This Is What Happens to Markets When You Print Trillions of Dollars. Everyone’s buying bankrupt companies and frauds. God help us.

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[–] • 0 pt

>Take Luckin Coffee ($LK), the “Enron” of coffee chains. The company admitted it was a fraud on April 2nd, but since then its share price has soared 400%. How can a company expose themselves as a fraud and still have a market cap of $1 billion? Only in a juiced market. Totally insane.

"Juiced market"

It's exactly that https://pic8.co/sh/1hLKWL.jpeg < this is "mister market"

>Over the past month, the market has punished bears and smoked short-sellers. Now that everyone owns the COVID-19 story stocks — the Zooms, the Teladocs, the Amazons — there has been a colossal short squeeze in “value stocks”. Rather than taking profits, investors have stacked into companies with awful fundamentals, but that trade at a notable discount to the broader market. Since May, financial stocks have rallied 19%, industrial stocks have rallied 21%, and airline stocks have soared 65%. “Who’s buying this crap?” you might ask. All this money sloshing about has created a new kind of speculator: the “Robinhood” investor. The finance industry and the government are sponsoring the gambling debt of novice investors via stimulus cheques. Subsequently, they have bought a record number of call options and a record number of U.S Index ETFs. They have even crashed Robinhood’s platform — multiple times.

Hence, "there's no free market anymore", price discovery is dead, it's official now

When the so called becomes pretty much the only everyday buyer and everybody knows it... I let you imagine the scope of abuse this is factually enabling....

>Why even consider investments with stable fundamentals anymore? Government bonds or defensive stocks like Walmart, Kroger, or GSK are boring. It’s time to speculate on frauds and bankruptcies instead. What could possibly go wrong?

INDEED, and that's the tip of the iceberg...

>These conditions will not last forever, of course, but while they do, investors embracing insanity will profit and investors clinging onto economic reality will feel the burn.

Welcome to clown world

To be fair, it's been like that since a while, it's just that it was hidden, but that's something the ZH crowd was pointing at already almost a decade ago if memory serves

Now it's in the open, the volumes are so big they don't even try to hide who's pulling the shit behind the curtain

>>Take Luckin Coffee ($LK), the “Enron” of coffee chains. The company admitted it was a fraud on April 2nd, but since then its share price has soared 400%. How can a company expose themselves as a fraud and still have a market cap of $1 billion? Only in a juiced market. Totally insane. "Juiced market" It's exactly that https://pic8.co/sh/1hLKWL.jpeg < this is "mister market" >>Over the past month, the market has punished bears and smoked short-sellers. Now that everyone owns the COVID-19 story stocks — the Zooms, the Teladocs, the Amazons — there has been a colossal short squeeze in “value stocks”. Rather than taking profits, investors have stacked into companies with awful fundamentals, but that trade at a notable discount to the broader market. Since May, financial stocks have rallied 19%, industrial stocks have rallied 21%, and airline stocks have soared 65%. “Who’s buying this crap?” you might ask. All this money sloshing about has created a new kind of speculator: the “Robinhood” investor. The finance industry and the government are sponsoring the gambling debt of novice investors via stimulus cheques. Subsequently, they have bought a record number of call options and a record number of U.S Index ETFs. They have even crashed Robinhood’s platform — multiple times. Hence, "there's no free market anymore", price discovery is dead, it's official now When the so called [buyer of last resort](https://seekingalpha.com/article/4338083-fed-is-now-buyer-of-last-resort-and-implications-are-huge) becomes pretty much the only everyday buyer and everybody knows it... I let you imagine the scope of abuse this is factually enabling.... >>Why even consider investments with stable fundamentals anymore? Government bonds or defensive stocks like Walmart, Kroger, or GSK are boring. It’s time to speculate on frauds and bankruptcies instead. What could possibly go wrong? INDEED, and that's the tip of the iceberg... >>These conditions will not last forever, of course, but while they do, investors embracing insanity will profit and investors clinging onto economic reality will feel the burn. Welcome to clown world To be fair, it's been like that since a while, it's just that it was hidden, but that's something the ZH crowd was pointing at already almost a decade ago if memory serves Now it's in the open, the volumes are so big they don't even try to hide who's pulling the shit behind the curtain

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