Hey friends. thanks for watching. please note that this is a VERY simplified version of how short selling works. It's purely the concept. in real life there are all sorts of other nuanced dynamics that I didn't even scratch the surface on. but the concept remains the same and I hope this can help in some way if you are interested in understanding what's happening with the Game Stop situation. thank you all for being here. Lots more videos in the works. K bye!
@joaofleumatico3 жыл бұрын
from what I read, the problem with Robin Hood was a liquidity problem, that's why you could sell but not buy the meme stocks
@yagneshdonda81753 жыл бұрын
Please make a video about homophobia in India
@odalissk3 жыл бұрын
How Redditors "got wind" of the glitch is not as interesting as who found it. You had it right in the beginning ..."The big short". Just like the subprimes, Michael Bury is at the inception of it. It is not retail vs hedge fund it is hedge fund vs hedge fund vs the US government. Maybe now they will regulate.
@karolchwierut3 жыл бұрын
Johnny at what price did you buy your Gamestop stocks?
@nyc_snkrss84613 жыл бұрын
Thank you I finally understand
@vishvice123 жыл бұрын
They said 2021 will be awesome. Maybe that's why Johnny has 4 videos in like 10 days
@LowerYourExpectationsPleb3 жыл бұрын
biden got 6x more money from wall street than trump i bet biden's supporters are angry at reddit
@mousammallik75263 жыл бұрын
@@LowerYourExpectationsPleb Your name is funny and ridiculous at the same time. I like it.
@LowerYourExpectationsPleb3 жыл бұрын
@@mousammallik7526 first time i ever hear a democrat saying they like facts
@michaellee74213 жыл бұрын
2021 looking real good.
@rosszy3 жыл бұрын
Literally
@gemmasahagun63423 жыл бұрын
Johnny is one of the most professional unprofessional journalists ever 🤣
@hitenshah8213 жыл бұрын
No one has every described Johnny better than you. This explains everything.
@MrAlexander66663 жыл бұрын
Not quite a professional stock buyer 😅 if you buy now
@Contractor483 жыл бұрын
He is a KZbinr as can be seen with his thumbnails talent.
@idontwanttopickone3 жыл бұрын
@@MrAlexander6666 he buys for the "I gotta be there"/"this is history"/memes. 12k views later I'm sure he's making his money back.
@organizedchaos45593 жыл бұрын
@@Contractor48 But he doesn't clickbait.
@FRISHR3 жыл бұрын
The fact that a GameStop share went from $4 to $469.420 is definitely a pro gamer move.
@austinbergen24092 жыл бұрын
I was hoping someone else would notice that
@idontwanttopickone3 жыл бұрын
Also, hedge funds shorted more Charizard cards than were ever printed. They borrowed all the cards, sold some and then went to the people they sold to and borrowed them again, as if they were new cards, without paying back the original owners. This crazy logic is why everyone is laughing at the hedge funds that got burned.
@caioribeiro31043 жыл бұрын
And also, they couldn't just sit and wait forever to the prices go down. When you borrow a card, you promisse back *with interest* . At some point you have to buy it back (however the price) or be crushed by interests.
@rtk1st3 жыл бұрын
yea this is one of the important parts, its not just that they are shorting. They are shorting over 100% of the available shares (also called the float). Another important thing to take into account is that a short position can to forced to close, so if your little brother sees that the price of Charizard cards is going up and fears you cant pay back, he can force you to buy one now instead of later. That is the short squeeze, forcing the hedgefund to buy back the stock at a much higher price than what they borrowed it for.
@S23K3 жыл бұрын
@@rtk1st which continues to add to the price of the stock!
@afterburner943 жыл бұрын
Glad I didn't have to scroll too long to find this comment. Everyone should also read this.
@Wh1tesammy3 жыл бұрын
Everyone on reddit is laughing because these hedge funds that do this shit have the capital to cripple companies and they've been doing it to the detriment of struggling companies for decades.
@shayanhasan22543 жыл бұрын
This was good but Johnny’s breakfast crisis was the best drama I’ve ever watched.
@nikitamishra34083 жыл бұрын
Lol .. even I commented about it .
@MistressofDistress173 жыл бұрын
In a way, the breakfast crisis is what started it all.
@Blaze-gg3ej3 жыл бұрын
Lol
@AsphaltAntelope3 жыл бұрын
Huh, what's this? What's the joke? :(
@pangeyi3 жыл бұрын
Where is the video? I didn’t see it.
@jlx2563 жыл бұрын
They be pulling a Joker here: "It's not about the money, it's about sending a message."
@LakeGameCreepr3 жыл бұрын
theyre rebelling against *SOCIETY*
@BargedIn3 жыл бұрын
@@LakeGameCreepr they are rebelling against people who manipulate stocks by counter manipulation, that’s actually rebelling for society
@jasperlim89093 жыл бұрын
YES. And we can stay solvent (with our couple of shares) than they can lol
@diddykong73543 жыл бұрын
except it is about the money lmao
@finnkiener44623 жыл бұрын
its more like the biggest hold my beer moment
@salmanmohammed88943 жыл бұрын
"eventually people are gonna figure out how powerful they are and it will be interesting to see what we do with that" - Hank Green
@lelouch33 жыл бұрын
LOL how powerful are they?? I wonder how much money they lost with 'holding the line' and 'diamond hands' huh :-)
@kitten-whisperer3 жыл бұрын
Hank hill actually said that. Get your facts straight you simp.
