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Redditors gave Wall Street traders an absolute pasting

monkeytassle said:
Despite me doing this for best part of two decades
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To be honest mate, you've not painted a very good defence of your position on this; your constant responses are either:
  • telling someone they don't know what they're talking about (without providing any explanation)
  • indicating that the relevant authorities will come down like a ton of bricks on the redditors
  • indicating that this is illegal
  • throwing out questions/examples
All just deflection and absolutely nothing concrete to indicate you're doing anything other than closing ranks with your mates.

FWIW, I think this will end in tears and I woudn't touch it with a barge poll. Hopefully though, something good might come out of this.
 

monkeytassle said:
Public pension funds have hedge fund portfolios so that's clearly an incorrect statement.

If this is just going to be abuse and have one idiot asking what day they have to pay back stock posting smilies it's becoming a waste of time tbh. Plus I need to go and have a shower to start work. Money never sleeps.

They borrow the shares then sell them. Stock lending is a huge part of the plumbing in markets. Go look it up.

Or post more smilies.
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By public pension funds do you mean DB, as in public sector ’civil service type schemes’ or DC schemes? Either way the absolute that you’re portraying is incorrect.

I’ll take defined contribution schemes as I think that’s what your alluding to, very few portfolios over the thousands I’ve advised clients on have exposure to hedge funds. If any of the funds ever have holdings in alternatives it’s typically a tiny percentage. I think the hedge funds did far more damage to the layman than any reddit group via shorting banking shares during 2008 (these type of shares absolutely formed part of the everymans pension fund).
 
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Patch said:
FWIW, I think this will end in tears and I woudn't touch it with a barge poll. Hopefully though, something good might come out of this.
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Anyone who runs into a burning building has to know they might get burned.
 
CatRyan said:
I think they are outraged at the shorting and many of them have chipped in and bought small amounts they can afford to lose for the principle of spanking the hedgefunds, I can not speak for them all obviously
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I'm sure you are right. I just don't understand what is so upsetting to them about the shorting of shares. The most prevalent way of ripping people off in stock markets is companies and brokers hyping shares to prices the underlying companies will never live up to (which is what the Wolf of Wall Street actually did). Shorts are a valuable tool against this activity - they don't cause price crashes or companies to go bust.

It's like blaming a Sunderland performance on the people betting on the game instead of the lacklustre players and manager who are really at fault.
 
NYMackem said:
I'm sure you are right. I just don't understand what is so upsetting to them about the shorting of shares. The most prevalent way of ripping people off in stock markets is companies and brokers hyping shares to prices the underlying companies will never live up to (which is what the Wolf of Wall Street actually did). Shorts are a valuable tool against this activity - they don't cause price crashes or companies to go bust.

It's like blaming a Sunderland performance on the people betting on the game instead of the lacklustre players and manager who are really at fault.
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Until your hedge fund managers go on YouTube and talk down the company and say they’re going to go bust... it’s a bit of a self fulfilling prophecy at that point. I think that’s when the Redditors got in because they saw that as unfair, and I’d agree. It feels like a big conflict of interest.
 
HellsBells said:
Until your hedge fund managers go on YouTube and talk down the company and say they’re going to go bust... it’s a bit of a self fulfilling prophecy at that point. I think that’s when the Redditors got in because they saw that as unfair, and I’d agree. It feels like a big conflict of interest.

Imagine if, in 2008, Robert Peston and his mates dropped a ton of money on a bet that Northern Rock would go bust. Then he went on the telly telling everyone how precarious Northern Rock were and that they might go bust.

Doesn’t sound very ethical, does it?
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I don't see the conflict, provided the short is not pretending to be an impartial commentator. ie I would if it was Robert Peston who is supposed to be independent. But a fund manager goes on telly and says "I think this company is going bust so I have bet on that outcome" - his interest is baldly stated and it's free for people to form their own view and bet against him (as they have done, hilariously, here).
 
NYMackem said:
I don't see the conflict, provided the short is not pretending to be an impartial commentator. ie I would if it was Robert Peston who is supposed to be independent. But a fund manager goes on telly and says "I think this company is going bust so I have bet on that outcome" - his interest is baldly stated and it's free for people to form their own view and bet against him (as they have done, hilariously, here).
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Reminds me of the Herbalife thing. Presentations all over the place explaining why it's a scam and that they were shorting it and it just encouraged a short squeeze.
 
NYMackem said:
I don't see the conflict, provided the short is not pretending to be an impartial commentator. ie I would if it was Robert Peston who is supposed to be independent. But a fund manager goes on telly and says "I think this company is going bust so I have bet on that outcome" - his interest is baldly stated and it's free for people to form their own view and bet against him (as they have done, hilariously, here).
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I think by their sheer size, it becomes a conflict. It’s not a mate down the boozer saying I’ve bet that this will go bust. He fact that they go public about their short position in fact pushes the price down by itself.
 
HellsBells said:
Imagine if, in 2008, Robert Peston and his mates dropped a ton of money on a bet that Northern Rock would go bust. Then he went on the telly telling everyone how precarious Northern Rock were and that they might go bust.

Doesn’t sound very ethical, does it?
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No no. its not the hedge funds that are manipulating the market its the redditors.

At least thats what the supposed "Experts" on here are saying.

The hedge funds who are shorting Gamestop are the ones acting illegally - they are still doing it now.

They dont like the fact that "uninformed investors" are playing them at their own game and winning.
 
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