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This isn't true. If you manufacture inefficiency yourself, and control it, nobody can exploit it. In fact if they try to, you can exacerbate the inefficiency in
by gmd63 2y ago
This isn't true. If you manufacture inefficiency yourself, and control it, nobody can exploit it. In fact if they try to, you can exacerbate the inefficiency in the other direction. Try arbitraging against the inefficient pricing of GameStop.
- tasuki 2y agoI don't see how you can manufacture and control inefficiencies in the long term so that nobody can exploit them. How can you arbitrarily exacerbate the inefficiencies? More money has been earned by removing the GameStop inefficiencies than by creating them. GameStop shot up in value driven by WallStreetBets, but those people mostly lost money by creating the inefficiencies.
- gmd63 2y agoIntroducing them has made people money. Those people will seek to introduce them again under a different ticker. The main inefficiency in GameStop is creating information and will to buy that runs completely orthogonal to the actual valuation of the stock. Like snake charmers, Roaring Kitty etc use memes and bots online to drum "bagholders" into a fervor, thinking they are righteously sticking it to some nebulous man by buying a stock that is worthless.
- tasuki 2y agoThey're sticking it to the plebs who follow them. Just like all the other influencers.
- chii 2y ago> If you manufacture inefficiency yourself, and control it that's called a pump and dump, which is already illegal. Because the fraud depends on manufactured (mis)information.
- deleted 2y ago[deleted]
- gmd63 2y agoYes, it's illegal. That doesn't stop it from happening.