I am fascinated by the whole Gamestop/Reddit debacle.
Personally, I am no big fan of hedge funds, and I don’t mind if they are taken to the cleaners and have some of their own methods and ways of thinking reversed onto themselves.
What concerns me is the blueprint sitting beneath this.
Because now we seem to have one;
Now we know you can organize the masses stoked on free money from stimulus packages and non-existing interest rates using free software tools and take on big financial institutions and potentially win. Maybe not a complete victory but more than enough to make the big players feel severe pain.
I am thinking about who and/or what is next?
I have this creepy feeling of deja vu back to little over a year ago, when the first reports of an unknown virus caused a new kind of pneumonia in some remote place in China, most of us had never heard about.
This too could spread. And what are we potentially looking at then?
I don’t think the masses are going to stand back. They are on a high right now having just won and looking for the next prize. That’s the mechanics of gambling; keep going – until you have lost it all again.
If regulators are being pushed to increase regulatory oversigt, it shouldn’t be to save big financial institutions.
It should be to protect us from (unintended) ripple effects.