Re:WallStreetBets vs WallStreet: It's not about the money an...
by kibwen on Thursday January 28, 2021 @11:53AM
(#25944756)
In what way do you think it will matter? Can you be more specific?
Re:WallStreetBets vs WallStreet: It's not about the money an...
by paulddraper on Thursday January 28, 2021 @01:21PM
(#25946352)
He'll be regarded as the moron that shorted a stock 140%(!!!) and then got caught
Re:WallStreetBets vs WallStreet: It's not about the money an...
by kibwen on Thursday January 28, 2021 @02:48PM
(#25947940)
There doesn't seem to be any singular person in this case to assign such fault to; best I can tell the over-shorting was caused by multiple firms acting independently, and I'd guess that the orders were signed off on by multiple people at each firm (and I'm not inclined to suspect any collusion here; in a thunderstorm people sell umbrellas, and in a pandemic people short retail).
In the meantime, the billionaire owner of Citadel (the company that just made tons of money by front-running all these retail investor trades via their data harvesting contract with Robinhood) just used some of that freshly-acquired cash to buy a stake in Melvin (the company that those retail investors just tanked) for pennies on the dollar. The feel-good rage of WSB serves as a convenient smokescreen for the rich getting richer.
The problem is systems that resist merit. You make terrible investment decisions with the portfolio but it doesn't matter? (I think it will matter FWIW.)