GameStop: The Tip Of The Corruption Iceberg

“And pruned the hedges of many small villages.” – Three Amigos

Amazing what happens when you find the world is corrupt . . . .

GameStop®.

In a world filled with COVID-19 shutdowns and Internet sites where you can download nearly any game ever made for low prices, it seemed like a sure thing that GameStop™ would fail. Except . . . people liked going. The profits weren’t through the roof, and the business model was older. Heck, the last time I was in a GameStop™ was over eight years ago, and about half the shelf space was pop-culture memorabilia and nerd toys, not games.

Never mess with weaponized autism.

Seeing this, the Wizards of Wall Street® decided to “short” GameStop™. I’ll explain what that is, and I promise you my analogy will be far funnier than what CNN© does unintentionally – and that’s a high bar.

Let’s pretend that you and I are friends. You brought the latest Pac-Man© cartridge game. Since you trust me, you lend it to me.

Addled on Monster™ Energy Drink© and chicken tendies, I waddle down to the local GameStop©. Since there is a relative shortage of Pac-Man™, GameStop™ offers me $50 for the cartridge. I pocket it and go home.

Two months later, you sober up and remember I borrowed your vidya game, and ask for it back. I waddle my greasy fingers down to GameStop© and buy a used cartridge. It’s not the original one that you lent me, sure, but you’ll never know the difference, not with your hygiene.

Since Atari© has made a metric buttload of additional Pac-Man© cartridges, the price to buy a used version is now $30. I buy it. I give it back to you. I pocket the $20, and no one is the wiser.

Last week was like no other . . .

That’s a short sale. I borrowed a commodity – one Pac-Man© video game cartridge (minor wear and tear excluded) is functionally exactly the same as any other Pac-Man™ cartridge.

That’s (sort of) what the hedge funds were trying to do with the shares of GameStop©, but with one crucial difference: the price went up. And they sold more shares of GameStop™ than exist.

That can happen in two ways. The first is legal. If I owned 100 shares of GameStop©, my broker could loan them to someone going short. They’re selling legal, actual shares. I might really, really, like GameStop™, so maybe I buy 100 more.

My account says that I have 200 shares of GameStop© now. I think I have 200 shares of GameStop™, but in reality, my broker only has 100. The same thing happens in a fractional reserve bank (like your bank) in that if you put $100 in, the bank might loan it all out. You think you have $100, but that $100 was loaned to someone. Just like shorting a stock, it sounds illegal, but it’s not.

So how does that work with my previous analogy?

Ahh, in a perfect world.

It’s exactly the same. If the price of Pac-Man© goes from $50 to $30, then I make $20. But if there’s a fire at the Pac-Man© cartridge plant in Roswell, New Mexico (because they use alien slave-labor from Arcturus to make them), and the price goes up to $100?

I’m out $50. But how often do the Arcturans revolt? Not often.

So, we’ve seen how my little deal could go wrong. But how wrong could it get? Infinitely wrong. Let’s say that I do this with 1000 Pac-Man© games, since it’s a sure thing. So, GameStop© gives me $50,000. Now I just sit and wait.

Yup, the hedgies lost billions.

But the fire thing happens. And since everyone else sold all of their friend’s Pac-Man© games before the factory caught fire, the price goes up. Way up. Like up twenty times in price. Let’s see, 20 times $50 is . . . $1,000 a copy. So now, since I borrowed that $50,000 in hopes of making $20,000 when the price went down, I’m actually in really bad shape.

I owe 1000 games times $1,000 dollars. I owe my friends, collectively, $1,000,000.

Ooops.

Musk is no fan of short sellers since they tried to destroy Tesla® a few years ago.

This is what the hedge funds did. And since (I believe) some of them are what is known as a “market-maker” they have 21 days to come up with those games (shares). 21 days is forever, so don’t worry about those billionaires – most of them are still billionaires – they just will have to wait until next month to buy that second volcano island death lair.

This is the situation that the Reddit© group r/wallstreetbets found – GameStop© was horribly oversold by hedge funds, and just a few people buying could start pushing the price up.

At one point, one of the r/wallstreetbets early investors in the short squeeze was up $48,000,000. That’s not a typo.

With a short, there’s a lot of power as the price goes up. The Hedge Fund Leech that runs the hedge fund starts to get nervous, and adds to the buying pressure as he tries to buy stocks to “cover his short.” This actually increases the price, sometimes causing it to go upward. A lot upward.

If that was all that happened, it would have been an amusing story. Wall Street Leeches get one-upped by message-board posters. Ha ha!

Something wonderful about that, right?

