A new financial virus?

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.

(Photo: Pixabay.com)

Corona thoughts, part 1

As Denmark is in virtually total lockdown it is quite interesting to observe how people and businesses scramble to deal with a totally new situation.

On the business side those that can are ordered to work from home. While many are used to having this form of working as part of their everyday job, for others it will be a new exercise. But equally important this will stress test both software systems and the IT setups of various companies. There is a huge difference between being able to offer the odd VPN connection and then basing the operation of your business around it. Some will notice that they have been asleep at the wheel and not got the right solution in place. Those will suffer the consequences.

Furthermore, on the business side, it is interesting to observe the effect the lockdown has on the gig economy, whether it is blue collar or white collar. While you could always assume that a lockdown would essentially kill the opportunities for blue collar workers, it is fascinating to watch how quick highly sought after white collar consultants loose close to 100% in value and have gigs cancelled on them. What does that say about the value of their offerings? Anyways, we must hope they have put a little aside during good times to cope with the situation.

Finally, on a more personal front it is frightening to observe our lack of adherence to authorities. In these times where SoMe has made everyone an expert on everything (or so it seems), this expertise doesn’t rime at all with the requirements of a real emergency. The ‘me-me-me’ attitude helped along by ‘see me-see me’ platforms such as Instagram doesn’t help much either. We make the mistake of thinking that we can transfer our behaviors from behind a screen out to behavior in real life. Normally, it wouldn’t mean a lot – it would just be stupid or even hurtful. Now, trying that can literally end up killing somebody. Think about that.

(Photo: Pixabay.com)