@petrilampilahti51763 жыл бұрын
Nah, I don’t think so, but I really hope so or I hope I could be on the other side the wsb and hedge-funds side, because it’s so crazy to think about really how profitable they are and could be today still and living probably with national million/billion dollars of debt each year and no one really cares because they take debt on debt and so on until they die and lived happy life probably. Really hoping that future financial business men all over the world can compete with these all different types of hedge-funds and make them tremendous amounts of losses with many peoples agreement that wsb or any hedge-fund overall has money in it
@wildfire92803 жыл бұрын
@@lelouch3 *gained
@Anonymous-rn8ol3 жыл бұрын
@@wildfire9280 *Lost
@hannah._.kendall3 жыл бұрын
If every teacher explained the basics of topics like Johnny then I’m pretty sure kids would actually enjoy learning. Keep up the awesome content dude!
@user-fh4zi7po7i3 жыл бұрын
Teachers simply don’t have the liberty to teach, they are controlled by the government just like everyone else. I believe that it’s ignorant to view teachers as the villain, the problem is with the systen itself.
@hannah._.kendall3 жыл бұрын
@@user-fh4zi7po7i I apologise if it seemed I was making the teachers seem like villains. My aim was not to do so but I do realise I did not word my original comment very well. I understand that is the systems that do not allow teachers to work in such a way and my point should’ve been worded maybe more like “if every teacher was able to teach and explain the basics of topics like Johnny, rather than the system making them teach towards exams only, then I’m pretty sure kids would actually enjoy learning.”
@dheiyomain67752 жыл бұрын
@@user-fh4zi7po7i what the hell did this have to do with governments? Dude just wanted to support johny
@EOO-Stand Жыл бұрын
I totally agree
@iammrbeat3 жыл бұрын
"I don't know a lot about Pokémon." Suurrree 😉
@giddeywrld3 жыл бұрын
MR BEEASSST
@xantos50433 жыл бұрын
@@giddeywrld He is not Mr. Beast. He is Mr. Beat.
@gapeachjuice62613 жыл бұрын
Hey Mr. Beat! I Love Your KZbin Channel!
@giddeywrld3 жыл бұрын
@@xantos5043 OKAY MR. SMARTYPANTS. MR BEAT***
@VuLamDang3 жыл бұрын
I mean he call Charizard a dragon...
@zafrel3 жыл бұрын
Johnny's journalism feels real. Like he's actually talking to me. Agressively.
@bthemedia3 жыл бұрын
Real but faulty and missed the point 💯 like most MSM. Louis Rossmann explained it multiple times over the last week kzbin.info/www/bejne/jomZXp2Grp5rj6M
@bthemedia3 жыл бұрын
If Johnny read wallstreetbets FACTS instead of simply slandering and assassinating the character of 8 MILLION members of a Reddit board... vs character of Wallstreet Hedgefunds! (They are worse) 🙄🤯
@callmeswivelhips82293 жыл бұрын
I WILL TELL YOU THIS AMAZING STORY SIT THE FUCK DOWN SON
@misanthropicmusings45963 жыл бұрын
Nah, he's talking to me. You're just eavesdropping.
@adrianseanheidmann45593 жыл бұрын
@@bthemedia did you actually watch the video? Slandering and assasinating, what?
@OrdinarilyOrdinaryGoose3 жыл бұрын
0:43 “I don’t fully understand this, but I feel like I need to be a part of it” I think that’s the real reason gamestop’s stock price has gone up
@Unknown-rf2jy3 жыл бұрын
HAHAHAHA
@just1it1moko3 жыл бұрын
kinda curious whats stopping people from just doing this with random low value stocks now. does it count as insider trading if one person just has a shit ton of people invest in the same place?
@RayyanAshraf3 жыл бұрын
@@just1it1moko Nope. Hedge funds do this all the time. There's basically nothing preventing the people to do it again of they wanted.
@lordanonimmo76993 жыл бұрын
@@just1it1moko Gamestop was mostly because the short positions were like 140% of the company stock,short positions are usually 10%.
@VideoSchoolOnline3 жыл бұрын
Johnny getting his 💎🙌
@chitus78163 жыл бұрын
Johnny bought at least 500 shares
@DManlsTheMan3 жыл бұрын
He said next ‘few days’ that aint diamon hand enough
@noaros693 жыл бұрын
Who's Johnny?
@timothybryce19483 жыл бұрын
Lmao wonder how he feels about it now
@ooliber56983 жыл бұрын
🦍🦍💪💪🙌🙌💎💎
@rock3tcatU2333 жыл бұрын
The only journalist out there with diamond hands.
@redrix32693 жыл бұрын
I payed off my parents house because of this meme. Never thought scrolling Reddit at work would have actually been productive.
@janestill25883 жыл бұрын
Wow that’s so awesome I’m happy for you and your parents enjoy.
@carlsoll3 жыл бұрын
Now way, that’s awesome.
@enzuki3 жыл бұрын
Congratz, good thing you took initiative.
