Made me finally realize that the US tendency to always bail out “too big to fail” is a huge mechanism enabling the outrageous speculative silliness in the first place, cuz there’s not enough risk applying downward pressure on price.
This is probably obvious to folks, lol, but it wasn’t to me. Net result is just that there’s more logic behind absurdly high stock valuations (and not just limited to AI ones) than I previously understood.
the US’s financial markets are left purposefully unregulated to facilitate “liquidity”, read…taking $ from the world’s gamblers. With the way MM’s are setup and largely unmonitored…this means the US’s stocks are purposefully ran up in proce specifically to drop them hard, to trigger emotional reaction-selling from those that don’t know any better.
that plus a couple key differences in how option contracts work vs most other markets means the whole thing acts as one big fucking casino. all of this is by design, because the people running the US (big business) want regular cycles of boom and bust to take advantage of the working/(non-existent now) middle class.
Great explanation!
Made me finally realize that the US tendency to always bail out “too big to fail” is a huge mechanism enabling the outrageous speculative silliness in the first place, cuz there’s not enough risk applying downward pressure on price.
This is probably obvious to folks, lol, but it wasn’t to me. Net result is just that there’s more logic behind absurdly high stock valuations (and not just limited to AI ones) than I previously understood.
the US’s financial markets are left purposefully unregulated to facilitate “liquidity”, read…taking $ from the world’s gamblers. With the way MM’s are setup and largely unmonitored…this means the US’s stocks are purposefully ran up in proce specifically to drop them hard, to trigger emotional reaction-selling from those that don’t know any better.
that plus a couple key differences in how option contracts work vs most other markets means the whole thing acts as one big fucking casino. all of this is by design, because the people running the US (big business) want regular cycles of boom and bust to take advantage of the working/(non-existent now) middle class.