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I know this forum is capitalist to the core, but there is a lack of appreciation for this moment and an undue air of cynicism. This whole situation breaks a to

I know this forum is capitalist to the core, but there is a lack of appreciation for this moment and an undue air of cynicism. This whole situation breaks a ton of fundamental assumptions about how markets work and will change hedging strategies for a lot of investors moving forward. Yes, we know there are hedge funds on both sides of this equation (Blackrock owns 12% of Gamestop, Burry made a ton and smartly got out earlier in the week), it doesn't change anything. The internet is already searching for more securities to manipulate. This will accelerate adoption of the DeFi space. Scaramucci called it "the French Revolution of Finance." Instead of being negative, look to see how you can learn and profit from this.

stcredzero 6y ago
Scaramucci called it "the French Revolution of Finance." To push the analogy: When does Robespierre get his?
ignoramous 6y ago
I can't help but think Wall Street needs a Cloudflare to handle future DDoS. Opportune time to start one if such a business doesn't exist already?
twblalock 6y ago
> This will accelerate adoption of the DeFi space. Why would it do that? I think the most likely outcome is more regulations from the government, and more rules from brokerages about what most of their customers are allowed to do.
- IntFee588 6y ago
  Besides the huge push on dogecoin, which is big for onboarding people into crypto (yes, I know DOGE isn't DeFi), the bottlenecking of orders by brokerages undermines people's faith in the fairness of traditional securities and the markets. People will be more interested in decentralized solutions where they can have more faith in exchanges (I am aware that DeFi is not that decentralized or fair, but the majority of the public that is aware of crypto and DeFi thinks it is, just as they thought that traditional securities were fair).
spyder 6y ago
"will change hedging strategies for a lot of investors moving forward" Great, that was one of their goals: To make them think about if shorting 140% is a good thing or not.
seabird 6y ago
There is no undue air of cynicism. No fundamental assumptions have been broken. Odds are overwhelming that everything will once again happen as it has thousands of times before. A very risky play from a hedge fund has resulted in people who don't know what they're doing convincing more people who don't know what they're doing that there is a clear ally (other retail investors who are getting back at The Man) and a clear enemy (evil hedge funds that have robbed the American people), and that what they're doing is some sort of justice and not just an extreme market correction. They've attached emotions to these trades, and when the time inevitably comes that they have to become The Man to stand with The Man against The Man, a very small percentage will realize what needs to be done to trade another day, while the rest are going to learn how little say they actually had in this incident. WSB (or at least what it was before this) has had a lot of laughs at the expense of the latter group -- "it literally can't go tits up!" is trotted out whenever somebody finds out that they're not in control. Active retail investment requires a fatalistic view of the market. This is hard to swallow when you think of going short as "bad" or squeezing out a hedge fund as "good."

stcredzero 6y ago

Scaramucci called it "the French Revolution of Finance." To push the analogy: When does Robespierre get his?

ignoramous 6y ago

I can't help but think Wall Street needs a Cloudflare to handle future DDoS. Opportune time to start one if such a business doesn't exist already?

twblalock 6y ago

> This will accelerate adoption of the DeFi space. Why would it do that? I think the most likely outcome is more regulations from the government, and more rules from brokerages about what most of their customers are allowed to do.

IntFee588 6y ago
Besides the huge push on dogecoin, which is big for onboarding people into crypto (yes, I know DOGE isn't DeFi), the bottlenecking of orders by brokerages undermines people's faith in the fairness of traditional securities and the markets. People will be more interested in decentralized solutions where they can have more faith in exchanges (I am aware that DeFi is not that decentralized or fair, but the majority of the public that is aware of crypto and DeFi thinks it is, just as they thought that traditional securities were fair).

spyder 6y ago

"will change hedging strategies for a lot of investors moving forward" Great, that was one of their goals: To make them think about if shorting 140% is a good thing or not.

seabird 6y ago

There is no undue air of cynicism. No fundamental assumptions have been broken. Odds are overwhelming that everything will once again happen as it has thousands of times before. A very risky play from a hedge fund has resulted in people who don't know what they're doing convincing more people who don't know what they're doing that there is a clear ally (other retail investors who are getting back at The Man) and a clear enemy (evil hedge funds that have robbed the American people), and that what they're doing is some sort of justice and not just an extreme market correction. They've attached emotions to these trades, and when the time inevitably comes that they have to become The Man to stand with The Man against The Man, a very small percentage will realize what needs to be done to trade another day, while the rest are going to learn how little say they actually had in this incident. WSB (or at least what it was before this) has had a lot of laughs at the expense of the latter group -- "it literally can't go tits up!" is trotted out whenever somebody finds out that they're not in control. Active retail investment requires a fatalistic view of the market. This is hard to swallow when you think of going short as "bad" or squeezing out a hedge fund as "good."