January, Wednesday 27th., 2021
This is the true sickness!This is the true pandemic!This IS what Humanity has to rid herself of and get liberated from the 'overnight rich' molestation and from the debt shackles...!Maria L. Pelekanaki
"...And the hallmark of any bubble: It’s infectious and it’s easy to get caught up in it. The prospect of massive wealth gains from nothing is causing millions to join the fray in the ultimate fomo trade: We can all become rich overnight..."
"..All of these manic periods have something in common: Believing in something absolutely even though it is either completely wrong or unrealistic. Seeing reality becoming untethered.
I’ve long argued that central banks aiming to be a stabilizing force are actually bringing about societal instability. Occupy Wall Street, Black Lives Matter, the storming of the Capitol, angry Trump voters, angry Democrat voters and yes even Gamestop reddit buyers may all have different causes and triggers and motivations, but they actually have one thing in common: They are angry, angry at a system that has screwed them over, a sense of deep pervasive injustice and inequality, a fissure that keeps widening with every central bank intervention program.
Think I’m kidding? Here’s John Authors via Bloomberg who sees anger as part of this picture:
“The people investing today are driven by righteous anger, about generational injustice, about what they see as the corruption and unfairness of the way banks were bailed out in 2008 without having to pay legal penalties later, and about lacerating poverty and inequality. This makes it unlike any of the speculative rallies and crashes that have preceded it.”
Bitcoin? It too has positioned itself as rage against the establishment. See, it’s all part of the same thread, needle and trade.
Gamestop of course has the added benefit of seeing select billionaires enjoying fueling the flames:
I see we've reached the part of the bubble where billionaires are pumping small cap momentum stocks via their Twitter feeds with immediate effect on prices. pic.twitter.com/XrvWLlMA2E
— Sven Henrich (@NorthmanTrader) January 26, 2021
The great gamification of the stock market. Anything goes:
I'm not selling until it hits $10,000 pic.twitter.com/qMj89KMQ7f
— Sven Henrich (@NorthmanTrader) January 27, 2021
Oh the hypocrisy of it all, if there was an organized effort to take down a stock price and aided by billionaires via their twitter feeds the SEC would be all over it & the outrage widespread, but because it’s just squeezing a short hedge fund it’s all glee & giggles.
We reach a point where nothing matters. Valuations, fundamentals, forward multiples who cares. Just create short squeezes in everything and it’s working. For now. After all the most shorted stocks are flying to the moon never mind that there are fundamental reasons as to why there are short positions in these stocks to begin with: They are shitty companies. Gamestop being one of them.
And the hallmark of any bubble: It’s infectious and it’s easy to get caught up in it. The prospect of massive wealth gains from nothing is causing millions to join the fray in the ultimate fomo trade: We can all become rich overnight.
And that’s how bubbles burst, everybody is long the same trade until it collapses. What about the systemic risks? One hedge fund blows up it’s a fun headline, multiple hedge funds blow up and it can cause a ripple of financial instability. May I remind everyone of 2008?..."
And whatever we got going here is now approaching a similar frantic delusion that appears to infect everyone...