a beautiful world we live in
13
29/01/2021 14:34:33 331 7
bbc
Even if the hedge fund loses it will be somebody else's money.
Just a smaller bonus for the managers.
53
29/01/2021 14:41:46 14 1
bbc
Are you sure they get bonuses for losses?
120
29/01/2021 15:03:34 15 2
bbc
As long as the money is lost by the greedy people.
170
Dee
29/01/2021 15:15:04 79 3
bbc
And when they win, it's thousands of jobs and someone else's money. Shorting is a plague that destroys businesses. I'm not going to cry over a few people losing their yachts.
519
29/01/2021 17:07:34 7 4
bbc
But that Hedge Fund manager are people like Jacob Rees Mogg. So who cares.
Yes, money of rich people which invest in hedge funds - F these parasites Removed
14
29/01/2021 14:34:36 465 9
bbc
A broken system that favours the wealthy

Until now

And suddenly panic
35
29/01/2021 14:39:02 374 1
bbc
You could argue the system was purposefully designed and intended to favour the wealthy, in which case it was a well functioning system indeed!

They got beat at their own game fair and square and will now try to move the goal posts to maintain their advantage. Let's hope they don't succeed.
466
AAA
29/01/2021 16:45:56 10 0
bbc
Absolutely. This form of short trading has always existed, just most people do not have the time or resource to play the game at the top level.
Apply a lot of time at home due to a pandemic = more time to scour the internet for info and suddenly find yourself going "I could drop a few £ into that with a few hundred/thousand others and make more £ back" OH NO go the pros this can't happen!!
504
29/01/2021 17:02:24 13 0
bbc
Absolutely, the guy who found the weak point made 48M from a 53K investment.
The HF gambled and lost
596
29/01/2021 17:48:50 1 0
bbc
True, but hedge funds that went "long the market" on Gamestop were making billions until trading was interrupted
623
29/01/2021 18:10:56 9 0
bbc
It doesnt favour the rich, it is run by them for them.
15
29/01/2021 14:34:44 544 5
bbc
What a crazy week.

If Wall Street wants to Live by the sword, then they need die by the sword too.

Please be careful if you are trading, don’t put in what you can’t afford to lose.
107
xlr
29/01/2021 14:59:47 324 1
bbc
Yeah, it's funny how the whole "self-correcting market" we were all lectured about over the years suddenly needs manually corrected.
198
29/01/2021 15:21:43 22 0
bbc
Very important point. I'm hoping it's mostly just people chucking in £20 to stick it to Wall Street.
6
29/01/2021 14:32:47 8 2
bbc
I'm doing this, call my Broker's Winthorpe and Valentine esq

Anything to see those two conniving Dukes brothers in the poor house
16
29/01/2021 14:35:26 3 0
bbc
I was thinking just the same when reading the article! Trading Places.
17
29/01/2021 14:35:41 130 3
bbc
Well played lads ??
18
x75
29/01/2021 14:35:49 9 2
bbc
Its just another symptom of the culture we live in today. I certainly dont see why the little guys should not have as much freedom to make money as the big hedge funds, but ultimately this is just gambling. The big hedge funds may get bailed out by governments, but small risk taking gamblers will not.

The bigger risk is that this type of activity will break the financial markets......
41
29/01/2021 14:39:49 1 4
bbc
Hedge funds are not allowed to engage in market abuse either.
45
29/01/2021 14:40:21 1 2
bbc
Also hedge funds don’t get bailed out either.
52
29/01/2021 14:41:44 2 2
bbc
they clearly need breaking as they have not worked for the uk its people or even business only bankers and their unlimited greed
19
29/01/2021 14:33:28 46 1
bbc
Oh so it's only market abuse when the little guys get involved and rock the boat for the scoundrels that like to short stocks?
9
29/01/2021 14:33:27 3 3
bbc
There are many other ways of short selling without borrowing shares. Did the author of this piece enjoy the film Trading Places?!
20
29/01/2021 14:34:55 12 1
bbc
I'll bet you 1 dollar they haven't heard of Trading Places.
21
jay
29/01/2021 14:36:35 11 2
bbc
financial regulator watch all you like , were not the ones breaking the rules ! free market gimmie a break next week blockbuster to the moon now show them diamond hands people ??????????
22
29/01/2021 14:36:53 14 2
bbc
whats the problem? Invest my stimulus check, hope for a 10x, pay of my student loan, maybe change my life chances for the better.
23
29/01/2021 14:37:09 144 0
bbc
hold the line... this is supposed to be a free market and open for us all. If anyone is showing market abuse it is the hedge fund managers
24
29/01/2021 14:37:12 28 8
bbc
Perhaps with a bit of luck people this will wake up to realise what a disgraceful system capitalism is.
25
29/01/2021 14:37:28 64 0
bbc
Can't stop, Won't stop, GameStop! But in all seriousness how some big hedges funds approved short selling more stock than was actually available is the real scandal, retail investors taking advantage are just playing by the rules.
225
29/01/2021 15:29:22 38 0
bbc
This ^^

140% of Gamestop stock was shorted. More stocks than even exist. That's the scale of the greed here.

How is this even legal?
3
jay
29/01/2021 14:31:04 1004 20
bbc
hedge fund robs little guy ,nothing said ,people come together to shaft said hedge fund ,the rules change ,what a beautiful world we live in
26
x75
29/01/2021 14:37:31 7 23
bbc
.....understand your feelings, but we no longer live in a beautiful world as you are soon going to find out.
505
29/01/2021 17:02:28 2 0
bbc
Extremely arrogant of you to assume you know more than them - especially when they were being sarcastic in the first place.
27
29/01/2021 14:36:34 26 0
bbc
Move the posts at our end if the ball gets too close...or did I miss something?
28
29/01/2021 14:37:45 789 11
bbc
Let’s be clear: this is hedge funds profiting off the backs of companies struggling through the coronavirus pandemic.