@soonsuicidal3 жыл бұрын
Wow dude congrats. If you dont mind me asking how much did you invest/buy the stocks initially? Sorry not a finance person not familiar with the terms 😅
@relaxingsounds98683 жыл бұрын
That’s amazing
@YahayaBinBasiron3 жыл бұрын
Literally him : I dont need sleep, I need answers " : )
@johnnyharris3 жыл бұрын
but for real
@adrianseanheidmann45593 жыл бұрын
@Pavani Menta nobody should watch that. Mind boggingly law "comedy"
@insertnicknamehere3 жыл бұрын
The pokemon analogy is uncanny: in 2008, a friend of mine at university was explaining to me the economic crash that followed the hedge funds crisis, using pokemon cards, and specifically Charizard ! This analogy is relevant !
@Aldoz3 жыл бұрын
Well it’s probably because Charizard is the best example of a worthless item skyrocketing in price that is actually fairly known to the common people and not just collectors
@CriticalCorrie3 жыл бұрын
Im holding on my Rainbow Charizard, wish me luck on another 10 years
@stardust-xk6yp3 жыл бұрын
@@CriticalCorrie there gona re print a mask amount of em sell it now or lose it all
@hareecionelson58752 жыл бұрын
@@CriticalCorrie If Nogla keeps opening packs and drawing Charizards, he's going to tank the Charizard market
@georgerobinson2021 Жыл бұрын
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking the bold steps we need in other to reach our goals.
@jesbensommichael8397 Жыл бұрын
I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value
@georgerobinson2021 Жыл бұрын
@@jesbensommichael8397 This is the problem! Most times people with little or no knowledge of the stock market try investing by themselves. It once happened to me, then I learned my lesson and contacted a US-based finance consultant by name MARTHA ALONSO HARA and everything changed. I started enjoying huge returns from my investment.
@jesbensommichael8397 Жыл бұрын
@@georgerobinson2021 Oh, that sounds good but how do I reach out to MARTHA ALONSO HARA
@georgerobinson2021 Жыл бұрын
@@jesbensommichael8397 Look up her name on the webpage
@jesbensommichael8397 Жыл бұрын
@@georgerobinson2021 Okay, thank you. I just found her website very impressive and dropped a message for her.,. I hope she replies to me
@Thytos3 жыл бұрын
2007, financial market screws people: Well, it is what it is… 🤷♂️ 2021, people screw financial market: But that's illegal! 😱
@PropheticShadeZ3 жыл бұрын
i see regulation in the future, that prevents market manipulation, maybe a symbolic ban on specifically short selling more than the company has publically traded. but a hard ban on any encouragement of purchases on public platforms
@callmeswivelhips82293 жыл бұрын
THE SYSTEM KEEPS REVEALING IT'S SECRETS
@jakehix81323 жыл бұрын
Derivative markets, like short selling would fall under, have vital places in helping manage the market. Not only do they take on risk, they add liquidity capital for all traded companies, and can help prevent bubbles by staking against inflated positions. It's the market manipulation (coalitions of many billions of dollars driving specific, predetermined market outcomes) that is screwing the financial markets.
@zacharyhenderson29023 жыл бұрын
Nobody is saying it's illegal. I understand the line is borrowed, but it's really not. You're just being ignorant. Intentionally... that's scary
@KaraandNate3 жыл бұрын
I've been trying to explain shorting to Kara for the last 72 hours.....thank you🙏
@nowrosenahe84443 жыл бұрын
Ayeee didn’t know you were into finance
@xxxxxx88183 жыл бұрын
Long position - Buying a stock at a price and selling it at a different price Short position - Borrowing a stock at a price and returning it at a different price
@TheOfficialEDC3 жыл бұрын
Ooo one of my favourite KZbinrs commenting on another one of my favourite KZbinr’s video! 💎 🙌🏼 🚀 🌙
@sarge_44123 жыл бұрын
I’ve been trying to understand it for days now. Read about a dozen articles and still didnt fully understand it until now. Thank you!
@ayushisharma1623 жыл бұрын
@@xxxxxx8818 I have a question and it might be a dumb one but I don't know the first thing about stocks. So if there is a risk of these hedge funds only borrowing your stocks because they think in the future it won't do well then why do those companies allow these hedge funds to borrow their stocks in the first place. Or is it because if a company is publicly traded then they don't have a say in who can or cannot borrow publicly traded shares?
@IshyVideos3 жыл бұрын
"Internet Trading Mob" God damn the news is fucking hilarious
@TerryB3 жыл бұрын
You forgot to mention they shorted the stock 120-140% thanks for the video 💕
@dev-ok1li3 жыл бұрын
Does that mean, that they borrowed card from the brother that haven't been bought yet? or they borrowed it from brother and sold to say his sister and then again borrowed it from their sister. I understood everything about what's going on, but i dont know how can someone short more stocks than there are in existence
@Sounditoutahhwet3 жыл бұрын
@@dev-ok1li It just means that the hedge funds shorted more Charizard cards than were ever printed. They borrowed all the cards, sold some and then went to the people they sold to and borrowed them again, as if they were new cards, without paying back the original owners. This crazy logic is why everyone is laughing at the hedge funds that got burned.
@dev-ok1li3 жыл бұрын
@@Sounditoutahhwet thanks
@roadent2173 жыл бұрын
@@dev-ok1li Imagine a fictitious theoretical company with only a single share in its stock pool. Alice holds that share. Bob borrows that share from Alice. Bob short sells that share to Charlie. Charlie borrows that share to Dylan. Dylan short sells that share to Emma. Now 200% of the stock pool has been shorted.
@umarridhwan98853 жыл бұрын
@@roadent217 meaning a lot more people are doomed ?
