Re:GameStop Is Rage Against the Financial Machine
by throw0101a on Thursday January 28, 2021 @01:26PM
(#25946437)
Just because GME-as-ownership-unit may be overvalued, does not necessarily mean it is overvalued for GME-as-contract-closure-instrument.
If you want to focus on GME-as-ownership-unit, as a share in a retail business, that's perfectly valid. But that's not the only perspective.
Re:GameStop Is Rage Against the Financial Machine
by jariel on Thursday January 28, 2021 @01:44PM
(#25946784)
That's actually a good point, at the same time, in the bigger picture, it's market chaos and nobody wants it.
Basically, mobs are fighting against hedge funds using random companies as battle grounds - the markets are there to support those companies, not destroy them.
So what we are seeing is kind of an inflection point that the system wants to tamp down.
It's actually pretty distressing to see how many intelligent people think they are doing some kind of good here, like burning down a few stores to force the owners to leverage some kind of fire insurance policy to destroy the 'evil insurers'.
No, not at all.
It's well known that this stock is massively overvalued.
It's a mania, or a crowd-induced Ponzi scheme.
This is different than investors predicting outcomes based on fundamentals or their view of growth.
The plebes will be left holding the bag and probably lose much more money than the banks and it will affect them more greatly.