How Do Bubbles Form? Gamestop and Tulips Can Help Explain | WSJ

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  • เผยแพร่เมื่อ 26 ธ.ค. 2024

ความคิดเห็น • 132

  • @meejinhuang
    @meejinhuang 2 ปีที่แล้ว +23

    The Dutch tulip bubble and meme stocks are 2 different types of bubbles.

  • @Tawkitoutti
    @Tawkitoutti 2 ปีที่แล้ว +42

    didn't gamestop stock fall because trading platforms restricted its trading

    • @litojonny
      @litojonny 2 ปีที่แล้ว

      shhh hedgefunds dont want you to know the insane amount of naked calls and short interest GME had

    • @fee_ic4981
      @fee_ic4981 2 ปีที่แล้ว +7

      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 !

    • @john8494
      @john8494 2 ปีที่แล้ว +2

      Also Total Return Equity Swaps that Bill Hwang of Archegos used. The CFTC postponed mandatory disclosures of swaps until 2023. Huh

  • @GIPvideos
    @GIPvideos 2 ปีที่แล้ว +46

    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.

    • @john8494
      @john8494 2 ปีที่แล้ว +4

      Yes, DRS your shares.

    • @msromike123
      @msromike123 2 ปีที่แล้ว +1

      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.

    • @MrSupernova111
      @MrSupernova111 2 ปีที่แล้ว

      WSJ is part of the establishment. They only cater to the wealthy.

    • @nicopottebaum1189
      @nicopottebaum1189 11 หลายเดือนก่อน

      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.

    • @nicopottebaum1189
      @nicopottebaum1189 11 หลายเดือนก่อน

      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.

  • @jorge86rodriguez
    @jorge86rodriguez 2 ปีที่แล้ว +50

    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

    • @gian19791
      @gian19791 2 ปีที่แล้ว

      Stocks are real assets these people are delusional

    • @mhk10
      @mhk10 2 ปีที่แล้ว

      Bitcoin.?

  • @ajdillion3021
    @ajdillion3021 2 ปีที่แล้ว +70

    GameStop is a short squeeze, the people who don’t want the squeeze to happen had a part in making this slam piece

    • @Muted3
      @Muted3 2 ปีที่แล้ว +5

      Moass

    • @nicklawson678
      @nicklawson678 2 ปีที่แล้ว

      Yeah they're just desperate at this point to make people believe the squeeze already came and went.

    • @john8494
      @john8494 2 ปีที่แล้ว +3

      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.

    • @spidercat2841
      @spidercat2841 2 ปีที่แล้ว +1

      gamestop is going to $1 or lower

    • @tomcat8662
      @tomcat8662 2 ปีที่แล้ว

      It’s hilarious how a religion can be formed around a dying brick and mortar video game retailer.

  • @drmode
    @drmode 2 ปีที่แล้ว +19

    GameStop is not a bubble. Hedge Funds shorting it more than available shares is a bubble and unAmerican.

  • @rajeevnair32
    @rajeevnair32 2 ปีที่แล้ว +58

    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.

    • @Antenox
      @Antenox 2 ปีที่แล้ว +8

      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

    • @sidewalker6003
      @sidewalker6003 2 ปีที่แล้ว

      true, gamestop was not a bubble

    • @rajeevnair32
      @rajeevnair32 2 ปีที่แล้ว +3

      @@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.

    • @jahjoeka
      @jahjoeka 2 ปีที่แล้ว +1

      @@rajeevnair32 no

    • @kingyar4552
      @kingyar4552 2 ปีที่แล้ว

      @@rajeevnair32 sounds a lot like crypto

  • @lucasfelipedesousa8006
    @lucasfelipedesousa8006 2 ปีที่แล้ว +6

    Game stop wasn't a Bubble.
    You frame the people, who where investing in it completely wrong.

  • @dannyc.8696
    @dannyc.8696 2 ปีที่แล้ว +2

    WSJ forgot to mention that this video was sponsored by Citadel

  • @blake3120
    @blake3120 2 ปีที่แล้ว +25

    Another gme hit piece, on a very red day. Smells like plain ol' FUD to me 🤣

  • @jonathanlopez2014
    @jonathanlopez2014 2 ปีที่แล้ว +2

    Wow, no dislikes! The gamestop bubble must have popped in January 2021

  • @derek8149
    @derek8149 2 ปีที่แล้ว +4

    The fact that mainstream media is warning about the dangers of bubbles means that we aren’t at the top yet

    • @cassinitakano5736
      @cassinitakano5736 2 ปีที่แล้ว

      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

    • @derek8149
      @derek8149 2 ปีที่แล้ว

      @@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!

