GameStop Stock Breaks Records as Reddit Traders War with Short Sellers

r/wsb is not mostly retail. I can tell there are people from shady hedge funds doing pumps there. And they’re all breaking securities law by doing that without disclosures.

I think it’s a legit question. The answer is: yes. Short GME and be rich in a week. The other answer is: no. Buy call GME and be rich in a week. The whole market is irrational in the short term, maybe it’s luck, serendipity or genius. You’ll find the same pattern at your local casino. Put less than 5% of your net worth on this bs if you don’t want to FOMO. Otherwise just disregard, it’s 100% gambling.

No, the large majority of the traders there don't have the capital to be big players. Some do, but they are undisciplined in the sense that the timing of when they close positions is unpredictable. It's closer to someone in a casino on a high from their hot streak not understanding the time to pull out. Some argue that they trade on herd mentality, but the reality is that you're likely to only see people who lost or gained large amounts of money. And no matter what meme stock has attention currently, you'll see losses contrasting the gains.

When a bunch individuals BUY a stock to hold it, it’s an irrational mob.

As opposed to the “institutional investors” who are shorting a stock, which is to borrow a stock, sell it, and then buy it back later at a reduced price.

Which one sounds more like an irrational mob?

Seems like people are getting mad that the exclusivity of Wall St is getting torn down.

That's an overgeneralization. Democracy is not a new invention, it was theorized and implemented back in Athens in 5 BC. If it took 100 years to fall apart, it would already have fallen apart. A pure democracy doesn't scale well and so requires some corrections to be implemented in the real world. If anything modern technology has accelerated the corrections required to sustain a government based on liberal democracy principles.

Also I'm not sure what makes you think that China is not ruled by mob mentality. I would argue that propaganda and censorship, which is the foundation of a communist government, is more likely to produce mobs. While classical communism might not have a strong opinion on information censorship, China's modern communism is strongly for censoring speech as well as information.

He thought democracy degenerates into tyranny - what we'd think of as a dictatorship. Anarchy is a temporary stop on the route. (Democracy - anarchy - people look for leader - tyranny)