money printer goes brrr, stonks go up
Obviously there's a lot more to WSB, but the memes and videos they produce (on the above statemenet for example) are fun and descently accurate given the community
The nihilism of r/wallstreetbets
101–110 of 277 posts
Re: The nihilism of r/wallstreetbets
#102This post is a great tutorial in why we shouldn't derive meaning from expressed language. Imagine if you sat in a room of software engineers and tried to make conclusions about their life views based on their jargon: "I think what they're saying is you just need to form a single value store and react to it, dividing life into small composable micro components that are DRY. We can really comprehend how this minimalism…
“Computers are haunted never go near them” - every SWE I know
https://www.stilldrinking.org/programming-sucks is a wonderfully funny essay on the topic.
Re: The nihilism of r/wallstreetbets
#103Wall street bets is just exposing the facade of wallstreet. As more information about investing becomes available, hedge funds and investors will look increasingly less sophisticated. Platforms like Robinhood will erode their edge by increasing liquidity, lowering transaction costs, and providing access to more exotic investments and financial derivatives.
>and providing access to more exotic investments and financial derivatives.
People having access to exotic investments they didn't understand (and hence couldn't correctly price) was exactly how we got 2008.
Wall Street benefits from volatility and all of this trading, they aren't losing any edge.
Re: The nihilism of r/wallstreetbets
#104Earlier quoted context omitted.
It’s not 11B sloshing. It’s probably 1% of that, if that. Market cap > available shares Available shares > traded shares Traded shares > actual $ involved
What do you mean? Today's traded volume is 170M shares. The price is $80. $13-14B has to change hands to settle that.
if i give you a dollar and you give it back to me 7 billion times, 14 billion in volume occurred with $1. some percentage of this is tomfoolery that triggers cascades in the HFT space and create a lot of volume without much sound.
Re: The nihilism of r/wallstreetbets
#105It just doesn't add up to me. If you take Gamestop (GME) today's hot item, it's trading 170M shares back and forth, at say, $70. That's $11B sloshing back and forth. You're telling me 10,000 (if even?) guys sitting at home doing retail trading have $1M each in positions driving this? 100,000 people with $100,000 each, during the day? I think it's quant and algorithmic trading. I would love to hear from an expert thou…
They definitely do move markets. What you need to know is that they are buying short-dated call options. These options expire in less than 2 weeks, and are usually far out of the money. They require "dealer hedging" as the market makers providing these options do not want to be exposed to the massive amount of risk implied with the movement of price. The market makers are then required to buy massive amounts of the stock in order to hedge against any movement in the underlying stock, which can cause a "gamma squeeze" when market makers are unable to purchase enough of the underlying asset.
Re: The nihilism of r/wallstreetbets
#106This post is a great tutorial in why we shouldn't derive meaning from expressed language. Imagine if you sat in a room of software engineers and tried to make conclusions about their life views based on their jargon: "I think what they're saying is you just need to form a single value store and react to it, dividing life into small composable micro components that are DRY. We can really comprehend how this minimalism…
“Computers are haunted never go near them” - every SWE I know
The alternate title to Ghost in the Shell
Re: The nihilism of r/wallstreetbets
#107As opposed to the “professionals” who short a company and then work to ruin the company so their bet pays off.
No no. It’s the WSB crowd that is the nihilists.
Re: The nihilism of r/wallstreetbets
#108Earlier quoted context omitted.
The median bottom quintile of incomes is higher today in real terms than is was in the 1990s, and the median income is higher as well. https://www.census.gov/data/tables/time-series/demo/income-p...
And yet, education, healthcare, and housing raced away from wages. I'm not here to argue a failed economic system in this thread, but the motivation behind wsb's nihilism is exceptionally clear. https://www.pewresearch.org/fact-tank/2020/09/04/a-majority-... (A majority of young adults in the U.S. live with their parents for the first time since the Great Depression) https://www.cnbc.com/2019/02/11/this-is-the-real-r…
Housing is a tough one; houses on average cost the same amount on an inflation adjusted basis per square foot as they did in the 1970s. However, houses are on average twice as big as they were back then, and contain far fewer occupants on average, too. In 1970 the average household was 3.14 people, today it's 2.5 people.
[edit] There's a lot of reasons for the increase in the actual price of accommodation. They're largely driven by local ordinances. Setback rules, minimum size rules, minimum number of bathrooms/closets/etc all - all sorts of code things.
Further, in major metros city councils refuse to increase supply to meet demand - to benefit existing landowners.
One solution to this is national zoning rules like Japan has.
Re: The nihilism of r/wallstreetbets
#109Earlier quoted context omitted.
And yet, education, healthcare, and housing raced away from wages. I'm not here to argue a failed economic system in this thread, but the motivation behind wsb's nihilism is exceptionally clear. https://www.pewresearch.org/fact-tank/2020/09/04/a-majority-... (A majority of young adults in the U.S. live with their parents for the first time since the Great Depression) https://www.cnbc.com/2019/02/11/this-is-the-real-r…
All three of those things are things that are hard to outsource. My suspicion for a long time has been that we've actually had massive inflation since roughly the year 2000, but it's been masked by the effect of outsourcing and automation reducing the price of pretty much all manufactured goods.
https://www.epi.org/productivity-pay-gap/ (Reduced labor power)
https://www.theatlantic.com/ideas/archive/2019/02/new-americ... (Globalization)
https://www.lynalden.com/money-printing/ (Assets bubbles from central reserve QE)
https://fred.stlouisfed.org/series/WALCL (Fed Total Assets)
Re: The nihilism of r/wallstreetbets
#110"It’s a bunch of autistic losers that live in their mom’s basement who are gambling what little money they have to try and become rich to live lifestyles of hedonism." Clearly written by someone who has never interacted with the community beyond reading the sidebar on reddit. Also explains why the rest of the article is mostly wrong.
I don't agree. The sentence before that one changes the context: "The basic surface-level story of WSB is this." The author is trying to explain that this is how the majority of the world sees the group, but the reality is different.
more like 'what the group pretends to be to have fun losing money'