The narrative behind gamestop and wallstreetbets (a parody)

[Hydrogen]

Warren Buffett:  Athletes and celebrities are withdrawing money from US stocks to invest in bitcoin and cryptocurrencies.

Bill Gates:  This is dangerous. What happens if institutional investors sell berkshire hathaway stock to buy BTC.

Warren Buffett:  You and I would lose mountains of wealth my friend.

Paul Krugman:  May I propose rebranding US stocks to be more competitive with crypto. Holders of bitcoin like to feel they're fighting the power and sticking it to the man.

Paul Krugman:  Perhaps we can fool them into believing that pouring their money into stocks, which benefits wallstreet, will actually hurt wallstreet in some way.

Paul Krugman:  I know this guy called wallstreetbets who might be interested.

Warren Buffett:  We must do something to prevent capital flight from US stocks from migrating into cryptocurrencies. Make it happen.

....



I'm not saying my analysis here is 100% accurate or amounts to more than a parody. Available data at this point is too preliminary to draw hard conclusions.

But it could be worth thinking about.  

[Lorence.xD]

I don't think that they are fighting cryptocurrency regarding the Gamestop fiasco. This is just a karma arriving at the doorstep of Mr. Monopoly getting played by the same exploit that he had been using against the hopes of the young generations that wants to get some money in stock market. This is a good thing for crypto though, even if this is the reason that people will not migrate in crypto then they will slowly bleed dry this top hat pigs by defeating their bets on a company.

[jackg]

In a crypto scene, stocks are still necessary at least at the start.

Unilever and a bunch of other companies are still needed to handle supply chains of food, qbanks will still be needed to allow conversions. I think a lot of wealthy people will be fast to adapt to a new economy. Especially considering they can hire people to do the work for them.

There probably was some institution buying stocks at the start of the stock market. I've seen similar parodies about Robinhood terminating stock trading in those assets because people were over leveraged and they did thave the funds to pay them (believe what you want either way).

I think shorting a firm with workers is less ethical than longing the same firm. The hedge fund wanted those workers to be jobless and in doing so make them more money to widen the gap...

[exstasie]

I'm not saying my analysis here is 100% accurate or amounts to more than a parody. Available data at this point is too preliminary to draw hard conclusions.

But it could be worth thinking about.  

If that was the plan, it's not working. Now r/wallstreetsbets is entering the crypto space: they just pumped Dogecoin from $0.007 to $0.04 in 24 hours! https://arstechnica.com/tech-policy/2021/01/wallstreetsbets-craze-pushes-dogecoin-up-5x-in-24-hours/

These guys are no joke. Pay attention, because now they're playing in our backyard.

[Hydrogen]

I'm not saying my analysis here is 100% accurate or amounts to more than a parody. Available data at this point is too preliminary to draw hard conclusions.

But it could be worth thinking about.  

If that was the plan, it's not working. Now r/wallstreetsbets is entering the crypto space: they just pumped Dogecoin from $0.007 to $0.04 in 24 hours! https://arstechnica.com/tech-policy/2021/01/wallstreetsbets-craze-pushes-dogecoin-up-5x-in-24-hours/

These guys are no joke. Pay attention, because now they're playing in our backyard.

I would be curious to know how much $$ it took to pump gamestop stock.

The number would probably be outside the budget of retail investors.

Most likely scenario is the federal reserve or another major power behind it. They're the only ones with that kind of money.

[paxmao]

I think you got the idea quite right, yet the actors are not probably the right ones. There is no crowd power nor Robinhooder´s revenge. To raise the price to that level you need the big money going in and they must have a good reason to damage the shorters.

By the way, this is the perfect occasion to take advantage of a so clearly overvalued company, if you know how

[hatshepsut93]

Is there any proof that money was flowing out of stocks and into Bitcoin? And if the US government was actually afraid of this scenario, there's a simple solution - ban Bitcoin exchanges. No need to come up with conspiracies.

I would be curious to know how much $$ it took to pump gamestop stock.

