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Dr Sardonicus 2021-01-15 12:59

Mystery Economic Theater 2021
 
[url=https://www.npr.org/2021/01/11/954945486/trump-regulators-rule-would-force-banks-to-lend-to-gun-makers-and-oil-drillers]Trump Regulator's Rule Would Force Banks To Lend To Gun-Makers And Oil Drillers[/url][quote]The Trump administration is trying to push through a last-minute rule that could force banks to offer loans to gun-makers and oil exploration companies or to finance high-cost payday lenders.

The move follows announcements by the biggest U.S. banks that there are some industries and activities they don't want to finance, such as drilling for oil in Alaska's Arctic National Wildlife Refuge or making loans to gun manufacturers who make assault-style weapons. Some major banks have [url=https://www.npr.org/2020/02/26/809210657/alaska-feels-the-brunt-as-investors-promise-retreat-on-fossil-fuels]sworn off[/url] making those loans.[/quote]

axn 2021-01-15 13:29

Wouldn't this run into forced speech / first amendment issues?

Dr Sardonicus 2021-01-15 13:37

[QUOTE=axn;569354]Wouldn't this run into forced speech / first amendment issues?[/QUOTE]I'm not sure about free speech, but I imagine it will run into [i]some[/i] legal issues. Possibly something based on "substantive due process," which basically means that laws should forward the legitimate aims of government.

But my guess is, the new Administration will deep-six the new rule.

bsquared 2021-01-26 22:01

Is anyone else following the insanity that is GME (GameStop) stock right now? I have no stake in it one way or another, but I've been following the story for a while now and it is simply historic.

masser 2021-01-26 22:21

[QUOTE=bsquared;570178]Is anyone else following the insanity that is GME (GameStop) stock right now? I have no stake in it one way or another, but I've been following the story for a while now and it is simply historic.[/QUOTE]

The madness of crowds. It'll be painful when the party ends.

Dr Sardonicus 2021-01-27 00:33

[QUOTE=bsquared;570178]Is anyone else following the insanity that is GME (GameStop) stock right now? I have no stake in it one way or another, but I've been following the story for a while now and it is simply historic.[/QUOTE]Gamestop. Huh, never heard. [Google Google]

Hmm, it seems the same shenanigans are being played with a number of stocks.

Fascinating. A group of investors on the the WallStreetBets subreddit of Reddit manages to create enough demand to drive a stock higher though the company's prospects are not rosy, the vultures have begun to circle, and its stock is being sold short.

As I understand it, a short sale is usually of borrowed shares. The broker who loaned the shares for the short sale can and will will step in and close the short position if the price moves too far the wrong way too fast, and the short seller then has to pay up. So if a stock expected to fall rises rapidly instead, it creates a "short squeeze," in which the short sellers scramble to buy back their borrowed shares before the price goes [i]too[/i] high and they lose their shirts. And this increased demand helps drive the price up further.

So one thing is, these folks driving up stocks despite the companies' prospects are sticking it to short sellers.

Once all the current short positions are closed out, my guess is, the company's actual prospects come back into view, and it's "look out below!"

LaurV 2021-01-27 03:50

You can only sell short on an uptick. When it falls, it falls hard.

retina 2021-01-27 05:02

The real WTF here is that huge casino everyone refers to as the stock market.

masser 2021-01-27 17:34

[QUOTE=Dr Sardonicus;570190]
Once all the current short positions are closed out, my guess is, the company's actual prospects come back into view, and it's "look out below!"[/QUOTE]

Here's the take of a cryptocurrency dude: recent political radicalism is bleeding into finance. The crazy short-squeezing in GME is just one more item in the list of [URL="https://twitter.com/novogratz/status/1354422972191297539"]"symptoms of growing inequality."[/URL]

bsquared 2021-01-27 18:03

[QUOTE=masser;570267]Here's the take of a cryptocurrency dude: recent political radicalism is bleeding into finance. The crazy short-squeezing in GME is just one more item in the list of [URL="https://twitter.com/novogratz/status/1354422972191297539"]"symptoms of growing inequality."[/URL][/QUOTE]

Sounds about right. Browse through r/WSB right now and you'll see a lot of hate directed toward "the man". Some seem less interested in making money than they are in taking down the establishment.

xilman 2021-01-27 18:23

[QUOTE=bsquared;570273]Some seem less interested in making money than they are in taking down the establishment.[/QUOTE]So what else is new?


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