How Do Bubbles Form? Gamestop and Tulips Can Help Explain | WSJ
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- Опубліковано 15 жов 2024
- Asset bubbles are easy enough to define, but not so simple to identify. WSJ’s Gunjan Banerji explains what bubbles are exactly, how they form and what happens when they burst. Illustration: Jacob Reynolds for The Wall Street Journal
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#Gamestop #Tulips #WSJ
My Dad earned about £40k in the 1980's as an engineer. If you go to the Bank of England inflation calculator online for goods and services. With an 3.8% per year average rate of inflation the wage now should be around £183.000 per year.
Wages have not kept up with inflation and not many people invest direct in stock markets except people rely on investments vehicles in their pensions, If you got one. Most people are in unsustainable debt with nothing much left over. Most people are now running on empty. Average house prices in Winchester in UK is £660.000 and the average wage in the UK is £27k. What could possibly go wrong, only a matter of time?
What’s left to happen is the masses marching into the mansions of the 1% with torches and pitchforks.
Same job now is £55-65k in 2022.
Only bankers in London make that much. It pays to be an operative for Hebrew banks.
Why do you need an online calculator to calculate compound interest? People who have passed highschool should also know the Formula with Euler's constant in it IE
( Final = Initial * e^(rate*time) ).
@@godfather7339you Sound a right W⚓🤡! Stocks, Bonds, & Real Estate are all fiat
instruments that derive their value from the
future stream of cash flows, discounted by
the rate of monetary expansion + risk
premium. They all fail as a store of value
unless they can grow cash flows faster than
the Central Banksters j00's can print monev.
The Dutch tulip bubble and meme stocks are 2 different types of bubbles.
didn't gamestop stock fall because trading platforms restricted its trading
shhh hedgefunds dont want you to know the insane amount of naked calls and short interest GME had
Yeah but they made it seem like retail started selling when the Volume Went down, never mind the Short interest and Utilization still High and no one Covered, in theory !
Also Total Return Equity Swaps that Bill Hwang of Archegos used. The CFTC postponed mandatory disclosures of swaps until 2023. Huh
GameStop is a short squeeze, the people who don’t want the squeeze to happen had a part in making this slam piece
Moass
Yeah they're just desperate at this point to make people believe the squeeze already came and went.
For sure. How do they conviniently forget to mention the increasing Directly Registered Shares (DRS) by individual retail investors which has only been increasing according to Gamestop's last quarter results, massive short interest, SEC Gamestop report that basically concludes that Jan 2021 price movements were not due to closing of short positions (which were officially about 200%+) etc.
gamestop is going to $1 or lower
It’s hilarious how a religion can be formed around a dying brick and mortar video game retailer.
Speculators create bubbles because their actions have a zero sum effect, people who desires the asset because of the value are the ones that stabilizes a market. So if a market has more speculators than value seekers then it is a bubble XD
Stocks are real assets these people are delusional
Bitcoin.?
Gamestop was never a bubble. It's a short squeeze play. Interesting how there is no mention of naked shorting here or how it's been happening continuously over the past year. Currently there is a movement to remove the shares one by one from the stock market and once there is a critical mass (it's already over %25) GME is going to go parabolic. Notice the insane returns of TSLA? Not a bubble, its a short squeeze.
Yes, DRS your shares.
Disengnuous at best, more like complicent. Of course it was a short squeeze bailed out by the SEC, with new rules last week to protect hedge funds further. The sooner people know it's rigged the better. But with this type of white washing most people will never know how they are getting screwed at every turn.
WSJ is part of the establishment. They only cater to the wealthy.
Agree and disagree. Agree with, that it was a Short Squeeze and also there was illegal naked shorting involved. They 2 go hand in hand.
Regarding "it was never a Bubble". Depends on the definition of a "bubble" and on the defintion of "value" and which metrics you use to determine value.
Agree and disagree. Agree with, that it was a Short Squeeze and also there was illegal naked shorting involved. They 2 go hand in hand.
Regarding "it was never a Bubble". Depends on the definition of a "bubble" and on the defintion of "value" and which metrics you use to determine value.
Another gme hit piece, on a very red day. Smells like plain ol' FUD to me 🤣
At WSJ, I expected some economic literacy. Comparing GameStop to Bubbles is like comparing apples to oranges. GameStop was never a fundamental story, to begin with. The spike and the later pullback can be owed fully to the short squeeze. I wish at least at respectable institutions they had an ability to filter noise, and an ability to have a basic understanding of economics and stock exchanges.
