I wonder if Pam wants to discuss Trump’s stock market.

    • IronBird@lemmy.world
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      9 hours ago

      honestly, the fact the game is rigged actually makes making $ easier than ever with just an amateur level of understanding (though there’s a limit to “scalping volatility”, eventually you make waves big enough to become the liquidity others are trying to extract) but, the fed’s liquidity injections only go so far. ultimately there are no friends on wallstreet/bankstreet, it’s a zero sum game and nobody leaves any $ on the table for anyone else if they can help it.

      i will admit to not knowing the full scope of how that fed monopoly $ is moved around (that’s mostly through the banks iirc), but i do know someone/s out there is 100% trying to hunt that liquidity down for themselves somehow.

      there are various rule differences between the US and most other world’s markets that when you look at them from a high-level they can be determined to exist for only one reason…to “facilitate liquidity/volatility”, to make the casino exciting. the rest of world cracked down on the worst examples after 2000-08, but the US left em for shits and giggles.

      • UnspecificGravity@piefed.social
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        9 hours ago

        The market doesn’t need money from the fed to create money from nothing. When Tesla trades at 1000x its revenue that money just magically appears out of nothing.

        • IronBird@lemmy.world
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          8 hours ago

          coordinated trades to manipulate price action is one very big and common aspect to the casino, yes. but ultimately that number means nothing unless there’s actually the liquidity at that level for you to exit your position at a profit (in order to buy in on something else trading low) or you have a position in that stock to trade on margin elsewhere.

          via unique aspects to how US options work, there is a lot of forced buying/selling going on at any time on most tickers

          this is why the powers that be are trying in vain to prop up the wider market, US is most over-leveraged market in the world…when the music stops (liquidity tap closed)…anyone without a chair (not utilizing proper risk management) gets forced to sell, frequently at a heavy discount, as their margin evaporates

          • UnspecificGravity@piefed.social
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            8 hours ago

            Except that rich people never sell. They get loans against their assets (i.e. imaginary inflated stock) that they use to buy real assets.

            • IronBird@lemmy.world
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              8 hours ago

              anything tied to the PA, loans included, are at risk when PA collapses. now, this is why tesla is propped up.

              ultimately, PA is determined by whoever has the most $ to move around (and lowest entry/cost) between themselves

              with forced buying/selling via options, and some sort of regular liquidity injection to maneuver around, it is very easy to control something that noone else is actually buying. index funds are required to allot some money to every ticker in X index, ans the overwhelming majority of $ being movdd around is via index funds.

              there’s a whole wing of fintech designed around artificially inflating the price of companies right before inclusion in a big index, so they can “dump” on index funds that have to buy

              there are so sooo many levels to shit, it really is the most convoluted predatory casino imagined, where 2 things are rewarded above all else…knowledge (of the underlying fundemental value) and greed. when your greed outpaces your knowledge is when people start blowing up accounts.