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Showing posts with the label gamestop

When Hedge Funds Try and Cheat the System

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Hedge funds have a history of trying to use cheat codes to steal money from either companies or retail investors and fatten their wallets. One of the more popular tactics they use is shorting stocks, for some short them so much that it can bankrupt the business. Less often do we see people fighting against these shorts causing a squeeze on the stock, causing the price to skyrocket. These squeezes can be so damaging to the market, that they may even cause the market to crash. It's also important to review these past squeezes and compare them to the situation that has been going on with GME since January. The Volkswagen squeeze is one of the more famous squeezes to happen as it caused some hedge funds to take massive losses, as well as the squeeze occurring in the middle of the 2008 global financial crisis. So what happened? Volkswagen was in the process of being acquired by Porsche, which caused its ordinary shares to rise in price while its preference shares to stay the same. Hedge

The House of Fraud

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As time goes on Wall Street's game of bankrupting beloved businesses in order to make absurd amounts of money is scrutinized more and more. A Reddit post by u/AndiCat sheds some light on this whole situation. They break down every illegal and predatory tactic that Citadel and other hedge funds have been using for years now. You can find the Reddit post here , it’s quite lengthy but it’s in-depth and worth a read. The first item on the list is payment for order-flow and frontrunning. Payment for order-flow is when a brokerage firm (Robinhood) gets paid by a market maker (Citadel) to direct their users' orders towards the market maker. Citadel can then use the information they are getting from these orders by front-running stocks, buying or selling a stock based on that insider information, and making billions. As we all know using insider information is a big no-no for trading on the stock market and yet Citadel hasn’t even gotten punished for this. The only retribution I could

Is GME the Forbearer of the Market Crashing?

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The Reddit post titled “Are we Headed Toward a Hype-Induced Market Crash?” written by an anonymous user has predicted a crash of untold proportions. The author wrote a summary which I will include but I suggest reading the whole article to get a deeper understanding of why they believe this, and the evidence that they provided. Here’s the summary: An ongoing battle between retail investors on reddit speculating on GameStop stock (and other “meme stocks”) and malicious hedge funds who are manipulating the stock market using counterfeit shares is about to come to a climax and uncoil a tightly wound spring of debt, fraud, and corruption. The situation appears so dire that the mechanisms in place to control the debt that the malicious hedge funds have accumulated, should they default (get margin called), are not adequate and are about to fail. The government has taken notice and is signaling that they are about to close the loophole that allows for counterfeit shares and enforce the rules

GameStop Profit Potential, What Analysts Think.

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GameStop, the American highest street shop, selling games, consoles and other electronics is a step ahead in growth strategy and profitability. In a recent press release, it's forward-looking statements, reveals expected benefits from debt reduction. As presented to the SEC, this includes future plans to handle potential risks that could affect the company business and financial reports. Taking this further positions GME on a path to great transformation, strengthening its footprint, reducing costs, debt and driving e-commerce growth. Why Investors Should Pay Close Attention to GME Stock Investors in the market need to pay more attention to GameStop stock based on its market volatility. Though this may seem a good reason not to invest, following what was cited by Robinhood in a recent blog. In a blog posted on January 28, Robinhood stated it was preventing users from buying stock from several companies which included GameStop, due to market volatility. Well, this may be a sincere

Crypto Death Spiral Incoming

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The crypto bull run has been a free ride, 2021 experienced the greatest bubble so far, how long will this last? This current trend seems difficult to understand, and different from other times, a bunch of people live in disbelief of this new phase. A lot of manipulations seem to be happening in the markets, the stock price is influenced, the crypto prices look like a rising bubble. The pump and dumps cause investors to think the stock market is being rigged. Technically, the stock market should function according to supply and demand, but there are some disadvantages for retail investors. Some bad hedge funds are manipulating the stock market by creating shares from thin air using naked shorts, attempting to bankrupt good companies. What Solutions Do We Have For The Financial Markets? There is a need for an awakening in the US markets, when the fundamentals adjust to the new reality, we will see a financial meltdown similar or worse to the financial crisis of 2008. Many experts have