@sprinklecrepe3 жыл бұрын
I could sit and watch johnny for 5 hours in a row and understand everything he says but cant focus for 10 mins in class
@MrCheesysmell3 жыл бұрын
He’s an excellent journalist
@Kopie08303 жыл бұрын
He makes all those mumbo jumbo bullshit understandable.
@beatrizcascelli3 жыл бұрын
THATS IT!
@callmeswivelhips82293 жыл бұрын
It's because he's almost super gorgeous
@shubham85963 жыл бұрын
SAME!
@FinlayDaG33k3 жыл бұрын
Hedgefunds manipulating the market: "It's fine, this is the way it's meant to be" Hedgefunds getting beat at their own game: "NO, THIS IS WRONG, YOU CAN'T DO THIS!? HELLO!? FREEZE THE MARKET!?"
@mikatu2 жыл бұрын
what they did was basic market manipulation. Using the internet to inflate the price of the stock and then claming they were fighting against wall street!!!
@FinlayDaG33k2 жыл бұрын
@@mikatu Not like Hedgefunds don't do that on a daily basis :^)
@loienichebas3 жыл бұрын
Just one detail about “why” it rallied that much. Hedge funds who were short selling and panicked started buying back the shares they borrowed. This is what drove the craziest rally. Reddit ppl have bumped the stock price a bit, but the drastic rise was due to the panicked of hedge funds having to buy at any price.
@borisraguza86933 жыл бұрын
Yes exactly they panic and basically dig themself even more.
@noahbowie59853 жыл бұрын
Me: Doesn't understand this gamestop saga Johnny: Hold my beer
@bthemedia3 жыл бұрын
Johnny missed the point though 🤦 Louis Rossmann explained it multiple times over the last week kzbin.info/www/bejne/jomZXp2Grp5rj6M
@bthemedia3 жыл бұрын
Johnny explained short selling via Pokémon - not the fundamentals for this “short squeeze” because 120-140% of GameStop stock was shortened.
@bthemedia3 жыл бұрын
Fundamentally: you cannot short sell 140% of all Pokémon cards that exist in the world! You’ll get called out on it when people buy the stock.
@ihsanaminudangana53633 жыл бұрын
There was a point i thought i will never understand it until i saw this video.
@adhamalkholy31613 жыл бұрын
Hold my orange coat*
@DonMuffatello3 жыл бұрын
Id love to see an updated version of this once the whole gamestonk saga is over
@ALL_FOR_NOTHING_3 жыл бұрын
hype
@SchmidtDrums Жыл бұрын
Thank you. This is far from over.
@yadisfhaddad7223 жыл бұрын
You forgot to mention that Melvin Capital not only borrowed tons of Charizard cards, they sold tons of cards they didn't even have. And somehow that was legal.
@lelouch33 жыл бұрын
They borrowed shares from lenders who owned the shares legally and were willing to lend out their shares (for a fee), and then sold them to willing buyers, paying the fair market price for the shares. So why would that be illegal?
@JackobJackob323 жыл бұрын
It is legal, as legal as if you borrow money from a bank and buy a house
@haldir1083 жыл бұрын
If you first borrow from the owner of the share, and sell it to a new owner, you can then borrow it from the new owner, and sell it to a new-new owner. This way you can short the same share twice, and have a double short position.
@Ducanralf3 жыл бұрын
My cousin invested 22k on GameStop ,some months ago.He made it big some days ago 👍
@AlexOnFinance3 жыл бұрын
Hope your cousin has/is selling. Because right now, all your cousin has are "paper gains". I'm not saying "liquidate it all" but he probably should sell some on the spikes... and then if he wants to buy back on the dips (but keep some of the original payout). Hard to know when the ride will be over. Best of luck to your cousin!
@everythingisfine99883 жыл бұрын
💎💎💎🙌🙌🙌
@vincentgrass65313 жыл бұрын
Wait is he u/DeepFuckingValue?
@Ducanralf3 жыл бұрын
@@AlexOnFinance He sold on high at the right time .Honestly, that was pure speculation and it paid off.
@redlanddesign92073 жыл бұрын
@@Ducanralf You sell at the wrong time, cos the best time hasn't arrive yet
@wavedirt79463 жыл бұрын
You need to update this for current GME situation. It gets much deeper
@just1it1moko3 жыл бұрын
how so? i'm from europe so stonks are kinda weird here.
@sangbeom62453 жыл бұрын
Deep Fucking Value..."I like the stock"
@aaithubarla3 жыл бұрын
“Power resides where men believe it resides. It’s a trick. A shadow on the wall. And a very small man can cast a very large shadow.” - Lord Varys
@lelouch33 жыл бұрын
Lmao good job, you read Game of thrones. Congrats
@aaithubarla3 жыл бұрын
@@lelouch3 Lol. I haven't read it but I have watched it though.
@KingOfMadCows3 жыл бұрын
One very important aspect you've missed is that the stocks are not borrowed for free. The broker charges an interest and they require a certain amount of collateral in the short seller's account. The interest is based on the price of the stock. That's why a short seller can't just say, "let me borrow the stock for one more year," and wait for the price to drop again. The higher a stock's price goes, the more interest they have to pay, the more money they need to put into their account.
@rogink3 жыл бұрын
I don't know much about shorting, but I thought the Hedgies had to buy the stock when the trading period ended - which is every 28 days. So I don't understand why they could borrow the stock for a year.
