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

  • IronBird@lemmy.world
    link
    fedilink
    arrow-up
    8
    ·
    15 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
      link
      fedilink
      English
      arrow-up
      11
      ·
      15 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
        link
        fedilink
        arrow-up
        5
        ·
        15 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
          link
          fedilink
          English
          arrow-up
          3
          ·
          15 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
            link
            fedilink
            arrow-up
            5
            ·
            15 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