Reddit v Hedgefunds

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bimboman
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Re: Reddit v Hedgefunds

Post by bimboman »

Edit , and apology to Jeff,

It appears on catch up that it wasn’t just Robin Hood, it was E trade and Interactive at least as well.

No banning the act of buying a listed share is a disgrace and the companies have to face this issue.

Seen the interview with interactive chairman. He was open. What they’re admitting is the short funds interests are theirs.

Don’t know how this plays out at all.
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Pat the Ex Mat
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Re: Reddit v Hedgefunds

Post by Pat the Ex Mat »

I think Cruz is looking for a hit of "Popularity" - he's in a world of hurt presently :lol:
Yer Man
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Re: Reddit v Hedgefunds

Post by Yer Man »

Pat the Ex Mat wrote: Fri Jan 29, 2021 1:34 am I think Cruz is looking for a hit of "Popularity" - he's in a world of hurt presently :lol:
Ted Cruz probably thinks a Short Seller works in a clothing store
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massive_field_goal
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Re: Reddit v Hedgefunds

Post by massive_field_goal »

Something that I haven't seen touched on is that Robinhood charges no commission on trades, but sells their order books and trade info on to hedgefunds, many of whom may be counterparties to the hoard of Robinhood buyers. This would create a real conflict of interest in the saga that hasn't come to light yet.
Mick Mannock
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Re: Reddit v Hedgefunds

Post by Mick Mannock »

All Trump's fault for suggesting that ordinary people should not know their place

https://edition.cnn.com/2021/01/27/poli ... index.html
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Zakar
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Re: Reddit v Hedgefunds

Post by Zakar »

Mick Mannock wrote: Fri Jan 29, 2021 9:18 am All Trump's fault for suggesting that ordinary people should not know their place

https://edition.cnn.com/2021/01/27/poli ... index.html
Can you avoid talking trump for 10 minutes? You're obsessed.
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eldanielfire
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Re: Reddit v Hedgefunds

Post by eldanielfire »

Heymans wrote: Thu Jan 28, 2021 8:50 pm
Jim Lahey wrote: Thu Jan 28, 2021 7:03 pm
flaggETERNAL wrote: Thu Jan 28, 2021 6:49 pm Robinhood restricting trades now on GME and AMC.
I can understand why they did it but the PR of it for those brokers and the financial industry in general will be brutal. Although they are probably used to it at this stage and don’t give a f**k because they are loaded.
Because the whole finance thing is a scam disguised under impenetrable jargon and more obfuscations than the election of a Venetian Doge?
Its funny when the chips are down the bare naked greed and plum comes clean and they just ban selling outright. Goes to show that the real thing is politics. As soon as rich people start loosing money the rules change. Absolute scam.
This!
Mick Mannock
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Re: Reddit v Hedgefunds

Post by Mick Mannock »

Zakar wrote: Fri Jan 29, 2021 9:19 am
Mick Mannock wrote: Fri Jan 29, 2021 9:18 am All Trump's fault for suggesting that ordinary people should not know their place

https://edition.cnn.com/2021/01/27/poli ... index.html
Can you avoid talking trump for 10 minutes? You're obsessed.
I am talking CNN.

Theirs is the obsession.
bimboman
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Re: Reddit v Hedgefunds

Post by bimboman »

Watching the financial and MSM row in behind the system either by omission or outright briefing has been the eye opener for many people. They’re bought and paid for.
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Wendigo7
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Re: Reddit v Hedgefunds

Post by Wendigo7 »

bimboman wrote: Fri Jan 29, 2021 9:52 am Watching the financial and MSM row in behind the system either by omission or outright briefing has been the eye opener for many people. They’re bought and paid for.
Yes they really are. CNBC wtf

Far as I'm concerned the redditors were fantastic. Sure, it's interesting on the law but screw them for blocking people selling and manually selling their shares.

It might break T&Cs but you can't tell me that overrides the legal framework of using the stock market. A company's T&C doesn't override the law. Feck Robinhood.

