It’s not right wing or left wing. If you’d remove your head from your rear end you might find that you and I have more in common than you’d like to believe. Fundamental differences but we do share a bit of a populist tilt.
If you won’t let regular people team up then how are they going to be on a level playing field with something like a hedge fund? These funds move huge sums around which the little guy can’t compete with. You have to let people cooperate, that is the foundation of a free market. Now that people see that groups like this have real influence on the market I bet we will see even more of it. If the this cooperation is restrained I fear for the country.
Hopefully. I think we at least agree that you can’t allow the super rich or hedge funds to have a competitive advantage. I have no problem even with outright attacks on hedge funds. They need to adapt or die just like everyone else.
By the way Fire, since you’re so fired up about this I’m sure you’re hoping that Janet Yellen will gracefully bow out of this discussion since she was paid almost a million dollars in speaking fees by Citadel.
JBear, I won’t give up trying to get you to clarify. What do you mean by transparent? What is the expectation? A live 24 hour Oval Office feed? Do I need to start going over the Trump press conferences? But fair enough don’t use that as a measuring stick. What do you expect Biden to do to be more transparent?
It would be nice if he’d answer questions about this particular subject. His press secretary has been asked already about Yellen. She was paid a lot of money by one of the hedge funds involved. Do they think it’s appropriate for her to advise the President on what to do about this? They’ve been asked and won’t answer. That answer would be a great start since she’s in charge of the Treasury department I don’t think asking if they talked about the reddit army should be out of bounds. People want to know why certain decisions are made. If the administration is going to do something about this then the people should know why they did it.
OK JBear I see the Federalist article. I don’t see how a speaking fee creates a conflict of interest when she was paid to speak because of her experience, not because of future considerations. Nobody knew she would be offered her current job. So I don’t understand how at this point she has any allegiance to anybody in this situation.
She did agree as part of her confirmation to seek official permission for any dealings regarding certain companies from which she earned speaking fees. But this isn’t a situation where its just a disguised donation, such as when someone buys copies of a politician’s book.
So I don’t see why she should have to recuse herself, but I can agree a more detailed explanation would be in order given that the question was raised.
Well it was commodities, not stocks, orange juice specifically. Here is the explanation from Wikipedia.
…Watching a television news broadcast, Winthorp and Valentine learn that Beeks is transporting a secret United States Department of Agriculture (USDA) report on orange crop forecasts. Winthorpe and Valentine recall large payments made to Beeks by the Dukes. They realize the Dukes will obtain the report early to corner the market on frozen concentrated orange juice.
On New Year’s Eve, the four board Beeks’ train, intending to switch the original report with a forgery that predicts low orange crop yields. Beeks uncovers their scheme, and attempts to kill them, but is knocked unconscious by a gorilla being transported on the train. The four disguise Beeks with a gorilla costume and cage him with the real gorilla. The group deliver the forged report to the Dukes in Beeks’ place. After sharing a kiss with Ophelia, Winthorpe travels to New York City with Valentine, carrying with them Coleman’s and Ophelia’s life savings to carry out their plan.
On the commodities trading floor, the Dukes commit their holdings to buying frozen concentrated orange juice futures contracts, legally committing themselves to buying the commodity at a later date. Other traders follow their lead, driving the price up; Valentine and Winthorpe short-sell juice futures contracts at the inflated price. Following the broadcast of the actual crop report and its prediction of a normal harvest, the price of juice futures plummets. Valentine and Winthorpe buy at the lower price from everyone except the Dukes, fulfilling the contracts they had short-sold earlier and turning an immense profit. … When the Dukes prove unable to supply the $394 million (equivalent to $1.01 billion in 2019) required to satisfy their margin call, the exchange manager orders their seats sold and their corporate and personal assets confiscated, effectively bankrupting them. “Turn the machine back on!”
Thanks, Roy. Helps a bit but I’ve still got to do some research on some of the terms and how exactly commodities work.
More specific to movie, how did they both get on the trading floor, especially on that short notice? Did they set up some account that allowed them there, and able to buy and sell like that?
….. or is this where I’m told “it’s a movie, dumbass, where you sometimes have to suspend reality!”
Yellen should step down because RH is doing shady shit after she was appointed?
What are you accusing or implying? The government has stayed out of it…
This is a private company (RH) choosing to protect their biggest investor over their retail investors.
If you aren’t aware, RH makes money off of selling the data that users create in trade patterns. They sell that to firms so they can create algos that manipulate stock.
RH was already a huge issue before covid gave millions a way too simple platform to trade without having done any research themselves. You’ve got them blindly following reddit and twitter.
So that is clear manipulation to be fair… and hedge funds are pissed that they’re getting a taste of their own medicine.
But back to the free market… RH probably dug their grave with this. There will be a mass exodus from the app, and their upcoming IPO will be destroyed. No retail will touch it. I’d be shocked if they moved forward with it.
In the end they either need to strengthen regulations around market manipulation, particularly shorting a stock, OR they need to let it all go… (which they won’t)
I really think shorting a stock is absolutely unnecessary for the industry. Get rid of it… it’s one thing to not invest in a company, it’s another to drive it into the ground.
You see it with a ton of heavily shorted companies outside of $gme and $amc:
The list goes on. They basically banned purchasing any stock that is heavily shorted so the hedge funds can cover.