Good on the amateur investors for exposing these practices and I hope it hurts.
61
29/01/2021 14:45:09 206 3
bbc
Hear hear, keep it up amateur investors, but don’t turn gamekeeper!!
131
29/01/2021 15:03:57 11 16
bbc
The sad part is... some of your pension might be in those hedge funds.
175
29/01/2021 15:16:21 3 2
bbc
A lot of these companies were struggling long before the pandemic.
338
29/01/2021 16:04:11 10 1
bbc
the amateurs seem better at it than the so called Wall St sharks, that's what should scare investors
409
29/01/2021 16:24:08 11 1
bbc
short sellers make money because if they're right in thinking a company is overvalued, they come out trumps. If punters decide to do down those short sellers by buying those shares, they'd better be prepared to take a huge hit themselves.
548
29/01/2021 17:21:36 8 2
bbc
Hopefully the Mogg is one of those who gets hurt!
610
29/01/2021 18:03:12 1 2
bbc
When it unwinds which i inevitably will, the amateur investors will be hurt when they cant get out. People seem to have a very simplistic myopic view of this story
697
29/01/2021 19:30:42 2 0
bbc
"amateur investors" ?? Trust me, these millennial reddit users are waaaay ahead of Wall Street. This is just the beginning.
729
29/01/2021 20:02:44 3 0
bbc
yes I agree. Going to join the frenzy and do my bit..
29
29/01/2021 14:37:54 185 34
bbc
The BBC sides with the money trying to scare people off. The big players got scared and are now pressing the media to shut down the common man. Shorting is a morally bankrupt, quick and easy way for big money to make more money and they got caught with their pants down and are panicking.
46
29/01/2021 14:40:27 74 30
bbc
BBC sides with the money? Where? Please point us to the relevant paragraph.

Ah, you only have read the headline...
123
29/01/2021 15:03:06 23 4
bbc
You clearly (a) haven't read the article properly, and (b) have no idea what you're talking about
977
29/01/2021 23:56:39 1 0
bbc
Sorry but shorting is far from an easy way to make money, it’s extremely difficult to time right and unlike going long losses can be infinite.
30
29/01/2021 14:37:59 320 4
bbc
"the Financial Conduct Authority fired a warning shot at potential lawbreakers."

I presume this would not involve cheating spivs in the City?....
Removed
271
29/01/2021 15:42:13 8 13
bbc
Who do you think the Authority are and who do you think pays the politicians who determine the law!

The criminals make the law and regulate it themselves.

Bidens top donators are all hedge funds. The minute you start winning, they pick up the phone and you are branded a white supremacist and erased from existence! You ability to speak and defend yourself denied.

House always wins.
406
29/01/2021 16:23:51 11 1
bbc
it might now we know they borrowed 140% of shares, surely that must be a bit iffy legally speaking
509
29/01/2021 17:03:56 12 1
bbc
So you talk about shares on a forum there worried, yet HF have investment strategy dinners with each other and that's legal???
876
29/01/2021 22:13:19 2 0
bbc
The good news is that even with the game rigged against us, we are winning.
1
jay
29/01/2021 14:29:49 31 6
bbc
Traders should "ensure they are familiar with all regulations, including market abuse," the FCA said.

hmmm tell that to robin hood not us ,now to the moon !
31
x75
29/01/2021 14:38:37 5 21
bbc
Clearly, you are deluded.
32
29/01/2021 14:38:38 273 14
bbc
'Casino banking' is rotten to the core. Shares are supposed to allow investors to support companies and then get a return in terms of dividends and a slow-ish growth in the value of the shares. Going short, long, etc., are all market manipulations. Let's get back to basics (and decency).
511
29/01/2021 17:04:10 34 0
bbc
Doh when you 'go long' you are asking your broker to buy shares.
33
VEE
29/01/2021 14:36:56 21 2
bbc
The markets are totally rigged for institutional investors now. Hence the blatent decision of the government to bail out the banks but only make their shares when they returned to profit available to institutional investors.
58
29/01/2021 14:43:42 22 2
bbc
Yes scandalous that Lloyds shares weren’t open to private investors when they were offered to the market. After all it was the private investor, aka the taxpayer who kept them afloat!
34
29/01/2021 14:39:02 20 1
bbc
seem like a "heads we win......tails you lose" sort of scenario to me!!!
14
29/01/2021 14:34:36 465 9
bbc
A broken system that favours the wealthy

Until now

And suddenly panic
35
29/01/2021 14:39:02 374 1
bbc
You could argue the system was purposefully designed and intended to favour the wealthy, in which case it was a well functioning system indeed!

They got beat at their own game fair and square and will now try to move the goal posts to maintain their advantage. Let's hope they don't succeed.
234
29/01/2021 15:33:26 1 30
bbc
They will adjust and continue to profit - why? Because they are smart. Amazing how IQ and Wealth are correlated
270
29/01/2021 15:41:42 9 0
bbc
Decentralised Finance is the future.
335
Bob
29/01/2021 16:02:52 5 2
bbc
And when all these people who pumped the price up want to exit, who has lost then? Ah yes. Everyone.
30/01/2021 11:54:57 0 0
bbc
"The wealthy" is your pension fund. No, it's not a good way of funding your pension, but it's how it's done sadly.
36
29/01/2021 14:39:04 19 9
bbc
what the liars at the bbc dont tell you is these bankers did not just borrow shares to sell they invented shares as they sold over 125% of the shares available.
its the bankers greed in doing so that opened up the market for the smaller players to get involved but now the bbc along with their banker mates claim its unfair when this is all down to hedge fund investors and their greed
8
29/01/2021 14:33:01 222 3
bbc
Just goes to show the "free market" is not so free after all.
37
29/01/2021 14:39:08 137 8
bbc
The argument for Communism is that it's 'never been tried properly' I think this whole episode shows that the same could be said for the 'free market'