You've also got people like me who didn't invest seriously considering investing in the stock market going forward. I've got nothing to lose as do millions of people.
bimboman
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Re: Reddit v Hedgefunds

Post by bimboman »

Wendigo7 wrote: Fri Jan 29, 2021 10:01 am
bimboman wrote: Fri Jan 29, 2021 9:52 am Watching the financial and MSM row in behind the system either by omission or outright briefing has been the eye opener for many people. They’re bought and paid for.
Yes they really are. CNBC wtf

Far as I'm concerned the redditors were fantastic. Sure, it's interesting on the law but screw them for blocking people selling and manually selling their shares.

It might TCs but you can't tell me that overrides the legal framework of using the stock market. A company's TC don't override the law. Feck Robinhood.

You've also got people like me who didn't invest seriously considering investing in the stock market going forward. I've got nothing to lose as do millions of people.


I’m a believer of the T&C’s , however the banning of buy orders only is something I can’t imagine is legal or justified, they’re not a Market maker but a public price and size is a public price.
de_Selby
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Re: Reddit v Hedgefunds

Post by de_Selby »

I don't think it's necessarily a big sinister move by the companies, most of these reddit guys have never traded before and are probably just entering market orders, and potentially with what is a huge sum of money for them. If the liquidity is that low you could have people getting limit sells at huge prices filled against them. Apparently one guy got a fill at $2800 yesterday.
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BokJock
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Re: Reddit v Hedgefunds

Post by BokJock »

Colbert had a good take: "If the hedgeffund guys are worried about their losses they can always just wait for the Redditors profits to trickle down to them"
Homer
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Re: Reddit v Hedgefunds

Post by Homer »

For all those that think RobinHood (which many of the redditors use) freezing trading was driven by pressure from a hedge fund, the reality is a bit more complex:

https://twitter.com/KralcTrebor/status/ ... 6165225478
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flaggETERNAL
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Re: Reddit v Hedgefunds

Post by flaggETERNAL »

Homer wrote: Fri Jan 29, 2021 11:52 am For all those that think RobinHood (which many of the redditors use) freezing trading was driven by pressure from a hedge fund, the reality is a bit more complex:

https://twitter.com/KralcTrebor/status/ ... 6165225478
Care to do a tl;dr on that?
Heymans
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Re: Reddit v Hedgefunds

Post by Heymans »

flaggETERNAL wrote: Fri Jan 29, 2021 12:16 pm
Homer wrote: Fri Jan 29, 2021 11:52 am For all those that think RobinHood (which many of the redditors use) freezing trading was driven by pressure from a hedge fund, the reality is a bit more complex:

https://twitter.com/KralcTrebor/status/ ... 6165225478
Care to do a tl;dr on that?
Let me have a try: this is not what it looks like. If it looks like poor people getting f**ked raw in the ass by rich people, this is because you don't understand, and you must be a communist. Actually, what happened wa that they had to do it. For...reasons. But its totally not naked greed. totally not. There are equations and sciency-looking phrases and graph that I could use to show you, but suffice to say that if they didn't do it, well, who can say what wouls have happened? Communism? Surely you don't want that, do you. You're a true blue america, right?
Homer
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Re: Reddit v Hedgefunds

Post by Homer »

flaggETERNAL wrote: Fri Jan 29, 2021 12:16 pm
Homer wrote: Fri Jan 29, 2021 11:52 am For all those that think RobinHood (which many of the redditors use) freezing trading was driven by pressure from a hedge fund, the reality is a bit more complex:

https://twitter.com/KralcTrebor/status/ ... 6165225478
Care to do a tl;dr on that?
When the retails investors (Redditors) piled in, the Gamestop stock went crazy and other stocks with high short interest also went up. Huge numbers of retail investors began to buy those stocks on margin, resulting in the online brokers having regulatory/clearinghouse capital issues.
The broker (Robinhood in this case) began to restrict trading in the those volatile stocks per their customer agreements, so as to not violate their regulatory capital limits.

Basically Wall Street regulation forced them to shutdown trading....
bimboman
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Re: Reddit v Hedgefunds

Post by bimboman »

Homer wrote: Fri Jan 29, 2021 12:56 pm
flaggETERNAL wrote: Fri Jan 29, 2021 12:16 pm
Homer wrote: Fri Jan 29, 2021 11:52 am For all those that think RobinHood (which many of the redditors use) freezing trading was driven by pressure from a hedge fund, the reality is a bit more complex:

https://twitter.com/KralcTrebor/status/ ... 6165225478
Care to do a tl;dr on that?
When the retails investors (Redditors) piled in, the Gamestop stock went crazy and other stocks with high short interest also went up. Huge numbers of retail investors began to buy those stocks on margin, resulting in the online brokers having regulatory/clearinghouse capital issues.
The broker (Robinhood in this case) began to restrict trading in the those volatile stocks per their customer agreements, so as to not violate their regulatory capital limits.

