{"id":450884,"date":"2022-05-22T04:08:51","date_gmt":"2022-05-22T01:08:51","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/reality-bites-traders-memers-and-crypt-iots\/"},"modified":"2022-05-22T04:08:51","modified_gmt":"2022-05-22T01:08:51","slug":"reality-bites-traders-memers-and-crypt-iots","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/reality-bites-traders-memers-and-crypt-iots\/","title":{"rendered":"#Reality bites traders, memers and crypt-iots"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a22fe383bc1c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a22fe383bc1c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/reality-bites-traders-memers-and-crypt-iots\/#%E2%80%9CReality_bites_traders_memers_and_crypt-iots%E2%80%9D\" >&#8220;Reality bites traders, memers and crypt-iots&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/reality-bites-traders-memers-and-crypt-iots\/#Drinking_the_Kool-Aid\" >Drinking the Kool-Aid<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/reality-bites-traders-memers-and-crypt-iots\/#%E2%80%98Diss_union_at_SEC\" >\u2018Diss union\u2019 at SEC<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CReality_bites_traders_memers_and_crypt-iots%E2%80%9D\"><\/span>&#8220;Reality bites traders, memers and crypt-iots&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<div class=\"inline-module inline-module--columnist inline-module--author\">\n<div class=\"inline-module--author__img\">\n            <img decoding=\"async\" width=\"76\" height=\"69\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/Gasparino_Charles_headshot.png?w=76&amp;h=69&amp;crop=1\" class=\"attachment-nyp_columnist size-nyp_columnist\" alt=\"Charles Gasparino\" loading=\"lazy\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/Gasparino_Charles_headshot.png?w=152 152w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/Gasparino_Charles_headshot.png?w=114 114w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/Gasparino_Charles_headshot.png?w=76 76w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/Gasparino_Charles_headshot.png?w=38 38w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/Gasparino_Charles_headshot.png 706w\" sizes=\"auto, (max-width: 76px) 100vw, 76px\"\/>      <\/div>\n<\/div>\n<\/aside>\n<p>Melvin Capital is maybe the first \u2014 but certainly won\u2019t be the last \u2014 hedge fund hammered out of business as markets wean themselves off the heroin of cheap money that has propelled stocks and just about everything else for the past two-plus years.<\/p>\n<p>Hedge-fund investors, even those who run train wrecks like Melvin, do have a way of making it through tough times. They still have their homes in the Hamptons or Miami as collateral, and often much more than a few million bucks stashed away for a rainy day.<\/p>\n<p>So don\u2019t cry for the big guys taking it on the chin. The question is, do the average investors who became day traders in recent years and chased the bubble in crypto, meme stocks and other inflated assets deserve our sympathy?<\/p>\n<p>Nope.<\/p>\n<p>Yes, hedge funds and market pros are capitulating, a fancy Wall Street word for surrendering to the reality that stocks or any of our bubble-induced assets are overvalued and you need to sell fast. But these wanna-be hedgies are <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly holding on hard by using their \u201cdiamond hands\u201d on crypto, meme stocks and everything that kept going straight up over the past year. They\u2019re providing a buffer to the institutional selling, meaning that as bad as things are on the Nasdaq, S&amp;P, crypto and a lot more, they could be even worse if\/when the little guy starts selling.<\/p>\n<p>Do they know something the rest of us don\u2019t? They think so, which is why they\u2019re the last ones out of this market. And it\u2019s why we shouldn\u2019t be hand-wringing about their losses. They had it coming in spades.<\/p>\n<p>Among the biggest absurdities arising from the Fed-induced market bubble of the past two years is how many of these novice traders thought they were smarter than the market pros. They piled into stocks during the pandemic shutdowns because there was nothing better to do. And who can blame them? The Fed was pumping astronomical amounts of liquidity into the system, making stock trading a no-lose proposition.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/WallStreetBets.jpg?w=1024\" alt=\"This photo illustration shows the logo of WallStreetBet on a computer and the Reddit logo.\" class=\"wp-image-22364786\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/WallStreetBets.jpg?quality=75&amp;strip=all&amp;w=1536 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/WallStreetBets.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/WallStreetBets.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The meme-stock craze led people to following tips on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Reddit<\/a> on where to put their money. <\/figcaption><figcaption><span class=\"credit\">OLIVIER DOULIERY\/AFP via Getty Images<\/span><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Drinking_the_Kool-Aid\"><\/span>Drinking the Kool-Aid<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It also distorted reality. Retail, armed with Reddit message-board \u201cresearch,\u201d drank the Kool-Aid. The meme-stock frenzy that began in January 2021 seemed to prove their point. Small investors rallied together to snap up stocks of money-losing companies the hedge funds bet against.<\/p>\n<p>They sent shares of troubled businesses such as AMC Entertainment and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>Stop to the moon. And big losses among the pros, who were shorting those stocks, eventually forced Melvin out of business.