As we start seeing Mass Effects (Oops, *moass* my bad) from meme stocks and idiosyncratic risks, keep this in mind:
Comment in VV S Bee AMA with Mark Cuban (“Hey everyone, Its Mark Cuban. Jumping on to do an AMA…. so Ask Me Anything”)Has anything changed?
- Payment For Order Flow (PFOF)? Still here.
- Synthetic / Counterfeit shares in our market? Still there.
- Dark pools? Check.
- Swaps? Still unreported until 2023.
- Transparent markets? Nope.
- Legit price discovery in our markets? Nope.
After the 2008 Financial Crisis [Wikipedia], one guy went to jail in the US. Kareem Serageldin [Wikipedia, NYT] for mismarking prices. As a result, the prices are still fake.
With Kevin O’Leary [Wikipedia] recently mentioning how a big institution needs to be sacrificed sometime in the next 10-20 days, will there be real change? Kareem was sacrificed for the 2008 Financial Crisis, who will be sacrificed this time? Bill Hwang? Archegos Capital? Melvin Capital? Credit Suisse? Citadel?
This certainly doesn’t seem to affect Gabe much. According to Kenneth C. Griffin (“Kenny”), pension plans of teachers are going to take the fall; not Gabe Plotkin.
“Great, you basically helped wipe out the pension plans of teachers. Do you feel good about that? It’s not Gabe’s money you’re taking down, you’re taking down the money from a pension plan from a teacher.”
Kenny Destroying Teacher Pensions and Blaming Apes [Sauce Video]
Will just some hedge funds going bankrupt be enough to bring about change? Probably not. Systemic change requires a much bigger upheaval.
Remember the SEC GME REPORT: Shorts didn’t cover & DTCC/NSCC are responsible.What to expect when you’re expecting MOASS?
I (and many others on SuperStonk) have been predicting what would happen with MOASS on the horizon. [Things to Watch For During MOASS]
Trading halts: Retail apes can’t sell during a halt, and those naked shorts need to buy shares to close their naked position.
Fake squeezes: Expect a roller coaster ride.
Fake prices: Without any systemic changes, the prices are still fake! Until there’s change, the LAST price reported on the ticker tape is not a real price! The price is quite literally whatever the market makers want us to see.
“There’s an understanding that many dynamics of how humans behave can be, in a sense, taken advantage of by technology. If we know how humans behave and we can predict that, we can use that to better position our portfolios. And a number of quantitative strategies rely on upon human biases and behavior to be successful. So as we understand this, look at the recent Nobel Prize in behavioral economics. As we understand this, we will use computers in new and innovative ways to better drive the pricing of assets in financial markets.”
-Kenneth C. Griffin [Video on SuperStonk post]
Look carefully at Kenny’s words: “we will use computers … to better drive the pricing of assets in financial markets”. His literal words are they will use computers to drive the pricing of assets. That’s not price discovery. Kenny’s bragging about how they use algos to CONTROL PRICES to better position their portfolios!MOASS isn’t real until there is real Price Discovery