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On a positive note he's got some losses to claim on income tax. Might need it with Dems in charge.

Hopefully Biden will bail those folks out. I'm not kidding. No different than idiots borrowing $100k for a degree in marketing.

No pity here. No different than betting it all on red in Vegas.

BoydCrowder13 said:

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No pity here. No different than betting it all on red in Vegas.

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you have much better odds in vegas than he did here.

Dan Scott said:

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https://www.wsj.com/articles/gamestop-investors-who-bet-bigand-lost-big-11613385002?mod=hp_lead_pos7

Quote:

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Salvador Vergara was so enthusiastic about GameStop Corp. GME 2.54% in late January that he took out a $20,000 personal loan and used it to purchase shares. Then the buzzy stock plunged nearly 80%.

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Quote:

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Vergara, a 25-year-old security guard in Virginia, started investing four years ago after deciding he wanted to retire young. To save money, he drives a 1998 Honda Civic, eats a lot of rice and lives with his dad.

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Quote:

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He didn't want to touch his index-fund investments, so instead he got a personal loan with an 11.19% interest rate from a credit union and used it to fund most of his GameStop purchase. He bought shares at $234 each. "I thought it could go up to $1,000. I really believed in that hype, which was an awful thing to do," Mr. Vergara said.

He plans to hold on to the shares because he believes in the company's turnaround, he said, and use his paycheck to cover the monthly payments on the personal loan. Once the pandemic is over, he hopes to move back to his native Philippines, live off savings and start a charity. The GameStop loss set those plans back about six months, he said.

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That bolded part made me cringe. This is why we have poor people. In the article it mentioned he has $50K in savings after investing 4 years in diversified index funds. How the hell is he going to move to the Philippines and start a charity with that much saved. The media hyped up the story and now they are trying to make us feel sorry for people that lost.

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Has he started a GoFundMe account?
If so, could be hoax turned fraud.

BoydCrowder13 said:

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No pity here. No different than betting it all on red in Vegas.

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Wrong. His shares still have value that can go back up. Losing on red means your money that hand is gone forever.

Dan Scott said:

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https://www.wsj.com/articles/gamestop-investors-who-bet-bigand-lost-big-11613385002?mod=hp_lead_pos7

Quote:

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Salvador Vergara was so enthusiastic about GameStop Corp. GME 2.54% in late January that he took out a $20,000 personal loan and used it to purchase shares. Then the buzzy stock plunged nearly 80%.

---

Quote:

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Vergara, a 25-year-old security guard in Virginia, started investing four years ago after deciding he wanted to retire young. To save money, he drives a 1998 Honda Civic, eats a lot of rice and lives with his dad.

---

Quote:

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He didn't want to touch his index-fund investments, so instead he got a personal loan with an 11.19% interest rate from a credit union and used it to fund most of his GameStop purchase. He bought shares at $234 each. "I thought it could go up to $1,000. I really believed in that hype, which was an awful thing to do," Mr. Vergara said.

He plans to hold on to the shares because he believes in the company's turnaround, he said, and use his paycheck to cover the monthly payments on the personal loan. Once the pandemic is over, he hopes to move back to his native Philippines, live off savings and start a charity. The GameStop loss set those plans back about six months, he said.

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That bolded part made me cringe. This is why we have poor people. In the article it mentioned he has $50K in savings after investing 4 years in diversified index funds. How the hell is he going to move to the Philippines and start a charity with that much saved. The media hyped up the story and now they are trying to make us feel sorry for people that lost.

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I agree this was a very dumb move on his part, but per my Filipino friends, you can live like a king off $1k/month in the Philippines. Or you can live like a normal person for less than that.

That $50k will go a long way in his native country, especially if he continues to work.

$50k savings for a 25-year-old working as a security guard is actually a pretty good starting point. Too bad he pissed it away on GME.

I know a guy that "retired" to the Philippines. He built a 500 sq foot "house" with cinder blocks and lives on almost nothing. It can be done, but not sure why anyone would do it.

Fuzzy Dunlop said:

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I know a guy that "retired" to the Philippines. He built a 500 sq foot "house" with cinder blocks and lives on almost nothing. It can be done, but not sure why anyone would do it.