@whenthedrumskickin98313 жыл бұрын
Ahh that explains the incentive for stockholders to allow their stock to be borrowed in the first place and how there’s more money to made if that future stock rises rather than falls. Thanks for the breakdown 👍🏼
@josiegaitens553 жыл бұрын
This really helped me understand, thanks!
@luboyanev3 жыл бұрын
This is exactly what I was wondering! I was thinking why should hedge funds be panicking, can't they just hold their stocks until the value drops at some point...
@De4dPoo13 жыл бұрын
@@luboyanev I have the same question and no answer, explain please.
@milesb3153 жыл бұрын
robinhood no longer allowing people to buy gamestop stock is just amazing. so you only like unadulterated capitalism when you win huh?
@M.KH4N53 жыл бұрын
This guy bought gamestop shares for us. That’s dedication
@emrazum3 жыл бұрын
The hedge funds also shorted way more shares than are available for trading
@pukpukkrolik3 жыл бұрын
On its own it doesn't mean anything. You can get to over 100% short ratio just by many people doing many small shorts on top of each other. Each of them has a different entry price too, when the stock is so volatile, so now just by looking at that indicator you can't tell how far you are from any potential squeeze.
@bthemedia3 жыл бұрын
Exactly 💯 the critical point Johnny missed. Apparently he didn’t read wallstreetbets beyond slandering the character of 8M Reddit users.m
@liam_iam3 жыл бұрын
@@bthemedia he missed a lot but he's quite obviously on the side of the redditors here lol
@bthemedia3 жыл бұрын
liam robertson Johnny is on the side of the redditers? ... you mean the 8M users he called “Stock bros, trolls, misogynistic as hell, irreverent, foul mouthed” - he’s on their side?
@liam_iam3 жыл бұрын
@@bthemedia yeah, he is - I think you maybe missed his intention with that point. He made it pretty clear that he supports the cause of "getting back at the hedge funds" etc. which is what the redditors are trying to do. I think he was just trying to draw a contrast between the wealthy established wall street investors and the random laypeople on r/wallstreetbets. The users on r/wallstreetbets sort of position themselves as self-aware "stock bros" and so Johnny was just pointing out the character that the redditors are playing; he wasn't actually trying to disparage them.
@masterchief2723 жыл бұрын
A week or two after this video released, McDonald’s now includes Pokémon Cards and now everyone is buying a ton of happy meals lol.
@grmpEqweer3 жыл бұрын
So, the rich people were clearly displaying class solidarity in this episode. As they do.
@MichelePonte3 жыл бұрын
This has been the funniest drama in a long time!
@cybercery52713 жыл бұрын
i mean wont the people who work at the hedgefund lose thier jobs?
@icery593 жыл бұрын
@@cybercery5271 yes, probably. Idk im not a trader
@grmpEqweer3 жыл бұрын
@@cybercery5271 They'll likely be able to get another job. I doubt they'll miss any boat payments.
@Slashplite3 жыл бұрын
Not funny for billionaires 😅
@Zveebo3 жыл бұрын
@@Slashplite Lots of ordinary people have investments in hedge funds - it's not just (or even primarily) billionaires.
@Oreioss3 жыл бұрын
I NEED A PART 2, I BELIEVE IT IS VALUABLE! xD
@FinancialShinanigan3 жыл бұрын
The Big Short has Margot Robbie to explain KZbin has Johnny Harris to explain
@bthemedia3 жыл бұрын
Louis Rossmann explained it FACTUALLY BETTER multiple times over the last week kzbin.info/www/bejne/jomZXp2Grp5rj6M Just not as cinematic as Johnny 😉
@rickardkaufman39883 жыл бұрын
@@bthemedia I saw that one. He's pretty good.
@jk4843 жыл бұрын
What was the movie in the clip he had?
@tams8053 жыл бұрын
@@bthemedia Johnny's less abrasive. I like Rossmann, but damn can he be annoying to listen to.
@espi1003 жыл бұрын
The "Value" of the company doesn't move the price, but people does. "Perceived Value" would be the term! Thanks Johnny!
@bthemedia3 жыл бұрын
💯 true! It’s all emotion and feelings in the stock market. And opportunity... Louis Rossmann explained it multiple times over the last week kzbin.info/www/bejne/jomZXp2Grp5rj6M
@guypog71853 жыл бұрын
I'm so freaking glad that a journalist like you exists, man. Thanks for this vid.
@BeeHereNowuk3 жыл бұрын
Finally someone who can explain this madness in terms I understand! Cheers Johnny, great presentation as usual!
@bthemedia3 жыл бұрын
Louis Rossmann explained it FACTUALLY BETTER multiple times over the last week kzbin.info/www/bejne/jomZXp2Grp5rj6M Johnny missed the key point
@bthemedia3 жыл бұрын
... you cannot short 140% of the stocks (or Pokémon cards) that actually exist.
@tpowerr3 жыл бұрын
Kind of a sweeping generalisation to say all people on r/wallstreetbets are misogynistic. Thanks for that
@astral67493 жыл бұрын
Been visiting there from time to time. There's certainly a lot of millenials and zoomers trolling around but I wouldn't say that they're all misogynistic. Misogyny is a strong term. I'd rather label them as chaotic nerds if anything.
