Jonny's Weekly Musings - Jan 22 - 28
There was a pretty limited amount of music news this week and thus will not be the main story. Of course the main story will be the destruction of the wall street façade that took place before our eyes. For those of you who remember ‘08, or watched the big short, or even the crash of ‘87, or even the crash of ‘29 (pog), you will surely know that Wall Street is just phony rich people making phony rich money and preying on the everyman.
This revelation was pushed upon the general public when a large group of turbo chad/wall street nerds from r/wallstreetbets were able to cripple many major hedge funds. The site has been slowly pushing stock/financial advice that has always been rooted in the memes. General this site has been a landmine for really shitty stocks and heavy speculation/gambling but something strange started happening at the beginning of the week. The masses started coalescing into a force strong enough to shift the market. And of course the cohort of sexually deprived 20-somethings with robinhood accounts galore, found it amusing to make the GameStops stock go “to the moon.” Now why GameStop? Because of the pandemic and really just the internet, brick and mortar stores have been slowly dying. Gamestop has been on a similar downward trajectory and as a result a mass of large hedge funds had taken out ~140% shorts on GameStop. The boys at wallstreetbets saw an opportunity. The members had a lot of pent up nostalgia for the days of going to GameStop and getting absolutely shafted by their in store trade-ins. This somewhat benign reason for pushing GameStop stock seemed like all fun and games at first. But then the big boiz got involved. The stock began soaring to astronomical highs and the hedge funds got absolutely destroyed, having to pay for their shorts. This drove a bunch of hedge funds into the ground (which of course they will be immediately bailed out) and led to an absolute frenzy. When this started to happen, wallstreetbets smelled blood in the water. it became something bigger than the meme stocks, it became a fight against Wall Street and the absurd system. HOLD HOLD HOLD. Is what people have been saying as the price of GameStop continued to be pushed up. On cable television (I’m gonna vomit) old Wall Street peeps were losing their god damn minds. THEY DONT KNOW ANYTHING ABOUT THE MARKET. WHERE ARE THE FUNDEMENTALS. Blah blah blah. It really just shows how much a sham the stock market is. It is “suppose” to operate on free market principles etc. and “reflect the economy” but we all know that is complete bs. The market has been exploding during the pandemic as hundreds of thousands of people are dying and small businesses are being destroyed. The hedge funds do the exact same thing that these Robinhood warriors have been doing but behind closed doors. Senators like Nancy Pelosi respond to insider information within the government and invest accordingly. It is ridiculous the outcry that the common people got when they tried to game the system the same way that the gross elite have been.
God forbid real people make a little money. This morning Robinhood stopped trading on many of these meme stocks to “give hedge funds time to come up with a strategy.” The internet didn’t like that. There are already class action lawsuits being formed against Robinhood as they have chose the big boys over their supposed motto of “democratizing investments.” You can truly see the visible hand of the market put in play with all of this. It is worse because we will lose. The hedge funds will win in the end of the day and investing will continue to be a rich man’s game. If I could make a comparison that I feel is so apt I think that the GameStop fiasco is like Thanos snapping away half of the universe and we are all just his minions about to get slaughtered by the avengers (Wall Street). Sadge indeed. Anyways that is my two cents. I had a bunch of musically tailored musings for this week but this kinda took up a large part of my brain the last few days so sadly you’ll have to tune in next week for more musings :).
Happy Investing?
