Wednesday, January 27, 2021

Game Stop

I'm not confident I know enough about what happened with the Game Stop stock prices, but here's one person's take on it.

I'm sharing because there are definitely people who manipulate the stock market (to their benefit, and sometimes not to the benefit of the average American at all. Futures and shorts can get kind of crazy, tbh. Though I hear most funds are.. Hmmm. Mutual funds where professional managers are managing other people's money. Which kind of makes sense, in that people prefer experts to make complicated decisions about investments, but also means that a lot of the market is decided by a few. And with algorithms and machine trading, it's not even necessarily decided on by an actual person. This is not saying it's good or bad, and is by no means an in depth analysis, but the whole thing smells a bit off tbh.)

Oh, and sharing because it gives a sense of how complicated these are. I somewhat understand the purpose of futures and shorting. Futures can help businesses deal with unpredictability, shorts can help keep prices honest (if you think there's a bubble, short the stock). Again, by no means an expert analysis on my part.

Anyways, schemes that take advantage of these in order to get a lot of money seem to be missing the spirit of the system in order to exploit loopholes for selfish purposes. 

Which might have been the point the redditors were making. 

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