How Do Bubbles Form? Gamestop and Tulips Can Help Explain | WSJ

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The Wall Street Journal

The Wall Street Journal

2 роки тому

Asset bubbles are easy enough to define, but not so simple to identify. WSJ’s Gunjan Banerji explains what bubbles are exactly, how they form and what happens when they burst. Illustration: Jacob Reynolds for The Wall Street Journal
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#Gamestop #Tulips #WSJ

КОМЕНТАРІ: 139
@boombox2661
@boombox2661 2 роки тому
My Dad earned about £40k in the 1980's as an engineer. If you go to the Bank of England inflation calculator online for goods and services. With an 3.8% per year average rate of inflation the wage now should be around £183.000 per year. Wages have not kept up with inflation and not many people invest direct in stock markets except people rely on investments vehicles in their pensions, If you got one. Most people are in unsustainable debt with nothing much left over. Most people are now running on empty. Average house prices in Winchester in UK is £660.000 and the average wage in the UK is £27k. What could possibly go wrong, only a matter of time?
@ken_yap
@ken_yap 2 роки тому
What’s left to happen is the masses marching into the mansions of the 1% with torches and pitchforks.
@boombox2661
@boombox2661 2 роки тому
Same job now is £55-65k in 2022.
@valdomero738
@valdomero738 2 роки тому
Only bankers in London make that much. It pays to be an operative for Hebrew banks.
@godfather7339
@godfather7339 2 роки тому
Why do you need an online calculator to calculate compound interest? People who have passed highschool should also know the Formula with Euler's constant in it IE ( Final = Initial * e^(rate*time) ).
@boombox2661
@boombox2661 2 роки тому
@@godfather7339you Sound a right W⚓🤡! Stocks, Bonds, & Real Estate are all fiat instruments that derive their value from the future stream of cash flows, discounted by the rate of monetary expansion + risk premium. They all fail as a store of value unless they can grow cash flows faster than the Central Banksters j00's can print monev.
@meejinhuang
@meejinhuang 2 роки тому
The Dutch tulip bubble and meme stocks are 2 different types of bubbles.
@Tawkitoutti
@Tawkitoutti 2 роки тому
didn't gamestop stock fall because trading platforms restricted its trading
@litojonny
@litojonny 2 роки тому
shhh hedgefunds dont want you to know the insane amount of naked calls and short interest GME had
@fee_ic4981
@fee_ic4981 2 роки тому
Yeah but they made it seem like retail started selling when the Volume Went down, never mind the Short interest and Utilization still High and no one Covered, in theory !
@john8494
@john8494 2 роки тому
Also Total Return Equity Swaps that Bill Hwang of Archegos used. The CFTC postponed mandatory disclosures of swaps until 2023. Huh
@jorge86rodriguez
@jorge86rodriguez 2 роки тому
Speculators create bubbles because their actions have a zero sum effect, people who desires the asset because of the value are the ones that stabilizes a market. So if a market has more speculators than value seekers then it is a bubble XD
@gian19791
@gian19791 2 роки тому
Stocks are real assets these people are delusional
@mhk10
@mhk10 2 роки тому
Bitcoin.?
@ajdillion3021
@ajdillion3021 2 роки тому
GameStop is a short squeeze, the people who don’t want the squeeze to happen had a part in making this slam piece
@turncoat725
@turncoat725 2 роки тому
Moass
@nicklawson678
@nicklawson678 2 роки тому
Yeah they're just desperate at this point to make people believe the squeeze already came and went.
@john8494
@john8494 2 роки тому
For sure. How do they conviniently forget to mention the increasing Directly Registered Shares (DRS) by individual retail investors which has only been increasing according to Gamestop's last quarter results, massive short interest, SEC Gamestop report that basically concludes that Jan 2021 price movements were not due to closing of short positions (which were officially about 200%+) etc.
@spidercat2841
@spidercat2841 2 роки тому
gamestop is going to $1 or lower
@tomcat8662
@tomcat8662 2 роки тому
It’s hilarious how a religion can be formed around a dying brick and mortar video game retailer.
