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Strategies & Market Trends : Value Investing

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To: FIFO_kid2 who wrote (66301)1/29/2021 4:36:50 AM
From: Madharry4 Recommendations  Read Replies (2) of 78953
 
I find it infuriating and outrageous that the wall street bets crowd are referred to as frenzied and greedy. But we hear no such accolades amongst the media for short selling hedge funds who communicate with each other and then issue research papers on their finding trying to drive stocks down by getting other short sellers to join and existing shareholder to sell their stocks. On fast money I heard several comments about the greed of these amatuer investors. Seems like now that the shoe is on the other foot suddenly its a problem for the industry. I also dont buy into the argument that its some kind of clearing house issue. that might be the case if you were allowing the purchase of shares on margi but if you are requiring 100% cash then it should be no issue for the clearing house. I suspect that if regulaltors honestly delve into this they will find many instances of shares being manufactured illegally. the whole short selling industry needs to be investigated instead of focusiing on investors who are purchasing stock in good faith. How do stocks trade at 5 times their available float? How about some unbiased journalistic integrity?

I think Robinhood might have done more that shoot themselves in the foot. I think the jig is up. My son who is not a sophisticated investor said that Robin Hood's clients are not the people who invest with them but the companies that RobinHood sells investors data to. He said many of the investors have already left RobinHood and gone to other brokerage houses. Put a fork in that IPO.

I took a look at the most shorted stocks and was surprised that Macerich is on that list with 50% short still. I cant imagine that things will not improve greatly for Macerich in the course of 2021 and that their distributions will not be increased. Shorters are also responsible for paying those distributions. I wonder what happens when a hedge fund that is short cant meet their obligations. Do the clearing houses take the hit on that? Perhaps the clearing houses are the ones who may get sued for this restraint of trading and be hit with fines by the regulators for what seems illegal to me. The more i hear about this the more it seems clear that the actions that were taken yesterday were not to protect investors but to protect the short sellers and the clearing houses. Where is the ***** SEC in all of this?
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