The Waypoint Radio crew has been watching in awe as a short squeeze on GameStop stock breaks historic records. Cado and Patrick are having fun being scared by a Giant Vampire Woman in the new Resident Evil VIII demo. Rob's dealing with a broken government, and also he's playing Suzerain. Austin's finding the zen in repetition with Loop Hero.
There’s definitely no winners here. There will either be new legislation to offer bailouts to bankrupt hedge funds, or these shithead redditors will be so flush with cash that they start their own. Actually, both of those things are probably gonna happen.
The number of different ways people are trying to explain how this worked to laypeople (like me) only makes it increasingly clear how much all of this is just fancy gambling. Also Automated High Frequency Trading may be the new most cyberpunk think in existence for me.
Anyone who tries to tell you that day trading isn’t gambling is absolutely trying to sell you something. It’s really no different than sports betting, but because it’s done by guys in suits it has a veneer of respectability. If anyone is thinking about putting their money into stuff like this, they should be asking if they’re comfortable putting that money on who wins the Super Bowl.
And hey, I’m happy for some redditors, douchy as they may be, for fully funding their early retirement in a span of a week. But it’s the same feeling I get from seeing someone win the lottery. Good on them for getting out of the rat race, but it’s not exactly a replicable strategy.
And, just for clarification, this has literally zero effect on Gamestop’s day to day operation, correct? I’m sorry, I know that part’s been discussed already, but I’m still not quite understanding how having a high stock price is supposed to translate to a healthy business, is this where having shares comes in?
Based on my curious reading about GME, if this was real they could issue new shares at the new price and they’d get the money from the new shares if they are purchased. This can change who has control of the company, so it’s a risky move that way unless you’re willing to buy some of the new stock yourself.
OTOH, if this war of main street vs wall street over GME has enough people dug in over it, that new stock might just get bought, and GME would get more money now (at the cost of there being more shares of GME out there, diluting the price once the memewar dies).
Me trying to be smart but only having internet poisoning and a limited palette of movies and texts to refer to: ah, I see we’re progressing from the The Dark Knight to the Dark Knight Rises. From the Joker to Bane, if you will