You Can’t Hurt the Gangsters at the Capitalist Casino by Shuffling the Chips Around To Different Bets. You Take Their Chips off the Table.

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    • #401038
      eridani
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      • Total Posts: 9,978

      https://www.commondreams.org/views/2021/02/03/you-cant-hurt-gangsters-capitalist-casino-shuffling-chips-around-different-bets-you

      There is no doubt that all of the regular people out there who bought up shares of GameStop and AMC were motivated largely by a desire to give a middle finger to whatever they perceived ​“Wall Street” to be. The stocks themselves were selected because various hedge funds made large short bets against them, which pumped up their prices and ultimately cost those hedge funds money. As the price of GameStop skyrocketed, social media abounded with stories of people who had suffered horribly from the fallout of the last recession, and were now taking their miraculous profits as a sort of balancing of the cosmic scales. A popular narrative has taken hold that these swarms of vindictive retail investors represent some sort of threat to the Wall Street establishment, a bold and unpredictable grassroots force to be feared.

      That, I’m sad to say, is not true. Much of the impulse to portray all this manic investing as some kind of force for public good comes from a misunderstanding of how Wall Street really works. Yes, it is true that people successfully pushed up GameStop’s stock price by more than 1500%, costing one hedge fund, Melvin Capital, more than half of its wealth — a temporary decline in assets of more than $4 billion. It is true that this same crowd of people can go on repeating this feat for stock after stock, making concerted attacks on short sellers. And it is true that none of this will prevent the hedge fund industry from making money in the long run, or change anything about the system that makes people despise hedge funds in the first place.

      There are thousands of hedge funds, collectively managing more than $3 trillion. Guess what? They can read Reddit too. If it becomes clear that this phenomenon of regular people pumping up random stocks is here to stay, tons of hedge funds and other institutional investors — the very Wall Street establishment that people imagine they are fighting against — will pile into whichever side of the trade will make them money. They will ride that populist, fuck-the-system sentiment all the way to the bank. Indeed, though Melvin Capital may have been hurt by the GameStop stunt, there is no question that tons of other professional investors are profiting from it. Hedge funds are many bad things, but they are not stupid about how to get rich.

      The collection of money management firms that make up the investor class are just a huge pool of water that will flow to wherever their money will be maximized. They don’t give a damn if a stock is going up because of fundamental value, or inside trading, or a viral Reddit thread. There are thousands of professional hedge fund employees, along with a wide array of supercomputers and algorithms developed by generations of mathematicians, that do nothing all day except sit around and see where to move their money on a second-by-second basis. For every individual hedge fund that Reddit investors are able to hurt, a hundred more will be on the other side to suck up the profits that their counterpart is losing. In aggregate, everything will continue as always. Trying to strike a blow against ​“Wall Street” by investing in certain stocks is like trying to destroy a forest by chopping down one tree. That tree will turn to dirt and make all the other trees even healthier. You need a better plan.

      Jesus: Hey, Dad? God: Yes, Son? Jesus: Western civilization followed me home. Can I keep it? God: Certainly not! And put it down this minute--you don't know where it's been! Tom Robbins in Another Roadside Attraction

    • #401573
      Voltairine
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      • Total Posts: 1,997

      A popular narrative has taken hold that these swarms of vindictive retail investors represent some sort of threat to the Wall Street establishment, a bold and unpredictable grassroots force to be feared.

      That, I’m sad to say, is not true.

      Citadel, DTCC and co don’t use every dirty trick in the book against a non-threat. The WSB swarm exposed how fragile the casino system remains at it’s core, by almost causing a 2008 level collapse.  Of course the swarm is a varied bunch, some are gambling Tulip mania style for a quick buck, others genuinely investing in the meme stonk of GameStop to save the company and its jobs from destructive speculation because it has emotional value for videogame generation. Some are in for just disrupting and fun memes. However, the swarm has it’s own mass psychology, and that is a threat in very deep and meaningful way: they don’t take the casino game and its money seriously. They mock the system. They take pride in jokingly sharing publicly their “loss porn” when a meme stonk play goes bad etc. outright blasphemy against sanctity of money hypnosis. They treat WS and it’s money like just another video game, and focus on having fun while playing a game. The GameStop motto is “Power to the players”. They keep their rage against the system cold to feed the artistic creativity of meme production, which guides the swarming process. They play the game highly consciously. When they are warned that what they are doing may collapse the system and hurt pension funds, they go: “OK Boomer.” And also: “We are doing this for our daddies and mommies, who were already destroyed by the casino game.”

       

      Aloha!

    • #416119
      Orduon
      Participant
      • Total Posts: 7

      You can’t say that gambling is a capitalist or a communist habit. I am playing poker on แทงบอลออนไลน์ for more than 4 years, and I don’t see any problems with it. Actually, gambling can help you develop a lot of skills, it makes you more observant, your brain is constantly working, and it is not bad at all. It is a way to keep your brain healthy, just like chess or other intellectual games. I suggest you try poker or other gambling activities at least once in your life, who knows, maybe you’ll like it. I know a lot of friends that had the same opinion, and after they played once, their point of view about this game totally changed.

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