Home > Critical Thinking, Current Affairs, Dystopia, Musings, Philosophy sans Sophistry, Reason, Secular Religions, Skepticism > Initial Thoughts on Real Significance of GameStop Short-Sell Squeeze

Initial Thoughts on Real Significance of GameStop Short-Sell Squeeze

In the past few days the intertubes have been full of news and opinion about the GameStop short-sell squeeze. The very short version is that a lot of normal people who spend too much time on the internet have decided to buy shares of that corporation to raise its price thereby squeezing a couple of large hedge funds who were shorting that particular stock. While this series of events would, as late as 2014, might not have had any long-term significance- we live in 2021. As I have mentioned in more than one of my previous posts, the context and background of events matters far more than the event itself.

Consider the fact that there were many attempts at political assassinations of royals in late 19th century Europe, with more than a few being successful. However only one, in the early 20th century, set off WW1. The key to understanding why all those other royal assassinations did not start a world war while that one did is to appreciate that the later occurred against the background of a peculiar set and mixture of social, economic, political, ideological, geopolitical and technological conditions which did not exist for all those other ones. Or think about how all of numerous revolts within east-European countries in the late- 1940s, 50s and 60s were easily put down by USSR but they were unable to do so in the late-1980s.

My point is that the background against which seemingly a insignificant event plays out make all the difference if it turns out to be a proverbial flash in the pan or presages something much larger. AS many of you know, I have long held the opinion that GFC of 2008 was the official beginning of the end for West. To quickly recap, that event destroyed the faith of people in meritocracy and competence of western ‘elites’ as well as making it impossible for them to return back to their pre-2008 view of how the world worked. The immediate aftermath of that event also marked the point when China’s economy (in real terms) finally surpassed USA.

It is no exaggeration to say that many events which have occurred all over the world since then, including Brexit vote of 2015 and Trump’s election in 2016, would not have occurred without the background of GFC and its persistent second and third order effects. But what does any of this have to do with people on social media banding together to short-squeeze hedge funds trying to make money by shorting shares of GameStop? For starters, consider the background against which this event is occurring and the reaction by ‘elites’ thus far. As most of you know, the background for this event is even darker than the GFC of 2008.

Over the past ten, or so, months a ever-expanding series of very inappropriate reactions by western governments and ‘elites’ to the COVID-19 pandemic have caused unprecedented levels of job and livelihood loss in addition to massive social disruption without any worthwhile effect on the spread of that disease. I would go so far as to say that overreaction and mal-reaction to this pandemic has caused many times the damage caused by it. An increasing percentage of the population of many Western countries has lost all residual trust in the governments that which rule those countries and, far more importantly, the institutions which support them. In this country, there is the additional issue of the 2020 presidential election.

It is no secret than only a minority of republican voters believe the “official” results of 2020 election- and for good reason. Not only did the MSM manufacture an endless parade of fake scandals to damage Trump from the moment he was elected in 2016 but it is now clear that the deep state and large corporations went out of their way to sabotage Trump- even when he tried to do stuff that was actually good. The way internet monopolies conspired with each other to de-platform Trump after January 6 have not helped either and let us not forget that he received almost 75 million votes in 2020. Between that and the government’s extremely ineffectual and disjointed response to the pandemic, it is no surprise that any residual legitimacy of institutions has taken a even larger hit in USA than other western countries.

And let us not even go into how the obvious lies and bullshit peddled by ‘liberal’ institutions from the FDA, CDC, MSM to teacher unions and democrat-led local governments in many states have screwed up things much more than Trump. Long story short, there is a massive and rapidly growing trust deficit among the majority of people in this country towards pretty much every single major institution and all of this is occurring against the background of depression-like economic conditions. Which brings us to the performance of stock market over the past 10 months in contrast to the rest of economy.

As you all know, the trillions of dollars pumped by government into the financial sector and large corporations over past 10 months has caused a massive increase in both their stock prices and wealth. It does not help that this is occurring at same time as the unwillingness of government to do anything worthwhile to help most people. In a previous post, I wrote about how financialization is the cause of brick-and-mortar retail in this country. Now put all of this together and you will understand why hedge-funds trying to short the shares of GameStop, a company which represented the old way of doing business, elicited the response it did. It is not a coincidence that the internet mob went after hedge-funds trying to short shares of AMC- another business representing the older way of doing things.

In my opinion, what we are seeing right now (everything from Brexit 2015 and Trump 2016 to ongoing anti-lockdown protests and riots in many countries +internet driven short-squeezing of hedge funds) represent steps towards a final and irreversible collapse of public belief in, and legitimacy of, institutions in Western countries. All of this is very reminiscent of what happened within east-European countries in the 1970s and 1980s. Think about it.. this country now has a visibly senile leader leading a bunch of equally senile people supported by small army of careerist apparatchiks who have no talent beyond being parasites and hiding their incompetence behind a facade of bullshit wordiness.