Just the tonic we needed after the last few years. Carry on memeing, guys! I hope you win big.
632
29/01/2021 18:24:28 1 2
bbc
In my humble opinion, knowing nothing about it other than what the Western media tell us, Communism would be great - as long as some can be more equal than others.
Human nature is greed and as the allegedly most intelligent life form on earth we could learn a few lessons from nature.
796
29/01/2021 20:47:26 2 2
bbc
The problem is that communism and socialism have been tried properly and have failed. That's why the Communist governments have changed from socialism to capitalism with heavy "if we say you jump, then you jump" controls.
38
29/01/2021 14:39:10 141 2
bbc
I just love the rich folk squealing about the proles using their strategies against them.
39
29/01/2021 14:39:38 48 2
bbc
The hedge funds and regulators are getting upset because the little guys are making money instead of the hedge funds. Hedge funds are designed for the rich to get richer and to suck money out of the economy so the ordinary person is poorer. The stock market casino is rigged in favour or the well off, big players and they are upset that ordinary folk have learned how to play the game.
608
29/01/2021 18:02:05 5 0
bbc
You can't let the peasants have money or power, old chap!
40
29/01/2021 14:39:44 31 1
bbc
As the saying goes, the market always wins. I guess this story just proves it is rigged.
18
x75
29/01/2021 14:35:49 9 2
bbc
Its just another symptom of the culture we live in today. I certainly dont see why the little guys should not have as much freedom to make money as the big hedge funds, but ultimately this is just gambling. The big hedge funds may get bailed out by governments, but small risk taking gamblers will not.

The bigger risk is that this type of activity will break the financial markets......
41
29/01/2021 14:39:49 1 4
bbc
Hedge funds are not allowed to engage in market abuse either.
673
x75
29/01/2021 19:06:55 1 0
bbc
Long Term Capital Management was bailed out in 1998. If you think some Hedge Funds dont get bailed out by the powers that be, you are uninformed.
11
Dan
29/01/2021 14:34:01 8 3
bbc
I am altering the deal, pray I don't alter it any further.
42
29/01/2021 14:39:50 5 0
bbc
Don't worry, I noticed the genius of your comment ;)
764
Dan
29/01/2021 20:29:09 0 0
bbc
Nice, thankyou.
43
29/01/2021 14:39:51 22 2
bbc
The first impression is good the money men are getting a pasting from the little guy.

But the small investors need to be careful. They have more to loose if things take a slide. Never gamble your hard earned money if you can’t afford to lose it.

Remember the past. In 1929 lots of people lost everything especially those who took out loans to buy overinflated stock.
125
29/01/2021 15:04:24 11 2
bbc
sorry you have it about face the small investors could lose what they invested but the hedge funds could lose unlimited amounts to them.
when you buy a share you could lose the total amount say £10 but have unlimited potential profits the higher it goes the more you gain when you short the maximum you can gain is the value of that share eg buy at £10 sell at 0 but could lose unlimited amounts
44
29/01/2021 14:39:59 240 8
bbc
It's about time the vultures got a taste of their own medicine. Short selling only contributes to the problems of the world and I'm happy that normal people have found a way to fight back.
516
29/01/2021 17:06:12 11 46
bbc
Short selling is not the issue. As this actually proves the point.
18
x75
29/01/2021 14:35:49 9 2
bbc
Its just another symptom of the culture we live in today. I certainly dont see why the little guys should not have as much freedom to make money as the big hedge funds, but ultimately this is just gambling. The big hedge funds may get bailed out by governments, but small risk taking gamblers will not.

The bigger risk is that this type of activity will break the financial markets......
45
29/01/2021 14:40:21 1 2
bbc
Also hedge funds don’t get bailed out either.
215
29/01/2021 15:26:44 2 0
bbc
If they post losses they simply wrote it down against future tax earnings.

It’s as good as.
29
29/01/2021 14:37:54 185 34
bbc
The BBC sides with the money trying to scare people off. The big players got scared and are now pressing the media to shut down the common man. Shorting is a morally bankrupt, quick and easy way for big money to make more money and they got caught with their pants down and are panicking.
46
29/01/2021 14:40:27 74 30
bbc
BBC sides with the money? Where? Please point us to the relevant paragraph.

Ah, you only have read the headline...
318
29/01/2021 15:57:53 8 0
bbc
To be fair and I admit I'm a thicko when it comes to this trading thing, but from what I understand it a balanced piece. It also warns people that want to join this craze that you can also lose from this craze aswell. I personally don't think there is enough warnings in this for people thinking about joining though if I'm honest
389
29/01/2021 16:19:11 3 3
bbc
Licence fee.
47
29/01/2021 14:40:37 10 0
bbc
I remember that they tried to do this VW. VW became smart and bought all the shares and did not release them. Hedge managers brought lawsuit against VW. I do not know the outcome.
80
29/01/2021 14:51:59 6 0
bbc
Herbie went Banana's
164
29/01/2021 15:12:27 3 0
bbc
VAG (VW Group) and Porsche created an alliance whereby they now own significant portions of each other's stock. It makes one or other less likely to be prone to market behaviours. German companies wouldn't be protectionist now would they?
48
x75
29/01/2021 14:40:37 46 2
bbc
Irrespective of how you feel about whats going on, you can rest assured in several Hedge Fund boardrooms this week the cry has been......

"The Barbarians are at the Gate"
49
29/01/2021 14:40:54 141 1
bbc
The peasants revolt. Great stuff, well done.
78
29/01/2021 14:51:29 57 2
bbc
Short traders are revolting.

Fixed it for you :)
713
GDW
29/01/2021 19:47:28 1 6
bbc
Except the fund manager just losses his bonus, your pension and savings are in these funds, they make losses your pension takes the hit, they make profits they cream off their bonus and the rest goes into your pension funds.
50
29/01/2021 14:41:00 545 7
bbc
It's like playing cards with an 8 year old.

