Lol @ the Wall Street hedge funds asking for a taxpayer-funded bailout now that they lost money on that GameStop fiasco.

What's that phrase y'all are always telling us about how the problem with socialism is that eventually you run out of other people's money? Why don't you, uh, pull yourself up by your bootstraps? You made a bet and you lost. That's called capitalism.

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QuixoticSoul · 41-45, M

Who is asking?

BlueMetalChick · 26-30, F

@QuixoticSoul Two of the three hedge funds, and the Wall Street Journal ran an article this morning stressing how imperative it is that the taxpayers refund the money that they lost.

QuixoticSoul · 41-45, M

@BlueMetalChick Can you link? I’m not seeing it tbh. WSJ has several articles in the topic, but nobody is talking about a taxpayer bailout.

Northwest · M

@QuixoticSoul [quote]Can you link? I’m not seeing it tbh. WSJ has several articles in the topic, but nobody is talking about a taxpayer bailout.[/quote]

I believe this is a stale screwup from last April, being recycled as today's news.

Last April, at least one small hedge fund, possibly a couple, managed to get small business loans under the bailout, as rules had not been tight. The rules were tightened.

I have not seen any WSJ demands that we cover hedge fund losses. Melvin Capital, the primary party, has been down 30% this year, and the CEO's former employer, Cohen Capital, swooped in to cover losses (so far). Melvin had been returning an average of 30% since its inception in 2014.

Yes, losses are part of life when you're in the shorting business. Traditionally they're like Casinos. At the end of the day the House always wins, while allowing some individuals to make some money.

Market "automated crowd sourcing", may be the game changer that's going to force hedge funds to find a new gig. They're no longer playing against a handful of day traders, working independently. They're working against swarms of day traders, working through "blocks". So, Melvin's moves to short GameStop, Bed Bath & Beyond and others, are instantly countered via automated trades from the "day traders block".

I'm personally thrilled this is happening, as it may create a closer to fair investment space. Imagine that Bank of America had put a cap of $10 per share for GameStop. It was trading today at $370.

QuixoticSoul · 41-45, M

@Northwest After this little storm ends in a dump everyone knows is coming, I wouldn’t be surprised to see gme settle down to $10-$20 tbh. That company is in massive trouble, and a couple of new board members isn’t going to change that.