But that’s not all that happened. Immediately, the news media, (some) trading houses (most notably Robinhood©) and the talking heads began talking about how this was bad. The people who normally distort the economy and screw over the middle class don’t really like it when the weapons that they use are used against them.

Google®? Not on your side.

Well, actually none of them are on your side.

Huh. And they invest big dollars for that privilege. How much money have they given Janet Yellen, Secretary of the Treasury? A lot.

Whose side is Joltin’ Janet on? Not yours.

Last week on Thursday and Friday the powers that be told the markets to “shut down” the Internet Freedom Party raid on the financial leaches. In fact, several articles extolled how the Hedge Fund Leeches were the real heroes.

I’m feeling so sorry for him!

It’s a big game, but you and I are not supposed to play. You’re supposed to buy shares in your 401K so the Hedge Fund Leeches can take your money and collude with each other to own the economy. The free market is, in principle, a great thing. People buy and sell. The market allows the prices to be shared by all.

Well, I used to be the guy in front.

But Monday? Someone spent a quarter billion dollars to depress GameStop©. It’s analyzed here (thanks to r/wallstreetbets):

Also, people forget this: there were Hedge Funds on the other side of the deal. Vampires don’t need prices to go down, they can also make money when prices are going up.

Who knew that Karen ran the SEC?

No. Big players distort prices, they sell and buy options to make money on stocks that they intend to dump for short term profits after manipulating the markets. That this financial vampirism actually destroys companies, jobs, and communities?

And they will call you anything to make a buck.

Who cares? Not the Wall Street Hedge Leeches. Here’s Tucker Carlson with a discussion about one Wall Street Hedge Leach destroying an entire town in Nebraska. For a few million bucks. They would do that to you, your family, and everyone you know for a 2% return.

If you’re not mad, you’re not paying attention.

None of this is financial advice, you hosers. So, take off, eh. All of the memes are “as found” on the Internet.

How To Spot Propaganda

“PBS, the propaganda wing of Bill and Melinda Gates.” – The Office

pledge

Okay, and what does anyone do with two new “tote bags” every year?  How many objects do you need to tote?

This is a repost . . . oddly enough, exactly the same time last year I had similar thoughts to the post I was working on, and at 2 AM it made more sense to repost this one than finish the new one.  

I used to listen to National Public Radio® (NPR™) on the way to work.  Sure, I like music, but the local radio stations are simply horrible.  NPR© had a good mix of news and information.  Of course it was left-leaning:  it’s in the name – “Public” radio – and at least 55% comes from reliably liberal sources like universities, foundations, the Corporation for Public Broadcasting™, and Fedgov.  But it was left-leaning in the “Kinda Feminist Grandma Who Just Didn’t Want To Be Called Sweetie At Work” way, and not in the “All Who Oppose Us Will Be Re-Educated or Shot for Comrade Sanders” way.

Listening to them wasn’t new for me – I’d done so during the latter part of the years when W was president, and during many of the Obama years.  There was a detectable liberal bias, which was understandable given that they have trouble with the capitalist system.  Why, one time when I was tending bar, an anthropologist, a philosopher, and a journalist walked in.  I said, “Hey, Brad.  Still no job?”

Arizona State University and Texas A&M recently did a study about bias in journalism and found that 4.4% of financial journalists described themselves as “somewhat or very” conservative.  The totals for those that identified as “somewhat or very” liberal?  58.5%.  If you wondered why the journalists were crying on election night back in November of 2016, this is it.

Journalists are lefties, and they’re surrounded by other lefties, and probably don’t even know anyone who would claim to be on the Right.  And those in the study were only financial journalists, who one would expect to be somewhat more “conservative” than journalists as a whole since they could probably do basic addition.

I guess I was fine listening to NPR© because I felt I was good at filtering out the bias that I heard.  A lot of news is just facts, and listening to NPR™ was good because I liked to get a second version of the news – and sometimes the stories that NPR® brought up were utterly different than I’d see on my regular run around the web.  It was nice having the variety.

The decision to stop listening to NPR© was gradual, but I certainly remember the first big day that led me down this path – it was August 2, 2016 when then-candidate Trump was giving a speech at a rally.  A woman had a baby at the rally, and the baby cried.  Trump said, “Don’t worry about it, you know?  It’s young and beautiful and healthy, and that’s what we want.”

Not too much later on in that same rally, the baby cried again.  If you watch the video, it’s hilarious – Trump says, “Actually, I was only kidding, you can get the baby out of here.”  You can clearly hear in his voice he’s kidding.  In reality, anyone who wasn’t looking for something, anything to smear Trump would have heard the joke.  You can watch the video – NPR© did put it up (LINK).  But when the story was read on air?  “Trump Hates Babies And Wants To Deport All Of Them, Probably to Mars.”