It can be both, and it was. GameStop was absolutely a bubble. The short squeeze may have started it, but the vast majority of the price movement was because of a bubble
true, gamestop was not a bubble
@@Antenox No Gamestop is not a bubble. If that is the case, then every short squeeze is a bubble. Incase of Gamestop, it had more than 100% of its float shorted which made it an extreme case.
Bubble refers to mania where the people buying/selling believe that the fundamental story is strong, classic examples are Tulip mania, Railroad investments in the USA in the late 1800s, the 2008 Housing crisis, etc. They are different because it takes longer duration for them to build (i.e. years). First, people believe the story, then more people join in it and fundamentally believe in it and more and more people join. In each of these stories, there is a grain of truth in the story. i.e. House is beneficial ownership, especially in the American taxation system where most middle-class pay tax and take deductions, but they forgot the economic viability part.
Gamestop, Sears (out of business), BedBathandBeyond, etc. are all more likely bankruptcy heading stories and people pile on the shorts and from time to time, the market maker and retail investors join in to raid the fundamental legitimate investors who shorted the company because of the lack of profits or any prospects of it in future.
@@rajeevnair32 no
@@rajeevnair32 sounds a lot like crypto
Game stop wasn't a Bubble.
You frame the people, who where investing in it completely wrong.
GameStop is not a bubble. Hedge Funds shorting it more than available shares is a bubble and unAmerican.
Wow, no dislikes! The gamestop bubble must have popped in January 2021
WSJ forgot to mention that this video was sponsored by Citadel
Is not it a bit late???? WSJ just woke up from covid coma...lol
When the media starts doing hit pieces where we get our information. You know something is about to happen.
🙈🙉🙊
The fact that mainstream media is warning about the dangers of bubbles means that we aren’t at the top yet
or the downfall has only just begun and has much more space to fall, 3 years later when the Nasdaq is at 4000 they can come back and say: well, we told you so, but you moonboys didn't listen, so it's not our fault
@@cassinitakano5736 Let's see in a few months if we have rallied. Media cycle is short term. People will believe anything the media tells them, it's mob mentality. I do agree with you that in a few years we will probably be in the depths of the bear market, but not in the short term since everyone is bearish. Beautiful trade is working out amazingly right now and will only get better!
Mainstream media ?
Here’s to my degen brothers on WSB🍻
@Elisa get high, sell low sista🙏🏿
Why is there not a SINGLE mention of Crypto in this video???
There is NOTHING WRONG with a bubble when it's created by voluntary exchanges without fraud/extortion at play. The issue we have are the bubbles created by government force, using non-voluntary exchanges, in which fraud and extortion are the norm.
Spot on
There is NOTHING WRONG if someone VOLUNTARILY sells themselves into slavery.
First of all there is no such thing as voluntary exchange, people 300 years ago debated this and agreed to this but we still have free market nuts who don't understand econ 101.
It's simple, it's not voluntary if you DON'T have the option to select NONE. When I buy anything, do I have the option to not buy it at all? There are few things that meet that criteria, things that don't, like food, cars(you are forced to buy a car because cities are made that way), electricity, a fridge, AC, A house, mostly everything you are FORCED to buy.
So they're isn't really anything like voluntary exchange if you HAVE to buy it from atleast one competitor.
how is it hard to spot a bubble? when something worth that much suddenly within a relatively short amount of time rises up in price manifolds, in addition to its economic usefulness staying the same such as a house still a house, a tulip still a tulip, a piece of electronic art an electronic art, a company still the same company and so on, then it is a bubble.
It's only hard to tell when you are one of the speculators, staring day and night at its rising price, in another word, being one among the herd, then surely it is hard to tell, for you are blinded by greed and fear (of missing out).
GOOD MORNING 💘 I LOVE YOU ALL ❤️
good one
Hit piece on GME😂
What causes bubbles
Simple
Soap & water
Use your brain it's simple
Nicely explained.
gamestop was not a bubble
Is*
Is tulips on an organ valued more an a rose on a piano
Canadian real estate market
The Wall Street Journal is a bubble.
lol still fun to be part of it.
If everyone thinks it'll go up, everyone will buy to try and sell to everyone else.