What do you think? Comments?

  1. this blog has rwally gone down in quality....
    January 28, 2021 at 3:21 pm

    “Nasdaq said it will halt trading on a stock if it finds a link to unusual activity on social media. The company said it sees its role as a “self-regulatory organization” is to make sure its markets act in a “legitimate” way. “Regulators kind of have to catch up with the technology that’s now available,” Nasdaq CEO Adena Friedman told CNBC on Wednesday.”

    https://www.cnet.com/personal-finance/reddits-gamestop-stock-battles-with-wall-street-are-turning-into-a-war/

    So when a rich Senator does some inside trading at the begging of the ‘rona, it’s a-okay…

    But some atomized dudes speculating on reddit is wrong…

    hahahahahaha

    • doldrom
      January 28, 2021 at 7:35 pm

      The rules are there to protect the insiders.
      The rule of law mainly means state force to reinforce property claims.
      Little people colluding together is an unforeseen exception not foreseen by the rules, and thus falls outside the rule of law … in such cases fiats are required to realize the original purpose of even having rules: to protect monopoly and privilege.

      • P Ray
        January 29, 2021 at 1:00 am

        Another simple example of “unforeseen exception and not foreseen by the rules” … is the idea that the marks you get on a test that a teacher gives you is correct and truthful, because knowing that in non-national exams it is much easier for teachers to lie and victimise students, thus actually derailing people who were capable … is a truth that is too horrifying to realise, the revelation is swept under the carpet.

        Kind of similar to how sometimes, as an Asian you may qualify and graduate from the most prestigious universities, but you are considered “less capable” than a White guy without even a degree. (e.g. Scott Thompson).

        There are many, many inequalities where the shield is “How can you say that!”
        “Don’t be rude”
        “Be grateful for what you get”
        “Don’t antagonize others” …
        are the thought-terminating cliches to allow other people to get away with stealing, dishonesty and corruption.

      • Parker Bensen
        January 29, 2021 at 5:33 am

        @P Ray

        I know exactly what you mean. For a long time I’ve known that teachers can take one look at a kid and instantly tell their life trajectory. As I’ve shed my naivete, I’ve come to realize that if teachers decide they just don’t like a kid, they will help to ‘shape’ that trajectory towards something not so good.

        Teachers are ranked with fucking predators who hate kids and want the worst for them.

        You’re right, equality is bullshit, because no matter how smart a little six year old is and how much potential he might have, he doesn’t stand a chance against a psychopathic overweight menopausal woman embittered by the fact that no man would go near her long enough to give her kids so she’s going to ruin someone else’s life before it’s even begun.

      • doldrom
        January 29, 2021 at 9:45 am

        Ah, yes. Discovered this early. School is like an economy where marks are the currency and behavior is the job. For every goodie-goodie who performs below expectation on an exam (usually a girl), there is someone who outperforms expectation (usually a boy). Boys often calibrate their effort quite precisely to just scrape buy — this is seen as lazy and even fraudulent, instead of as intelligence. Such boys will exert themselves more if the bar is raised. Even at the graduate level I have gotten back papers marked as an A, but taken down to C- (explicitly stated as such in writing) because the last sentence was: “This is not my own take.” However, writing your own take would lead to exactly the same grade.
        In the long term that strategy can lead to worse outcomes, wasting your formative years to learn counter-productive behavior. Once adult, this behavior persists: men tend to evaluate performance, women tend to pretend it’s credentials that qualify you, regardless of any actual performance.
        In my own case, I finished High School as pretty average, there were a lot of programs I would not have gained admission. Saved by central exams, I finished at the top of the range, and skipped freshman year and got a full scholarship.
        The experience was repeated with my daughter (brown) who was slated to continue as average/below average, but on the strength of aptitude exams and personal intervention and negotiation, went to a classical college and landed up teaching classical languages. The system was telling me all along that the assessment of a professional teacher was worth much more than an ephemeral exam result.
        My ass!

  2. (((They))) Live
    January 28, 2021 at 4:45 pm

    https://en.wikipedia.org/wiki/Nomenklatura

    The US and most of the west is similar to the USSR, who knows what will come next, but I doubt it will be pretty, for example I think the Biden/Harris regime may be dumb enough to attack Iran, which would be similar to the Soviets Vs Afghanistan, BTW I’m not saying they will invade Iran, but their foolish attack would fail, the (((media))) of course try to brainwash people by claiming the Iranians have no right to defend themselves, outside of the US most people won’t believe it

    • Parker Bensen
      January 29, 2021 at 5:13 am

      My money’s on a return of the draft, with President Harris shaming men and imploring them to “man up and go die for our free-dums!” with the full support of all the Karens and luvvies who back in the before times were sort of not in full agreement with that little skirmish we had in Iraq because the president at the time had an (R) next to his name.

