Tesla CEO, Elon Musk took to Twitter and tagged the official account for the Kremlin to ask if Russian president, Vladimir Putin would like to join him in the new social networking audio-only app Clubhouse.
He then followed up with the initial question with a tweet in Russian, when translated, reads: “it would be a great honor to talk to”. It is unclear what his ideas are on the topic or goal of having this highly visible, public, yet intimate chat. Speculations have pointed to issues that SpaceX, Starlink and Tesla have had getting opportunities in Russia, but the real reason or outcome could be something entirely different. Never a dull moment when Elon takes to social networking:
Kremlin spokesman Dmitry Peskov told reporters on a conference call: “In general, this is of course a very interesting proposal, but we need to understand what is meant, what is being proposed… first we need to check, then we will react.”
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“We want to figure it out first. President Putin does not personally use social networks directly, he doesn’t have them” said Peskov.
This isn’t the first invitation Elon Musk has publicly asked of high profile people, last week he also asked and seemingly confirmed via Twitter that he and Kanye West would chat on the app. At this time there has been no confirmation of date or time when the two would be on Clubhouse, however there have been many rooms on the highly anticipated topic (Where is Kanye West?).
Prominent business and political figures have been propelling the Clubhouse app to a large increase in membership, even while the app is still invitation only and iOS-only (no android yet).
Mark Zuckerberg, who has allegedly been studying the app to produce his own copycat version, as well as celebs like Oprah and The Rock and many others have also all set up accounts and been involved in chats (room sessions).
Yesterday there was an hours long session hosted my Mr. Beast of YouTube fame who has nearly 50 million followers on the video streaming platform.
Right now, the best movies on the financial crises of 2008 and 2000 and stock trading in general are all trending on the streaming rental market, since they are nearly impossible to find on subscription based platforms such as Netflix, HBO Max, Disney +, etc.
As a result, paid views have skyrocketed, for example, on iTunes, where “The Big Short” is #3 and “Wolf on Wall Street” is #4
This surge applies to other films such as the excellent ‘Boiler Room” with Giovanni Ribisi. The films are all excellent and worth paying for if the chaotic craze with huge money gained and lost with GameStop, AMC and the whole Reddit, Robinhood brouhaha has you curious to learn more about the financial markets.
Click to buy “The Big Short” and help Lynxotic and all Independent Local Bookstores. Also available on Amazon.
The reality is sinking in, slowly, that the future is truly unknowable and that big changes and even bigger challenges are looming. Twin shocks of a health emergency and a financial crisis, intertwined and yet with separate trajectories, are still to be resolved in our near future.
And then there’s the myriad of other challenges that were already acute, such as global warming and the “other” epidemic; corruption and greed. It’s almost too much to face up to, and no one can be blamed for wanting to just turn away.
Too much has been glossed over. After the 2008 crisis we all just wanted to put that ugly mess behind us and get on with our lives. I suppose the criminals that netted billions as a “reward” for almost destroying the entire global economy were also eager to just move on.
All that as it may be, perhaps, a way to begin the process of regaining our courage and looking into the future with some kind of hope, or at least a deeper understanding of the human dilemma and historical precedents, might be to enjoy films about small moments of triumph before great adversity. Here are a few recent options:
Barely 12 years ago, the financial collapse and ensuing “Great Recession” was a nightmare scenario. The aftermath of that debacle is also a contributor to the economic dangers we see before us in 2020. This film, likely the best based on that era, highlights how outsiders and misfits were able to prosper, even as they witnessed the corruption, failure and systemic injustice that brought the world to the brink of total economic chaos.
Starring: Christian Bale, Steve Carell, Ryan Gosling and Brad Pitt.
Want know more about shorting? About the shady and complicated scams? And also see an incredible film?
‘Wolf of Wall Street’:
The Wolf of wall street is simply a great movie. It’s even better though if you watch it in the context of stock market mania. Just like the one that’s happening now.
Beyond the fact that the story is incredibly entertaining it does also get into the heart of the “pump & dump” boiler room mentality. While the so called ‘retail investors” who are riding the Robinhood stock purchasing app to what they see as well deserved revenge on Wall Street, and Belfort who was the real life “Wolf of Wall Street” was more of a wannabe that couldn’t get into the establishment.
He then set forth, with chutzpa and insanity and some drugs, built his own criminal empire, there are some very clear correlations between his tricks that made him rich and what the short-squeezing Reddit & Wall Street Bets chat room vigilantes are doing right now.
Can we all be like the guys, Jordan Belfort or Michael Burry, who was played by Christian Bale in the movie, and even though it was about going short, it’s sill ok, cause, Christian Bale?