@lucasfelipedesousa8006
@lucasfelipedesousa8006 2 роки тому
Game stop wasn't a Bubble. You frame the people, who where investing in it completely wrong.
@dannyc.8696
@dannyc.8696 2 роки тому
WSJ forgot to mention that this video was sponsored by Citadel
@derek8149
@derek8149 2 роки тому
The fact that mainstream media is warning about the dangers of bubbles means that we aren’t at the top yet
@cassinitakano5736
@cassinitakano5736 Рік тому
or the downfall has only just begun and has much more space to fall, 3 years later when the Nasdaq is at 4000 they can come back and say: well, we told you so, but you moonboys didn't listen, so it's not our fault
@derek8149
@derek8149 Рік тому
@@cassinitakano5736 Let's see in a few months if we have rallied. Media cycle is short term. People will believe anything the media tells them, it's mob mentality. I do agree with you that in a few years we will probably be in the depths of the bear market, but not in the short term since everyone is bearish. Beautiful trade is working out amazingly right now and will only get better!
@stewartfraser4210
@stewartfraser4210 Рік тому
Mainstream media ?
@GIPvideos
@GIPvideos 2 роки тому
Gamestop was never a bubble. It's a short squeeze play. Interesting how there is no mention of naked shorting here or how it's been happening continuously over the past year. Currently there is a movement to remove the shares one by one from the stock market and once there is a critical mass (it's already over %25) GME is going to go parabolic. Notice the insane returns of TSLA? Not a bubble, its a short squeeze.
@john8494
@john8494 2 роки тому
Yes, DRS your shares.
@msromike123
@msromike123 2 роки тому
Disengnuous at best, more like complicent. Of course it was a short squeeze bailed out by the SEC, with new rules last week to protect hedge funds further. The sooner people know it's rigged the better. But with this type of white washing most people will never know how they are getting screwed at every turn.
@MrSupernova111
@MrSupernova111 2 роки тому
WSJ is part of the establishment. They only cater to the wealthy.
@nicopottebaum1189
@nicopottebaum1189 3 місяці тому
Agree and disagree. Agree with, that it was a Short Squeeze and also there was illegal naked shorting involved. They 2 go hand in hand. Regarding "it was never a Bubble". Depends on the definition of a "bubble" and on the defintion of "value" and which metrics you use to determine value.
@nicopottebaum1189
@nicopottebaum1189 3 місяці тому
Agree and disagree. Agree with, that it was a Short Squeeze and also there was illegal naked shorting involved. They 2 go hand in hand. Regarding "it was never a Bubble". Depends on the definition of a "bubble" and on the defintion of "value" and which metrics you use to determine value.
@jonathanlopez2014
@jonathanlopez2014 2 роки тому
Wow, no dislikes! The gamestop bubble must have popped in January 2021
@milkbone6558
@milkbone6558 2 роки тому
Hit piece on GME😂
@jimbaxter6388
@jimbaxter6388 2 роки тому
When the media starts doing hit pieces where we get our information. You know something is about to happen. 🙈🙉🙊
@blake3120
@blake3120 2 роки тому
Another gme hit piece, on a very red day. Smells like plain ol' FUD to me 🤣
@rajeevnair32
@rajeevnair32 2 роки тому
At WSJ, I expected some economic literacy. Comparing GameStop to Bubbles is like comparing apples to oranges. GameStop was never a fundamental story, to begin with. The spike and the later pullback can be owed fully to the short squeeze. I wish at least at respectable institutions they had an ability to filter noise, and an ability to have a basic understanding of economics and stock exchanges.