@philipkorteknie48163 жыл бұрын
The word “reddit bros” also kind of links them with some kind of alt right trump supporting group, which is simply not true. It is one of the least politiced subreddits, and no one wants it to be politiced. Calling them reddit bros makes it really lose its meaning, and gives reason for the media and hedgefunds to portray wallstreetbets as the one who is in the wrong here, not the hedgefunds who shorted a stock 140%
@astral67493 жыл бұрын
@@philipkorteknie4816 In my case, as a non-American, "Reddit Bros" doesn't sound so bad. For me, I interpret it as a group of people who shows comradery while standing up againsts the big guys. But yeah, I see what you're saying. Especially with all the drama that's been going on in the US.
@philipkorteknie48163 жыл бұрын
@@astral6749 i’m not an american as well, but from my understanding the term ... bros has taken some kind of alt right meaning. I could be wrong tho
@WillRamirez3 жыл бұрын
@@philipkorteknie4816 "Bro" doesn't have any ALT Right connotation whatsoever. It's more about immature, male energy like you would have in a college fraternity.
@FeastIndiaCompany3 жыл бұрын
I like how Johnny summarized this whole thing philosophically.
@angbenyi66183 жыл бұрын
the public, when rallied together, is always more powerful.
@JettSkoll3 жыл бұрын
It will not end well for the little guy.
@thomasduffyjr3 жыл бұрын
@@JettSkoll but we ARE the little guys
@ztac_dex3 жыл бұрын
this had more impact to the rich people in wall street than what occupy wall street did
@sulavjha74503 жыл бұрын
"Value is what a bunch of people think value is" - Johnny Harris
@patricksommerville4633 жыл бұрын
Hey Johnny are you able to do a runner up video to this one?
@SrujanVishwanath3 жыл бұрын
Johnny explaining Gamestop drama is the best start to this week
@JordanAWEsomeProduct3 жыл бұрын
Facts got coffee and breakfast ready for another video.
@Trailer__Swift3 жыл бұрын
Yesssssstonks!! You’re forgetting the part where they were allowed to borrow and short more Charizard cards than actually exist 🙃
@izzurzuhri3 жыл бұрын
how is this legal
@MaJuV3 жыл бұрын
@@izzurzuhri THAT is the main question that needs to be answered. Because to this day that is still legal.
@EmyrDerfel3 жыл бұрын
@@izzurzuhri There are laws against it, but enforcement...?
@idontwanttopickone3 жыл бұрын
Most underrated comment here.
@WellBattle63 жыл бұрын
Anyone know the difference between this and fractional reserve banking (there is more borrowed money from banks than the banks actually have in reserve)? I mean, I know with normal money that’s okay cause the government ends up printing money during currency reserve crisis’s, but I don’t see whether companies would do the same for short sellers.
@-NoneOfYourBusiness3 жыл бұрын
South Park covered that exact topic, the financial market craziness, the fact that money is based on "faith" (trust), etc, twelve years ago. The name of the episode was Margaritaville. "They didn't listen" - Randy Marsh
@GeoZoo-official.3 жыл бұрын
This is driving me nuts. 3 vids in 1 week? Man, I’m thrilled for 2021
@1986Shahrukh3 жыл бұрын
I wish my high school teachers would have taught me about stuff like u just did !!!!
@PaulaReisdorf2 жыл бұрын
I have been literally trying to understand the concept of short-selling for years. You finally made me understand it within a couple of minutes of using a Pokemon example. Thank you!
@Rockthezeppelin3 жыл бұрын
"I don't know a lot about this... so first thing i'm gonna do is buy gamestop shares" 😂😂😂
@BaBa_YaG43 жыл бұрын
Elon has gained monopoly in stocks. His one tweet is enough to raise the stocks from $5 to $1500
@jtgd3 жыл бұрын
He doesn’t even have to mention stocks. Just telling people to use a business causes others to invest in it, thinking it will explode in value, causing people to purchase stocks If it’s public
@JK-gu3tl3 жыл бұрын
Michael Burry is shorting Tesla.
@magni56483 жыл бұрын
Yeah, and that's a great way to end up with the SEC hitting you with billions of dollars in fines and decades worth of jail sentences. Securities fraud is no laughing matter.
@iam.melloo3 жыл бұрын
I was literally waiting for someone to explain this to me and I think I really got it thank you! You made this whole topic actually really thrilling!
@vitorgjorge3 жыл бұрын
Finally someone that's using reddit screenshots in dark mode! Thank you
@DiegoTeliz3 жыл бұрын
Best explanation about this topic so far. Loved it! It would be great to see more of these videos about finances and other varied topics. Keep up the great work Johnny!
@pogeman23453 жыл бұрын
The Pokemon cards analogy makes me think you could make an entire video about the economy of trading card games and make it really entertaining.
@KPC-1233 жыл бұрын
The true nature of our entire monetary economic system, (as expressed in Dollars, Pounds, Marks, etc) is really a shared illusion which is only as stable as our expectations that future currency will be of roughly equal value to the last 'dollar' we earned. Yet few realize, by virtue of inflation alone, that the future value of those 'dollars' always declines.
@magni56483 жыл бұрын
Slow inflation isan overall boon to the economy. It encourages people to spend instead of stockpile their money, which in turns fans continuing economic growth.
@Ozk3rzon33 жыл бұрын
I bet Johnny has like 10 Charizard cards at home. 😂
@johnnyharris3 жыл бұрын
lolol
@mrmaxin533 жыл бұрын
That’s a cool $5M
@econotalk2 жыл бұрын
Great video, many thanks! I like your format
@MrBasdss3 жыл бұрын
Hey Johnny, please let the world know what is going on in Myanmar. A lot of people are picking sides, due to their recent national crisises, without knowing the full story.
