when you explore and ponder the theoretical consequences of shorting with impunity, there are examples of where the markets have gotten close to an implosion…
$GME was there.
Unfortunately, a critical mass of the diamond hands resided on a single platform, in robinhood. And when the broker of that critical mass was approached by the powers controlling the system, they were convinced to cooperate. And then buying was shut down.
Completely fraudulent.
And completely overlooked by institutional money, Congress. Long enough to shatter the social fabric and momentum. And long enough for that market faction to fragment, just like Madison describes in out 10th Federalist paper.
We see shadows of it once in a while. To whit, $CAR
Brilliant. I’m not sure if short positions are institutional, or retail, but it’s certainly exhibiting behavior of a system disruptor.
Fine. One stock. They can control that, right?
Limit buying. I’d watch for that.
Shutting down social comms, that too. So if the masses are smart, they’d find a platform to comm that is free from influence. Not sure what that is.
But $CAR aside…my real thought is this.
What if the bear problems at $CAR sprout elsewhere? I started some $FRMM. And a few other overly punished/exploited stocks.
What if they all started to have a steady short collapse? Tapping that mid/large cap space where institutions and hedge funds like to exploit the masses. And what if their backers started to notice and command greater securitization against a broader social/market movement?
How could you justify corrupting free markets with but restrictions, and margin requirements.
How could you justify allowing shorting pooled shares but denying margin buying?
Broadly, if there where multiple $CAR behaviors, what is that critical mass/tickers that would bring things to a panic?
And what would be the best way to play it? I don’t think it’s the individual tickers, as they can be attacked. But to play the outcome of the war, you’d need to buy options on the $VIX, maybe puts on the $QQQ.
Hmmm.
Needs more thought and observation.
BTW…from the time I started this ponder with $CAR $548….its now at $570…
Uh oh… |