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Because the guy in the OP's story is from there lol. A 500 sq foot house is probably a mansion to him. Why wouldnt he want to go back to his native country and live like a king from the money he made in the US. Sounds like the American dream!

torrid said:

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$50k savings for a 25-year-old working as a security guard is actually a pretty good starting point. Too bad he pissed it away on GME.

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Agreed. He is probably doing better financially than most 25 year olds with college degrees. Thats a lot more than I had at that age. It was dumb to take out that loan, but sounds like hes paying the money back and is good with his money otherwise.

BoydCrowder13 said:

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No pity here. No different than betting it all on red in Vegas.

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Well, there's your problem. Don't you know............

Diamond Hands

A fool and his money. Well in this case the banks money....

Soon may the tendie man come

RDCAG said:

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Soon may the tendie man come

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to send our rocket into the sun

Brokers let shorts buy shares while banning buying of shares by everyone else. Not excusing GME speculation, but longs got cheated and shorts bailed out. Brokers should have froze ALL trading on GME until they met capital requirements. Instead they only allowed longs to sell shares to shorts. Imagine a stock crashing and brokers only allowing buying of shares while limiting all selling.....so then shorts have to buy to cover at higher price for big loss.

techno-ag said:

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On a positive note he's got some losses to claim on income tax. Might need it with Dems in charge.

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Not yet he doesn't. It says he hasn't sold the stock because he believes in the company.

Also, it says he's only going to be delayed by 6 months? That seems like it's on the low end.

The outcome when Roaring Kitty is your financial advisor.

Fuzzy Dunlop said:

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I know a guy that "retired" to the Philippines. He built a 500 sq foot "house" with cinder blocks and lives on almost nothing. It can be done, but not sure why anyone would do it.

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We had a guy at work who loved the PI. Goes there 5-6 times a year. Just got canned because he was a POS and spends all his time in the PI and plans to move there. Got several ladies or so he says, and close to $500K. He's gonna be a king.

Quote:

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He's gonna be a king

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https://en.wikipedia.org/wiki/The_Country_of_the_Blind

Gee, I wonder why this is a news story

thirdcoast said:

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Brokers let shorts buy shares while banning buying of shares by everyone else. Not excusing GME speculation, but longs got cheated and shorts bailed out. Brokers should have froze ALL trading on GME until they met capital requirements. Instead they only allowed longs to sell shares to shorts. Imagine a stock crashing and brokers only allowing buying of shares while limiting all selling.....so then shorts have to buy to cover at higher price for big loss.

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If they limit selling they effectively limit buying. Likewise, there's no reason for a broker to limit buying only to shorts unless they were the lenders of the securities in the first place. If that was the case then they would've been bailing themselves out, not the short sellers.

Dan Scott said:

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https://www.wsj.com/articles/gamestop-investors-who-bet-bigand-lost-big-11613385002?mod=hp_lead_pos7

Quote:

---

Salvador Vergara was so enthusiastic about GameStop Corp. GME 2.54% in late January that he took out a $20,000 personal loan and used it to purchase shares. Then the buzzy stock plunged nearly 80%.

---

Quote:

---

Vergara, a 25-year-old security guard in Virginia, started investing four years ago after deciding he wanted to retire young. To save money, he drives a 1998 Honda Civic, eats a lot of rice and lives with his dad.

---

Quote:

---

He didn't want to touch his index-fund investments, so instead he got a personal loan with an 11.19% interest rate from a credit union and used it to fund most of his GameStop purchase. He bought shares at $234 each. "I thought it could go up to $1,000. I really believed in that hype, which was an awful thing to do," Mr. Vergara said.

He plans to hold on to the shares because he believes in the company's turnaround, he said, and use his paycheck to cover the monthly payments on the personal loan. Once the pandemic is over, he hopes to move back to his native Philippines, live off savings and start a charity. The GameStop loss set those plans back about six months, he said.

---

That bolded part made me cringe. This is why we have poor people. In the article it mentioned he has $50K in savings after investing 4 years in diversified index funds. How the hell is he going to move to the Philippines and start a charity with that much saved. The media hyped up the story and now they are trying to make us feel sorry for people that lost.