The number would probably be outside the budget of retail investors.

Most likely scenario is the federal reserve or another major power behind it. They're the only ones with that kind of money.

Of course institutional traders are participating in this happening, they understand what a short squeeze is. But there's no reason to think that the Fed is behind it.

[Hydrogen]

But there's no reason to think that the Fed is behind it.

Super rich ruling elites are the only ones who organize & coordinate this way. They're also the only ones with the money to pull something like this off.

Poor to middle class income brackets have tried many times over the years.. Robert Kiyosaki and others have tried to organize mass buyins to elevate the value of precious metals. It went nowhere. They failed every time afaik.

...

The federal reserve is responsible for more than 90% of stock market movement over the past 10 years.

The Fed caused 93% of the entire stock market's move since 2008

The S&P 500 (^GSPC) doubled in value from November 2008 to October 2014, coinciding with the Federal Reserve Bank’s “quantitative easing” asset purchasing program. After three rounds of “QE,” where the Fed poured billions of dollars into the bond market monthly, the Fed’s balance sheet went from $2.1 trillion to $4.5 trillion.

https://finance.yahoo.com/news/the-fed-caused-93--of-the-entire-stock-market-s-move-since-2008--analysis-194426366.html

They're the 1st place someone would look in trying to unmask those behind this.

[hatshepsut93]

The federal reserve is responsible for more than 90% of stock market movement over the past 10 years.

But this isn't any stock market movement, it's a very risky price action for both sides, and as far as I'm aware, the Fed has never been caught red-handed organizing short squeezes and other risky strategies.

And such things are definitely possible without the Fed, the infamous Martin Shkreli organized similar event in 2015 and later went to prison for financial crimes. When he did it, he wasn't some billionaire elitist part of the 1% of the 1%, just some CEO and trader.

[Hydrogen]

But this isn't any stock market movement, it's a very risky price action for both sides, and as far as I'm aware, the Fed has never been caught red-handed organizing short squeezes and other risky strategies.

Who can catch them?

American senators and politicians have organized failed "audit the fed" movements for years without success.

And such things are definitely possible without the Fed, the infamous Martin Shkreli organized similar event in 2015 and later went to prison for financial crimes. When he did it, he wasn't some billionaire elitist part of the 1% of the 1%, just some CEO and trader.

Martin Shkreli was imprisoned for lying to and threatening creditors who lent him money.

Shkreli wasn't a market trader. He bought existing stockpiles of pharmaceutical drugs to create monopolies and raise prices 5000%, for profit.

[jaysabi]

Warren Buffett:  Athletes and celebrities are withdrawing money from US stocks to invest in bitcoin and cryptocurrencies.

Bill Gates:  This is dangerous. What happens if institutional investors sell berkshire hathaway stock to buy BTC.

Warren Buffett:  You and I would lose mountains of wealth my friend.

Paul Krugman:  May I propose rebranding US stocks to be more competitive with crypto. Holders of bitcoin like to feel they're fighting the power and sticking it to the man.

Paul Krugman:  Perhaps we can fool them into believing that pouring their money into stocks, which benefits wallstreet, will actually hurt wallstreet in some way.

Paul Krugman:  I know this guy called wallstreetbets who might be interested.

Warren Buffett:  We must do something to prevent capital flight from US stocks from migrating into cryptocurrencies. Make it happen.

....



I'm not saying my analysis here is 100% accurate or amounts to more than a parody. Available data at this point is too preliminary to draw hard conclusions.

But it could be worth thinking about.  

"Available data at this point is too preliminary to draw hard conclusions." Lol, what are you talking about? There's no data available to support any of this. I'd like to know what you were smoking when you had this fever dream though, because it was clearly good stuff and I need to look into if it's legal around here.

[BigBoy89]

IMO this should be more accurate:

Paul Krugman: Let's make our stocks like a DOGE - with infinite supply, no real value and no real demand. Boom - landing on the Moon

I'm pro-crypto, but not for a MEME coin.