History does exist, even if it happened before your uncle was born
Up until 1934 many things were legal and rampant that today, technically, are not allowed. Insider Trading is the most obvious and best defined, look up Martha Stewart and jail time if you want to know more about that.
Collusion in the market is another less well known practice, also known as “pump & dump” that has as many variations as Ponzi schemes and, though illegal, will never be stamped out. The technical terms for Colluding in relation to stock trading are “securities fraud” or “market manipulation.”
Not to get technical but here’s an partial excerpt of the legal specifics:
15 U.S. Code § 78i – Manipulation of security prices
(a) – (2 To effect, alone or with 1 or more other persons, a series of transactions in any security registered on a national securities exchange, any security not so registered, or in connection with any security-based swap or security-based swap agreement with respect to such security creating actual or apparent active trading in such security, or raising or depressing the price of such security, for the purpose of inducing the purchase or sale of such security by others.
Click to buy “Antrhopocene” and at the same time help Lynxotic and All Independent Local Bookstores. Also available on Amazon.
For a bird’s-eye overview and scientific perspective – Athropocene is a film for those ready to think deeply on how, once beyond the immediate danger, we would want to emerge into a new era as a species. A positive reaction to the current crisis, worldwide, has been a series of ideas and proposals that show a willingness to confront the challenges from an entirely new perspective. Maybe new leadership can mean starting over and making a pledge to try a new approach to literally everything.
‘The film follows the research of an international body of scientists, the Anthropocene Working Group who, after nearly 10 years of research, argue that the Holocene Epoch gave way to the Anthropocene Epoch in the mid-twentieth century as a result of profound and lasting human changes to the Earth.”
Cinderella Man
This Depression era feel-good story takes on new meaning as we see a “Great Depression II” potentially looming. Looking for strength and courage facing forces that threaten our survival, and coming out at the end in a better place, that’s a synopsis and blueprint we can all benefit from observing, even if it’s packaged as a Hollywood vehicle. Russel Crowe at his best. Maybe worth a second look.
Want know more about shorting? About the shady and complicated scams? And also see an incredible film?
The Wolf of wall street is simply a great movie. It’s even better though if you watch it in the context of stock market mania. Just like the one that’s happening now.
Beyond the fact that the story is incredibly entertaining it does also get into the heart of the “pump & dump” boiler room mentality. While the so called ‘retail investors” who are riding the Robinhood stock purchasing app to what they see as well deserved revenge on Wall Street, and Belfort who was the real life “Wolf of Wall Street” was more of a wannabe that couldn’t get into the establishment. He then set forth, with chutzpa and insanity and some drugs, built his own criminal empire, there are some very clear correlations between his tricks that made him rich and what the short-squeezing Reddit & Wall Street Bets chat room vigilantes are doing right now.
Can we all be like the guys, Jordan Belfort or Michael Burry, who was played by Christian Bale in the movie, and even though it was about going short, it’s sill ok, cause, Christian Bale?
History does exist, even if it happened before your uncle was born
Up until 1934 many things were legal and rampant that today, technically, are not allowed. Insider Trading is the most obvious and best defined, look up Martha Stewart and jail time if you want to know more about that.
Collusion in the market is another less well known practice, also known as “pump & dump” that has as many variations as Ponzi schemes and, though illegal, will never be stamped out. The technical terms for Colluding in relation to stock trading are “securities fraud” or “market manipulation.”
Not to get technical but here’s an partial excerpt of the legal specifics:
15 U.S. Code § 78i – Manipulation of security prices
(a) – (2 To effect, alone or with 1 or more other persons, a series of transactions in any security registered on a national securities exchange, any security not so registered, or in connection with any security-based swap or security-based swap agreement with respect to such security creating actual or apparent active trading in such security, or raising or depressing the price of such security, for the purpose of inducing the purchase or sale of such security by others.
The reality is sinking in, slowly, that the future is truly unknowable and that big changes and even bigger challenges are looming. Twin shocks of a health emergency and a financial crisis, intertwined and yet with separate trajectories, are still to be resolved in our near future.
Click to buy “The Big Short” and at the same time help Lynxotic and All Independent Local Bookstores. Also available on Amazon.
And then there’s the myriad of other challenges that were already acute, such as global warming and the “other” epidemic; corruption and greed. It’s almost too much to face up to, and no one can be blamed for wanting to just turn away.
Too much has been glossed over. After the 2008 crisis we all just wanted to put that ugly mess behind us and get on with our lives. I suppose the criminals that netted billions as a “reward” for almost destroying the entire global economy were also eager to just move on.