      If people can be sold on a bullshit virus that can only be cured with Communism, they’ll get behind anything.

      I would say that I could get to like Curling and listening to Rush, but you just know Prime Minister Peoplekind will be in lockstep and plenty of able-bodied Canuks will be made to give up their lives for the noble cause as well. I’ll have to check out Belarus or South America.

    • ॐॐॐTheyॐॐॐ Live
      January 30, 2021 at 7:22 am

      Indian Supermacists:

  3. Parker Bensen
    January 29, 2021 at 4:54 am

    Preface: hedge-funds that exist to make a buck by shorting that causes untold financial casualties can eat a dick.

    That being said, now is as good a time as any to mention what a shithole of a company GameStop is (was?).

    I never worked there myself, but I have heard many tales of woe from former staff. Sociopathic district managers, staff being forced to push all kinds of crap deals on customers, one notorious example being pushing people to buy second hand copies of games since they buy used games for peanuts and sell them for almost as much as new – sometimes even on par with, OR MORE THAN NEW. Pushing second hand scratched up discs in cases that smell like the previous owner’s weed smoke just to get that higher margin.

    So naturally, customers would get pissed off, and take it out on the staff. Reasonable people don’t even bother with them anymore, they just buy their physical games from big box retailers since they are cheaper and hassle free.

    GameStop is a prime example of post-GFC retail/service culture. That race to the bottom, dog-eat-dog, “Don’t like working here? I’ve got a big fat stack of resumes of desperate people who will fill your spot in a heartbeat.”

    In summation, GameStop deserves to fail for its shitty business model, but nobody deserves to get rich off of its failure.

  4. P Ray
    January 30, 2021 at 11:04 am

    This explains the situation well, so more people can get outraged:
    https://www.theage.com.au/business/companies/revenge-of-the-day-traders-what-s-the-gamestop-craze-all-about-20210129-p56xqn.html

    Remember, the rich see investments the way they’re advertised on tv – minus the line about the possibility of losses happening, and they will go to the government to ensure that reality happens.

    And that is why I like to say, the rich live in a different reality than regular/poor people, kind of like how the attractive live in a different reality than regular/ugly men.

    • Just A Programmer
      January 31, 2021 at 10:59 am

      Risk brings rewards, they say, until the risks materialize, and then they go squealing to the Fed/Treasury Department/SEC for relief.

  5. MikeCA
    January 30, 2021 at 4:51 pm

    Man, the Russian propaganda on this blog could not be any more obvious. Everything is going to bring about the apocalypse of the west.

    What about your dear mother Russia? Covid is out of control in Russia too and the Navalny protests are only growing.

    • stoner with a boner
      January 31, 2021 at 2:25 am

      • Parker Bensen
        January 31, 2021 at 1:05 pm

        Well you can’t expect AOC to date an actual Puerto Rican guy. Showing up to Congress with black eyes and bruises isn’t what she’s going for.

        Not that she wouldn’t give it as good as she got it.

      • Plaque Doctor
        January 31, 2021 at 2:20 pm

        you can tell the above comment wasn’t written by the stinky mulatto Stonah wit a bonah. When you are a WN like me you are clued into such things. It isn’t just the reading of Steve Sailer that makes me smart, it is, ahem, exchanging DNA with other WN’s like Richard Spencer and Jack Donovan. No condoms needed, we just need to keep imposter white guys like Rosh V and Milo Y out. Last time we let them in, we got herpes with our aids and covid…

      • stoner with a boner's piss bottle
        January 31, 2021 at 11:20 pm

        The sodomite known as Stoner with a Boner deletes critical comments on his blog. He can only dish it out, but can’t take it.

  6. stoner with a boner's piss bottle
    January 31, 2021 at 11:21 pm

    The sodomite known as Stoner with a Boner deletes critical comments on his blog. He can only dish it out, but can’t take it.

    • KIREA
      February 1, 2021 at 8:13 am

      We’ve told that idiot many times to get in line and get on board with our ideology. If he wasn’t such a weasel, I’d suspect he would work with messenger rising. But even Messenger Rising wouldn’t tolerate that dumb, worthless mulatto.

  7. KIREA
    February 1, 2021 at 8:16 am

    https://promalecollective.wordpress.com

    Best blog ever!

    We got run off the internet because a splinter faction told the truth about our personal lives.

    Communism for all!

    Down with MGTOW!

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