They explain the rules to you how to play but as soon as you start winning the game they start changing the rules.
77
29/01/2021 14:50:54 103 2
bbc
:) very good
166
29/01/2021 15:13:53 10 0
bbc
lol good analogy
357
29/01/2021 16:11:08 10 0
bbc
But of course they do. Hedge funds want us to give them our money for them to 'invest'. The LAST thing they want is for us to invest and manage that ourselves directly. There's no money in it for them!
418
29/01/2021 16:27:20 3 2
bbc
If people think buying 2nd hand overpriced shares is a great investment, they're likely in for a huge disappointment. Pushing up the price of the shares doesn't make the underlying company any more investable.
577
29/01/2021 17:33:06 5 0
bbc
Anyone for a game of 'Cups' ?
598
29/01/2021 17:52:50 5 0
bbc
Very well put.
8
29/01/2021 14:33:01 222 3
bbc
Just goes to show the "free market" is not so free after all.
51
29/01/2021 14:41:06 20 0
bbc
It's a free market for the ordinary guy, socialism for the rich.
241
29/01/2021 15:35:24 8 0
bbc
"For the ordinary guy" It's never worked for the ordinary guy though as most ordinary guys don't have any money to invest. Or at least not till this internet age!
254
29/01/2021 15:38:30 3 3
bbc
You should go back to secondary school to learn about socialism again. Wait, western countries demonized socilism, ok that's fine.
18
x75
29/01/2021 14:35:49 9 2
bbc
Its just another symptom of the culture we live in today. I certainly dont see why the little guys should not have as much freedom to make money as the big hedge funds, but ultimately this is just gambling. The big hedge funds may get bailed out by governments, but small risk taking gamblers will not.

The bigger risk is that this type of activity will break the financial markets......
52
29/01/2021 14:41:44 2 2
bbc
they clearly need breaking as they have not worked for the uk its people or even business only bankers and their unlimited greed
13
29/01/2021 14:34:33 331 7
bbc
Even if the hedge fund loses it will be somebody else's money.
Just a smaller bonus for the managers.
53
29/01/2021 14:41:46 14 1
bbc
Are you sure they get bonuses for losses?
192
29/01/2021 15:20:01 67 1
bbc
2007, 2008 & 2009 most got bonuses even as the markets collapsed - mainly because of Banks' & Brokers' reckless greed.

Look what Fred Goodwin the boss of RBS got......... A £16 million 'golden goodbye' pension after being ejected for wrecking the company.

Do you really think they're going to break with tradition?
257
29/01/2021 15:38:40 11 0
bbc
You’d be amazed.
723
Jas
29/01/2021 19:57:38 0 0
bbc
“Trading Places” - the house gets paid based on trades, more trades, bigger bonus!
725
29/01/2021 19:58:35 1 0
bbc
"Heads I win, tails you lose" - that's the casino that is Wall Street with your pension...
891
Ed
29/01/2021 22:34:46 0 0
bbc
with leather?
54
29/01/2021 14:42:39 39 4
bbc
This kind of action will change the world more than all the climate conferences, aid promises , terrorism of all sorts, this could really be a game changer
76
29/01/2021 14:50:38 9 1
bbc
and so it begins..............
55
29/01/2021 14:42:51 196 4
bbc
Alternative headline:
"Hedge funds got schooled at their own game and they don't like it, so they go crying unfair to mummy."
963
29/01/2021 23:37:26 7 0
bbc
They failed to hedge ...
56
29/01/2021 14:43:13 6 16
bbc
Why is the BBC sucking off the dangly bits of all the Hedge Fund Holders and Wall Street. Is it because they want the licence to end, because everybody else does. Liars.
2
29/01/2021 14:30:00 393 11
bbc
I do hope this kills short trading overnight.
57
29/01/2021 14:43:35 187 4
bbc
Maybe not quite overnight but there's no doubting the game's up.

No pun intended.
752
29/01/2021 20:19:00 3 0
bbc
I wish I shared your confidence. I think it more likely that within six months we'll see legislation passed to make it harder for the little guys to repeat this and thus lock in the advantage of the big investors, courtesy of those big political donations Wall Street makes to both political parties.
33
VEE
29/01/2021 14:36:56 21 2
bbc
The markets are totally rigged for institutional investors now. Hence the blatent decision of the government to bail out the banks but only make their shares when they returned to profit available to institutional investors.
58
29/01/2021 14:43:42 22 2
bbc
Yes scandalous that Lloyds shares weren’t open to private investors when they were offered to the market. After all it was the private investor, aka the taxpayer who kept them afloat!
615
29/01/2021 18:06:41 1 0
bbc
Same with oil when it was at $0 per barrel
7
29/01/2021 14:32:57 348 4
bbc
Ordinary people 1, hedge funds 0

This whole episode has been hilarious.

Pass the popcorn.
59
NM
29/01/2021 14:43:57 60 156
bbc
The thing is, a lot of hedge funds are made up of the ordinary people's pensions.
70
29/01/2021 14:48:55 57 9
bbc
NO - ordinary people do not have stakes in hedge funds. Rich people do. This is a genuine feel good story so far.