@asutoshghanto34193 жыл бұрын
do you live in myanmar?
@ninescars86173 жыл бұрын
Yea
@zephyrus60033 жыл бұрын
Nobody: Literally nobody: Reddit Dudes: let's crash Wall Street
@Nugcon3 жыл бұрын
stonks
@PA551ON3 жыл бұрын
There were certainly a bunch of people who invested in Gamestop as a meme, but there were also just as many people who invested because they had an emotional connection to GameStop and didn't want to see it shorted. For many people, GameStop provided them with many of the games that shaped their childhood and they have fond memories of visiting their stores. To see out of touch suits hoping the company that helped build your childhood dies so they can get rich...that's gonna piss a lot of people off. And it did. That's what was beautiful about the GameStop stock surge. It was one of the first times the stock market was affected by emotion rather than math.
@CosmicStorm31413 жыл бұрын
I love how this is explained in understandable terms Cuz it's hard to understand the stock market
@jameswallace19263 жыл бұрын
It is a very esoteric field
@Zer0-03 жыл бұрын
I agree with all of this except for the Robinhood part. The reason why they stopped trading was not because Citadel had a huge stake in it. But rather because they didn't have the funds to sustain such large trades. They needed to raise money prior to resuming trading for these meme stocks.
@eeriecrack3 жыл бұрын
^^^^ this, it's so aggrevating that so many people are getting this wrong
@kuhataparunks3 жыл бұрын
THANK YOU for finally explaining what shorting is!!!!!!!!!! I could not understand the 15+ explanations but yours was clear
@amanueltesfaye77883 жыл бұрын
Mental note: This video has zero maps
@DarkHarlequin3 жыл бұрын
That might be the strangest thing of all... ;-)
@Were_It3 жыл бұрын
This guy is has been killing it for some time and I think his doing a great job at journalism infused with a sick editing experience and sound design.
@joelcaporale51122 жыл бұрын
Great explanation man. Not only is it great info but as a video professional I love just watching your work. Keep up the good work, praying for you man!
@nakibsayyed49993 жыл бұрын
This is the most I've ever been interested in stock market.
@CVerse3 жыл бұрын
The most ANYONE has ever been in the longest time
@ztac_dex3 жыл бұрын
Borrowing Charizard and expecting it to fail in the future is a weird concept in stock market so much so that we don't do that kind of practice in my country.
@asutoshghanto34193 жыл бұрын
buying a failing company means a infinite amount of risk I still don't understand why they do like this in america?suppose you brought a share of $4 and then in 1 year it became 1 cent and probabiliy it might get removed from the stock market.
@senseiadam-brawlstars94653 жыл бұрын
Actually invest your money so you’re not broke in retirement.
@senseiadam-brawlstars94653 жыл бұрын
@@CVerse um.... I’m guessing you’ve never invested any money like a responsible adult...
@SKseeking_adventures3 жыл бұрын
I was watching this unfold and was like, “Johnny needs to make a video on this so I can understand this chaos.” Sooo thanks 🙃
@maxwealth.2 жыл бұрын
Sad (and good for you) that this explanation of shorting a stock is better than the ones of channels focused on finances!
@catone_atelier3 жыл бұрын
I have no experience in stocks and stuff and always thought it was very complicated to understand and predict. Johnny explained this really well and I'm shocked at how easily the market can shift to make people lose billions of dollars. If I had to pick a side though I'd definitely support the Reddit guys, why should those financial people be allowed to stop trading when it's unfavorable for them?? That's cheating and that's just market manipulation!
@firstlast97313 жыл бұрын
This was SUPER helpful with the Pokémon explanation. Thanks so much!
@emilygould14873 жыл бұрын
Hi just wanted to say I love all your videos and I really appreciate how you were able to cover this topic but explain in a way that makes it a lot easier for people to grasp. I really admire you and your work, and I'm excited to see what you have in the works for the next year ❤
@wesjames60603 жыл бұрын
"To understand this you have to understand Pokemon cards." Oh well ok say no more
@qwertyman15113 жыл бұрын
didn't they also overshort? They borrowed more stock than exists.
@NightDocs3 жыл бұрын
God I fucking love your filmmaking. I spend so much time trying to do what you make look effortless
@johnnyharris3 жыл бұрын
Thank you. Just remember that it is not effortless. It has been many many years of practice and lots of making terrible work so that I could eventually make good work. Keep going.
@tomfoxmusic3 жыл бұрын
it's eye opening to think any group of people could effect the market so easily
@bulanexe62953 жыл бұрын
I think that Johnny missed/undersold/did not explain fully the nuances of how shorting companies cause companies to go bankrupt, how the people of Reddit are individuals that did not have any formal organization or commitment to this push with GameStop, how there hedgefunds have a unfair advantage at manipulating the market, and the hypocrisy of the hedgefunds and robinhood
@princebanini3 жыл бұрын
This really explained everything for me. Thanks so much.
@evanjohnson45593 жыл бұрын
Careful, it’s not unprecedented for platforms to halt trading when volatility and prices get irrational. It’s just the first time the mass public has experienced it. When oil futures went negative last year, the same thing happened on most platforms. FX service providers are doing the same thing right now with foreign platforms looking to invest in US equities with USD. The piece that’s the most unprecedented is how significant of a position Melvin had shorted with respect to total outstanding shares.
