Economics Thread

[Tapate50]

I was watching cnbc today and they were crying about hedge funds getting wiped out.

This take much better

Sooooooo good

[striker42]

Wallstreetbets was banned on Discord leading to an immediate massive drop in Gamestop share price. I get the feeling there are some shady things going on.

[sturg33]

Wallstreetbets was banned on Discord leading to an immediate massive drop in Gamestop share price. I get the feeling there are some shady things going on.

Establishment will ban any opinion not approved.

Its been going on a while and now is accelerating that approving party is in full control

[striker42]

Big Wall Street is trying to get regulators involved too. With this much money being lost every favor is being called in.

[nsacpi]

https://www.wsj.com/articles/gamesto...d=hp_lead_pos6

A good explanation of GameStop and bubbles. Added bonus: a quote from the late great Charles Kindleberger.

[sturg33]

Big Wall Street is trying to get regulators involved too. With this much money being lost every favor is being called in.

The wrong people are ****ing people over.

Biden and his team will take care of this, dont you worry

[sturg33]

Lol everything the establishment doesn't like is Trumps fault.

The corporate press will do their part

[striker42]

Lol everything the establishment doesn't like is Trumps fault.

The corporate press will do their part

This is silly. Wall Street has been souless and evil long before Trump.

[sturg33]

This is silly. Wall Street has been souless and evil long before Trump.

But tying things to Trump means we can BAN people bc Trump incites violence or something.

[striker42]

Also, we're just now getting technology allowing retail traders to organize and bring their power to bear.

You drop this tech in 20 years ago, you get the same result.

[nsacpi]

Lol everything the establishment doesn't like is Trumps fault.

The corporate press will do their part

there are similarities: lemmings following lemmings over a cliff

[nsacpi]

Also, we're just now getting technology allowing retail traders to organize and bring their power to bear.

You drop this tech in 20 years ago, you get the same result.

uh no...day traders and momentum traders have been a thing for many years now...and they have been using options and other forms of leverage for many years...there is nothing new here...there have been many bubbles even bigger than GameStop...dozens of them during the tech bubble in the late nineties

[sturg33]

there are similarities: lemmings following lemmings over a cliff

Sounds like its the big boys falling off a cliff.

Sorry to disappoint

[nsacpi]

Sounds like its the big boys falling off a cliff.

Sorry to disappoint

oh i have no love for hedge funds and am happy to see them get burnt

but i think these little investors (aka lemmings aka momentum traders) are gonna get burnt big time too...it is a sure thing

a bubble is like a hot potato...the people who get in early do ok (assuming they find someone to take the hot potato off their hands)...but there is always a group of losers/unlucky people holding the bag when the thing bursts

[sturg33]

Sure. But those little.gues sold their shares all week. They've paid off loans and bought houses. Some will get hurt but the big boys will have been hurt the most.

Don't worry, the Biden team will help

[nsacpi]

Sure. But those little.gues sold their shares all week. They've paid off loans and bought houses. Some will get hurt but the big boys will have been hurt the most.

Don't worry, the Biden team will help

they sold their shares to another group of little guys...there has to be a buyer for every seller

[striker42]

uh no...day traders and momentum traders have been a thing for many years now...and they have been using options and other forms of leverage for many years...there is nothing new here...there have been many bubbles even bigger than GameStop...dozens of them during the tech bubble in the late nineties

Day trading has existed but the bar to entry with apps like Robinhood is lower than ever. You also now have social media at a point where they can organize. The organization makes them dangerous.

[nsacpi]

Day trading has existed but the bar to entry with apps like Robinhood is lower than ever. You also now have social media at a point where they can organize. The organization makes them dangerous.

i haven't seen data on whether there are more day traders now...it was a very big activity in the late nineties...i would guess there were more day traders back then...and day trading (and really this is true of professional traders as well) has always relied on rumors/half-baked research...i wouldn't call what is happening right now "organized"...it is an activity that has a focal point...but rumors/half-baked ideas have been a focal point for trading for a long time...i'm still unconvinced we are seeing a new phenomenon

once upon a time i provided adult supervision to traders...so i have some professional competence here

[striker42]

I have $100 in Gamestop right now. More to just be a part of the movement against the hedge funds. Fight back against them rigging the system. I'm not comfortable putting real money in that high risk.

[striker42]

i haven't seen data on whether there are more day traders now...it was a very big activity in the late nineties...i would guess there were more day traders back then

I don't have the numbers either. I think there were more professional day traders then. I would think there are more people dabbling now with apps on phones.