Reddit WallStreetBets vs Wall Street hedge funds

[Big Sky Guy]

me personally, I came late to the party. I'm not a millennial (47 yo) and I don't hang out on Reddit. I do mortgages so I'm pretty busy during the day. a customer asked me about this and I started digging. I did join the group and I did buy some BB (BlackBerry) stock, which is one of the minor stocks the group is supporting. I have a BB phone if that tells you how trendy I am.

I'm posting this info because A) everyone's hearing about this story B) almost no one on the financial news is getting to the real story here and C) this honestly will change things in the financial world going forward.

and unless you're a millennial Redditer tied to your phone (not us) or major into the financial world (also usually not us) you really have no idea what's happening.

I got in late too, didn’t hear about it until Tuesday.

As a millennial (32) I think this represents a lot of our frustration. We were in college or so and got to see all the crazy bailouts for those “too big to fail” beginning with Bush, then Obama. Meanwhile we knew or had parents that were totally screwed over, delayed retirement, lost houses etc. We graduated into a terrible economy and getting a job in your field or one that paid decent was a pretty rare feat for many of my peers. We were all to poor to take advantage of the “dip.” This (IMO) is why socialism has gained so much popularity, we all want a better world/country than what we came out of college to and for many in my generation they see socialism as the answer. Fast forward to the pandemic and these two events are close enough that we all still remember how seemingly easy and quickly these big money folks and banks got their money. Now we are getting “stimulus” checks that are a fraction of the legislation being passed and closing small business (many of which we now work in or own) but these big box stores are staying open. It honestly feels like the economy has been rigged against us if you really look at the last 10-12 years.

Can’t wait for the airline bailout, that’ll be some good gas on an already dry tinderbox.

History is still being written on how this goes, but I’m pretty sure that even if WSB “wins”, and bankrupts a hedge fund, if this is big enough the federal government will just bailout said hedge funds, which in the end is seemingly another loss for all of us and a win for “them.”

 

[BigHornRam]

We going to the moon

I thought he wants to go to Mars?

 

[ddcdevelopment]

I got in late too, didn’t hear about it until Tuesday.

As a millennial (32) I think this represents a lot of our frustration. We were in college or so and got to see all the crazy bailouts for those “too big to fail” beginning with Bush, then Obama. Meanwhile we knew or had parents that were totally screwed over, delayed retirement, lost houses etc. We graduated into a terrible economy and getting a job in your field or one that paid decent was a pretty rare feat for many of my peers. We were all to poor to take advantage of the “dip.” This (IMO) is why socialism has gained so much popularity, we all want a better world/country than what we came out of college to and for many in my generation they see socialism as the answer. Fast forward to the pandemic and these two events are close enough that we all still remember how seemingly easy and quickly these big money folks and banks got their money. Now we are getting “stimulus” checks that are a fraction of the legislation being passed and closing small business (many of which we now work in or own) but these big box stores are staying open. It honestly feels like the economy has been rigged against us if you really look at the last 10-12 years.

Can’t wait for the airline bailout, that’ll be some good gas on an already dry tinderbox.

History is still being written on how this goes, but I’m pretty sure that even if WSB “wins”, and bankrupts a hedge fund, if this is big enough the federal government will just bailout said hedge funds, which in the end is seemingly another loss for all of us and a win for “them.”

Big Sky Guy, I think you summed up the feeling of a whole lot of people. I owned a small mortgage company during the Crash of 2008. I kept my house, but just barely. my children were very young so it didn't leave a real imprint on them.

but that time devastated a lot of families. fast forward to today, those teens and older kids are now adults like you. and they don't trust 'them' and they believe there really is two systems in our country. which I personally feel that way as well but for different reasons.

I think WSB has already won to a large extent. I do think the Gov would step in to stabilize the market if true liquidity issues pop up. I don't believe they would jump in to save a couple hedge funds. but imagine the irony if they did. a Democratic admin featuring Elizabeth Warren bailing out Wall Street hedge funds.

I'm high-lighting the WSB group because they are actually doing something with their feelings of the system being rigged. are they doing the right thing? that remains to be seen. but they have the guts to do SOMETHING instead of just kivetching.

 

[ddcdevelopment]

We going to the moon

for anyone not up to speed, this is 'emoji speak' for the stock price of GME. 'going to the moon' is where the stock price will go if they can trigger the 'big squeeze' of all the hedge fund shorts coming due. the 'diamond hands' mean they'll hold the GME stock NO MATTER WHAT HAPPENS until then.

the WSB group is serious about this.

 

[Tiredofthebickering]

for anyone not up to speed, this is 'emoji speak' for the stock price of GME. 'going to the moon' is where the stock price will go if they can trigger the 'big squeeze' of all the hedge fund shorts coming due. the 'diamond hands' mean they'll hold the GME stock NO MATTER WHAT HAPPENS until then.

the WSB group is serious about this.

Up until right now I didn't think you might be a troll. No more explaining to the boomers please lol

 

[Big Sky Guy]

Big Sky Guy, I think you summed up the feeling of a whole lot of people. I owned a small mortgage company during the Crash of 2008. I kept my house, but just barely. my children were very young so it didn't leave a real imprint on them.

but that time devastated a lot of families. fast forward to today, those teens and older kids are now adults like you. and they don't trust 'them' and they believe there really is two systems in our country. which I personally feel that way as well but for different reasons.

