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Jim Cramer Exposes Illegal Hedge Fund Tactics (2014) [video]

45 pointsby JacKTrocinskIover 4 years ago

4 comments

xiphias2over 4 years ago
Here&#x27;s the text version, even having friends at the clearing houses is a known trick:<p><a href="https:&#x2F;&#x2F;seekingalpha.com&#x2F;instablog&#x2F;11442671-gerald-klein&#x2F;3096735-anatomy-of-a-short-attack" rel="nofollow">https:&#x2F;&#x2F;seekingalpha.com&#x2F;instablog&#x2F;11442671-gerald-klein&#x2F;309...</a>
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robomartinover 4 years ago
What nobody is talking about yet are the thousands (tens of thousands? hundreds of thousands? millions?) of people who got hurt and will get hurt by this event.<p>Sure, it&#x27;s neat to see stories of people making from tens of thousands to millions of dollars due to the short squeeze. And yet it is easy to forget that those who played the game were buying GME all the way up to $500 one day, $420 the next day and $300-something the next. People also bought puts at different levels.<p>All of this will come crashing down on top of them. It&#x27;s a Ponzi scheme (or whatever the appropriate analogy might be). The people who, through hubris and ignorance, bought these stocks chasing them up the price scale to &quot;Help our brothers who bought at $350 get positive&quot; and other encouragement found on r&#x2F;wallstreetbets are going to get shafted (if they haven&#x27;t already).<p>In other words, the institutional short sellers are not the only ones who lost money. The difference is, they KNOW they can win.<p>Why?<p>Because there is no way GME is worth $200, $300, $400, $500 or $1,000. At some point in the future gravity will do its thing and this stock will suffer a violent crash. And you can bet there will be short sellers there to profit from it. And you can bet a large number of people who are hoping to get rich quickly are going to lose unimaginable amounts of money.<p>As a side question: I wonder how much Chinese money went into pumping GME off the charts? I already saw one or two articles about this. It would be truly terrible if &quot;average folk&quot; in the US and Europe became useful idiots in the hands of heavy capital from China who saw an opportunity to extract billions of dollars from both of these economies.
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max_over 4 years ago
This looks like a classic pump and dump strategy?
alephnanover 4 years ago
Wrong link? It should be: <a href="https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=VMuEis3byY4" rel="nofollow">https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=VMuEis3byY4</a>
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