I don't know how this stuff works; was just musing about why so many other things are apparently more important than passing a cash aid bill rn. Is the idea of giving all the GME hooligans two grand like actually scary to capital? I mean imminently scary for the financial markets, not just because it generally reduces the misery of the reserve labor army.

  • SpezCanSTILLSuckMyDi [none/use name]
    ·
    4 years ago

    Is the idea of giving all the GME hooligans two grand like actually scary to capital?

    No

    People fundamentally misunderstand the short squeeze that (mostly) happened and was crushed by all the market fuckery with being unable to buy, forced closing positions, etc. Reddit did not will a meme into a $50 billion market move, they are not going to be able to do it again, that's just not how it happened. A handful of very very smart people identified the perfect conditions for this to happen and everyone else jumped in. The most recent, famous example was Volkswagen back in 07, I believe it was. These things happen from time to time.

    I think capital is probably more scared about the fact, I wish I had the number on hand here but it's 2am and I read that something like 70% of all dollars printed have been in the last 4 years between the absolutely ridiculous QE, fed directly propping up the stock market for the first time ever, buying more bonds than ever, stimulus, PPP, airline bailouts, etc... Both for reasons like "muh inflation" and the fact that the government is literally running out of juice to keep the "economy" (which, as much as we don't like to admit it, finance is a ridiculous portion of our economy) afloat. Like, rates are about as low as they can get and MMT only works when you invest it in things that later raise revenue, inflation is an actual thing if you just print money forever and don't really get much back in return. All this effort has been just to try to keep the train on the rails, and it's been shaky at best.

    It is going to be very very painful when the government can't keep this up anymore, the economy goes into recession if not major depression, tax revenue drops significantly AND the bill comes due for all the debt and printing we've been doing over recent years.

    edit: the vast majority of the finance industry, including hedge funds, brokers, and everyone else would be absolutely thrilled if a huge number of people put their $2000 into the market, it would make them ridiculous amounts of money and basically be (even more) government buying of stocks by proxy - this is why 100% of the financial media has been pushing the idea so hard