All that as it may be, perhaps, a way to begin the process of regaining our courage and looking into the future with some kind of hope, or at least a deeper understanding of the human dilemma and historical precedents, might be to enjoy films about small moments of triumph before great adversity. Here are a few recent options:
Barely 12 years ago, the financial collapse and ensuing “Great Recession” was a nightmare scenario. The aftermath of that debacle is also a contributor to the economic dangers we see before us in 2020. This film, likely the best based on that era, highlights how outsiders and misfits were able to prosper, even as they witnessed the corruption, failure and systemic injustice that brought the world to the brink of total economic chaos.
Starring: Christian Bale, Steve Carell, Ryan Gosling and Brad Pitt.
Click to buy “Antrhopocene” and at the same time help Lynxotic and All Independent Local Bookstores. Also available on Amazon.
For a bird’s-eye overview and scientific perspective – Athropocene is a film for those ready to think deeply on how, once beyond the immediate danger, we would want to emerge into a new era as a species. A positive reaction to the current crisis, worldwide, has been a series of ideas and proposals that show a willingness to confront the challenges from an entirely new perspective. Maybe new leadership can mean starting over and making a pledge to try a new approach to literally everything.
‘The film follows the research of an international body of scientists, the Anthropocene Working Group who, after nearly 10 years of research, argue that the Holocene Epoch gave way to the Anthropocene Epoch in the mid-twentieth century as a result of profound and lasting human changes to the Earth.”
Facing death constantly is a reality in war times. This story is a testament to resilience and survival against all odds.
Angelina Jolie directs this adaptation from Laura Hillenbrand’s popular book, “Unbroken” stars Jack O’Connell, Domhnall Gleeson, Alex Russell, Miyavi and Finn Wittrock
Cinderella Man
This Depression era feel-good story takes on new meaning as we see a “Great Depression II” potentially looming. Looking for strength and courage facing forces that threaten our survival, and coming out at the end in a better place, that’s a synopsis and blueprint we can all benefit from observing, even if it’s packaged as a Hollywood vehicle. Russel Crowe at his best. Maybe worth a second look.
Click to buy “Unbroken” and at the same time help Lynxotic and All Independent Local Bookstores. Also available on Amazon.
Confusing? Yea, but at the bottom it all it’s just…(parody)
It you have followed any of the unfolding madness with the “retail investors” and the revolution of unstoppable market manipulation that is heroic, not criminal cause, um, the other guys (Wall Street) are much more criminal.
The problem is, it’s all true! Yes, the idea that pumping up GameStop, which is basically a random stock that was cheap and easy to pump. This is basically making a mockery of the traditional idea of investing and of the laws against stock manipulation. But the market is, as so many are pointing out, basically a sham already.
A lot is made of the bad and nasty “shorts” who think that, just because GameStop is a company with basically no future prospects, they think the price would like, do down. Strange. That’s ok though, we can pump it up and the squeeze force the shorty shorts to cover (buy back shares) and that will send the price soaring.
short shorts by Tesla
Then we can all be like the Wolf of Wall Street, Jordan Belfort and also totally like The “Big Short” guy, Michael Burry, who was played by Christian Bale in the movie, and even though it was about going short, it’s sill ok, cause, Christian Bale.
2008 was bad and done by very bad people that got away with it
And yes, it’s pretty much all a nasty business. But the nasty pros are the worst. And the whole system is a sham. And, anyway 2008. Right. Maybe this is like occupy Wall Street but for real. Occupy it literally inside of the market. Where they live.
So, in a nutshell it’s a mockery of a sham. And a travesty. So it’s a mockery of a sham and a travesty.
Seriously., though, perhaps pumping cheap stocks from around 5-10$ up to $500 or higher by coordinated buying executed by internet mobs should be made legal. Each “investor” can jump in and out where-ever they choose and daisy-chain into the wealth that dreams are made of.
Universal basic is basically good, really good
Perhaps this can be the new government stimulus plan. Give every citizen a “free” stock buying app like Robinhood (but a new one cause we all hate those guys now) and have each account pre-loaded with, say, $1000.
Then let everyone know that it’s ok to join Reddit groups or watch TikTok stock market gurus and everyone, like a swarm of locusts can just pump a stock up to the moon and then sell and crash it and move on to the next one.
Naturally, it will be necessary to always start with a stock that is cheap so the early buyers can get really, really rich when the stock (who care what company it is, right?) goes up around 32,000% is, say, a week. That’d be good.
I am looking for how this casino of the common man would be worse that the current system, and it’s hard to find a flaw. Maybe read a book? Naw, just buy and buy and get rich with stonks forever. Amen.