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Isn't this guy a poster on this board? I swear I've heard this story before. Lives with parents. Saves money to dunk on people having fun. Etc etc.

Quote:

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In the article it mentioned he has $50K in savings after investing 4 years in diversified index funds. How the hell is he going to move to the Philippines and start a charity with that much saved.

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50 g's is a lot of money in the Philippines especially if your outside Manila or the other big cities.

03_Aggie said:

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thirdcoast said:

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Brokers let shorts buy shares while banning buying of shares by everyone else. Not excusing GME speculation, but longs got cheated and shorts bailed out. Brokers should have froze ALL trading on GME until they met capital requirements. Instead they only allowed longs to sell shares to shorts. Imagine a stock crashing and brokers only allowing buying of shares while limiting all selling.....so then shorts have to buy to cover at higher price for big loss.

---

If they limit selling they effectively limit buying. Likewise, there's no reason for a broker to limit buying only to shorts unless they were the lenders of the securities in the first place. If that was the case then they would've been bailing themselves out, not the short sellers.

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That wasn't the case. It was a trade clearing issue due to counterparty risk on short side of unlimited loss potential. By bailing out the shorts, they eliminate that counterparty risk and effectively keep themselves from holding bag when shorts can't cover at $500-1000 a share.

The shorts absolutely benefited from being the only market participants able to buy shares. It wasn't the clearing house and brokers' motive to bail shorts out, but they certainly did to protect themselves.

Andrew Sorkin of CNBC also flat out lied to public during that GME restriction on longs, and said Melvin covered, when they only really got recollatoralized. He just repeated a bogus claim probably from anonymous source, and it caused the sell off allowing shorts to cover. That same Sorkin liberal reporter then accused David Portnoy of manipulating stocks a few days later. These are the HUGE red flags everyone is overlooking, and I doubt the SEC will even look into the false Sorkin claim and who fed it to him. Instead the SEC is looking into reddit posters who collaboratively jumped on a mechanical trade.

thirdcoast said:

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03_Aggie said:

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thirdcoast said:

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Brokers let shorts buy shares while banning buying of shares by everyone else. Not excusing GME speculation, but longs got cheated and shorts bailed out. Brokers should have froze ALL trading on GME until they met capital requirements. Instead they only allowed longs to sell shares to shorts. Imagine a stock crashing and brokers only allowing buying of shares while limiting all selling.....so then shorts have to buy to cover at higher price for big loss.

---

If they limit selling they effectively limit buying. Likewise, there's no reason for a broker to limit buying only to shorts unless they were the lenders of the securities in the first place. If that was the case then they would've been bailing themselves out, not the short sellers.

---

That wasn't the case. It was a trade clearing issue due to counterparty risk on short side of unlimited loss potential. By bailing out the shorts, they eliminate that counterparty risk and effectively keep themselves from holding bag when shorts can't cover at $500-1000 a share.

The shorts absolutely benefited from being the only market participants able to buy shares. It wasn't the clearing house and brokers' motive to bail shorts out, but they certainly did to protect themselves.

Andrew Sorkin of CNBC also flat out lied to public during that GME restriction on longs, and said Melvin covered, when they only really got recollatoralized. He just repeated a bogus claim probably from anonymous source, and it caused the sell off allowing shorts to cover. That same Sorkin liberal reporter then accused David Portnoy of manipulating stocks a few days later. These are the HUGE red flags everyone is overlooking, and I doubt the SEC will even look into the false Sorkin claim and who fed it to him. Instead the SEC is looking into reddit posters who collaboratively jumped on a mechanical trade.

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So they bailed out the shorts that never actually closed their positions?

Dan Scott said:

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https://www.wsj.com/articles/gamestop-investors-who-bet-bigand-lost-big-11613385002?mod=hp_lead_pos7

That bolded part made me cringe. This is why we have poor people. In the article it mentioned he has $50K in savings after investing 4 years in diversified index funds. How the hell is he going to move to the Philippines and start a charity with that much saved. The media hyped up the story and now they are trying to make us feel sorry for people that lost.

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Uncle Joe and Auntie Kamala will write off all capital losses.
Win-win.
Everyone happy.