Comment by runawaybottle | Hacker News Reader

Comment by runawaybottle | Hacker News Reader

I really thought this was a good articulation on Chamath’s part and would love HN to chime in with their perspective.

Edit: Couple of stand-out comments he made, paraphrasing:

‘The best wsb due diligence can be indistinguishable from top hedge fund due diligence, the funds don’t have an edge’.

Right. It doesn’t take a genius to know GameStop will have a hard time in a cd-less world and full digital download marketplace. It also doesn’t take a genius to know GameStop will not go to zero dollars (so don’t short to that level).

Love the defense of the intellect of the retail investor and a group that doesn’t need to be coddled, great defense against the patronizing and condescending suggestions.

Second edit: Jim Cramer recently peddled Raytheon’s earnings up. I’m not a genius but they got the earnings from laying off 16k people. Ok, how many quarters can you do that for? This is a play someone can consider (in either direction). We’ve got brains I think too.

He is exactly right. The powers that be (dark money) have long sought to remain in control of their subjects. Just because we don't have monarchies doesn't mean we don't have a few elite who few themselves as rightful directors and owners other all things on Earth.

They have manipulated markets through various institutions and making knowledge so hard to come by without going into massive debt in order to maintain their elevated status.

In their arrogance though, they thought they could reverse the trend of the democratization of their power to the masses, and have literally tried to move heaven and earth in order to remain in power and reverse the trend.

My curious position is I think they are realizing that the trend is irreversible, that power eventually will always diffuse to the masses eventually as no system is perfect, there will always be leaky abstractions, and I have no doubt they have a nuclear option in their back pockets to try and quell the massive shift of power that seems inevitable at this point. Question is, what is that nuclear option?

SEC is apparently now investigating. If they take the side of hedge funds then there's going to be another occupy wall street movement, this time with millions of pissed off retailers, robin hood, ready to take class action lawsuits.

Why couldn’t game stop equity go to zero? Equity is just the least senior claim on assets, it goes to zero all the time.

Exactly. The parent is representing the kind of retail thinking that gets wiped out in the dust of events like this.

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