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

  • UnspecificGravity@piefed.social
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    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
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      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
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        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
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          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