@Antenox
@Antenox 2 роки тому
It can be both, and it was. GameStop was absolutely a bubble. The short squeeze may have started it, but the vast majority of the price movement was because of a bubble
@sidewalker6003
@sidewalker6003 2 роки тому
true, gamestop was not a bubble
@rajeevnair32
@rajeevnair32 2 роки тому
@@Antenox No Gamestop is not a bubble. If that is the case, then every short squeeze is a bubble. Incase of Gamestop, it had more than 100% of its float shorted which made it an extreme case. Bubble refers to mania where the people buying/selling believe that the fundamental story is strong, classic examples are Tulip mania, Railroad investments in the USA in the late 1800s, the 2008 Housing crisis, etc. They are different because it takes longer duration for them to build (i.e. years). First, people believe the story, then more people join in it and fundamentally believe in it and more and more people join. In each of these stories, there is a grain of truth in the story. i.e. House is beneficial ownership, especially in the American taxation system where most middle-class pay tax and take deductions, but they forgot the economic viability part. Gamestop, Sears (out of business), BedBathandBeyond, etc. are all more likely bankruptcy heading stories and people pile on the shorts and from time to time, the market maker and retail investors join in to raid the fundamental legitimate investors who shorted the company because of the lack of profits or any prospects of it in future.
@jahjoeka
@jahjoeka 2 роки тому
@@rajeevnair32 no
@kingyar4552
@kingyar4552 2 роки тому
@@rajeevnair32 sounds a lot like crypto
@Marantzzz
@Marantzzz 2 роки тому
New Zealand property prices? Can someone confirm for me please
@annmariehogg4726
@annmariehogg4726 2 роки тому
good one
@sandwitht6264
@sandwitht6264 2 роки тому
how is it hard to spot a bubble? when something worth that much suddenly within a relatively short amount of time rises up in price manifolds, in addition to its economic usefulness staying the same such as a house still a house, a tulip still a tulip, a piece of electronic art an electronic art, a company still the same company and so on, then it is a bubble. It's only hard to tell when you are one of the speculators, staring day and night at its rising price, in another word, being one among the herd, then surely it is hard to tell, for you are blinded by greed and fear (of missing out).
@JC-tg2sw
@JC-tg2sw 2 роки тому
Is not it a bit late???? WSJ just woke up from covid coma...lol
@alparslankorkmaz2964
@alparslankorkmaz2964 2 роки тому
Nicely explained.
@ravindertalwar553
@ravindertalwar553 2 роки тому
GOOD MORNING 💘 I LOVE YOU ALL ❤️
@drmode
@drmode 2 роки тому
GameStop is not a bubble. Hedge Funds shorting it more than available shares is a bubble and unAmerican.
@bulldawg6259
@bulldawg6259 2 роки тому
Is tulips on an organ valued more an a rose on a piano
@nufrepusgnirbi
@nufrepusgnirbi 2 роки тому
lol still fun to be part of it.
@monuray2446
@monuray2446 2 роки тому
What causes bubbles Simple Soap & water Use your brain it's simple
@kleenbeats
@kleenbeats 2 роки тому
Here’s to my degen brothers on WSB🍻
@kleenbeats
@kleenbeats 2 роки тому
@Elisa get high, sell low sista🙏🏿
@FinancialShinanigan
@FinancialShinanigan 2 роки тому
If everyone thinks it'll go up, everyone will buy to try and sell to everyone else.
@johnt.7954
@johnt.7954 2 роки тому
Housing !
@daple1997
@daple1997 2 роки тому
Canadian real estate market
@Peteryzhang
@Peteryzhang 2 роки тому
Seems now the thing can only go up is Bitcoin and its sort, and promoters of it attacking a lot of people who say negative things about it. But if Bitcoin is really a useful stuff and are trying to reach mainstream application, shouldn't its price going down like what happened in transistors instead of going up?
@Yellow_Afryca
@Yellow_Afryca 2 роки тому
Is TSLA a bubble?
@SoCalFreelance
@SoCalFreelance 2 роки тому
How about AAPL? How many stock buybacks have they done now?
@stewartfraser4210
@stewartfraser4210 Рік тому
@@SoCalFreelance Two questions. I don’t understand either. APPL was undervalued for a long long time. During this time, Apple management, were, of course, absolutely right to buy stock. I wouldn’t say APPL has been undervalued for the last two year … but what do I know. Maybe they will release three killer product/services next month.
