President Biden: The NEW one and only politics thread

You're right that eventually there surely will be a valuation attached to the company commensurate with the fact the company doesn't earn anything.

The problem is that the market can stay irrational way longer than most people can stay solvent. Short a stock and your potential losses are infinity before you get rationality, and you will be getting hit with margin calls that you might not be able to meet.

And right now, the Fed is pumping a ton of liquidity into the banks, which is what is fueling this and a lot of other speculation. They have the casino roaring again. It's allowed them to raise their overnight rate and talk like they are superhero inflation fighters, while doing a stealth job of doing more of what caused the inflation in the first place (they are petrified of banks failing and the economy from falling off a cliff if they really do the job).

Their reverse repo facility is being drained quickly, and it's accelerating now that they have wound down their emergency lending program to banks that were starting to fail a year ago. Everyone is focused on whether they will or will not lower the overnight lending rate, but it's of little significance when they are dumping money into the casino via stealth. That is what is fueling cryptocurrencies and AI chip makers. ... and speculation in Donald Trump's company. And this could go on for a while (or end tomorrow if there is an accident, but the point is there is no way to know).

The manipulation by them correlates almost perfectly with how the stock market has done. Where the line on the graph below was rising, they were essentially pulling money out of the banks (which were parking it at the Fed and getting paid better than you or I would to do it), and the stock market started to tank. Where it reversed last year, they essentially started to pump liquidity back into markets. Stocks reversed and started levitating again. It's why you can't trade on fundamentals (like shorting Truth Social) while they have their thumbs on the scales of finance. You'll get run over by their manipulation. They create a survival of the unfittest environment that rewards fucktards like Donald Trump. Unfortunately, we all pay for it in our economic lives in ways that go beyond just a stock market bubble.