The danger is this GME firm is almost certainly worthless and some of the reddit crowd piling in will get burnt .... just like those who were late to the game for dutch tulips
79
29/01/2021 14:51:55 45 1
bbc
The Stock market as a whole, yes. Short selling as we're seeing here is something different. You're pretty much safe to sit back and smile away at this one. It doesn't happen often so enjoy it
86
29/01/2021 14:54:17 62 4
bbc
If your pension is brokered on hedge funds, you need to find a different pension. Even if it were true, shorting a company that was already on it's knees, to 130% of available shares, was stupidly risky. Don't blame the players, blame the game.
103
xlr
29/01/2021 14:59:03 21 6
bbc
Only if the ordinary people are daft enough to tick the "High Risk" box when they're filling in their pension. Or their employer did it for them.
159
29/01/2021 15:10:47 21 1
bbc
Only if Pension Fund Managers are stupid.
286
29/01/2021 15:46:28 0 1
bbc
That is so but a good pesion fund has a broader porfolio than hedge funds.
382
29/01/2021 16:17:25 4 0
bbc
No they aren't. Do your homework. Only the most sophisticated and risk friendly investors can invest in hedge funds.
570
29/01/2021 17:29:30 4 0
bbc
Then remove your money and remove their power, they are parasitic market manipulators, so much for neoliberal free market capitalism. This is a redistribution of wealth that has been a long time coming, which will do more for the ordinary people than a few hedge funds making buck.
575
29/01/2021 17:34:01 1 0
bbc
The big Myth .SOME pensions do have a small stakes in hedge funds, most don't,if pensions have any connection to stocks,then it's in gov guilts or A1 blue chip firms with a proven long term record,ones that actualy make things that folk need,not over-hyped,over-priced short term frauds like Tesla, now there's a share that realy needs shorting by everyone,funny, musk agreeing with yank politicos.
604
29/01/2021 17:57:21 1 2
bbc
Yep seems this episode has proved how little people understand. What happens when this trade unwinds?
662
29/01/2021 18:53:52 0 0
bbc
I choose pension funds which invest directly in shares
726
29/01/2021 19:59:34 1 0
bbc
The regulators should stop Short Selling. It is not investing it's gambling
773
29/01/2021 20:34:56 2 0
bbc
"The thing is, a lot of hedge funds are made up of the ordinary people's pensions."

The thing is, a lot of the companies being trashed by shorting are made up of the ordinary people's pensions.

FIFY
811
29/01/2021 20:57:38 1 0
bbc
Your wrong, no standard pension fund is going to touch the very iffy 2 and 20 crowd.
912
29/01/2021 22:43:25 1 0
bbc
Yes , but that doesn't make what hedge funds do moral. If criminal drug gangs had shares, no doubt pension funds would invest in them. Pension managers don't care about the morality of the companies that they invest in.
914
29/01/2021 22:44:32 0 0
bbc
fake news
929
29/01/2021 22:53:40 1 0
bbc
That’s what they would say in an effort to maintain the status quo heavily weighted in the Gordon Gecko’s favour. It’s like the “Capitalism provides jobs” mantra......yes....only when it’s convenient.
30/01/2021 08:27:33 0 0
bbc
It's not that straight forward. When hedge funds 'win' it means somebody else 'loses'. The losers will also include funds related to people's pensions. The hedge funds are not charities. They are in business to maximise the profits of the hedge funds.
60
29/01/2021 14:44:14 15 3
bbc
At Least the real Robin Hood.....wore a mask!!
28
29/01/2021 14:37:45 789 11
bbc
Let’s be clear: this is hedge funds profiting off the backs of companies struggling through the coronavirus pandemic.

Good on the amateur investors for exposing these practices and I hope it hurts.
61
29/01/2021 14:45:09 206 3
bbc
Hear hear, keep it up amateur investors, but don’t turn gamekeeper!!
554
29/01/2021 17:24:44 3 1
bbc
They are absolutely just aiming to fleece everyone - trigger a short squeeze, ride it, then sell out to someone who gets left with the baby - and it won't be most of the hedge funds in the end, will it, it will be clueless amatuers lured in by the claims of easy money, who will then be put off the stock market for years when they lose it all as gravity returns.
62
29/01/2021 14:46:44 51 3
bbc
This has been coming since 2008 and the financial crash. Nobody has any sympathy or desire to protect these billionaire trading parasites apart from the government system which has become so closely tied to money markets that they are partners in crime. I would say let them all burn, but you know it wont be the billionaires who suffer.
63
29/01/2021 14:45:30 13 9
bbc
I get the appeal of 'sticking it to the man' with the comparison that the majority of these Gamestop 'investors' are paying the equivalent of a few quid to watch these hedge funds have rotten fruit thrown at them in the town square, but do these people not realise they are in turn eroding the very pension, government and public investments they will rely on who are investing in said hedge funds?
216
29/01/2021 15:27:17 0 0
bbc
Downvoters tell me why I am wrong? or just an uncomfortable truth?
220
29/01/2021 15:28:44 0 0
bbc
Do you have any breakdowns on who uses Hedge funds. My understanding is that majority are private companies. thanks to advise
64
29/01/2021 14:46:58 57 4
bbc
It's easy to see this as karma for the hedge funds (and I do hope Rees Mogg and other wealthy Tories are taking a hammering on theirs).

However, best NOT to get involved. The money has already been made by those who bought into GME at next to nothing. If you jump on the bandwagon at $200 today thinking this bubble will carry on inflating it is more likely than not to be a mistake
94
29/01/2021 14:56:12 18 1
bbc
Sound advice indeed! Well said. ????
98
29/01/2021 14:58:22 7 3
bbc
not necessarily .... if everyone who bought holds the line and buys in the dips they hedge funds will have to buy back to minimise their losses and the price will soar again
130
29/01/2021 15:05:06 10 0
bbc
But if you got 200 dollars you don’t mind losing, (or spend on entertainment to look at it another way), why not stick it to them?
144
29/01/2021 15:07:34 7 1
bbc
A big part of this is also for the lolz.

Rightly or wrongly, its not just about dollars on the balance sheet. Its more complex. Plenty are putting in small amounts to keep the prices high to try and ensure institutions they hold in contempt loose as well. Just to make a point.

