It sounds like Frenkel is calling for a crackdown on discussing stock trading on social media. This is wild stuff. Watch the 8 min video.
"Is it time for the feds to step in on the GameStop surge? Former SEC lawyer Jacob Frenkel on the Reddit rebellion and the thorny questions around legality $GME" (8 min video)
He’s just mad that someone besides his Wall Street cronies have found a way to manipulate the market.
Yep, that’s how I trade. Someone yells “gamestonk” and I pull out my checkbook.
How are my frozen orange juice futures doing?
Gamers just wanted to play their games in peace.
Just because GME traded 178 MM shares today, while MSFT only traded 49 MM shs?
Who forced whom to buy or short GME?
https://www.zerohedge.com/markets/gamestop-explodes-higher-stock-now-trapped-200-call-gamma-vortex
They are also moving on AMC and BBBY. AMC doubled after hours.
Seems like Reddit Gamers/daytraders have discovered smaller cap stocks with minimal float and a lot of short interest (typically hedge funds).
Of course, as soon as Wall Street hedgies start to lose money, they run off to their Swamp regulatory cronies screaming “market manipulation”.
Melvin Capital hedge fund has multi billion dollar losses from GME just today. Citadel put 2.75 billion in yesterday, and it has aleady been lost. GME today opened at 70, closed at 140, and went to 210 after hours.
In some ways this is like pranksters and jesters storming the Capitol and taking. over. Reddit gamer auteurs wiping out hedge funds. gotta love it !
This is fascinating.
I never woulda foreseen it.
This is the most interesting thing going on over the internet right now and it’s beautiful. The Reddit people have some terribly “triggering” slang, but their slogan is so refreshing of a rebellion against a corrupt system that I think it’s worth repeating:
“We can stay retarded longer than they can stay solvent.”
If you needed hope that the effort of outsiders battling insiders was lost in the last election, here it is. A bunch of self-defined outcasts and joyriding anarchists banding together and causing havoc by gaming the system against what they see as a corrupt set of market makers who grew wealthy by gaming the system and ruining companies for years. It’s a form of cyberwarfare that we haven’t yet found the words to describe. Surely this form of warfare will end up outlawed within the year, but everyone who played will remember... and scheme for the next one.
” but Jacob Frenkel (Former SEC Lawyer) is in total panic.”
Screw him. He sounds like he’s trying to save the shorts and nothing more.
There’s nothing illegal that the wallstreetbets crew is doing. They aren’t lying about Gamestop or its finances. They are just using the power of the internet to generate a flashmob dedicated to busting a short fund. Welcome to the world of social media, shorty.
The difference, then, is that hedge funds collude in secret and Reddit colludes in the open?
Let’s see the emails and communications from the hedge funds...
So he is mad a bunch of ants decided to swarm the market and eat his friends.
Yep, they will be deplatformed. But does it matter?
Looks like a flash mob has decided to stick it to short sellers...
Best I can tell from this article
Gamestop still exists? There are limitations to what company officers can say in public when a company is publicly traded. Social media counts. Even non-officers can run into trouble talking a stock up for a dump.
It's not like they are getting companies to fix the price.
It's not like they are getting companies to sell their products below cost.
Getting a group together to buy the same stock at the same time is no different than getting everyone to flock to movie theaters on opening day for the newest Avengers movie. The company stock goes up just the same.
The problem is with the short sellers, not the long buyers. At least the buyers are trading cash for shares. The short sellers are selling shares they don't own on the bet that the price will fall and they can buy it back at a lower price. It's "buy low, sell high" in reverse order.
Now the shorters are forced to buy the appreciated shares that the gamers legitimately own to stop their own losses.
What kinds of regulations can be put in place? Would it be limits on how much can be shorted by one entity? Would it be limits on the total shares shorted that can't exceed total shares outstanding, or a percentage of that?
Because I don't think limiting the amount of shares one can own is constitutional. It would be an infringement on the freedom of association and free commerce to block the actual purchase of private property, but not the speculation on someone else's private property.
-PJ
Somebody is watching the action of specific hedge funds.
Why was Gamestop picked for the shortsell?