Lots of confusion on all sides. There’s an internet storm brewing over the “injustice” of various entities – a ridiculous “free” trading app called, of all things “Robinhood”, the hedge funds who shorted an obviously overvalued stock. The army of short-squeezers who are screaming bloody murder that they were not able to cash in at the top (or commit Hari-kari by buying more the higher it goes).
And then every pundit in the world sounding off – all the outrage and chaos with Ted Cruz & AOC & Elon Musk & Chris Cuomo & Mark Cuban and probably every celebrity in the world going nuts all at once by tomorrow and all sounding off like crazy over the “injustice”. Shake it up and shake in down.
The sheer volume of confusion over the “Robinhood Revolution” is staggering. Just wait it will be much, much worse. The depth of the ignorance is truly monumental.
Interactive Brokers has put AMC, BB, EXPR, GME, and KOSS option trading into liquidation only due to the extraordinary volatility in the markets. In addition, long stock positions will require 100% margin and short stock positions will require 300% margin until further notice.
Are there bad guys on “Wall Street”? Plenty. Are the google guys day traders that bid up a worthless stock to “burn” hedge funds and get rich quick heroes? Please.
And an App hilariously named “Robinhood” that charge phantom fees rather than stated charges (low, high or whatever) does no “stealing from the rich” and sure as hell no “giving to the poor”.
They told me that the we live in free market capitalist society
They told me:
– Markets are free – Healthy competition is promoted – The same rules apply to everyone – Deck is not stacked against the little guy
Traders and “Wall Street Insiders” know that danger is real. The idea of protecting “retail traders” from risk? As they tap into credit cards to buy worthless stocks that they believe they have a right to pump & dump?
I'm sorry, but if you're gonna freak out when your users start robbing the rich, you can't call yourself "Robin Hood." pic.twitter.com/WwPkO6qdDt
And are they good guys cause they should be able to push the price of a stock endlessly higher for no reason whatsoever except that they get off on the letters from the ticker symbols that happen to sound similar to the ticker for a stock that Elon Musk did a two word tweet about (Signal, etc)?
I accidentally bought 13000 shares of #dogecoin while I was at the gym cause Robinhood froze on me so I didn’t think the order went through. Doubled my money in an hour. First good thing Robinhood ever did for me.
Collusion and getting rich for doing basically nothing should be something that is available to everyone because criminals have gotten away with it left right and center?
Probably best not to name your company or organization or non-profit some form of Robin Hood
The story that won’t stop and the very fine people on all sides
No heroes, plenty of villains and lots and lots of nonsense and stupidity. But before getting into the nuts and bolts of this tragic “new” phenomena, take a second and think about all those media stories, in nearly every online media outlet, even hitting local news.
Each “take” on the story has a different slant and spin and almost none go into the boring and complex technical details of stock trading schemes. Most, it appears, are cheering on, implicitly, the “main street” buyers in an imaginary “war” on Wall Street.
[Disclaimer: Nothing in this article should be construed as legal or financial advice.]
That will get you more clicks.
A few will point out that GameStop, the company that is, which has no real prospect to rise from its comatose state into a Tesla-like world beater, regardless of how high the stock climbs for a few weeks or so.
And they will, rightly, warn that in this game, the “innocent” main street “investor” will lose in the end. Those are the boring stories. Not as many clicks for them.
The longer more accurate story of what is going on touches on the Great Depression, the Dot-com bubble, the financial crisis of 2008 and an understanding of stock trading that goes beyond the patience threshold of the general public and the media, even beyond most so-called Wall Street Insiders.
History does exist, even if it happened before your uncle was born
Up until 1934 many things were legal and rampant that today, technically, are not allowed. Insider Trading is the most obvious and best defined, look up Martha Stewart and jail time if you want to know more about that.
Collusion in the market is another less well known practice, also known as “pump & dump” that has as many variations as Ponzi schemes and, though illegal, will never be stamped out. The technical terms for Colluding in relation to stock trading are “securities fraud” or “market manipulation.”
Not to get technical but here’s an partial excerpt of the legal specifics:
15 U.S. Code § 78i – Manipulation of security prices
(a) – (2 To effect, alone or with 1 or more other persons, a series of transactions in any security registered on a national securities exchange, any security not so registered, or in connection with any security-based swap or security-based swap agreement with respect to such security creating actual or apparent active trading in such security, or raising or depressing the price of such security, for the purpose of inducing the purchase or sale of such security by others.
Enter Reddit’s r/wallstreetbets forum. Not saying that there is anything illegal about “loving” a company as a group and choosing to “support” it by buying its shares.