Seems now the thing can only go up is Bitcoin and its sort, and promoters of it attacking a lot of people who say negative things about it. But if Bitcoin is really a useful stuff and are trying to reach mainstream application, shouldn't its price going down like what happened in transistors instead of going up?
Alan Greenspan have a long lifespan he’s 96
Gamestop is not a bubble.... get ur fact right. this is a gamma squeeze...
greed inflates then deflates bubble
Didn’t you wall street bros say short sellers covered their positions* for GameStop? Or are you saying they haven’t covered yet?
😈
Make it little bit long please.
Game stop was not a bubble
It was an attempt to squeeze the shorts
Get it right
Rubbish
Cheers from west Africa
🦅
Housing !
Is TSLA a bubble?
How about AAPL? How many stock buybacks have they done now?
@@SoCalFreelance Two questions. I don’t understand either. APPL was undervalued for a long long time. During this time, Apple management, were, of course, absolutely right to buy stock. I wouldn’t say APPL has been undervalued for the last two year … but what do I know. Maybe they will release three killer product/services next month.
so when will bitcoin bubble burst?
You're preaching to the choir
They have been trying to scare people for so long time.. who is paying for this or stand to gain from a crash I wonder..
The United States is a bubble.
You can't compare the Tulip with Gamestop. Even when gamestop goes bankgrupt, it won't effect a thing in financial market. Of course lot s of college students will cry. But that's all.
Tesla is one bubble !
Tesla is a huge bubble going on right now
So was Enron a bubble or balloon? No it was corruption.
We’re caught up playing the impassioned protagonist in our Subjective Narrative of Self 🎈
Because of the economic crisis and the rate of unemployment, now is the best time to invest and make money 💯.....
I wanted to trade crypto but got confused by the fluctuations in price
@Daniel scott whatsapp!!
美国♰𝟭𝟰𝟬𝟭𝟵𝟬𝟯𝟯𝟮𝟵𝟬美国
For someone who has no clue about stock market, this explanation isn't all that easy to understand.. I know about market bubble hence i understand it easily
then you gotta need someone to read record and evaluate the stock price of every single products inside the country to avoid this bubbly situtation or ride the bubble then getout at the right time before it explode LOL this thing reminds me iof a snake and ladder game XD the financial bubble were the ladder and the snakes where pitfall for the wrong investment
hehehe
Stocks are really more like tulips than bitcoin is. Since last week, there has been a strong push to imply that bitcoin is not worth anything. Even if it goes to zero, I will buy more of it. I know what the Wall Street is trying to do
Spoiler:
We're in one
Talk about a useless video. Next, they're going to claim that the earth circles around the sun. Brilliant analysis WSJ! LOL
From my own understanding, you need to invest wisely, if you need the good things of life. so far i've made over $470k in raw profits from just q4 of the market from my diversified portfolio strategy and i believe anyone can do it you have the right strategy. mutual funds takes a while but investing wisely is the key for short term. Most of us pay more attention to the easy position in the market to the cost of proper diversification.
She helped me regain what I lost trying to change
I think I am blessed because if I had not met someone as spectacular as the expert Ms. Lauren Jessica Florence
I think she's the best runner I've ever seen
My first investment with Ms. Lauren Jessica Florence gave Lynne profit of over $ 24,000 US and since then she has never failed to deliver and I can even say that she is the most sincere broker I have ever met.
@@leighjay2624 Who is this professional that everyone talks about? I always see her post in the main comment on every UA-cam video I saw.
GameStop yeesh pretty bad example, that was a short squeeze and the selling was triggered by manipulation
They’re talking about crypto without talking about it so the so the botsdon’t comment that they made $1,000,000 with Mr. Or Mrs. (insert an English common last name here) 😂😂😂😂😂
This sounds like housing. The market can only go up.
Bubbles exist because of 2 simple things human Greed and FOMO.
The gamestonk squeeze wiped out several hedge funds and bankrupted a lot of retirees. That wasn't harmless.
aka Bitcoin
Something for nothing??
bitcoin bubble incoming
Shills!
Lesson: Abolish the Fed...
WHEN WILL THEY MONEY BUBBLE WILL BURST??? HUH?
Greed
FOMO🧘♀️👎
Out of all the examples they could’ve used, you decided to use the one stock that wasn’t a bubble, get your facts straight!
New Zealand property prices?
Can someone confirm for me please