Caveat Emptor - Are You A WSB 'Useful Idiot'?

Via 'The_Law_of_Pizza':

While high-fives and smiley-faces abound on the interwebs over the destruction wrought on numerous hedge funds amid the short- and gamma-squeezes in GME and the rest of the heavily-shorted names, some are at least taking a moment to pause and reflect on other possibilities about how this all ends...

I don't work on the trading Floor, but I'm an attorney who services a variety of financial institutions, including broker/dealers.

This isn't the exciting, hilarious answer you want, but a lot of people had no idea it was even happening until the past 48 hours, and even now, it's mostly just a funny news article about some internet trolls making a bubble.

This is a big deal to the shorting community, but to the other 99% of the financial world, nobody gives a shit.

As much as young people on the internet like to imagine this as an epic, David vs Goliath, Wall Street vs Main Street showdown for the history books; from a bird's eye view its actually just a brief dumpster fire where a couple hedge funds lost their shirts betting on one little small cap stock. It has happened before, and it will happen again.

In 6 months, nobody will remember or care, except that (maybe) it will become more difficult for retail investors to trade options.

And not because the greedy hedge fund oligarchs forced the SEC to crack down on retail investors.

But rather because, when this is all said and done, there is going to be a black hole where most of these retail investors' brokerage accounts used to be, and the SEC and brokerage community will be lambasted for failing to protect unsophisticated investors from a bubble.

I have been monitoring the WSB threads, and while the WSB veterans know that they're making a suicide charge for the memes, they have brought thousands of naive, new investors with them - who predominantly think that they're going to somehow come out on top, not realizing that they're cannon fodder for the more savvy WSB users to exit with gains.

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William K. 4 weeks ago Member's comment

Certainly an interesting outlook and commentary here. And I certainly hope that there are no devastating secondary effects that continue to do damage in ways that we do not see clearly just yet.

Vintage Vixen 4 weeks ago Member's comment

I've lost faith in the media.

Dragan 4 weeks ago Member's comment

You still don’t get it! It is not about the money. It is not business... it is personal.

I simply don’t give a damn if I lose money on $GME as long as the short selling hedge funds suffer.

Terrence Howard 4 weeks ago Member's comment

How much are you willing to lose on $GME to prove your point?

Dragan 4 weeks ago Member's comment

Thousands! Go $GME