Holy God in heaven, people are stupid.
Let’s dial back the clock to August 2020. Until then, no one gave a crap about Gamestop (GME). Thanks to Roaring Kitty, however (AKA DeepFuckingValue), the entire planet got obsessed and push GME up 100-fold (10,000%!!!!!!) in a few months. The whole GME=Meme thing was hot and heavy from August through March, or about eight months. A human baby could have almost fully developed in the same timespan, from glint-in-the-postman’s eye all the way to the joyous birth.
It is said that there are no second acts in America, but it isn’t true. After years of being a slowly-dying-joke, GME burst back onto the scene this week. In my estimation, however, the entire meme frenzy is already over, all having taken within the tidy confines of a single trading week. This sucker blew up by hundreds of percent within hours and then lost it just as quickly. The big winners here were the brokers. Otherwise, it was just dumb luck if someone made or lost money in this unchecked chaos.
On my tastylive show, I compared this entire farce to me being a mushy banana dealer. Obviously no one wants to buy mushy bananas, what with the fruit lives all buzzing around, and the weird smell, and the fact that they are good for nothing. Yet if I can somehow convince people that, yeah, they’re gross, but they’re going to be worth 100x really soon, so you’d better buy them, then I’m going to get to trade a lot of utter crap for sweet, sweet cash.
That’s precisely what happened with GME this week, because the management of GameStop (led by one Ryan Cohen) sold hundreds of millions of dollars of stock in exchange for cold, hard, cash, and in the end, the biggest losers were all the retail dummies who worship at the shrine of Roaring Kitty and got positively reamed for it. What a difference a few days makes.