    • @stewartfraser4210
      @stewartfraser4210 2 ปีที่แล้ว

      Mainstream media ?

  • @milkbone6558
    @milkbone6558 2 ปีที่แล้ว +6

    Hit piece on GME😂

  • @sandwitht6264
    @sandwitht6264 2 ปีที่แล้ว +2

    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).

  • @jimbaxter6388
    @jimbaxter6388 2 ปีที่แล้ว +4

    When the media starts doing hit pieces where we get our information. You know something is about to happen.
    🙈🙉🙊

  • @homewall744
    @homewall744 2 ปีที่แล้ว +22

    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.

    • @john8494
      @john8494 2 ปีที่แล้ว

      Spot on

    • @godfather7339
      @godfather7339 2 ปีที่แล้ว

      There is NOTHING WRONG if someone VOLUNTARILY sells themselves into slavery.

    • @godfather7339
      @godfather7339 2 ปีที่แล้ว

      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.

  • @nufrepusgnirbi
    @nufrepusgnirbi 2 ปีที่แล้ว

    lol still fun to be part of it.

  • @annmariehogg4726
    @annmariehogg4726 2 ปีที่แล้ว

    good one

  • @apurvnagare
    @apurvnagare 2 ปีที่แล้ว +1

    Why is there not a SINGLE mention of Crypto in this video???

  • @alparslankorkmaz2964
    @alparslankorkmaz2964 2 ปีที่แล้ว +2

    Nicely explained.

  • @monuray2446
    @monuray2446 2 ปีที่แล้ว +2

    What causes bubbles
    Simple
    Soap & water
    Use your brain it's simple

  • @ravindertalwar553
    @ravindertalwar553 2 ปีที่แล้ว

    GOOD MORNING 💘 I LOVE YOU ALL ❤️

  • @daple1997
    @daple1997 2 ปีที่แล้ว +1

    Canadian real estate market

  • @kleenbeats
    @kleenbeats 2 ปีที่แล้ว +7

    Here’s to my degen brothers on WSB🍻

    • @kleenbeats
      @kleenbeats 2 ปีที่แล้ว

      @Elisa get high, sell low sista🙏🏿

  • @bulldawg6259
    @bulldawg6259 2 ปีที่แล้ว

    Is tulips on an organ valued more an a rose on a piano

  • @JC-tg2sw
    @JC-tg2sw 2 ปีที่แล้ว +1

    Is not it a bit late???? WSJ just woke up from covid coma...lol

  • @sidewalker6003
    @sidewalker6003 2 ปีที่แล้ว +12

    gamestop was not a bubble

  • @Peteryzhang
    @Peteryzhang 2 ปีที่แล้ว

    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?

  • @FinancialShinanigan
    @FinancialShinanigan 2 ปีที่แล้ว +1

    If everyone thinks it'll go up, everyone will buy to try and sell to everyone else.

  • @ginyilee7886
    @ginyilee7886 2 ปีที่แล้ว +7

    Gamestop is not a bubble.... get ur fact right. this is a gamma squeeze...

  • @gian19791
    @gian19791 2 ปีที่แล้ว

    Alan Greenspan have a long lifespan he’s 96

  • @Dfm_Sushil
    @Dfm_Sushil 2 ปีที่แล้ว

    Make it little bit long please.

  • @BiPolarBear722
    @BiPolarBear722 2 ปีที่แล้ว

    The Wall Street Journal is a bubble.

  • @johnt.7954
    @johnt.7954 2 ปีที่แล้ว +2

    Housing !

  • @Yellow_Afryca
    @Yellow_Afryca 2 ปีที่แล้ว

    Is TSLA a bubble?

    • @SoCalFreelance
      @SoCalFreelance 2 ปีที่แล้ว

      How about AAPL? How many stock buybacks have they done now?

    • @stewartfraser4210
      @stewartfraser4210 2 ปีที่แล้ว

      @@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.

  • @ronlyon4645
    @ronlyon4645 2 ปีที่แล้ว +2

    so when will bitcoin bubble burst?

  • @sankha-ch
    @sankha-ch 2 ปีที่แล้ว +1

    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..

  • @auro1986
    @auro1986 2 ปีที่แล้ว

    greed inflates then deflates bubble

  • @Abell_lledA
    @Abell_lledA 2 ปีที่แล้ว +2

    We’re caught up playing the impassioned protagonist in our Subjective Narrative of Self 🎈

  • @jahjoeka
    @jahjoeka 2 ปีที่แล้ว +1

    The United States is a bubble.

