/biz/ - Business & Finance

>>27442965
by making a deal with their broker to reduce the interest rates because everyone involved knows this is just a fad that will go away if you give it a couple weeks. now why would the brokers do that? well if the hedgies try to cover they won't have enough money to pay for it all. you know who pays up if they can't? take a guess.

Before I begin let's make something clear. Shorts do not have expiration dates. Go dyor. Brokers can request their shares back at any time for any reason. Now that you understand that, it should be extremely obvious why holding is a ticking time bomb. If you don't get it, here's why:

It's very likely that the hedgies made deals with their brokers to reduce interest prices to stop the bleeding. Think about it. These brokers are in a position where they have more to gain not putting these hedge funds out of business. If the hedgies covered their shorts, someone will be obligated to pay and the hedgies don't have the means to. Those costs would be passed onto the broker. Why would the broker want that to happen? Everyone knows this pump is nothing but a fad. The brokers and hedgies know that euphoria will come to an end and when it does they can hold longer than retail if they work together. And not only will euphoria come to an end, they will force it to end.

Enter Robinhood. Robinhood is heavily suppressing the price of GME. Earlier today they said they'd allow users to buy five shares, but as breakouts happened throughout the day they reduced that number further and further. That's why Robinhood allowed buying again. They say the widespread backlash and, realizing how rage could pump the price up even further once people hopped on other apps, figured it was better to use the app as a means of control.

Look guys, I'd love to see these people get squeezed into nothing as much as the next guy, but the reality is we're playing in a rigged system and that will simply never be allowed to happen. Hedgies lost big time, but this isn't going to be the generational transfer of wealth you hope it will be. The takeaway from all this is that, if it wasn't clear already, decentralization through blockchain tech is the future. DEFI is the future. Get out now before this becomes a game of musical chairs and move your money to something that can't be rigged.

That's all.

>>27073184
I'm not touching GME and think anyone who's getting in at this point is pretty retarded. That being said to give them the benefit of the doubt the price of GME is probably being heavily suppressed by Robinhood market manipulation.
They said you'd be able to buy 5 shares but as breakouts happened during the day they reduced that number further and further. It's likely that the hedge funds made deals with their brokers for extensions because they expect if they can just keep the price from breaking out people will start dropping out. I'd guess that's why Robinhood even allowed trading again - because they saw the backlash and, realizing how rage could pump the price up even further once people hopped on other apps, figured it was better to use the app as a means of control.