Scaresies chat page

[bull....]

My understanding was RH were closing out call positions, rather than selling shares. A lot of posters are not clear on this but a huge number of retail participants were buying call options and reading the online comments supports this.

correct.
buying call options ( which is way cheaper than buying the stock) forces the market makers to buy the underlying stock ( as they hedge themselves) causing more upward buying pressure on the stock price

[nztx]

I see that US Partners of some online platforms are now RESTRICTING BUYS
for some volatile US Stocks as of tonight

Two that may only be SOLD and NOT purchased currently are:

GAMESTOP (GME)
AMC ENTERTAINMENT (AMC)

[Wsp]

I see that US Partners of some online platforms are now RESTRICTING BUYS
for some volatile US Stocks as of tonight

Two that may only be SOLD and NOT purchased currently are:

GAMESTOP (GME)
AMC ENTERTAINMENT (AMC)

Comments on Sharesies' Facebook post show significant anger as their ability trade these stocks us now restricted. Many commenters believe the market is being rigged/manipulated against them etc... https://www.facebook.com/33505547019...4914289878870/

[nztx]

Comments on Sharesies' Facebook post show significant anger as their ability trade these stocks us now restricted. Many commenters believe the market is being rigged/manipulated against them etc... https://www.facebook.com/33505547019...4914289878870/

Thanks for the FB Link

Among the postings there seems to be this one:

"Drivewealth is owned by Point72 who along with Citadel just “invested” in Melvin who are the ones in trouble with these stocks.

That’s why we can’t buy shares!"


We all know what happened when Robinhood did this recently - SP crashed a fair bit

We all can likely guess what will happen this time as well, if it's wider restricted too ..


But then The Hedgies are just postponing being pile driven into the ground & incurring
heaps of financing cost on replacing the borrowed shares they sold - which will be
near on impossible if everyone remains a holder & NO SELL into a Rigged Market!

[nztx]

Gee that restriction is going to really p** off more than just few on Sharesies big time ..


Anyone know of an online broker that isn't imposing this sort of BS Buying restriction ?

[Waltzing]

The word Long Term Capital markets is being talked of again world wide.

[nztx]

The word Long Term Capital markets is being talked of again world wide.

probably just as long & until the Hedgies think the spotlight has gone off them ..

Too lucrative I would say ..

[DazRaz]

Its being driven by the clearing house who wanted 3Bill from Robinhood. RH negotiated it down to 700M providing they introduce restrictions.

[dreamcatcher]

Interesting rigged and manipulated market, can sell but not buy did they all have the same concerns for retail investors while these hedge funds destroyed LTH wealth.

[Rawz]

2) During 2008 GFC the government came in and guaranteed all deposits until 2011. Precedent set. YOU WANNA RELY ON THIS?

You betcha. Just look at the recent downturn. Wage subsidy. Government guaranteed loans. Shovel ready projects. Involved with Tiwai Point. The days of letting the free market do its thing and austerity are gone. The government will intervene to save jobs and the economy (and their chance for re-election ).

If you think the govt will let one of the big four banks fail (or any nz bank for that matter) you are very pessimistic.

As to your other points, OBR freezes 20% by memory. Or that is the guide given rather than a rule. And the capital requirements, yes Orr stopped the last increase in capital requirements but at the same time stopped dividend payments... Post GFC the capital requirements are still ahead today than back then. So our banks are stronger than ever.