@gian19791
@gian19791 2 роки тому
Alan Greenspan have a long lifespan he’s 96
@BiPolarBear722
@BiPolarBear722 2 роки тому
The Wall Street Journal is a bubble.
@apurvnagare
@apurvnagare 2 роки тому
Why is there not a SINGLE mention of Crypto in this video???
@auro1986
@auro1986 2 роки тому
greed inflates then deflates bubble
@Dfm_Sushil
@Dfm_Sushil 2 роки тому
Make it little bit long please.
@exiles_dot_tv
@exiles_dot_tv 2 роки тому
Tesla is a huge bubble going on right now
@My2cents.
@My2cents. 2 роки тому
We’re caught up playing the impassioned protagonist in our Subjective Narrative of Self 🎈
@tossancuyota7848
@tossancuyota7848 2 роки тому
then you gotta need someone to read record and evaluate the stock price of every single products inside the country to avoid this bubbly situtation or ride the bubble then getout at the right time before it explode LOL this thing reminds me iof a snake and ladder game XD the financial bubble were the ladder and the snakes where pitfall for the wrong investment hehehe
@LuisMendoza-pp9qi
@LuisMendoza-pp9qi 2 роки тому
You're preaching to the choir
@sidewalker6003
@sidewalker6003 2 роки тому
gamestop was not a bubble
@casualresearch6940
@casualresearch6940 2 роки тому
Is*
@nothingham4742
@nothingham4742 2 роки тому
Tesla is one bubble !
@homewall744
@homewall744 2 роки тому
There is NOTHING WRONG with a bubble when it's created by voluntary exchanges without fraud/extortion at play. The issue we have are the bubbles created by government force, using non-voluntary exchanges, in which fraud and extortion are the norm.
@john8494
@john8494 2 роки тому
Spot on
@godfather7339
@godfather7339 2 роки тому
There is NOTHING WRONG if someone VOLUNTARILY sells themselves into slavery.
@godfather7339
@godfather7339 2 роки тому
First of all there is no such thing as voluntary exchange, people 300 years ago debated this and agreed to this but we still have free market nuts who don't understand econ 101. It's simple, it's not voluntary if you DON'T have the option to select NONE. When I buy anything, do I have the option to not buy it at all? There are few things that meet that criteria, things that don't, like food, cars(you are forced to buy a car because cities are made that way), electricity, a fridge, AC, A house, mostly everything you are FORCED to buy. So they're isn't really anything like voluntary exchange if you HAVE to buy it from atleast one competitor.
@jahjoeka
@jahjoeka 2 роки тому
The United States is a bubble.
@user-ij2qk7py1f
@user-ij2qk7py1f 2 роки тому
Spoiler: We're in one
@sankha-ch
@sankha-ch 2 роки тому
They have been trying to scare people for so long time.. who is paying for this or stand to gain from a crash I wonder..
@windmaomao
@windmaomao 2 роки тому
You can't compare the Tulip with Gamestop. Even when gamestop goes bankgrupt, it won't effect a thing in financial market. Of course lot s of college students will cry. But that's all.
@johnandrew3350
@johnandrew3350 2 роки тому
So was Enron a bubble or balloon? No it was corruption.
@larryhenry5689
@larryhenry5689 2 роки тому
From my own understanding, you need to invest wisely, if you need the good things of life. so far i've made over $470k in raw profits from just q4 of the market from my diversified portfolio strategy and i believe anyone can do it you have the right strategy. mutual funds takes a while but investing wisely is the key for short term. Most of us pay more attention to the easy position in the market to the cost of proper diversification.
@leighjay2624
@leighjay2624 2 роки тому
She helped me regain what I lost trying to change
@leighjay2624
@leighjay2624 2 роки тому
I think I am blessed because if I had not met someone as spectacular as the expert Ms. Lauren Jessica Florence
@leighjay2624
@leighjay2624 2 роки тому
I think she's the best runner I've ever seen
@leighjay2624
@leighjay2624 2 роки тому
My first investment with Ms. Lauren Jessica Florence gave Lynne profit of over $ 24,000 US and since then she has never failed to deliver and I can even say that she is the most sincere broker I have ever met.
