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Comment by admax88q | Hacker News Reader

I think this is more like beanie babies all over again. Except now that its easier to trade its happening in stocks.

Populism of a companies stock doesnt really change the performance of that company. GME will implode eventually and the newest suckers or WSB will be left holding the bag.

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You're not quite getting what I'm saying. A bubble like beanie babies and dutch tulips is still a logical consequence of seeking financial gain. A bubble is a game of chicken. It is about knowing when to jump off. This is a new phenomena. It is no longer about just making the bull thesis or the bear thesis. It is now persuasive to make the "this will fuck over a hedge fund manager" thesis. We need to add an entirely new animal to the metaphor.

Strong vote for this new animal being Badger. Bull vs Bear vs Badger

I dont understand why you consider this to be a different phenomena than a bubble.

Its still a bubble, people are still doing it for financial gain. Its just marketed as "doing this will screw hedge fund managers" to generate more hype.

Its not a new phenomena, its just a new marketing strategy.

Traders urging others to "hold the line" and to not sell is new marketing, and if everyone believes in it, why isn't it new phenomenon?

https://twitter.com/HenryEnglert/status/1353773947804917760/...

It sounds like new regulation before we begin 'pricing it in'

But I love the thoughts and agree with the analysis

"Drain the swamp" == "this will fuck over a hedge fund manager".

This is silly. If there was no possibility for financial gain, nobody would be investing in GME.

No, I have friends who have put thousands on the line who are happy to lose it if it bankrupts Melvin Capital.

Your friends are lying through their teeth.

Do you honestly believe these people aren't motivated by profit, when they are clearly entering long positions with the intention of driving up GME's price? It's straight up doublespeak.

A $1000 ticket to punch a 0.1% right in the balls is a worthy trade for many. People donate to political parties just to fuck the other party.

Except its not just a $1000 ticket to punch a 0.1%. They also believe the ticket will be worth $10,000 afterwards.

Are you speaking for yourself or-?

I threw in 1k with the hope that it will cost some billionaires a lot of money. I'm ready to lose it. Shorts already lost 100+ billion this month.

You fell for the marketing. Billionaires were on both sides. The bulk of the damage is done to uneducated vulnerable retail investors.

So now you're out $1000. You contributed to a scheme which ironically was a net loss for retail. If this were really not about making a profit, you'd see people donating their gains or buying shares for other people, and nobody would be cashing out. Are you still in the trade? What are you going to do with your gain/loss?

If you look at WSB's posts though, it's nothing like beanie babies. People don't think this is going to go on forever. Posts where people lost a ton routinely make it to the top.

If anything, WSB celebrates the crazy volatility that can occur with the stocks of interest, and with it the chance to either win big or lose big.

Now, r/bitcoin on the other hand...

Except that valuations alone can be decisive in shaping the fate of companies

// What does this mean for GameStop? Because of traders’ bullish sentiment, a previously failing company is now in the position where it can leverage the overnight increase in value to make real, substantive changes to its business. GameStop can pay off debt through the issuance of new shares or make strategic acquisitions using its newly-valuable shares. [9] A struggling company could become solid simply not because of a change in the underlying business, but because investors decided it should be more valuable. //

Yeah it opens up options, but the likelihood of a turn around is still low IMO. Its the same decision makers as before.

The difference is that our economy wasn't held together by beanie babies. A stock market crash has very wide ranging effects, not only to bankers but also retirees, blue collar workers, homeowners, new graduates and basically everyone else.

> A stock market crash has very wide ranging effects, not only to bankers but also retirees, blue collar workers, homeowners, new graduates and basically everyone else.

only has such an effect if those people who invested in the stock market has more than their risk tolerance invested.

Then what do you invest in? P/E ratios are astronimical across the board. It's been 85 years since Keynes wrote about his beauty contest. I think he might be right.

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