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We don't need hedge funds.
We don't.
They're entirely optional, and if we're being honest they're parasitical to boot.
And they know it. And now we know it.
No wonder they're losing their shit.
We don't.
They're entirely optional, and if we're being honest they're parasitical to boot.
And they know it. And now we know it.
No wonder they're losing their shit.
They are, but we've fucked ourselves.
Since 2008 in order to bolster the stock market (which is not the economy, but we pretend otherwise), the Fed has kept interests rates at or near zero.
That means savings accounts are almost worthless. https://twitter.com/Jalozyin/status/1354604712641912834
Since 2008 in order to bolster the stock market (which is not the economy, but we pretend otherwise), the Fed has kept interests rates at or near zero.
That means savings accounts are almost worthless. https://twitter.com/Jalozyin/status/1354604712641912834
It used to be you could put your money in a savings account, leave it there, and you would actually have meaningful growth in your finances.
But with at-or-near 0% interest, the money just ... sits there.
You get a couple pennies, maybe.
But with at-or-near 0% interest, the money just ... sits there.
You get a couple pennies, maybe.
Zero percent interest also affected treasury bonds as well, which used to be the *other* stable bet.
That meant the only other option to see meaningful growth in your long-term finances was the stock market.
We're propping up the stock market at the expense of the real economy.
That meant the only other option to see meaningful growth in your long-term finances was the stock market.
We're propping up the stock market at the expense of the real economy.
If we even twitch interest rates upward *even a quarter of a percent,* the entire stock market pitches a fucking hissy and tries to crash itself.
Just this morning the Fed was about to release a report and without even knowing what it would say stocks dropped 300 points.
Just this morning the Fed was about to release a report and without even knowing what it would say stocks dropped 300 points.
Because we've moved all our savings into the stock market, if it drops then whatever meager finances people have accrued in the hopes of not working one day?
They get wiped out.
So we can't restore the "real" economy, because we sacrificed it at the expense of the fake one.
They get wiped out.
So we can't restore the "real" economy, because we sacrificed it at the expense of the fake one.
Yup. It was a speculative gimmick.
You ever play Magic the Gathering?
Ever play with a real asshole, that son of a bitch who did nothing but study the loopholes so that he built a deck that could kill anyone on the first hand?
That's short selling. https://twitter.com/rwp140/status/1354608371450560515
You ever play Magic the Gathering?
Ever play with a real asshole, that son of a bitch who did nothing but study the loopholes so that he built a deck that could kill anyone on the first hand?
That's short selling. https://twitter.com/rwp140/status/1354608371450560515
You'll hear talking heads on CNBC go on about how short selling is necessary to measure the real value of companies and correct the market and blah blah blah.
It's all horseshit.
They stacked a bunch of rules together, found a combo, and killed you on the first hand.
It's all horseshit.
They stacked a bunch of rules together, found a combo, and killed you on the first hand.
Except Reddit figured out a defense against the combo. They tried to do a first-turn kill, but got shut down.
Now they're screaming at the tourney refs with tears in their eyes and snot running down their face at the prospect of facing a loss.
Sadly, it's just that simple.
Now they're screaming at the tourney refs with tears in their eyes and snot running down their face at the prospect of facing a loss.
Sadly, it's just that simple.
Yuuuup.
Isn't it sad that a metaphor about a kid's card game is so fitting when we're talking about billions of dollars? https://twitter.com/LemarHaven/status/1354612201902854145
Isn't it sad that a metaphor about a kid's card game is so fitting when we're talking about billions of dollars? https://twitter.com/LemarHaven/status/1354612201902854145
To close this out and stress how fucked up this is:
With a savings account, you used to be able to conceivably see $20 a month growth on a few thousand dollars.
Then compound interest would kick in. If you didn't withdraw anything you'd have stability.
0% interest killed that.
With a savings account, you used to be able to conceivably see $20 a month growth on a few thousand dollars.
Then compound interest would kick in. If you didn't withdraw anything you'd have stability.
0% interest killed that.
I know I keep adding to this but grrr:
Do you know why it's called a "hedge" fund? It sounds innocuous. People even think of garden hedges and such.
Nope.
It's because they use risky gimmicks to produce returns.
I'm serious. Look it up.
They "hedge" their bets.
SERIOUSLY.
Do you know why it's called a "hedge" fund? It sounds innocuous. People even think of garden hedges and such.
Nope.
It's because they use risky gimmicks to produce returns.
I'm serious. Look it up.
They "hedge" their bets.
SERIOUSLY.
Hedge funds are so damn brazen they can LITERALLY PUT HOW THEY'RE RISKY GAMBLING BULLSHIT RIGHT IN THEIR NAME and we all treat it like some lofty respectable thing.
Goddamn I need to do something else I'm cranky now.
Goddamn I need to do something else I'm cranky now.
Right?
They use what's considered a gambling term in an attempt to be *reassuring.*
That's because they're not investing with their money.
They're borrowing *yours.* https://twitter.com/IgneousSigil/status/1354617305662107649
They use what's considered a gambling term in an attempt to be *reassuring.*
That's because they're not investing with their money.
They're borrowing *yours.* https://twitter.com/IgneousSigil/status/1354617305662107649
Show me the lie. https://twitter.com/DoubtingDjala/status/1354617314541531147