Basically Wall Street regulation forced them to shutdown trading....
Agree re the margin stuff, though there’s lots of reports of 100% capitalised purchases being refused as well and closing out of positions margined to their agreements.
de_Selby
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Re: Reddit v Hedgefunds

Post by de_Selby »

Homer wrote: Fri Jan 29, 2021 12:56 pm
flaggETERNAL wrote: Fri Jan 29, 2021 12:16 pm
Homer wrote: Fri Jan 29, 2021 11:52 am For all those that think RobinHood (which many of the redditors use) freezing trading was driven by pressure from a hedge fund, the reality is a bit more complex:

https://twitter.com/KralcTrebor/status/ ... 6165225478
Care to do a tl;dr on that?
When the retails investors (Redditors) piled in, the Gamestop stock went crazy and other stocks with high short interest also went up. Huge numbers of retail investors began to buy those stocks on margin, resulting in the online brokers having regulatory/clearinghouse capital issues.
The broker (Robinhood in this case) began to restrict trading in the those volatile stocks per their customer agreements, so as to not violate their regulatory capital limits.

Basically Wall Street regulation forced them to shutdown trading....
The regulation was there for a reason though, tl;dr of the thread is that Robinhood could be left holding some of the bill if the stock price collapses and someone on the other end of the trade goes under. The trades aren't actually cleared by Robinhood so they have a risk until that happens.
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CrazyIslander
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Re: Reddit v Hedgefunds

Post by CrazyIslander »

At some point this will all come crashing down right?
Homer
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Re: Reddit v Hedgefunds

Post by Homer »

de_Selby wrote: Fri Jan 29, 2021 1:24 pm
Homer wrote: Fri Jan 29, 2021 12:56 pm
flaggETERNAL wrote: Fri Jan 29, 2021 12:16 pm
Homer wrote: Fri Jan 29, 2021 11:52 am For all those that think RobinHood (which many of the redditors use) freezing trading was driven by pressure from a hedge fund, the reality is a bit more complex:

https://twitter.com/KralcTrebor/status/ ... 6165225478
Care to do a tl;dr on that?
When the retails investors (Redditors) piled in, the Gamestop stock went crazy and other stocks with high short interest also went up. Huge numbers of retail investors began to buy those stocks on margin, resulting in the online brokers having regulatory/clearinghouse capital issues.
The broker (Robinhood in this case) began to restrict trading in the those volatile stocks per their customer agreements, so as to not violate their regulatory capital limits.

Basically Wall Street regulation forced them to shutdown trading....
The regulation was there for a reason though, tl;dr of the thread is that Robinhood could be left holding some of the bill if the stock price collapses and someone on the other end of the trade goes under. The trades aren't actually cleared by Robinhood so they have a risk until that happens.
Yep - was why Robinhood had to draw down on some lines of credit.
Flyin Ryan
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Re: Reddit v Hedgefunds

Post by Flyin Ryan »

I'm reminded of the phrase "the market can be irrational longer than you can remain solvent".
Heymans
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Re: Reddit v Hedgefunds

Post by Heymans »

Homer wrote: Fri Jan 29, 2021 12:56 pm
flaggETERNAL wrote: Fri Jan 29, 2021 12:16 pm
Homer wrote: Fri Jan 29, 2021 11:52 am For all those that think RobinHood (which many of the redditors use) freezing trading was driven by pressure from a hedge fund, the reality is a bit more complex:

https://twitter.com/KralcTrebor/status/ ... 6165225478
Care to do a tl;dr on that?
When the retails investors (Redditors) piled in, the Gamestop stock went crazy and other stocks with high short interest also went up. Huge numbers of retail investors began to buy those stocks on margin, resulting in the online brokers having regulatory/clearinghouse capital issues.
The broker (Robinhood in this case) began to restrict trading in the those volatile stocks per their customer agreements, so as to not violate their regulatory capital limits.

