Item — HN Reader

I think it will be a case study in late-empire corruption and the failure of propaganda.

There's a reason the "buy" (not sell) button was turned off for a day on $GME alone. That's market manipulation. There's a reason it no charges were filed. The SEC openly admits it's corrupt. There are talking heads on the finance channels who openly admit the markets are rigged.

You're right, FTX was a scam. And SBF openly admitted fraudulent actions. So he's in jail, right? Oh, sorry, no -- he's a "distinguished" guest speaking on a New York Times panel.

It's all a scam. All of it. The difference with $GME is that, in this case, they got caught. Hedge funds naked shorted the stock and got caught. At some point they will need to cover and won't be able to. Here's some reading:

https://archive.org/details/superstonk-dd-mega-back-up/mode/...

You are mad because you think this stock is overvalued?? Well, guess what: The entire market is overvalued! It's all bullshit. P/E ratios are off the charts when we're facing a deep economic downturn. No one should be in the market -- at all. If there's one stock to hold, it's this and for three reasons: they naked shorted; they got caught; and they're fucked.

2 comments

The reason the buy button was turned off is because when you buy a stock on any brokerage, you don't immediately own it, the shares still have to go through the clearinghouse. The brokerage needs to post collateral at the clearinghouse while they wait for the shares to deliver. The demand for GME was unprecedented, the clearinghouse raised their collateral requirements, and Robinhood didn't have the money to post collateral, even after raising a billion dollars overnight. It's very simple. There was an entire Congressional inquiry into this, which you can read into instead of spreading baseless conspiracy theories on HN.

Correct. Imagine, this guy is wasting hundreds of hours on this “hobby” reading r/superstonk, but still hasn’t even heard of the DTCC which every single trade of his is going through. Information diets really matter.

P/E ratios for the SP500 are 18, while Developed is 12 and Emerging are 11. That’s a 5.6%, 8%, and 9% real return, for an expected nominal yield of ~12%, 15%, 16%. Looks like good P/E ratios to me, and you’re out here acknowledging you’re buying unprofitable garbage co meme stocks. Don’t say you weren’t warned.

The current S&P500 10-year P/E Ratio is 29.3

So many people desperate to help me sell my position! Wow. Thanks.