4 ms·

Perhaps I'm misunderstanding you, are you implying that what wsb is doing is unethical?

snowwrestler 6y ago
There are two kinds of people involved: those trying to make a point and those trying to make a buck. Some people trying to make a point are going to make a lot of bucks as well. And some people trying to make a buck are going to lose a lot of money. Not everyone can get out of an inflated stock with gains, pretty much by definition. And those least likely to understand the point are also probably the ones buying into the stock late (and at an inflated price). The mix of who makes and loses money is going to affect how society sees this. It will look somewhere between an egalitarian social movement, or a few now-wealthy loudmouths who took everyone else for a ride. Making money in a bubble is all about timing... and it gets ethically complicated when some traders have control of the timing (in this case by declaring whether the vendetta against Melvin is over or not). Note that I have made no ethical considerations for Melvin; they knew what game they were playing and are not victims here IMO.
webmobdev 6y ago
No, I was broadly commenting on why education cannot trump regulation. For the sake of argument, one can say that actions of forums like WSB should also be regulated to protect them, just like laws for compulsory wearing of helmet (while riding two-wheelers) or putting seatbelts (while riding cars) exist, even though one would think that education and common sense would make them do this automatically out of self-preservation instincts. But since I am not an expert in finance or stock markets, I really am not in any sound position to comment on the specifics here. My broader general argument (not at all related to WSB or the financial industry) is just that education alone is insufficient, and regulation is often required too for maximum efficacy.

There are two kinds of people involved: those trying to make a point and those trying to make a buck. Some people trying to make a point are going to make a lot of bucks as well. And some people trying to make a buck are going to lose a lot of money. Not everyone can get out of an inflated stock with gains, pretty much by definition. And those least likely to understand the point are also probably the ones buying into the stock late (and at an inflated price). The mix of who makes and loses money is going to affect how society sees this. It will look somewhere between an egalitarian social movement, or a few now-wealthy loudmouths who took everyone else for a ride. Making money in a bubble is all about timing... and it gets ethically complicated when some traders have control of the timing (in this case by declaring whether the vendetta against Melvin is over or not). Note that I have made no ethical considerations for Melvin; they knew what game they were playing and are not victims here IMO.

webmobdev 6y ago

No, I was broadly commenting on why education cannot trump regulation. For the sake of argument, one can say that actions of forums like WSB should also be regulated to protect them, just like laws for compulsory wearing of helmet (while riding two-wheelers) or putting seatbelts (while riding cars) exist, even though one would think that education and common sense would make them do this automatically out of self-preservation instincts. But since I am not an expert in finance or stock markets, I really am not in any sound position to comment on the specifics here. My broader general argument (not at all related to WSB or the financial industry) is just that education alone is insufficient, and regulation is often required too for maximum efficacy.