[bits4books]

Conspiracy theory is too simple. No one in America is particularly keen to run and fight with cryptocurrency, at least because cryptocurrency is also a way to control the total capital. The Gamestop situation is just a reminder that as long as people have a way to communicate with each other and coordinate their actions, they can knock anyone on their back.

[Prettyjing3]

It can be seen from the skyrocket of Dogecoin that this is the silent confrontation of capital power. The speeches of these celebrities all expressed the same meaning and are optimistic about the future development of the crypto market.

[darewaller]

You can't explain to someone who insists on the fact that "nobody can organize like this aside from rich people", because that is really all they will think like that is a fact and hydrogen thinks like that.

Sure we can explain to him that he could literally go out and check the wallstreetbets subreddit and see all those people investing ranging from 600 dollars to millions of dollars getting together, sure we can say this is more than just one place, this is global attack on wall street where people from hong kong, africa, europe, britian, even middle east all coming together to fight against the elite, we can talk about even more, and we can say that melvin and citadel which are the two big companies that wallstreet fighting right now has lost over 70 billion dollars on their shorts so far, so wallstreetbets already won 70+ billion dollars, but if someone believes something is not true, it is impossible to make them see the reality. In any case 7+ million people are attacking, and they will keep attacking.

[SquallLeonhart]

One thing in all of that joke that is wrong and that makes the whole joke wrong. When people pour their money into stocks they do not help wall street, in fact people did poured money into GME, made 100%+ or even as much as 1000% profits and cashed out and used that money to pay their student loans early with less interest and their mortgages early with less interest.

Here we have two things that hurts wall street big time, one of them is the fact that redditors made a profit, well if all of them are long, who do they made the profit from? They made it from shorters, who are the shorters? hedge funds and namely Melvin capital, so they took billions out of Melvin capitals accounts and into their own accounts which means they did managed to hurt wall street, secondly they paid off so many debt early without paying interest which means banks couldn't make the maximum amount they could have with the interests, which once again hurt the wall street because they own most of the banks.

[20kevin20]

You know what, I have avtually thought about this. The GameStop thing seems too close to what a crypto bull run looks like not to suspect that they're trying to make stocks be as volatile as cryptocurrencies in order to make crypto less appealing.

It's quite weird that, all of a sudden, the entire damn Reddit is effectively filled up with GameStop and WSB posts, isn't it? To me, it looks like they're planning something to make crypto seem less attractive to the average person. We're giving them freedom; bumping GME is just making the rich richer since what we're doing is still pouring bucks into the riches' pockets..

[Hydrogen]

You can't explain to someone who insists on the fact that "nobody can organize like this aside from rich people", because that is really all they will think like that is a fact and hydrogen thinks like that.

99% of this planet's population fall into a poor to middle class income bracket.

If they were capable of organizing and coordinating, on any level, they would be the dominant force on this planet.

The fact that 99% of the human population can be oppressed by 1% minority.

Is a tribute to how unbelievably horrible people are when it comes to communicating, cooperating and organizing.

[davis196]

Damn,if this was true,then Paul Krugman is a genius.
Trying to mask stocks as cryptocurrencies and fooling the average investor into believing that he will "stick it to the Wallstreet brokers" by buying more "crypto stocks". This actually sounds like a great plan.
In reality,everything on the financial markets is just supply and demand,while the Federal Reserve just prints more money and pumps the prices even more.
The people can't organize and fight the elites,because the elites have the greatest power-the power to divide and deceive the people.

[Ucy]

Or they could be shocked that people have discovered their secret and could easily win the battle if they are united and stick to doing what is right always.
 I do not fully understand the GameStop issue yet but I have a feeling that what the people did was more moral (may not be over 60% right though) than what the elites did. If everyone plays according to right rules, the people could easily win.
I believe there is ongoing battle. Chains are being broken from millions of people . People need to feed on what is good and avoid going back to their vomit. Knowledge is currently being given to people of this world, so there won't be excuse when what is coming in the future comes eventually.