But, Unlikely Voice of Reason, Washington Post® (LINK) came to the rescue with this quote:  She [the mother – J.W.] said that she decided to leave the auditorium on her own because “it’s the considerate thing to do for others around, trying to listen or for those presenting,” adding that “it was blatantly obvious he was joking.”

Who would write and report a story like that?  A deranged person.  A person looking for something, anything to hang on Trump.  It was pure propaganda, but a clumsy sort of propaganda that only someone who had it in for Trump would report.

groundhog

Rumor has it that if Bernie Sanders sees his shadow on Groundhog Day, he’ll avoid the Clintons for six more weeks.

That was the first strike – and several more went by, and I found that I simply could no longer stand listening to the distortions popping out of NPR™.  I doubt that NPR© is better now, but even if they were, why would I bother?  I have a better cell phone now and listen to podcasts on the drive to work.

In a one-dimensional world, I’d still have the choice of NPR® or the local rock DJ telling really stupid stories about their fart collection or I could spend the drive time listening to a CD.  But we now have access to a vast array of news, so if you go poking and prodding, you can debunk the propaganda if you smell it.  And, boy, there’s plenty left.  It’s gone beyond distortions to become propaganda.

biddle

That’s Biddle in the middle with the fiddle near the griddle while his puppy has a piddle.

The power in propaganda is in creating a common worldview.  It’s herding.  If everyone believes the same thing, then why argue about facts?  And that’s also the danger of propaganda.  One of the early propaganda theorists (besides, of course, Edward Bernays) was William Biddle, member of the Minbari Hair Club for Men© pictured above.  Biddle’s ideas on how to make propaganda work include:

  • Rely on emotions, never argue.  Almost all decisions, no matter how rational we think we are, are based on emotion.  Every single actual transformative change in our lives is built on emotion.  The Mrs. recently emailed me pictures of our first date, but I couldn’t open them.  I guess I have trouble with emotional attachments.
  • Cast propaganda into the pattern of “we” versus an “enemy”. This is derived, at least in part, from emotions.  Everyone has a fear of the other, of those that aren’t like them.  If the Left didn’t have an enemy, it would have to manufacture one to make propaganda work.  And if I am president, we will arm all our troops with acid to destroy the enemy base.
  • Direct suggestion through using repetition in slogans or phrases. Simple phrases, repeated often, replace the truth.  “I like Ike.”  You may or may not like Eisenhower, but it’s easy to say, easy to remember, and easy to repeat.  If Biddle were lecturing in 2020, I’m sure he’d understand the power of memes in driving public viewpoint.  But if Biddle were speaking to you in 2020, you’d probably be horrified because a corpse dead for 47 years makes a terrible lecturer and often stutters.

chant

Morgan Freeman:  Today Chester learned that chanting “U-S-A” at the illegal alien march was a mistake.

  • Reach groups as well as individuals. Getting individuals to agree is easy, but why convert people retail when you get more going wholesale?  Thankfully, I can dress differently so I can look like everyone else.
  • Indirectly appealing to emotion through cloaking propaganda as entertainment or news media coverage. I had a friend – I know, crazy, right? – who would never directly try to convince upper management of anything.  He’d leave clues – breadcrumbs – so that upper management would come to the right conclusion, his conclusion, without him stating his conclusion directly.  But there certainly isn’t a reason that Thor™ is going to be replaced by a woman, is there?
  • Biddle emphasized the importance of the propagandist being hidden when conveying their messages. If the Left thought that Trump wanted them to eat vegetables, half the vegans in the United States would go on a full-carnivore diet and begin stalking cows.  If you’re trying to do propaganda, don’t mix the message with the messenger.

And after PETA armed the Cows, this happened.

What Biddle missed was herding.  As opinions change, people must be herded to follow the new opinion – outliers must be ruthlessly outcast.  The pleasant part for propagandists is that people will tend to self police.  You’ve probably heard that crabs stuck in a bucket trying to get out will pull any crab that gets out back into the bucket with them.  I have no idea if crabs do that, because my relationship with crabs involves steam, fancy vice grips, and a cup filled with liquid butter.

Kim Jong Un loves Stephen King books – he’s a fearless reader.

Stephen King only wishes that he was stuck with crabs.  Wait, that came out wrong.  Anyway, Mr. King made the epic error of arguing that with his votes for the Oscars®, that diversity didn’t matter, only quality.  In any universe where rational people discuss things, that’s an entirely reasonable statement.  But in Hollywood©?  Not a chance (LINK).   If Twitter™ could burn people at the stake, it would be very warm in Mr. King’s house tonight.

And if they only reported it on NPR®?  I’d never hear it.  Unless it was during pledge drive.  Why is it always pledge drive?