James Mackintosh
speaker
379 appearances
7 recordings
1 series
first heard Nov 2017
last heard Nov 2024
James Mackintosh’s voice in public audio — every appearance, attributed to the second.
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Appearances
And that's what's happened.
A bunch of hedge funds, notably a big one called Melvin Capital, were short and they were known to be short.
So as the share price starts rising, it starts to hurt the hedge funds.
Eventually they give up and sell.
So you know that they're going to have to cover their short positions.
You know they're gonna have to buy back the stock.
And if you buy it, if you can get enough people to buy the shares and hold them, then when they come to buy back the stock,
There isn't enough for sale, and it just keeps going up.
So that's the standard model of a short squeeze, and that's clearly a factor in what's been going on.
Well, no one can really agree on what the definition of a bubble is.
I think this is a bubble.
It has the characteristic of ludicrous overvaluation, totally disconnected from fundamentals.
It has buyers who are coming in
knowing perfectly well that there's no connection to fundamentals and in some cases at least quite high profile cases of people on Wall Street bets coming in explicitly with the aim of hurting the shorts rather than profiting per se.
These are the sorts of non-financial as it were reasons that
can contribute to things being bubbles.
But mostly it's the fact that people are buying knowing that this has nothing to do with the future profits of GameStop.
They're just expecting to make money by selling it at a higher price to some dumb schmuck who comes along and buys it.
And that's the core for me of a bubble.
Well, that's exactly the thing.
Showing 101–120 of 379 · page 6 of 19
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