You are viewing a single comment's thread from:

RE: The growing fire and coming terror

in LeoFinance9 months ago

There's a lot going on with the Gamestop 'situation', probably too much to discuss in one or even 100 posts.

There is the uber exciting community take over of the system. A system that sucks, I might add. It's shortsellers that are taking it in the chops here, and it's really for the general public to work up much sympathy to the blood suckers of the stock market. Short sellers really aren't selling anything, and they aren't really buying anything either. They are just playing the wall street slot machine with their pervasive bet that a stock is going to go down. Then when it does the (generally institutional) player makes a nice return for the shareholders at the expense of the companies that they short.

Let's be realistic here: The three monster hedge funds that are getting burned by 'community trading' could buy and sell all of gamestop stock 10 times and not feel a serious dent in their total value.

It's going to take an incredibly huge pile of money to get the 'community traders' stopped. The hedge funds will probably look bad doing it, and appearance is much more important than propriety to the funds.

Which isn't to say they won't get it stopped. The very best way to make a really enormous pile of money disappear is to wave a taste to the regulators in the US. Carly Simon sang a great song about their ability to disappear money, in fact. Nobody Does It Better.

Will this lead to a fundamental shift? Probably not. It may well lead to a modest shift in the market and the way things are done. Community Trading might become regulated and taxed, but I suspect that the genie is far enough from the bottle that it won't entirely go back.

Posted Using LeoFinance Beta

Sort:  

They are just playing the wall street slot machine with their pervasive bet that a stock is going to go down. Then when it does the (generally institutional) player makes a nice return for the shareholders at the expense of the companies that they short.

It is quite a strange "investment" as it is generative on the degeneration of something else. Rather than investing into something that adds value and grows, this seems counter-productive to what we would consider good for society.

Community Trading might become regulated and taxed, but I suspect that the genie is far enough from the bottle that it won't entirely go back.

I hope the genie is out. Then, I hope that the wealth the community has generated gets put into crypto. Have the hedge funds finance the move :)

Posted Using LeoFinance Beta

!ENGAGE 25

Posted Using LeoFinance Beta

Thank you for your engagement on this post, you have recieved ENGAGE tokens.