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

  • IronBird@lemmy.world
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    18 hours ago

    just an fyi to anyone without knowledge of the finance industry, all the big indexes and shit are dominated by algos unless there’s a 10% move down.

    overwhelming majority of “X does Y because Z” articles you see out there are just building a narrative after something has moved because it’s one giant casino but the powers that be need people to trade otherwise there’s no liquidity to extract.

    so, X drops a bunch for whothefuckknows…push out fearmongering stories it’s because of (insert disaster) to get people who don’t know any better to sell when they see their retirement accounts down some big figure.

    • jj4211@lemmy.world
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      10 hours ago

      Pretty much absolutely this. Seeing the rationalizations day to day that just dont make sense should undermine the explanations, but instead people just latch on the the ones that agree with them…

      • IronBird@lemmy.world
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        18 hours ago

        eh, the fed’s liquidity injections only go so far. ultimately there are no friends on wallstreet, 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 someone/s out there is 100% trying to hunt that liquidity down for themselves somehow.

        • UnspecificGravity@piefed.social
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          18 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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            18 hours ago

            coordinated trades to manipulate price action is one very big aspect to the casino, yes. but ultimately that number means nothing unless there’s actually the liquidity at that level for you to exit, or you have a position in that stock to trade on margin elsewhere.

            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 as their margin evaporates

            • UnspecificGravity@piefed.social
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              17 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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                17 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