<\/p>\n<p>The smart move if you were one of these retail types would be to realize this was a once-in-a-lifetime event, and proceed with caution. After all, anyone can be like Warren Buffett when Jerome Powell is printing money. I\u2019m sure some did. But many more bought the fallacy that the market could only go up.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/AMCTheater.jpg?w=1024\" alt=\"People going to the AMC Theater on W42nd Street in New York, NY on March 6, 2021.\" class=\"wp-image-22364785\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/AMCTheater.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/AMCTheater.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/AMCTheater.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>AMC Entertainment stockholders were foolish to believe the movie theater chain\u2019s value would continue to skyrocket., writes Charles Gasparino.<\/figcaption><figcaption><span class=\"credit\">Christopher Sadowski<\/span><\/figcaption><\/figure>\n<p>Last year, when AMC traded in the high-$70 range, some retail bought more, believing it was going to $1,000. Plenty of them have been holding on ever since as shares of AMC fell to where they are today \u2014 around $12. Many are still predicting another short squeeze that will send AMC back to the $70s. They also think crypto is coming back, along with the rest of the tech names that have been getting hammered.<\/p>\n<p>It\u2019s what the 19th-century journalist Charles Mackay called \u201cthe madness of crowds.\u201d The reality that they\u2019re ignoring now is that the Fed is putting consequence back into the markets, raising interest rates and taking money out of the financial system.<\/p>\n<p>It\u2019s purposely slowing the economy, possibly even creating a recession, to tame inflation.<\/p>\n<p>The markets are adjusting to the reality that corporate earnings will be getting squeezed, thus stocks need to sell off. The hedgies get it; retail doesn\u2019t yet.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%98Diss_union_at_SEC\"><\/span>\u2018Diss union\u2019 at SEC<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It\u2019s easy to see why public companies don\u2019t like SEC Chair Gary Gensler: He\u2019s heaping on them all sorts of new, useless, costly and woke regulations involving the environment, etc., that have nothing to do with their core mission of \u00adenhancing shareholder value.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Gary-Gensler.jpg?w=1024\" alt=\"Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC).\" class=\"wp-image-22364908\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Gary-Gensler.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Gary-Gensler.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Gary-Gensler.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Securities and Exchange Commission Chair Gary Gensler is forcing his labor-union employees to take vacation days, even if they refuse.<\/figcaption><figcaption><span class=\"credit\">Samuel Corum \u2013 CNP \/ MEGA<\/span><\/figcaption><\/figure>\n<p>He\u2019s got no friends among GOP House and Senate members because he\u2019s taking an agency that\u2019s supposed to protect small investors from stock crooks and transforming it into an enforcement arm of the Elizabeth Warren wing of the Democratic Party.<\/p>\n<p>Now you can throw the SEC\u2019s \u00adlabor union into the mix of \u00adGensler haters.<\/p>\n<p>It represents all non-management employees. Union leadership says Gensler\u2019s far-reaching agenda is making their life a living hell, Fox Business\u2019s Eleanor Terrett reports. They are complaining there\u2019s not enough time in the day to implement all the new rules and edicts he\u2019s pushing.<\/p>\n<p>Making matters worse, Gensler and his team are forcing them to take vacation days this year, a use-it-or-lose-it ultimatum. The union is asking Gensler to allow members to push their vacation time off to 2023 to better manage their workload. He isn\u2019t budging, setting the stage for an unusual battle between a progressive Biden <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointee and a progressive-friendly public-employee union.<\/p>\n<p>Gensler\u2019s office didn\u2019t return a call for comment on why he can\u2019t just get along with people.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/05\/21\/reality-bites-traders-memers-and-crypt-iots\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Reality bites traders, memers and crypt-iots&#8221; Melvin Capital is maybe the first \u2014 but certainly won\u2019t be the last \u2014 hedge fund hammered out of business as markets wean themselves off the heroin of cheap money that has propelled stocks and just about everything else for the past two-plus years. Hedge-fund investors, even those who&#8230;<\/p>\n","protected":false},"author":1,"featured_media":450885,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/newspress-collage-22364504-1653179955885.jpg?quality=75&strip=all&1653165684&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[129494,73689,76127,77826,70550,72128,118979,70551,72667,71451,72976,72388],"class_list":["post-450884","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-5-21-22","tag-amc-entertainment","tag-cryptocurrency","tag-federal-regulation","tag-federal-reserve","tag-gamestop","tag-gary-gensler","tag-inflation","tag-investors","tag-memes","tag-securities-and-exchange-commission","tag-stock-market"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/450884","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=450884"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/450884\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/450885"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=450884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=450884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=450884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}