  • @windmaomao
    @windmaomao 2 ปีที่แล้ว

    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.

  • @casualresearch6940
    @casualresearch6940 2 ปีที่แล้ว +6

    Didn’t you wall street bros say short sellers covered their positions* for GameStop? Or are you saying they haven’t covered yet?
    😈

  • @exiles_dot_tv
    @exiles_dot_tv 2 ปีที่แล้ว

    Tesla is a huge bubble going on right now

  • @LuisMendoza-pp9qi
    @LuisMendoza-pp9qi 2 ปีที่แล้ว

    You're preaching to the choir

  • @criessmiles3620
    @criessmiles3620 2 ปีที่แล้ว +11

    Game stop was not a bubble
    It was an attempt to squeeze the shorts
    Get it right
    Rubbish
    Cheers from west Africa
    🦅

  • @johnandrew3350
    @johnandrew3350 2 ปีที่แล้ว

    So was Enron a bubble or balloon? No it was corruption.

  • @trailcampers
    @trailcampers 2 ปีที่แล้ว

    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

  • @nothingham4742
    @nothingham4742 2 ปีที่แล้ว

    Tesla is one bubble !

  • @user-ij2qk7py1f
    @user-ij2qk7py1f 2 ปีที่แล้ว

    Spoiler:
    We're in one

  • @KrlsOtc
    @KrlsOtc 2 ปีที่แล้ว +1

    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) 😂😂😂😂😂

  • @tossancuyota7848
    @tossancuyota7848 2 ปีที่แล้ว

    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

  • @SylentLight
    @SylentLight 2 ปีที่แล้ว

    GameStop yeesh pretty bad example, that was a short squeeze and the selling was triggered by manipulation

  • @JJs_playground
    @JJs_playground 2 ปีที่แล้ว

    Bubbles exist because of 2 simple things human Greed and FOMO.

  • @Fellowtellurian
    @Fellowtellurian 2 ปีที่แล้ว

    This sounds like housing. The market can only go up.

  • @user-304jgojnegilrnw
    @user-304jgojnegilrnw 2 ปีที่แล้ว +1

    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

  • @larryhenry5689
    @larryhenry5689 2 ปีที่แล้ว +2

    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.

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      @leighjay2624 2 ปีที่แล้ว

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      @leighjay2624 2 ปีที่แล้ว

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      @francisken5557 2 ปีที่แล้ว

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  • @Floraswiss
    @Floraswiss 2 ปีที่แล้ว

    Because of the economic crisis and the rate of unemployment, now is the best time to invest and make money 💯.....

    • @shannonquill3125
      @shannonquill3125 2 ปีที่แล้ว

      I wanted to trade crypto but got confused by the fluctuations in price

    • @hillaryclinton5755
      @hillaryclinton5755 2 ปีที่แล้ว

      @Daniel scott whatsapp!!

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      @hillaryclinton5755 2 ปีที่แล้ว

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  • @MrSupernova111
    @MrSupernova111 2 ปีที่แล้ว

    Talk about a useless video. Next, they're going to claim that the earth circles around the sun. Brilliant analysis WSJ! LOL

  • @leopolddankic3840
    @leopolddankic3840 2 ปีที่แล้ว

    aka Bitcoin

  • @sleekoduck
    @sleekoduck 2 ปีที่แล้ว

    The gamestonk squeeze wiped out several hedge funds and bankrupted a lot of retirees. That wasn't harmless.

  • @mosquite7654
    @mosquite7654 2 ปีที่แล้ว +1

    Shills!

  • @SewakS108
    @SewakS108 2 ปีที่แล้ว

    Something for nothing??

  • @superspeederbooster
    @superspeederbooster 2 ปีที่แล้ว

    WHEN WILL THEY MONEY BUBBLE WILL BURST??? HUH?

  • @amielvasco3503
    @amielvasco3503 2 ปีที่แล้ว

    Lesson: Abolish the Fed...

  • @exwhalechannel2601
    @exwhalechannel2601 2 ปีที่แล้ว

    bitcoin bubble incoming

  • @yogipool
    @yogipool 2 ปีที่แล้ว

    FOMO🧘‍♀️👎

  • @SewakS108
    @SewakS108 2 ปีที่แล้ว

    Greed

  • @user-cw1ht6vc4k
    @user-cw1ht6vc4k 2 ปีที่แล้ว

    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!

  • @Marantzzz
    @Marantzzz 2 ปีที่แล้ว

    New Zealand property prices?
    Can someone confirm for me please