@francisken5557
@francisken5557 2 роки тому
@@leighjay2624 Who is this professional that everyone talks about? I always see her post in the main comment on every UKposts video I saw.
@SylentLight
@SylentLight 2 роки тому
GameStop yeesh pretty bad example, that was a short squeeze and the selling was triggered by manipulation
@trailcampers
@trailcampers 2 роки тому
For someone who has no clue about stock market, this explanation isn't all that easy to understand.. I know about market bubble hence i understand it easily
@casualresearch6940
@casualresearch6940 2 роки тому
Didn’t you wall street bros say short sellers covered their positions* for GameStop? Or are you saying they haven’t covered yet? 😈
@ginyilee7886
@ginyilee7886 2 роки тому
Gamestop is not a bubble.... get ur fact right. this is a gamma squeeze...
@androiduser384
@androiduser384 2 роки тому
They’re talking about crypto without talking about it so the so the botsdon’t comment that they made $1,000,000 with Mr. Or Mrs. (insert an English common last name here) 😂😂😂😂😂
@MrSupernova111
@MrSupernova111 2 роки тому
Talk about a useless video. Next, they're going to claim that the earth circles around the sun. Brilliant analysis WSJ! LOL
@JJs_playground
@JJs_playground 2 роки тому
Bubbles exist because of 2 simple things human Greed and FOMO.
@Fellowtellurian
@Fellowtellurian Рік тому
This sounds like housing. The market can only go up.
@leopolddankic3840
@leopolddankic3840 2 роки тому
aka Bitcoin
@ronlyon4645
@ronlyon4645 2 роки тому
so when will bitcoin bubble burst?
@user-304jgojnegilrnw
@user-304jgojnegilrnw 2 роки тому
Stocks are really more like tulips than bitcoin is. Since last week, there has been a strong push to imply that bitcoin is not worth anything. Even if it goes to zero, I will buy more of it. I know what the Wall Street is trying to do
@Floraswiss
@Floraswiss 2 роки тому
Because of the economic crisis and the rate of unemployment, now is the best time to invest and make money 💯.....
@shannonquill3125
@shannonquill3125 2 роки тому
I wanted to trade crypto but got confused by the fluctuations in price
@hillaryclinton5755
@hillaryclinton5755 2 роки тому
@Daniel scott whatsapp!!
@hillaryclinton5755
@hillaryclinton5755 2 роки тому
美国♰𝟭𝟰𝟬𝟭𝟵𝟬𝟯𝟯𝟮𝟵𝟬美国
@superspeederbooster
@superspeederbooster 2 роки тому
WHEN WILL THEY MONEY BUBBLE WILL BURST??? HUH?
@mosquite7654
@mosquite7654 2 роки тому
Shills!
@criessmiles3620
@criessmiles3620 2 роки тому
Game stop was not a bubble It was an attempt to squeeze the shorts Get it right Rubbish Cheers from west Africa 🦅
@SewakS108
@SewakS108 2 роки тому
Something for nothing??
@exwhalechannel2601
@exwhalechannel2601 2 роки тому
bitcoin bubble incoming
@yogipool
@yogipool 2 роки тому
FOMO🧘‍♀️👎
@sleekoduck
@sleekoduck 2 роки тому
The gamestonk squeeze wiped out several hedge funds and bankrupted a lot of retirees. That wasn't harmless.
@amielvasco3503
@amielvasco3503 2 роки тому
Lesson: Abolish the Fed...
@SewakS108
@SewakS108 2 роки тому
Greed
@user-cw1ht6vc4k
@user-cw1ht6vc4k 2 роки тому
Out of all the examples they could’ve used, you decided to use the one stock that wasn’t a bubble, get your facts straight!
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