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I think this is more like beanie babies all over again. Except now that its easier to trade its happening in stocks. Populism of a companies stock doesnt reall
by admax88q 6y ago
I think this is more like beanie babies all over again. Except now that its easier to trade its happening in stocks.
Populism of a companies stock doesnt really change the performance of that company. GME will implode eventually and the newest suckers or WSB will be left holding the bag.
- paxys 6y agoThe difference is that our economy wasn't held together by beanie babies. A stock market crash has very wide ranging effects, not only to bankers but also retirees, blue collar workers, homeowners, new graduates and basically everyone else.
- chii 6y ago> A stock market crash has very wide ranging effects, not only to bankers but also retirees, blue collar workers, homeowners, new graduates and basically everyone else. only has such an effect if those people who invested in the stock market has more than their risk tolerance invested.
- hn_throwaway_99 6y agoIf you look at WSB's posts though, it's nothing like beanie babies. People don't think this is going to go on forever. Posts where people lost a ton routinely make it to the top. If anything, WSB celebrates the crazy volatility that can occur with the stocks of interest, and with it the chance to either win big or lose big. Now, r/bitcoin on the other hand...
- IIAOPSW 6y agoYou're not quite getting what I'm saying. A bubble like beanie babies and dutch tulips is still a logical consequence of seeking financial gain. A bubble is a game of chicken. It is about knowing when to jump off. This is a new phenomena. It is no longer about just making the bull thesis or the bear thesis. It is now persuasive to make the "this will fuck over a hedge fund manager" thesis. We need to add an entirely new animal to the metaphor.
- anonymouse008 6y agoIt sounds like new regulation before we begin 'pricing it in' But I love the thoughts and agree with the analysis
- brandonr49 6y agoStrong vote for this new animal being Badger. Bull vs Bear vs Badger
- colourgarden 6y ago"Drain the swamp" == "this will fuck over a hedge fund manager".
- rank0 6y agoThis is silly. If there was no possibility for financial gain, nobody would be investing in GME.
- SpaceRaccoon 6y agoNo, I have friends who have put thousands on the line who are happy to lose it if it bankrupts Melvin Capital.
- rank0 6y agoYour friends are lying through their teeth. Do you honestly believe these people aren't motivated by profit, when they are clearly entering long positions with the intention of driving up GME's price? It's straight up doublespeak.
- thrwyoilarticle 6y agoThen what do you invest in? P/E ratios are astronimical across the board. It's been 85 years since Keynes wrote about his beauty contest. I think he might be right.
- 1experience 6y agoExcept that valuations alone can be decisive in shaping the fate of companies // What does this mean for GameStop? Because of traders’ bullish sentiment, a previously failing company is now in the position where it can leverage the overnight increase in value to make real, substantive changes to its business. GameStop can pay off debt through the issuance of new shares or make strategic acquisitions using its newly-valuable shares. [9] A struggling company could become solid simply not because of a change in the underlying business, but because investors decided it should be more valuable. //
- admax88q 6y agoYeah it opens up options, but the likelihood of a turn around is still low IMO. Its the same decision makers as before.