Kansas City Shuffle: Meme Stock Manipulation Spikes American Class Warfare

Despite all the hype and irrational exuberance of our online friends, there is a fundamental truth that is being overlooked amid a great deal of speculation. 

Fundamentally, AMC, Gamestop and so many other garbage companies caught up in recent stock mania are BAD BUSINESSES that that have outdated models and challenging futures ahead that could end with their ultimate financial demise.

Everything else is just news about compulsive gambling and politics.

Moreover . . .

Look closely and the recent celebration of stock manipulation isn't really powered by an affinity for antiquated biz models, (supposedly) it's a rebuke of the powerful and super-rich market makers who have been greedily profiting from crony capitalism for most of the modern era. 

In other words, this stock "revolution" is (allegedly) yet another celebration of populist politics and it's being effectively utilized to spark already rampant anti-capitalist sentiment as a precursor to tax increases and more stringent regulation of markets. 

Most people are too broke to care one way our another, this hot mess makes the drama more accessible . . . Even if the rich vs. poor angle is merely a talking point/origin story to lure in more suckers looking to get rich quick.

No matter.

Mr. Market is easily swayed, influenced and exploited but in the end, always, artificially inflated prices rarely enjoy extended climbs and often fall just as quickly as they skyrocketed. 

For every get rich quick story the MSM celebrates, there will be far more people who bought in to the mania far too late or will be much too slow to escape with any profits. 

Just like gambling addicts, we'll hear phony war stories about cashing out with EPIC gains that are mostly just misleading braggadocio.

The only thing we know for sure is that if old ladies and local newsies are talking about it . . . The trend is already over and the search for greater fools has begun in earnest. 

Punchline: Just like all confidence scams, the motivation behind the trickery isn't nearly as important as separating fools from their money.  

Whilst this blog is far too broke to offer any financial advice . . . We only share links and perceptive in order to remind people that profiting from overpriced popcorn & candy at empty theaters isn't a great biz going forward in much the same way that video games once offered at Game Stop are now overwhelmingly purchased online.

These news stories explain the phenomena much more eloquently and with more data that local newsies are too busy to read . . . Check-it:

CNN: His risky bet made him a millionaire on paper. It could've gone very differently

CNBC: It’s likely going to take a constant stream of excited buyers to keep the GameStop, AMC rally going

Hollywood Reporter: Jordan Belfort Warns of "Massive Victims" in GameStop and AMC Stock Manipulation

CBS: Poverty-fighting group Robin Hood confused with trading app Robinhood

NBC: Gambling addiction experts see familiar aspects in Robinhood app

Developing . . .

Comments

  1. Still not as bad as game stop's horrible exchange rates.

    ReplyDelete
  2. YOU MUST READ WHAT THIS GUY1/30/21, 12:02 PM

    "NBC: Gambling addiction experts see familiar aspects in Robinhood app"

    Guilty, addicted to making money.

    ReplyDelete
    Replies
    1. ^^^^
      Um, keep your worthless stock. Good luck getting rid of it. Tick tock.

      Delete
  3. I like this post Tk.

    But I don't think it's the wrong people manipulating the stock market.

    It's the same people.

    Therein lies your Kansas City shuffle.

    Maybe you were hinting at that the whole time.

    ReplyDelete
  4. More memes.

    More titays!

    ReplyDelete
  5. Little sympathy for the hedges and short sellers. Little guyson reddit dicked their collective asses. Of course the stocks are crap and will not hold this temp value. Funny still.

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  6. "The only thing we know for sure is that if old ladies and local newsies are talking about it . . . The trend is already over and the search for greater fools has begun in earnest."


    Dead on the money Tony!

    ReplyDelete
  7. What are you talking about? I took my profits from Gamestop and AMC and made bank. I didn't say a word in the reddit forums. I read the posts, went along, saw and advantage, made bank, and got out. I have been unemployed since May 2019, and the profits I made from those two stocks have allowed me to pay off the accumulated debt and get well ahead. The people that participated in blocking the shorts of AMC and Gamestop were doing the same things "analysts" do every day on MSNBC, influence buy and sell, and now many are taking their profits. I can't go buy a brand new car, but I can pay off the remainder of my student loans and have enough left over to save, splurge, or finance a project of some sort. I am not a gambler by nature, but the initial investment wasn't that bad and it turned out well. I am glad I did it. Even Robinhood is allowing full share buying and selling of Gamestop again. Take your profits if you'd like.

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  8. Apparently, Trump forgot to fix this. Guess he was to busy winning trade wars, bringing manufacturing back, reducing drug prices, etc.

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  9. This happened because the dimwits like China joe, note that amc is owned by the Chinese and the rest of the dimwit party are making the rules and a killing by cheating the system, it’s only a problem for them because they are crooks and will do anything to make money, machine gun Nancy bought $2.5 million dollars worth of stock that the Chinese own so......

    Insider trading is not a crime for politicians, only the lowly American people get punished for that.

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  10. 2:01 fix what exactly? What should he have done, that is within the executive powers granted by the Constitution, that he did not do?

    Or are you just blowing smoke?

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  11. Gamestop still has more than 117% of shares sold short. The SEC should regulate the total sold short to maybe $25%. As its a gamble with unlimited risk and no benefits for the general overall market. I dont feel sorry for the fools that sold it short, then let others sell short the SAME SHARES, increasing the amount to over 100% sold short.

    Thankfully, Weinrich Zitzmann Whitehead Investment Securities (formerly in Westwood Ks) is not longer in business. It was vastly undercapitalized and the owners had no business being in the biz, as evidenced by it closing down. If you wanted to get a tax loss - invest with WZW! Loss guaranteed! What a joke of a firm and joke of its leaders! NASD was asleep on that firm

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  12. And yet the elite hedge fund managers took it up the ass. Weird. We aren't done and will do it again.

    ReplyDelete

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