tag:blogger.com,1999:blog-2761684730989137546.post2932258385135778302..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: Short covering threadmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2761684730989137546.post-82978703583437641942021-01-30T14:25:09.315-05:002021-01-30T14:25:09.315-05:00David P. Goldman (Asia Times) has a good write-up ...David P. Goldman (Asia Times) has a good write-up on this.<br /><br /><i><b> The great GameStop conspiracy<br />The numbers don't add up; there simply aren’t enough small players to pull off operations like this </b><br /><br />The great GameStop short squeeze involved the biggest market manipulation in stock market history. A handful of yet-to-be-identified operators used day traders’ social media sites like Reddit’s WallStreetBets as a screen for the mother of all short squeezes.<br /><br />By piling into heavily-shorted, small-capitalization zombie stocks with depressed prices and low trading volumes, the cabal pumped up their prices to the point that established long-short equity funds had to cover their shorts.<br /><br />By salting the social media sites with rumors, the cabal drove small day traders into the target stocks as a screen for their operation. As the big players exit – which they began to do Thursday – the small day traders will be wiped out.<br /><br />The short squeeze stocks whose sudden flight crushed some long-established hedge funds began tanking today, with the two favorites, Gamestop and AMC, down 35% and 54% respectively.<br /><br />Identifying the perpetrators is a matter for the Securities and Exchange Commission, which has the technology to trace the trades back to their beneficial owners. But the evidence is overwhelming that the short squeeze was something else than the madness of crowds.</i><br /><br />source: <a href="https://asiatimes.com/2021/01/the-great-gamestop-conspiracy/" rel="nofollow">The great GameStop conspiracy</a>Ahmed Fareshttps://www.blogger.com/profile/07105255828394485657noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-76975783868982995042021-01-30T11:56:56.039-05:002021-01-30T11:56:56.039-05:00Otoh, In any situation with this stuff there is g...Otoh, In any situation with this stuff there is going to be some sort of short term disruptions if Depositories are allowed to immediately return 5% of regulatory equity/capital to shareholders.... that’s not going to happen without a ripple... let’s just hope this is as bad as it gets...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-31694954141373144692021-01-30T11:29:47.504-05:002021-01-30T11:29:47.504-05:00“all this plumbing necessary so businesses can be ...“all this plumbing necessary so businesses can be properly financed? “<br /><br />I think this set up was a result of the Dodd-Frank regulatory modifications.., was supposed to help...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-57296954833738574292021-01-30T11:27:53.837-05:002021-01-30T11:27:53.837-05:00There is at least a small (so far) general credit ...There is at least a small (so far) general credit contraction going on due to recent equity/capital reduction... so there is going to be some margin calls...<br /><br />Looks like the Melvin short position had to be reduced... if the Reddit people were preposition long then they were in a good position going in to it.,,<br /><br />I’d like to know how Citadel people were positioned... if the Melvin people were 138% short maybe Citadel was net long?<br /><br />Youd have to get a team of forensic accountants to really dig into it.... AOC need not apply....Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-24606748748831737532021-01-30T11:25:53.791-05:002021-01-30T11:25:53.791-05:00Sheesh, is all this plumbing necessary so business...Sheesh, is all this plumbing necessary so businesses can be properly financed?Peter Panhttps://www.blogger.com/profile/09473311771939167712noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-26008452348963173002021-01-30T11:02:09.718-05:002021-01-30T11:02:09.718-05:00The Reddit people don't know what they're ...The Reddit people don't know what they're doing?Peter Panhttps://www.blogger.com/profile/09473311771939167712noreply@blogger.com