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I'm not a Stock Guy™, but it's worth looking at the events of the past few days with GameStop stock ($GME).
Basically, a subreddit bought a bunch of this otherwise crappy stock just to screw with a hedge fund. Everyone has piled on and the stock has skyrocketed (17x in 1 month)
Basically, a subreddit bought a bunch of this otherwise crappy stock just to screw with a hedge fund. Everyone has piled on and the stock has skyrocketed (17x in 1 month)
This seems to be an organic movement from a community, not a coordinated scheme (although anything is possible at this point).
Now there is a mad scramble by the stock exchanges, financial media, hedge funds, and even some brokerages to stop it.
Now there is a mad scramble by the stock exchanges, financial media, hedge funds, and even some brokerages to stop it.
Some brokers are pausing transactions with $GME today. https://twitter.com/zerohedge/status/1354470379012706306
The NASDAQ CEO is calling it "manipulation".
Is she wrong?
Maybe?
But how is this different than hedge funds doing the exact same thing? https://twitter.com/SquawkCNBC/status/1354408089970221056
Is she wrong?
Maybe?
But how is this different than hedge funds doing the exact same thing? https://twitter.com/SquawkCNBC/status/1354408089970221056
Again, I'm not a Stock Guy™, but it does feel pretty weird to see large capitalistic institutions suddenly care very much when it starts to screw with their buddies.
What happened to "free market capitalism" ?
What happened to "free market capitalism" ?
I think the lesson here is that The Way Things Are™ is always more fragile than we assume, and powerful people/institutions are always worried about losing that power.
Once their power begins to erode, their so-called values do too. "Free market" until it affects you.
Once their power begins to erode, their so-called values do too. "Free market" until it affects you.
This isn't just a money thing.
When I first started seeing a therapist, they were tremendously helpful for some non-ADHD issues I was having.
Once we started getting on to ADHD, my therapist clearly had no idea what they were talking about.
When I first started seeing a therapist, they were tremendously helpful for some non-ADHD issues I was having.
Once we started getting on to ADHD, my therapist clearly had no idea what they were talking about.
I began to do my own research. I read books and spoke to others online who were going through the same things I was.
It turns out my therapist was giving me bad advice.
It turns out my therapist was giving me bad advice.
They had good intentions, but their knowledge was outdated. Like 1990's outdated.
After a while, I told them I was going to write a book about ADHD.
Rather than being supportive or helpful, they tried to stop me.
After a while, I told them I was going to write a book about ADHD.
Rather than being supportive or helpful, they tried to stop me.
"You don't have the expertise to write something like this."
"You can't share the proprietary knowledge I have given you." (I didn't)
"Writing a book takes 5+ years, you will disappoint yourself if you try to finish it this summer."
I stopped seeing this therapist after that.
"You can't share the proprietary knowledge I have given you." (I didn't)
"Writing a book takes 5+ years, you will disappoint yourself if you try to finish it this summer."
I stopped seeing this therapist after that.
I released my book in 4 months later to very favorable reviews, and frequently receive DMs from people thanking me for helping them and for sharing my story.
Suddenly, my therapist just seems so...pitiful.
Were they afraid of me taking away their "power" over my mental health?
Suddenly, my therapist just seems so...pitiful.
Were they afraid of me taking away their "power" over my mental health?
My therapist was generally helpful, but to discourage me from writing a book about my own mental health disorder was bizarre.
It's the same feeling I get when I look at the institutional reaction to $GME: people with power scared of losing that power.
It's the same feeling I get when I look at the institutional reaction to $GME: people with power scared of losing that power.
Clearly $GME will fall back down to reality after this hype cycle ends.
Don't really care, but it's fun to watch.
But the reaction & subsequent fallout of this hilarious meme in the so-called "professional" stock market is a great lesson in just how fragile "power" really is.
Don't really care, but it's fun to watch.
But the reaction & subsequent fallout of this hilarious meme in the so-called "professional" stock market is a great lesson in just how fragile "power" really is.
