A protracted stalemate


Published: 2 February, 2021.

When the market remains irrational longer that you can remain solvent.

This entire thing starts a Year ago on R/WallStreetBets. Chamath Palihapitiya wasn’t wrong when he said some analysis went into this to CNBC’s Scott Wapner; who then proceeded to have an aneurism about how that was Impossible or laughable even. It was sooner a Crime than it was A Theory for media organizations. The talking head Morons at the helm of CNBC shows that cover on a daily basis, the. most. inflated. market in History, says he is somehow flabbergasted by a 100 pt move; calling it organized Crime. Did you give money to Melvin Capital? Or have you come to imagine that a Melvin Short bust might take-out the entire market along with your 401K?

Markets do what the Market does, Scott. Mr. Market will tell you the right numbers, after the dust settles. Just report; I don’t want your inflections of fucking-tone & lousy guesswork. I think the biggest fear of the proverbial Boomer is that their pensions & 401K’s will be worthless by the time they need it, because millenials won’t contribute into the system.

Relax! You’ll be fine... I think.

At the crux was a relatively basic-understanding of ‘What is a Short-position?’; and a piece of math, that indicated to some traders on R/WallStreetBets, that they have reason to believe they hold a winning hand. In under a week though, the spectators, rhetoric, ensuing fandom set-off the purchase of GME shares by an uncountable-hoard of buyers. How does a protest-start? I don’t know. Suddenly, it had turned into a convincing argument for why they could force a massive, wealth-redistribution affect. Seemingly, it has already happened to the tune of $70B. But if you’re to believe its members, we haven’t even begun to see what could really precipitate. As of this moment, Tuesday, February 2nd, we’re in a bit of a stand-off. Nothing has happened, yet; but a lot can happen quickly.

Credit to the hedge-fund because seemingly, they are ready to pick this fight. They are still Short their position on GameStop. Maybe it thinks it can wait them, the mob, out. At this time, it seems there is going to need to be a loser; so it’s going to be big, either way (if it wasn’t big already). But it could also drag on for a minute. There will be immense pain on the Retail side regardless. Those who may feel the pain need to-be-aware, it would seem, that some bagholding may be involved on their part in the immediate aftermath of what R/WallStreetBets may be attempting to force; but who is to say GameStop’s existence will not preceed us all, at this point. Are enough Redditors (I don’t even know if that’s an apt-characterization anymore at this time) willing to Hold this bag, for the next 5-years, while GameStop attempts to perform?

Condé Nast might be the real-winner at the end of all this. Reddit generates a surprising amount of the internet’s general content, but it’s used directly only by a tiny population of the internet. It’s a relatively unknown corner of the internet. That may have been dramatically impacted going forward; the type of impact that puts a smile on any CEO’s face.

Reddit’s actual TV program, RPAN, doesn’t get much traction. But 1.5M people around the World pulled-up a chair and stayed ALL-DAY; tuned in on a Thursday, to watch what would turn out to be a proper live-program.

They took a seat all-day; on a Wednesday. This went upto 1.5M the next day. The community gained 5M followers in 5 days.

Welcome to the modern era of entertainment. These are mean numbers. Exceptional pull. The likes of which will make a Netflix or YouTube sit up. There’s a reason CNBC couldn’t twist the rhetoric. More people were watching it live on Reddit, than on their programs (I have zero-stats from CNBC to support that lol). Something new is brewing for the future of entertainment. It’s nothing but exceptionally entertaining & we’re just getting started.


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