“WSB veterans know that they're making a suicide charge for the memes”

Re:“WSB veterans know that they're making a suicide charge f... by lm28469 on Tuesday February 02, 2021 @02:13PM (#26005215)

Time will tell but my little finger told me that there will be plenty of losers, that the wall street people supposedly "owned" will be 100% bailed out, and that nothing of interest will change at wallstreet. The only thing that will change is that mobile trading apps will get major nerfs

> No, they didn't pitch it as a BTC or Tesla

It was a figure of speech, "we'll transform your $300 in $10000 in 2 weeks". People internally think about all the past opportunities they missed, we're talking about life changing money for a lot of people

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Re:“WSB veterans know that they're making a suicide charge f... by fractionalhare on Tuesday February 02, 2021 @02:34PM (#26005483)

Banks are prone to bailouts, hedge funds are not (in the traditional sense of taxpayer money, not private investment).

Many banks control trillions of dollars. Hedge funds almost always have less than $50B, usually by one or two orders of magnitude. If a bank fails, it's actually a problem for the government. If a hedge fund fails, it's barely a blip. If the limited partner was smart, it will also only cause them a single digit percentage decrease in their portfolio.

Hedge funds can amplify a systemic risk, but they would not really be targets for a bailout, the banks would be.

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Re:“WSB veterans know that they're making a suicide charge f... by MPSimmons on Tuesday February 02, 2021 @02:29PM (#26005423)

I think the promise of money being the driving factor for this is probably a strawman argument, at least as far as the WSB community itself. If you browse it, you'll see 'lossporn', with people posting screenshots of their personal losses on the stock performance. I don't think anyone prefers that to lose, but there are very definitely true believers.

Of course, as soon as it was covered by the news media, it draws people in who don't share that mindset and do stupid things. so... yeah

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