/biz/ - Business & Finance

Gamestop will be the end of the financial system as we know it

> past 12 months, the federal reserve has been printing money out of thin fucking air
> propping up prices of assets (aka stonks)

The rise in asset prices is a form of hyperinflation, where stock prices are completely divorced from reality (which made some people insanely rich)

Fed printed out money to boost asset prices, helping pension funds etc. meet their obligations

In a matter of weeks, hedge funds (and their parents) like the one that starts with a C will go bankrupt and start liquidating assets. Since hedge funds make up about 50% of the trade volume on US stonk exchanges, asset prices will plummet. More will follow, chain reaction.

These companies that have not generated any revenue for over a year now, they are going down as they should. The crazy valuations of your everyday blue chips, not unlike Gamestop itself, are going to go through liquidation proceedings, one by one.

Wall Street will not be able to stop it. Just a matter of time until they know it’s game over and will bail. This will undoubtedly be the biggest crash in recent history. Banks, pension funds, investment funds, will all default. This leaves thousands of workers unemployed, savings unwithdrawable (what is there to withdraw anyway?), pensions unpaid, bank runs, you get the point.

What will the Fed do?

Print more money.

Now we are talking real hyperinflation. Think reichsmark in the early 20s, or Venezuela to be a bit more contemporary. Consumer good prices will skyrocket unlike anything we have seen before.

Think why the founder of the operating system you are reading this from, why did he buy 250,000 acres of farmland worth billions of dollars?
The fed is over. The dollar will be worthless.

Don’t blame a certain company and the “establishment” for trying to save the hedge funds, or people stuck in these short positions. They want to save the whole damn system.