The obvious one is to prevent short sales over 100% of float (assuming I worded that right). Only guarantee sales of what's actually available, regardless of where it's coming from. Or I guess require sales to be 'escrowed' until they clear, so you can't borrow the same stock from peter and paul at the same time, which would effectively do the same thing (and probably screw up a bunch more stuff).What rules can they really change which won't affect the free market. What ever it is better be the same rules the hedges have to play by or there will be a major reaction.
Short selling more stocks than actually exist is (iirc) against the rules in most countries so there's that.What rules can they really change which won't affect the free market. What ever it is better be the same rules the hedges have to play by or there will be a major reaction.
The fact that RH scrambled for $1 billion in additional funding at the same time they temporarily halted GME trading tells me that a lot of these investors aren't using their own money. As in, they're buying on margin and RH is likely to get hosed when GME returns to reality.I don't know, browsing r/wsb there are quite a few people claiming to have sunk 50-200K into GME. I know that may be pocket change to some people, but this still seems like a lot of money to throw away just to stick it to the hedge funds.
Oh, the pitfalls of wealth.Won't those that bought the bubble stock and then sold within a few months have quite the amount of Capital Gains tax to pay?
Yes, that's why you're not supposed to take your $20M of stock lottery winnings and buy an $18M boat. Wait til you pay off the tax man, then use whatever's left.Won't those that bought the bubble stock and then sold within a few months have quite the amount of Capital Gains tax to pay?
Yes I do expect in January/February 2022 there will be some very sad winners who went out and bought a Mercedes with their gains.Won't those that bought the bubble stock and then sold within a few months have quite the amount of Capital Gains tax to pay?
I think the reddit/wallstreetbets group has about 6 million members so I think your characterization of a couple of people causing this is just a teenie, tiny bit off. That said there is no real organization in doing this, it seems to be more of a grassroots type of thing where everyone wants in and they are willing to buy a share or a fraction of a share just to be in. Hard to believe the massive buying power of a collective. The SEC does need to actually do something about naked shorting and in addition to the hedge funds involved having to cover their positions they should have to pay huge fines. Looks like they are going to lose a few billion at the end of today and more next week. I would be willing to bet that the market will continue to allow them to short shares that don't exist which is a huge problem for investors. And if the SEC does get involved it probably won't be to protect the casual investor, it will be to protect the hedge funds, which is just so wrong.Also if a couple of people pumping stocks on reddit can cause this sort of problems then its good evidence that the system is totally broken.
3) Margin requirement changes. Margins get bigger and bigger, until a disaster happens, then they get smaller, then they creep up again. It is a never-ending yoyo. I personally would rather see a tax law change that makes margin trading less attractive rather than put stricter limits on margins, but that is just a pipe dream.1) Short selling more stocks than actually exist is (iirc) against the rules in most countries so there's that.
2) Treating retail traders and hedge funds differently in their access to the market is another area.
I think the reddit/wallstreetbets group has about 6 million members so I think your characterization of a couple of people causing this is just a teenie, tiny bit off.
I for one am shocked that you find a woman in government stupid.Heh, you can see where our current administration sits on this type of stuff.
The new press secretary for Biden is HOLY-SHIT box of rocks level of stupid.
Seriously. Get a counter for the number of times she says "Uhhh I'll circle back with you on that one". It's off the charts.
Your sudden deep concern is notedHeh, you can see where our current administration sits on this type of stuff.
The new press secretary for Biden is HOLY-SHIT box of rocks level of stupid.
Seriously. Get a counter for the number of times she says "Uhhh I'll circle back with you on that one". It's off the charts.
I for one am shocked that you find a woman in government stupid.
Who could have possibly predicted.
The short interest in a stock is publicly available information. It doesn't matter if you know who is doing it. The point with GME is that the short interest is over 100% of the float, not that any particular hedge fund is shorting it.
Heh, you can see where our current administration sits on this type of stuff.
The new press secretary for Biden is HOLY-SHIT box of rocks level of stupid.
Seriously. Get a counter for the number of times she says "Uhhh I'll circle back with you on that one". It's off the charts.
If they change their behaviour it'll be because regulations are brought in.
Then you can look at this as a few guys on reddit managed to bring in regulations for the stock market if you like.
Ironically, under Regan buybacks which were once considered manipulation became legal.Financial regulations seem to only last until the next Republican gets elected President...
Didn't take long for the conspiracy theories to get started.Did you actually read what I wrote? I'm not talking about short interest. RH is selling their users order flows to Citadel. That is essentailly front running which is illegal but they get away with it. This shit smells a mile away. Now it's out there that Janet Yellen is paid by the same Citadel.
As posted above...
Didn't take long for the conspiracy theories to get started.
Ironically, under Regan buybacks which were once considered manipulation became legal.
Since you are calling her out is seems fair to compare her to you. In that scenario doesn't her number of stupid things said track record looks spotless?Heh, you can see where our current administration sits on this type of stuff.
The new press secretary for Biden is HOLY-SHIT box of rocks level of stupid.
Seriously. Get a counter for the number of times she says "Uhhh I'll circle back with you on that one". It's off the charts.
Did you actually read what I wrote? I'm not talking about short interest. RH is selling their users order flows to Citadel. That is essentailly front running which is illegal but they get away with it. This shit smells a mile away. Now it's out there that Janet Yellen is paid by the same Citadel.