Basically Wall Street regulation forced them to shutdown trading....
Regulations...of course...How convenient though. Probably nothing to do with collusion, or the fact that all the CEOs of these companies know each other etc. has to be the regulations, who forced them to ban retail investors, but not huge companies.
Of course.
I don't think you believe that ypourself, are you expecting us to swallow that?
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eldanielfire
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Re: Reddit v Hedgefunds

Post by eldanielfire »

A thread pointing out the stuff on the origins of it that the media isn't telling, or doesn't know enough about how this started on Reddit:

https://twitter.com/endtwist/status/1354547622133051393
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paddyor
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Re: Reddit v Hedgefunds

Post by paddyor »

Wendigo7 wrote: Fri Jan 29, 2021 10:01 am
bimboman wrote: Fri Jan 29, 2021 9:52 am Watching the financial and MSM row in behind the system either by omission or outright briefing has been the eye opener for many people. They’re bought and paid for.
Yes they really are. CNBC wtf

Far as I'm concerned the redditors were fantastic. Sure, it's interesting on the law but screw them for blocking people selling and manually selling their shares.

It might break T&Cs but you can't tell me that overrides the legal framework of using the stock market. A company's T&C doesn't override the law. Feck Robinhood.

You've also got people like me who didn't invest seriously considering investing in the stock market going forward. I've got nothing to lose as do millions of people.
Not really though

https://twitter.com/aaronhuertas/status ... 05281?s=20

Image
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paddyor
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Re: Reddit v Hedgefunds

Post by paddyor »

Flyin Ryan wrote: Fri Jan 29, 2021 3:07 pm I'm reminded of the phrase "the market can be irrational longer than you can remain solvent".
NOt how the kids are saying it these days

Image
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Leinster in London
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Re: Reddit v Hedgefunds

Post by Leinster in London »

bimboman wrote: Fri Jan 29, 2021 1:14 am Edit , and apology to Jeff,

It appears on catch up that it wasn’t just Robin Hood, it was E trade and Interactive at least as well.

No banning the act of buying a listed share is a disgrace and the companies have to face this issue.

Seen the interview with interactive chairman. He was open. What they’re admitting is the short funds interests are theirs.

Don’t know how this plays out at all.

If theses companies are listed, it is time to sell their shares, sell again, again, and again.
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Rowdy
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Re: Reddit v Hedgefunds

Post by Rowdy »

One of the things I love about this story is that it exposes how society is really rich and the rest, not left and right.

Ted Cruz, Bernie, Omar etc all agreeing on this is actually fairly awesome.

If only Cruz hadn't deliberately tried to kill Alex from Queens a few weeks ago.
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Cartman
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Re: Reddit v Hedgefunds

Post by Cartman »

Its affecting the rest of the market too with huge intra day swings. Yesterday's swings from pre-market to AH was ridiculous, or was it the day before. Shorted the Nasdaq futures at 13, 597 AH anyway after a ridiculous spike AH. First time in years i kept something overnight.
Briefing is saying the sell offs and resulting volatility are caused by funds selling their longs to cover short squeezed losses. Can't be the only reason for the volatility. I imagine the shorts are trying to trade themselves out of this hole by running up the price intraday and then shorting it.
In the end the little guys will lose I'm sure, most of them anyway
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shanky
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Re: Reddit v Hedgefunds

Post by shanky »

Turns out this wasn’t started by Wall Street insiders, but by Keith Gill, suburban dad from Massachusetts

https://www.dailymail.co.uk/news/articl ... osses.html

Has anyone seen fonzee around recently?
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flaggETERNAL
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Re: Reddit v Hedgefunds

Post by flaggETERNAL »

I think some retail investors will get burnt. But the whole point of this for a lot of the guys on wsb seems to be the chance to stick it to the hedge funds. It's amazing how despised Wall Street is.
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DOB
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Re: Reddit v Hedgefunds

Post by DOB »

flaggETERNAL wrote: Sat Jan 30, 2021 3:37 am I think some retail investors will get burnt. But the whole point of this for a lot of the guys on wsb seems to be the chance to stick it to the hedge funds. It's amazing how despised Wall Street is.
It’s not all that amazing, really.
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paddyor
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Re: Reddit v Hedgefunds