No wonder establishment interest are scared.
151
29/01/2021 15:09:34 1 0
bbc
but if you brought in at a very low price hold your position you will never lose only see those bankers lose even more billions
298
29/01/2021 15:49:39 3 0
bbc
Catching a pump is nice, chasing a pump is usually dangerous.
894
29/01/2021 22:31:26 1 0
bbc
Not true, short positions are still open. "hedge funds" are trying to ride out the storm, if the pressure keeps up they will have to close, and the price will reach stupid levels.
982
30/01/2021 00:01:37 0 0
bbc
Agree, Ultimately GameStop is worth little, just that old saying now applies to hedge funds ‘ the market can be wrong longer than you can stay solvent’
65
AG
29/01/2021 14:47:15 200 6
bbc
Hedge funds shorting stocks fails the test which Lord Adair Turner set; that there has to be a moral purpose in what a business does. Good on the savvy private investors for putting a stick in the spokes. There is another solution. Put a tax % on the sale of any share held for less than say 6 months. Raise enough to pay down some of the covid borrowing and stop the worst of the shorting.
95
29/01/2021 14:56:43 120 4
bbc
Or a fraction of a penny on each trade. Oh how they wailed when this was suggested!

Like they pay enough tax as it is. Jokers have it set up so they “make” all their money elsewhere. If they were all wiped out tomorrow the rest of us would be vastly better off.
244
29/01/2021 15:35:41 2 10
bbc
I don't think the private investors are doing it for the good of the community, they are doing it because its a way of increasing their profit from share trading
514
29/01/2021 17:05:32 9 1
bbc
This is exactly what the EU proposed some years ago, in the wake of the banking crisis, and Britain used its veto to block the tax. With the argument that it would make the city of London un-competitive and share dealing would move to New York, Singapore etc.

Maybe the EU will have another go at this now?
592
29/01/2021 17:46:19 4 0
bbc
Quants buy and sell in fractions of a second
66
29/01/2021 14:48:19 2 1
bbc
I was wondering, can you short bank shares lol
89
29/01/2021 14:55:19 2 0
bbc
You used to be able to until the regulator deemed that this was immoral during the 2008 financial crisis. Anyone who short sells should be responsible for their positions. There have been many documented examples where financial institutions have attacked other financial institutions in the way retail investors are doing today. One rule for the banks...another for the people. Regulators ugh!
67
29/01/2021 14:48:25 14 0
bbc
Trading Places....
75
29/01/2021 14:50:13 8 0
bbc
Will you be helping me with me rucksack?
68
29/01/2021 14:48:40 213 5
bbc
No one has ever managed to explain to me what benefit Hedge Funds are to the world. They all seem to be a bunch of crooks ripping us all off.
87
29/01/2021 14:54:44 181 4
bbc
Nobody will ever manage to explain it to you because what you describe them as is precisely what they are.

Rapacious vultures who add precisely zero value to anything. They are to be despised, not lauded as some Machiavellian geniuses for making vast sums of money off the misery of others.
433
29/01/2021 16:32:25 8 0
bbc
The idea that you can put your money in a bigger pot that has more investments to spread the risk isn't bad.

It's the scams that some play to increase returns & avoid paying their fair share of tax .
529
29/01/2021 17:15:15 1 11
bbc
Learn a bit about international finance then you will understand their function. Foreign finance is leveraged through private equity companies like hedge funds. It forms a viable counter party for sovereign wealth funds and government PPPs. How do you think these big infrastructure projects are funded, HS2, Sizewell C etc etc.
707
GDW
29/01/2021 19:44:49 1 7
bbc
Do you have a private pension or savings? Your investment is in a fund or funds that's your savings they are using to finance these trades. Fund managers invest the cash from this fund into assets to try to make a profit. Some of this profit goes into your investment some is paid out in bonuses to the manager. If there is a loss, your investment takes the hit the manager just losses their bonus
905
29/01/2021 22:40:09 2 2
bbc
Risk is a necessary part of business. The stock market is a method of spreading necessary risk to make it acceptable. Greater risk demands greater potential returns to make the risk worth while. Hedge funds create extra, unnecessary, risk.
69
29/01/2021 14:48:53 35 1
bbc
Some Hedge Fund 'experts' won't be getting their big fat bonus this month :-)
59
NM
29/01/2021 14:43:57 60 156
bbc
The thing is, a lot of hedge funds are made up of the ordinary people's pensions.
70
29/01/2021 14:48:55 57 9
bbc
NO - ordinary people do not have stakes in hedge funds. Rich people do. This is a genuine feel good story so far.

The danger is this GME firm is almost certainly worthless and some of the reddit crowd piling in will get burnt .... just like those who were late to the game for dutch tulips
212
29/01/2021 15:25:02 7 1
bbc
Hah! I was just looking at MacKay's book!(https://en.wikipedia.org/wiki/Extraordinary_Popular_Delusions_and_the_Madness_of_Crowds)

Anyway, I hope that people piling in are just tossing spare money at it - at least it's more productive (in that a statement is being made, not for any actual profit) than handing it over to high street bookmakers.
699
29/01/2021 19:32:00 0 0
bbc
Millions of UK savers have exposure to hedge funds via savings products. They probably don’t realise, it will be a low percentage of total assets.
71
29/01/2021 14:49:46 20 1
bbc
Traders have joined the Reddit forums, means they are in meltdown.

Bless then, someone else wants to make money.
72
29/01/2021 14:47:08 3 2
bbc
It is about time the regulators also got involved in the same sort of scam with Bitcoin (something I would never buy anyway as they are the driver for crime).

The amount of "get rich quick" scam e-mails that are sent out trying to get people to buy into bitcoin in order to drive up the price, so the scammers can then sell theirs at a high price causing the price to crash.
73
29/01/2021 14:50:04 35 1
bbc
It gets worse for the hedge funds because they apparently have shorted more shares than actually exists (over 120%). So they have dug themselves into a hole. Either buy at a loss or keep paying to loan shares until they buy back at a price they are comfortable with.

Not an expert but this is my interpretation. I see some people trying to protect Gamestop and their employees rather than for profit
88
29/01/2021 14:55:13 17 0
bbc
140%. I read
101
29/01/2021 14:56:57 8 0
bbc
This is more about morals than money. Something the "experts" cannot understand.
106
29/01/2021 14:59:36 0 1
bbc
Hedgies have reportedly closed their position. Let's remember that the price GME is currently trading has nothing to do with the usual fundamentals.

