GameStop, etc. Stocks Short Squeezed yesterday.
Here's my take with my limited understanding. It looks a joke in the economics world. The short story is, Stocks like GameStop (video game shops), AMC, BlackBerry, are not doing well in their profits, they are kind of outdated, so investment companies are short selling these stocks (Watch the movie "The Big Short (2015)" about a few smart people who figured out the world economics are going to collapse in 2008 and took advantage of it), but thanks to the Internet world, famous forums like the Reddit r/wallstreetbets group are ganging up against these short sellers and bought into these stocks to jack up the price, causing big lost for these short sells investors. Obviously, the owner of Reddit had this forum shutdown for a while and SEC supposed to investigate. Outcome will be uncertain.
What does this have to do with me? I used Robinhood account for my mom. A trading app that's heavily supported by Citadel LLC whose subbranch is Melvin Capital Management which short selled GME (GameStop) and is now suffering from the pranksters of wallstreetbets who are allegedly buying in these stocks using Robinhood, so Robinhood restricted trading in several stocks. This bad faith made me considering moving from Robinhood to other platform, such as MooMoo.
Stock Market's purpose is supposed to be for standardizing prices (properly value companies) and for companies to raise money by selling their stocks. I've asked for detail mechanisms of stock market but no one seems to be able to answer me that, either it's too secretive for them to share or they do not know. Now I know a little, after what wallstreetbets did. Because they exploited one of the loop holes I was trying to ascertain. Same kind of loop holes exploited by the smart ones during the world economic crash in 2008. I guess Biden's going to bail the "non-gambling" losers, as they did the hedge funds in 2007. I wonder how Bitcoins will do in light of this.
California's first death case after 2nd Covid-19 Vaccination
Health care worker Tim Zook of Orange County, who has high blood pressure, died in hours after 2nd Pfizer vaccination. Cause relating to vaccine is still under investigation. Many said it's likely not the vaccine, not sure if this is a panic prevention or for real.