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The more I see about the GameStop stock madness, the angrier I get. Like, I’m legit thinking “good for them” for the initial people who bet against the shorts in 2019 or even in August. That’s a massive gamble, but kudos. I’m enraged to see the shit happening now.
And it isn’t b/c a different class of people are trying to play the stock market — as Vice and some others note — it’s because regular people going against institutional and investment banks in this way are going to lose. And lose hard.
So the idiots who have bought into GameStop after the big pop are going to lose all their money. This isn’t a company that can fake on paper how well they appear to be doing and then then turn that into actual growth, like Tesla or Amazon. This is a severely flawed company
That is leveraged to hell and back, that has really poor financials, poor leadership, and is predicated on a model that is all but dead. Oh, also, this stock moment doesn’t even help them b/c most of the shares are oversold and the company can’t even take back value easily
Without massively cutting the price down. On that note, as soon as the whales that have legitimately profited cash out, the people dumb enough to join later will lose their money as the stock drops and drops.
And individual investors won’t get their sales in timed to the market to lock in profits or losses. That’s not how it works. So you’re going to wind up with a bunch of idiots who lost money they didn’t have on a nearly bankrupt company b/c some actual smart people managed
To beat the system in a way that is incredibly rare — and incredibly uncommon — and these are the people that will be left holding the bag. It’s like people that kept buying MoviePass stock. To paraphrase Taylor Swift: We’ve seen this film before. And I didn’t like the ending.
I mentioned the other day the masa shooting that happened at the height of the dot com bubble in Atlanta. I’m not saying there will be a mass shootout. But remember, it was only a year ago that a kid committed suicide because of his Robinbood trades.
This isn’t an idle fear. People who lose what they don’t have will hurt themselves. We see it all the time. The market is insanely stupid right now and if you’re willing to make risks you can cover, flush your money away. I hope you make huge profits. Genuinely.
But I draw the line when regular idiots get the bright idea to join in. That’s how those BTC Ponzi schemes like Bitconnect etc. hurt a ton of people. Ruined lives. This isn’t funny when regular idiots are involved in the lulz.
