The power elite always get what they want. Right now there appear to be curbs on GME and AMC buy orders for TD Ameritrade and Schwab customers.
If you have to pull strings with your drinking buddy from Dartmouth to blow up a bunch of propertyless zoomers in order to prevent a margin call on the account you've leveraged to buy your house in the Hamptons, then that's what you're going to do.
Mainly because they're playing with their own money, while the hedgefunds are playing with House's Money.
Yes indeed. Ameritrade won't even let me exercise the calls I already own. It's ridiculous.
It isn't a bank run to be blocked for the sake of society, this is just a bunch of rich people paying the price for risking too much... Boils my blood so deeply.
The hardest part of gambling is not coming up with the big winning bet -- it's getting whatever counterparty to pay you once you've won. It's always been this way, in sports, in horses, and on Wall Street. People come up with all sorts of reasons to not pay you and you have to shape your strategy around this.
Aaron Brown talks about how being a successful gambler is not about a few high-stakes wins, or a super-consistent record. It's about winning the right fraction of bets, so that nobody suspects you're a winner.
Perhaps ironically, one of the central characters of that story, Michael Burry, is none too pleased at the current situation: https://www.bnnbloomberg.ca/michael-burry-calls-gamestop-ral...
EDIT: The Big Short, of course, not Moneyball.
Isn't that the truth. I know crypto is hated on here but just as an anecdote, I've traded on a lot of exchanges in the last few years and I almost wince whenever I make a really great trade that 5 or 10x's because as sure as the day is long inside of an hour my account will get frozen and I'll have to submit documentation, answer a bunch of questions, or whatever else to get my account unfrozen and access to the funds. It's almost like they're saying thanks for your business and we don't mind you getting lucky but don't get too lucky.
They are going to call the Reddit CEO and have wsb shut down under the threat of SEC enforcement actions.
Looks like the wsb discord is down.
IMHO why the fuck is shorting legal to begin with. Short insurance should be mandatory for short trading.
Obviously false: https://secsearch.sec.gov/search/docs?utf8=%E2%9C%93&affilia...
> 4chan and several other sites...
Scale dictates enforcement priorities, obviously. Like a lot of people, they don't deal with issues until they are large and impact the market. They are ABSOLUTELY going to intervene here. First with some immediate action, and later they'll craft a new rule to guide social media on stock advice being not allowed on their platforms (IMO).
> why the f** is shorting legal
Short selling rewards investors who believe that certain stocks are overvalued or that the company is covering up fraud. They helped bring Lehman Brothers down, as well as Enron, Wirecard, etc... In those instances, the shorts were instrumental in reverting stocks down to correct (sometimes zero) prices. Without them, bubbles would rise higher and poop much bigger. That sort of volatility destroys liquidity and confidence in the market.
> Short insurance should be mandatory for short trading.
There are naked short limits already, but yeah, this issue with GameStop should have those rules re-evaluated, because they obviously didn't work in this case.
Please don't fix this, it's perfect.
I wouldn't be so certain about this at all. Matt Levine has a good take on it: https://www.bloomberg.com/news/newsletters/2021-01-26/will-w...
What about Section 230?
I know the IRS is different from the SEC, Apples to Oranges. But like you said, they've neglected insider trading; it's probably for very similar reasons, because those being investigated just have too much power to take down. I'm sure the SEC will hammer these easy targets on WSB well before they even dare touch the Big Boys.
[1]https://www.nytimes.com/2019/05/03/sunday-review/tax-rich-ir...
[2]https://www.propublica.org/article/earned-income-tax-credit-...
> January 2016 through the end of the SEC fiscal year on September 30, 2017
If you look at the followup data, you can see both administrations are similar...
https://www.law.nyu.edu/sites/default/files/Fig3-SEEDNov2020...
...and then if you actually read my above link, you'd see numerous Insider Trading prosecutions (which was the original false claim made above).
source: https://www.npr.org/2020/08/14/901862355/under-trump-sec-enf...
There are many [1].
[1] https://secsearch.sec.gov/search/docs?utf8=%E2%9C%93&affilia...