A small number of Reddit users invested tens of thousands and then pumped the hype, and the culture to hold, all while they started to close too. The much lauded DFV has liquidated to the tune of millions while WSB shouted about diamond hands.
74
29/01/2021 14:50:08 16 2
bbc
can I buy shares in Blockbuster ?
If the Hedge Funds short physical film rental - I prefer VHS or LaserDisc - please somebody let me know..
The world is waking up to the Elite and Neo Liberalism is having its territory taken back by Govt. all across the planet ... Democracy has had enough of being made poorer for the benefit of unseen foreign Elites ... Well done Reddit ... Min wage £11.68 next.
67
29/01/2021 14:48:25 14 0
bbc
Trading Places....
75
29/01/2021 14:50:13 8 0
bbc
Will you be helping me with me rucksack?
54
29/01/2021 14:42:39 39 4
bbc
This kind of action will change the world more than all the climate conferences, aid promises , terrorism of all sorts, this could really be a game changer
76
29/01/2021 14:50:38 9 1
bbc
and so it begins..............
50
29/01/2021 14:41:00 545 7
bbc
It's like playing cards with an 8 year old.

They explain the rules to you how to play but as soon as you start winning the game they start changing the rules.
77
29/01/2021 14:50:54 103 2
bbc
:) very good
49
29/01/2021 14:40:54 141 1
bbc
The peasants revolt. Great stuff, well done.
78
29/01/2021 14:51:29 57 2
bbc
Short traders are revolting.

Fixed it for you :)
59
NM
29/01/2021 14:43:57 60 156
bbc
The thing is, a lot of hedge funds are made up of the ordinary people's pensions.
79
29/01/2021 14:51:55 45 1
bbc
The Stock market as a whole, yes. Short selling as we're seeing here is something different. You're pretty much safe to sit back and smile away at this one. It doesn't happen often so enjoy it
182
29/01/2021 15:18:10 2 8
bbc
So you have not noticed the impact on the wider markets then ?
417
29/01/2021 16:27:03 2 0
bbc
only game in town now the trump debacle is on pause
47
29/01/2021 14:40:37 10 0
bbc
I remember that they tried to do this VW. VW became smart and bought all the shares and did not release them. Hedge managers brought lawsuit against VW. I do not know the outcome.
80
29/01/2021 14:51:59 6 0
bbc
Herbie went Banana's
81
29/01/2021 14:52:02 39 2
bbc
You can't borrow a house, car or any other material item and sell that. Shares should be no different. And the practice of naked shorts still is rife despite it being illegal. Shorts deserve everything bit of pain coming to them.
381
Bob
29/01/2021 16:17:22 3 1
bbc
Naked is another matter, yes, but your analogy with cars etc isn't valid. If someone agrees that their car can be lent out on the basis that if you do sell it on you replace it like-for-like then there's no foul play there.

It is only lent with permission, that typically requires no active opt-in, but if you don't read the terms, that's on you.
5
29/01/2021 14:31:44 6 2
bbc
Someone is going to lose a lot of money...
82
29/01/2021 14:47:53 1 0
bbc
and a few people are going to make a lot of money by manipulating the market.
83
29/01/2021 14:53:17 14 2
bbc
Isn’t this how The Great Depression started?
84
29/01/2021 14:53:24 5 4
bbc
I bought some dogecoin yesterday evening at just over two cents, sold in the early hours for six cents. Tripled my money. all from a Reddit sub coordinating. easy money.
85
29/01/2021 14:53:28 10 1
bbc
It is time to start increasing base rates as clearly there is too much idle money sloshing around which is not going into investment at all. There is no gain for Main Street from this fiasco. It might even cause more store closures.

We need an economic strategy that puts money into the pockets of ordinary people as a reward for their good work, not the perpetuation of Mr Ponzi.
59
NM
29/01/2021 14:43:57 60 156
bbc
The thing is, a lot of hedge funds are made up of the ordinary people's pensions.
86
29/01/2021 14:54:17 62 4
bbc
If your pension is brokered on hedge funds, you need to find a different pension. Even if it were true, shorting a company that was already on it's knees, to 130% of available shares, was stupidly risky. Don't blame the players, blame the game.
134
NM
29/01/2021 15:05:34 10 18
bbc
I was merely pointing out that some pensions are run by hedge funds, so it's not as straightforward as one would like.

Shorting is, obviously, morally bankrupt.
68
29/01/2021 14:48:40 213 5
bbc
No one has ever managed to explain to me what benefit Hedge Funds are to the world. They all seem to be a bunch of crooks ripping us all off.
87
29/01/2021 14:54:44 181 4
bbc
Nobody will ever manage to explain it to you because what you describe them as is precisely what they are.

Rapacious vultures who add precisely zero value to anything. They are to be despised, not lauded as some Machiavellian geniuses for making vast sums of money off the misery of others.
213
29/01/2021 15:26:35 3 18
bbc
Actually they do add value, take the startup world for example. Lots of innovate, productive and positive startups are funded either directly or indirectly by hedgefunds, they create wealth and jobs and help accelerate progress.
230
29/01/2021 15:30:56 40 2
bbc
Can we all stop tarring vultures with the same brush as hedge funds.
Vultures perform an incredibly important role in the ecosystems in which they live. Hedge funds do not.
73
29/01/2021 14:50:04 35 1
bbc
It gets worse for the hedge funds because they apparently have shorted more shares than actually exists (over 120%). So they have dug themselves into a hole. Either buy at a loss or keep paying to loan shares until they buy back at a price they are comfortable with.