I think WSB has already won to a large extent. I do think the Gov would step in to stabilize the market if true liquidity issues pop up. I don't believe they would jump in to save a couple hedge funds. but imagine the irony if they did. a Democratic admin featuring Elizabeth Warren bailing out Wall Street hedge funds.

I'm high-lighting the WSB group because they are actually doing something with their feelings of the system being rigged. are they doing the right thing? that remains to be seen. but they have the guts to do SOMETHING instead of just kivetching.

I agree. “Occupy Wall Street” was largely my generation too and I felt it did not represent me and seemed pointless/aimless but I think the reason for that was similar for WSB, but actually screwing with a hedge fund rather than just protesting is more up my alley.

Like you said, with WSB this is DOING something. Hopefully worthwhile, if not it was just mostly our stimulus money that I didn’t think we should be getting in the first place.

 

[ddcdevelopment]

Up until right now I didn't think you might be a troll. No more explaining to the boomers please lol

HAHAHAHA! no problem.

 

[SAJ-99]

I agree. “Occupy Wall Street” was largely my generation too and I felt it did not represent me and seemed pointless/aimless but I think the reason for that was similar for WSB, but actually screwing with a hedge fund rather than just protesting is more up my alley.

Like you said, with WSB this is DOING something. Hopefully worthwhile, if not it was just mostly our stimulus money that I didn’t think we should be getting in the first place.

Clearly giving you all a participation trophy isn’t going to cut it. How big do you want your check to be? You don’t like banks getting billions in bailouts and might rather see a complete implosion on the global economy, simply on principle I guess. I get it. While I think most us pass on that scenario, the government is cutting checks to everyone who feels aggrieved, so how much? How much to right all the wrongs you have had to endure in your 32 yrs.

 

[Big Sky Guy]

Clearly giving you all a participation trophy isn’t going to cut it. How big do you want your check to be? You don’t like banks getting billions in bailouts and might rather see a complete implosion on the global economy, simply on principle I guess. I get it. While I think most us pass on that scenario, the government is cutting checks to everyone who feels aggrieved, so how much? How much to right all the wrongs you have had to endure in your 32 yrs.

Ok, Boomer.

You’re asking the wrong question. $0 for all is what I want. Capitalism without failure isn’t capitalism. I want an economy that is free from government and banking manipulation. I want businesses to fail when they should and succeed when they should. I want to go to a bank and actually have them loan me money that they have backed by commodity, not send an order to the Federal Reserve to go and print my mortgage into existence so I can then pay interest on it for 30 years. I want an economy based on real money, not this fiat BS we’ve been enslaved with.

 

[BigHornRam]

Up until right now I didn't think you might be a troll. No more explaining to the boomers please lol

Guess my boomer instincts were correct.

 

[SAJ-99]

Ok, Boomer.

You’re asking the wrong question. $0 for all is what I want. Capitalism without failure isn’t capitalism. I want an economy that is free from government and banking manipulation. I want businesses to fail when they should and succeed when they should. I want to go to a bank and actually have them loan me money that they have backed by commodity, not send an order to the Federal Reserve to go and print my mortgage into existence so I can then pay interest on it for 30 years. I want an economy based on real money, not this fiat BS we’ve been enslaved with.

Oh, a Libertarian. Ok, well we tried an economy backed by gold. That didn’t turn out well either. Please read a history book about the Great Depression. The period under the gold standard showed less growth, higher inflation, and more and deeper recessions. We are not going back. The stability of the USD has kept America at the top for the last 50yrs. Nothing WSB is doing has anything to do with a gold standard.
when you get your check from the government, please send it back. It is clearly against your principles and I’m sure someone else could use it.

 

[westbranch]

Steve Cohen tweeted that he is just trying to make a living, and deleted his Twitter. Someone needs to support the working man.

 

[Big Sky Guy]

Oh, a Libertarian. Ok, well we tried an economy backed by gold. That didn’t turn out well either. Please read a history book about the Great Depression. The period under the gold standard showed less growth, higher inflation, and more and deeper recessions. We are not going back. The stability of the USD has kept America at the top for the last 50yrs. Nothing WSB is doing has anything to do with a gold standard.
when you get your check from the government, please send it back. It is clearly against your principles and I’m sure someone else could use it.

Buying GME stock with our stimulus has proven to be much more entertaining!

 

[Gerald Martin]

So is it a good time to invest life savings into GameStop? Asking for a friend.

 

[Wildabeest]

So is it a good time to invest life savings into GameStop? Asking for a friend.

Best to hedge and split it between GameStop and Tesla...

 

[Gerald Martin]

Best to hedge and split it between GameStop and Tesla...

I was asking for BHR. He’s not going to like one of your suggestions.

 

[AvidIndoorsman]

 

[BigHornRam]

I was asking for BHR. He’s not going to like one of your suggestions.

Both tesla and gamestop are good solid picks, but I would top it off with 200k worth of bitcoin. Then to the moon

 

[BigHornRam]

Buying GME stock with our stimulus has proven to be much more entertaining!

I have to say all this has been entertaining to watch. Thanks!

 

[BigHornRam]

One of you clever millenial meme makers needs to do one with Joe handing a rabid dog a stimulus check while petting it and saying nice doggie. Then the dog rips his arm off.