Post by paddyor »

flaggETERNAL wrote: Sat Jan 30, 2021 3:37 am I think some retail investors will get burnt. But the whole point of this for a lot of the guys on wsb seems to be the chance to stick it to the hedge funds. It's amazing how despised Wall Street is.
Not about WSBs and hasn't been for most of the week though

https://twitter.com/modestproposal1/sta ... 17381?s=20
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flaggETERNAL
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Re: Reddit v Hedgefunds

Post by flaggETERNAL »

DOB wrote: Sat Jan 30, 2021 4:16 am
flaggETERNAL wrote: Sat Jan 30, 2021 3:37 am I think some retail investors will get burnt. But the whole point of this for a lot of the guys on wsb seems to be the chance to stick it to the hedge funds. It's amazing how despised Wall Street is.
It’s not all that amazing, really.
I would have thought Wall Street was the ultimate Ameeican cowboy gambler dream. The purest expression of capitalism.
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flaggETERNAL
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Re: Reddit v Hedgefunds

Post by flaggETERNAL »

paddyor wrote: Sat Jan 30, 2021 5:41 am
flaggETERNAL wrote: Sat Jan 30, 2021 3:37 am I think some retail investors will get burnt. But the whole point of this for a lot of the guys on wsb seems to be the chance to stick it to the hedge funds. It's amazing how despised Wall Street is.
Not about WSBs and hasn't been for most of the week though

https://twitter.com/modestproposal1/sta ... 17381?s=20
That's interesting but it's beside the point imo. What's important is that retail investors probably realise the power they have. Well, until the rules are changed to suit the big boys. :x :P
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Tehui
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Re: Reddit v Hedgefunds

Post by Tehui »

I don't understand the technicalities of what's taking place, but what I do understand is:

- the usual manipulators of the market are getting manipulated themselves, and
- the rich are demanding for increased regulation.

I can't wait for the movie to come out on Netflix in a few years.
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DOB
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Re: Reddit v Hedgefunds

Post by DOB »

flaggETERNAL wrote: Sat Jan 30, 2021 6:02 am
DOB wrote: Sat Jan 30, 2021 4:16 am
flaggETERNAL wrote: Sat Jan 30, 2021 3:37 am I think some retail investors will get burnt. But the whole point of this for a lot of the guys on wsb seems to be the chance to stick it to the hedge funds. It's amazing how despised Wall Street is.
It’s not all that amazing, really.
I would have thought Wall Street was the ultimate Ameeican cowboy gambler dream. The purest expression of capitalism.
Cowboys don’t tend to appreciate it when they get told that the bank is taking their farm on account of how somebody on Wall Street moved some money around and now the loan is in default.
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DOB
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Re: Reddit v Hedgefunds

Post by DOB »

An angle that I haven’t seen is the generational one; we’ve read/heard for a few years how Millenials are killing businesses that Boomers love; Buffalo Wild Wings, Harley Davidson, macro-beers etc. Here, finally, the Boomers had a chance to wipe out a business that millennials love and grew up with, hence the aggressive shorti. Then the Milennials resisted with an online, seat of the pants short squeeze, something the Boomers could never have done
Mick Mannock
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Re: Reddit v Hedgefunds

Post by Mick Mannock »

DOB wrote: Sat Jan 30, 2021 9:15 am An angle that I haven’t seen is the generational one; we’ve read/heard for a few years how Millenials are killing businesses that Boomers love; Buffalo Wild Wings, Harley Davidson, macro-beers etc. Here, finally, the Boomers had a chance to wipe out a business that millennials love and grew up with, hence the aggressive shorti. Then the Milennials resisted with an online, seat of the pants short squeeze, something the Boomers could never have done
Interesting, but a bit bonkers.
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Zakar
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Re: Reddit v Hedgefunds

Post by Zakar »

DOB wrote: Sat Jan 30, 2021 9:15 am An angle that I haven’t seen is the generational one; we’ve read/heard for a few years how Millenials are killing businesses that Boomers love; Buffalo Wild Wings, Harley Davidson, macro-beers etc. Here, finally, the Boomers had a chance to wipe out a business that millennials love and grew up with, hence the aggressive shorti. Then the Milennials resisted with an online, seat of the pants short squeeze, something the Boomers could never have done
There is a bit of that on wsb, but I expect it's constructing a narrative around the facts.

They're also big on blackberry...and no millennial or zoomer is particuarly fond of them.
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