Even if the motivation (false and imagined) is to “hurt” the short sellers in some kind of Robin Hood attack, that’s probably not something the SEC would care about. Short selling professionals can take care of themselves.
Enter another part of history: the allegedly overvalued company effect
Attacking short sellers has become a kind of sport, particularly when it’s about an emotional connection that was partly responsible for a company’s shares being “overvalued” by traditional metrics in the first place. Once “overvalued” therefore, a target to be sold short by traders and hedge funds that believe in quaint things like profit to earnings ratios and the like.
While company’s share prices being “overvalued” is based on opinion and often wrong, there have been recent cases, since the NASDAQ bubble burst in 2000, that have added a somewhat new, larger, twist on the typical understanding of these types of situations.
Bubble is as bubble does
To take the biggest example, there is Amazon (AMZN) which would take a thousand page book to accurately and fully elaborate on, but for the sake of brevity a couple of points could be made.
It is well known that Amazon posted substantial losses for many years while the stock price generally continued to rise. This was attributed to shareholders’ willingness to forgo proof of financial success within the company and persisted in buying & holding in the hope that share prices would continue to rise and that the company eventually would show profits and more success.
All of that seemed to happen, in the case of Amazon, when viewed casually, and now there is a sense, among some, that overvaluation, in “outlier” cases, is no longer a valid reason to sell (or short) a stock. Everybody’s happy right?
The uses of inflated value is a sticky-wicket if you are the loser
Not everybody. Naturally there are many “bad” short sellers who likely lost by shorting Amazon during it’s unrelenting rise since 2000. They are unlikely happy.
But also, and here’s the rub, there were whole industries crushed by the power that came with that “over-valued” stock price that seems, from looking at reams of data, to have been used to finance the selling of goods at substantial losses for “as long as it takes” to damage competitors.
Ultimately, for Amazon, creating a possibly dangerous monopoly (or monopsony, as it were) position with the potential for further damage to not just competition, and the overall marketplace, but to society as a whole.
Tesla is a whole other story, but a completely unique one
However, the situation is clearly not black and white. An alternate opinion could be held regarding the similar, yet very different, situation at Tesla (TSLA). Short interest throughout the rise? Absolutely. Overvaluation by traditional metrics, yup.
But in this case there is both a technological argument to be made, as well as a geopolitical / moral one, that the company’s wider mission: “Tesla’s mission is to accelerate the world’s transition to sustainable energy” is a more than validjustification for wanting to support the company, in any way possible, including through the purchase of it’s purportedly overvalued shares.
That kind of goodwill is the x-factor that is now being twisted into a justification for pumping GameStop (GME) into the stratosphere, beyond the kind of overvaluations that either Amazon or Tesla ever enjoyed (and that’s saying a lot!) while downplaying the “dump” part of the “pump & dump” scenario.
Of course here’s the tragic part; the dump phase always comes, and in reality, is the whole point. Next… ooopsy, while writing this the dump started with GME in the form of a drop from around $500 per share to $226.
For a sub-$20 stock, of course, that’s still extremely high and there will no doubt be gyrations in both directions before the final drop back to obscurity.
Twas ever thus, but still not nice
But the tragedy is in the idea, bandied about in the media and amplified in social media infinitely, that there are “Robin Hood” actors in this game (not the company but the dude in the forest in the movie).
In the end there may be a few that knew all along that “dump” was an integral and necessary part of pump & dump and I am sure there will be plenty of celebration of their “genius” exploits.
But the focus from any of us in the media should be at the tragedy of those that got lost in the hype and stupidity and chose to offer themselves up to the gods of GameStop, the market and Reddit’s r/wallstreetbets as cannon fodder:
”I was in my early teens during the ’08 crisis. I vividly remember the enormous repercussions that the reckless actions by those on Wall Street had in my personal life, and the lives of those close to me. I was fortunate – my parents were prudent and a little paranoid, and they had some food storage saved up. When that crisis hit our family, we were able to keep our little house, but we lived off of pancake mix, and powdered milk, and beans and rice for a year. Ever since then, my parents have kept a food storage, and they keep it updated and fresh.”
”I bought shares a few days ago. I dumped my savings into GME, paid my rent for this month with my credit card, and dumped my rent money into more GME (which for the people here at WSB, I would not recommend). And I’m holding. This is personal for me, and millions of others.”
”You can drop the price of GME after hours $120, I’m not going anywhere. You can pay for thousands of reddit bots, I’m holding. You can get every mainstream media outlet to demonize us, I don’t care. I’m making this as painful as I can for you”.
