The imbalance is both requires and increases will eventually become catastrophically destabilizing. It takes more energy everyday to try to maintain the appearance of normalcy, yet all that is not only energy wasted (value destroyed), but time lost getting on with fixing what is broken.
The option driven manipulation is hitting its limits. Sell most if not all of your low float, high multiple stocks (as most are WS trading ponzis like this one), raise cash and buy gold (which is nearly free is WS trading ponzi terms).
I cannot tell you how this is going to end, but I am sure that the majority of American families fighting to get by are gonna go crazy when they realize what has been going on with these predatory trading rackets. And the fight really is just beginning. Unless and until the money flows into the real economy, the financial sector is simply acting like a cancer, killing its host.
I'll offer some quick order of magnitude guideposts for those of you not analytically inclined. NFLX revenues are in the order of $10MM per day (a little more, especially if we want to normalize to trading day equivalents). So, let's use $20MM per day.
NFLX volumes are extremely low of late, but starting to come back. I'll share the details look back to 2012 later, but let's use 1.7MM from Friday. That means the stock turnover was on the order of $750MM. The real fun comes in the next step, when we start looking at options... But, for now, we're approximately at 40 to 1 (again, will provide this looking at volume and price throughout the year, this is just for quick order of magnitude sizing).
In the real economy? In the stock "market"?
I'm going to be running a series of questions that will highlight how absurd this stock's outlier activity is...(All the "profit" is being realized in the predatory trading racket because the underlying company's business model has been uneconomical)
I know you're out there. I can feel you now. I know that you're afraid... you're afraid of us. You're afraid of change. I don't know the future. I didn't come here to tell you how this is going to end. I came here to tell you how it's going to begin. I'm going to hang up this phone, and then I'm going to show these people what you don't want them to see. I'm going to show them a world without you. A world without rules and controls, without borders or boundaries. A world where anything is possible. Where we go from there is a choice I leave to you.
I will. This crystallizes the Wall Street / Main Street disconnect in a manner that Wall Street will have a very tough time explaining.
This WS financed predatory trading scam masquerading as an investment is going to open eyes when they realize the financial leverage extracting profits on the scale of NFLX profit and revenues. It will clarify the complete disconnect between compensation and "value add" in the financial and real economy. Just priceless.
It will be obvious to Main Street how financialization is skimming and scalping the real economy. Even with the low volumes here of late, the churn and scalping ate HUGE with respect to company profits. Check that, huge with respect to company revenues. It's all about financial leverage and churn extracting unsustainable value capture... It's so egregious here that it will be a fantastic case study to highlight how stock prices having little to do with "investment" and much to do with skimming and scalping. This is fun.
The public is going to absolutely love the scalped premium to profits ratio. They'll especially appreciate Wall Street enabling predatory business models that kill other Main Street jobs because Wall Street doesn't care about the underlying company fundamentals since all the money is made through the protection racket. Meanwhile, real businesses and real people suffer.
And I'm sure all the retailers who've been hurt by AMZN's predatory business practices will love it as well.
Good luck with that. I will truly enjoy seeing them try. Maybe they'll consume all their ill gotten gains in the process....
I had a blast. Seriously. The noose is tightening and they absolutely cannot hide what they've done. It must really suck to be trapped and have no way out. They'll be lucky to make it to jail because I 'm pretty certain many will want them hung in the public square if they really realized what WS has become and what really drives NFLX and other predatory trading ponzi stocks...
And I am telling you NONE of it will matter if everyone who is tired of the abuse simply converts all predatory trading stocks to cash and gold. Let the TBTF fight the growth Cartel. The system cannot withstand trillions is essentially fraudulent financial assets being converted to physical cash and physical gold. The games will be put to an end....
Thank you for the advice. I honestly only worry about the market because of the systematic theft from retail. My companies, much as you and others may mock them, are kicking #$%$