@alfredolumba79363 жыл бұрын
@Evan Johnson however isn’t the significance also due to the fact they stopped trading for no particular reason? with oil futures going negative that was by in large part to the pandemic running rampant in its 1st phase. literally no one knew where the pandemic was going to go. Trading usually is stopped when massive events like that happen and cause volitity. That’s what happened with 9/11, Pearl Harbor, and the Great Depression. Pure volitility for its own sake has not forced trading on any platform to stop on its own which is why many are criticizing the situation as unfair.
@evanjohnson45593 жыл бұрын
@@alfredolumba7936 your point of the pandemic involvement is fair for the futures example since it was an environmental factor in that situation, although the pandemic itself was not the event that caused the sudden near zero and negative prices. The event was attributed to a few wall street firms over purchasing of futures and not having anywhere to physically store the oil upon delivery. The similarities between GME and this oil event are that the prices was taken over by 1 (or few) entities over stepping and the rest of the market is taking advantage of them. This is opposed to how the prices are normally dictated which would be by the inherent value of the asset at that point in time. Here, individual brokers decided to stop buying WTI futures while this event sorted itself out. To your point on Robinhood stopping trading for no particular reason, this is not true. Their CEO gave an interview later that day on CNBC and other networks explaining why they did it. The reason has to do with deposits at clearing houses and other financial service firms that help facilitate the trade. Logistically, a discount broker like Robinhood has to buy the stock on your behalf because there’s a lag time of a few days from when you click ‘buy’ to when the money actually moves. And they were projecting high enough volumes that would lead to defaulting on those initial purchase. So they stopped trading to not bankrupt themselves. To your point on the inherent nature of volatility is not a reason to stop trading, this is fair. Although it should also be pointed out that when major events occur, it’s often regulation in the exchanges themselves that halt trading. GME had been frozen multiple times a day at its peak by the exchanges for regulatory reasons but that’s not causing this uproar. This point is exogenous to the precedence of Robinhood’s actions though. In brief, I think halting trading is common solution to a very uncommon problem that is justifiable. However, to say it’s unprecedented as it says in the video is generously an over exaggeration. Personally, I think using a small and inexperienced/young discount broker like Robinhood or WeBull inherently has problems the stem around liquidity and this shows those cracks. I don’t find fault in Robinhood, but I think this displays the risks of trusting your assets with institutions that aren’t established.
@autothrust3303 жыл бұрын
“Vlad the stock impaler” - elon musk
@fukuwota3 жыл бұрын
this comment is underrated
@GinoGabriel-t5c2 жыл бұрын
Very good way to explain short selling. Teaching something is harder than learning something.
@coachmcguirk62973 жыл бұрын
I just watched that movie you mentioned and showed clips of "the big short" last night! It was fantastic. It's available on Netflix in Canada if you have a VPN.
@chrisirving84893 жыл бұрын
I don't think I've never clicked a KZbin video faster
@aharoni1000 Жыл бұрын
MINE TOO!!!! The Big Short is just toooo good - wish there where more films like that out there
@lauradevries92423 жыл бұрын
you forgot to mention that the gamestop stock was undervalued by these hedgefunds in the first place
@photastica3 жыл бұрын
“power resides where men believe it resides..” -Lord Varys
@sarahbaines20923 жыл бұрын
Wow this was so helpful. I have been trying to rap my head around this idea. Visuals really help me connect the dots as well as your clear explanation. Thanks Johnny!
@alperenerol18523 жыл бұрын
Top 1% of the 1% who play God without permission. Now we're gonna take them down.
@tq49053 жыл бұрын
Mr. Robot!!!
@lelouch33 жыл бұрын
Nice takedown
@garycpriestley3 жыл бұрын
Was there ever a follow-up to this? I'd love to see Johnny's subsequent analysis.
@nathanngumi84673 жыл бұрын
Thanks, your example of short selling is very easy to understand. 👌🌟👍
@zaidahmed54643 жыл бұрын
you forgot to talk about elon musk who boosted this buying process because hedge funds shorted tesla in the past so it's like, here's my revenge
@javeedn3 жыл бұрын
What are the consequences if you don’t actually return the stocks you’ve borrowed? Would really like to know
@user-ob9yd3rb1v3 жыл бұрын
Bumping this. Also would like to know!
@rlamacraft3 жыл бұрын
You’re contractually obliged to, meaning you could get sued if you don’t
@javeedn3 жыл бұрын
@@rlamacraft Oh I see, thanks! In this situation though, would corporations really sue seeing that they’re all chums?
@rlamacraft3 жыл бұрын
@@javeedn Probably. As much as it is a close circle they still have a fiduciary obligation to their clients. I have money in an index fund and the way they keep their fees so low is buy renting out the stocks held by the fund to short sellers. I’d be pissed if I found out they didn’t get them back and didn’t do anything about it because that’ll mean higher fees for me. A lot of this stuff is all about reputation, which nobody wants to lose by not living up to their side of the bargain
@user-ob9yd3rb1v3 жыл бұрын
@@rlamacraft Very clear explanation, thank you for getting back to us!
@daoudnawaz3 жыл бұрын
You just made it so much easier to explain shorting 🙌🏼🔥
@ligma15873 жыл бұрын
need to updated video, much much worse than we thought when you made this. great video