Not an expert but this is my interpretation. I see some people trying to protect Gamestop and their employees rather than for profit
88
29/01/2021 14:55:13 17 0
bbc
140%. I read
66
29/01/2021 14:48:19 2 1
bbc
I was wondering, can you short bank shares lol
89
29/01/2021 14:55:19 2 0
bbc
You used to be able to until the regulator deemed that this was immoral during the 2008 financial crisis. Anyone who short sells should be responsible for their positions. There have been many documented examples where financial institutions have attacked other financial institutions in the way retail investors are doing today. One rule for the banks...another for the people. Regulators ugh!
90
29/01/2021 14:55:20 7 2
bbc
Hedge funds are regulated (badly) where as individuals having a punt are not - I do not agree with "Shorting" anyway - Betting to see a company fail is not moral - bearing in mind there maybe pension funds investing on our behalf and no-one wants to see people lose money on pensions etc. The regulators should be setting a limit on what you can short, both in terms of "How Much & How Often"
105
29/01/2021 14:59:35 3 4
bbc
Nonsense. You're not shorting with aiming to see a company fail. Shorters are merely short-selling companies that are over-valued, in the same way that other investors buy companies that they perceive are under-valued.
294
29/01/2021 15:48:30 1 2
bbc
Share dealing has no impact on day-to-day company operations. Whether it is making a proft or a loss is not impacted at all by the share price. The share price reflects the balance of buyers vs sellers which in turn is related to the perceived future income stream of the company
91
29/01/2021 14:55:32 18 0
bbc
watch the film "the big short"
gambling with our economies is what they are doing
that's why we ended up with RBS
92
29/01/2021 14:55:40 3 15
bbc
The day traders are the problem, not the fact that someone is allowed to gamble on borrowed stock.
104
29/01/2021 14:59:08 1 0
bbc
Oh get in the sea you loser.
115
29/01/2021 15:01:09 4 0
bbc
Gamble stock they do not own?? That is worse than using a credit card to bet with - this is a moral argument between the people and the bankers.
93
29/01/2021 14:56:12 33 1
bbc
Seriously!? Go on any comments section of the FT or any of a million other websites for trading (adfn , LSE etc.). They all discuss what shares they are investing in and tell people what they should do. Crikey, maybe they should ban financial analysts from speaking on TV and recommending stocks.

Utterly ridiculous. Nothing new going on here, except the people doing it aren't wearing suits.
761
29/01/2021 20:28:52 3 0
bbc
Yes not a hedge fund but Hargreaves lansdowne kept on recommending N.Woodford funds to their clients to buy up to short time before they dropped 50% plus in value
64
29/01/2021 14:46:58 57 4
bbc
It's easy to see this as karma for the hedge funds (and I do hope Rees Mogg and other wealthy Tories are taking a hammering on theirs).

However, best NOT to get involved. The money has already been made by those who bought into GME at next to nothing. If you jump on the bandwagon at $200 today thinking this bubble will carry on inflating it is more likely than not to be a mistake
94
29/01/2021 14:56:12 18 1
bbc
Sound advice indeed! Well said. ????
65
AG
29/01/2021 14:47:15 200 6
bbc
Hedge funds shorting stocks fails the test which Lord Adair Turner set; that there has to be a moral purpose in what a business does. Good on the savvy private investors for putting a stick in the spokes. There is another solution. Put a tax % on the sale of any share held for less than say 6 months. Raise enough to pay down some of the covid borrowing and stop the worst of the shorting.
95
29/01/2021 14:56:43 120 4
bbc
Or a fraction of a penny on each trade. Oh how they wailed when this was suggested!

Like they pay enough tax as it is. Jokers have it set up so they “make” all their money elsewhere. If they were all wiped out tomorrow the rest of us would be vastly better off.
239
29/01/2021 15:34:59 4 4
bbc
Whilst not defending the practice there is already stamp duty and capital gains tax liable for all share trading in the UK
96
29/01/2021 14:57:17 2 3
bbc
The dangers of social media and everyone having a voice:

£350m a week for the NHS and everyone is an expert on international trade and migration

Daily briefings and Wash, Protect, Save COVID-19 slogans and everyone is an expert on epidemiology

A few reddit posts about hedge funds being short of GME and everyone is a gun stock market trader

Be careful people ....
97
jay
29/01/2021 14:58:02 14 0
bbc
and now reddit shut down hmmm this stinks to high heaven
64
29/01/2021 14:46:58 57 4
bbc
It's easy to see this as karma for the hedge funds (and I do hope Rees Mogg and other wealthy Tories are taking a hammering on theirs).

However, best NOT to get involved. The money has already been made by those who bought into GME at next to nothing. If you jump on the bandwagon at $200 today thinking this bubble will carry on inflating it is more likely than not to be a mistake
98
29/01/2021 14:58:22 7 3
bbc
not necessarily .... if everyone who bought holds the line and buys in the dips they hedge funds will have to buy back to minimise their losses and the price will soar again
133
29/01/2021 15:05:33 2 1
bbc
Afraid not. Just imagine if the CEO announces that GME is looking to raise new capital ....
142
29/01/2021 15:07:26 0 0
bbc
Yeah but people are people and like the rat in the maze ALWAYS go for the quick reward. It’s a house of cards and will all come tumbling down. Again!
99
29/01/2021 14:58:29 24 1
bbc
It speaks volumes that the FCA is issuing warnings to small investors, rather than cracking down on Short Selling, which is blatant unfettered capitalism. Hedge Funds should be required to own shares for certain length of time before they can trade them.

These shares are attached to companies, which in turn means people's jobs and livelihoods. Short Selling is not a victimless activity.
412
Bob
29/01/2021 16:24:31 2 3
bbc
No. It says everything about the nous of the people that people can't understand why they've said what they've said.
100
29/01/2021 14:58:43 14 0
bbc
Hedge funds and venture (vulture) capitalists have been screwing the man in the street for years by short selling stock. This is particularly the case when the ordinary persons pension funds are heavily invested in those same stocks. Result is the hedgers get rich whilst everyone else gets poorer. Nice to see the day traders are giving the hedgers a taste of their own medicine. Long may it last.