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Is WallStreetBets the early innings of a financial Arab Spring?
- inglor_cz 6y agoThis reminds me of myself more than a decade ago, when I sent a business partner a DOC with a draft contract - and with tracking of changes activated, so the guy on the other side could see how we hesitated with the total price to be. He was friendly enough when he explained to us what went wrong.
- mtmail 6y agoComment belongs to another topic in https://news.ycombinator.com/item?id=25958864 https://news.ycombinator.com/item?id=25958864
- newacct583 6y agoNo. WSB has broken norms that existed in the financial community which makes some strategies riskier than they used to be. Hedge funds are accustomed to taking outrageous risks knowing that the rest of the industry (much of it invested in the same funds) is willing to tolerate this as long as they don't mess things up too much. They don't, on the whole, bet against each other in the way we saw the WSB community do this week. And, yeah, this is sorta corrupt, and has the net effect of shaving margins off the market that are never available to small investors. This part of the WSB community's rage is absolutely legitimate. But the flip side of the deal is that this is tolerated (legally and institutionally) as long as you don't blow shit up. Reddit blew shit up. That's never going to fly. That's never going to be a financially-acceptable situation to anyone, including small investors. So, no, there will be no Arab spring. We'll re-regulate and restabilize in some way to ensure either that Reddit can't do this or that such targets don't exist. Frankly my guess is more than a few of the early pumpers at WSB are going to jail over these shenanigans. People have been shockingly (and seemingly deliberately) misinformed about the way short selling works in an attempt to inflate this stock.