John Hussman has an interesting take on
Quantitative Easing! vs Quantitative Easing in his latest monthly missive Counting the Chickens Twice
After decades of successfully navigating complete market cycles, my greatest investment mistake (particularly between 2012 and 2017) was to underestimate the extent to which the
idea of quantitative easing would infect the minds of investors and abolish their discernment.
As a policy, quantitative easing is very straightforward: the Federal Reserve buys interest-bearing Treasury securities, and pays for them with zero interest base money (currency and bank reserves) that someone has to hold at every moment in time until that base money is retired.
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Bots plague Reddit forum at the heart of trading frenzy as investigation looms
By Daniela Esnerova 4
th February 2021 9:12 am
Moderators of Reddit chatroom WallStreetBets say they have detected “large amounts of bot activity”, as US Treasury secretary Janet Yellen calls a meeting of top officials to discuss the market volatility driven by the social media platform.
After identifying hedge funds with short positions in a number of companies like games retailer GameStop, members of the platform called for users to buy up stocks to force them to close their positions at a loss.
This has led to a significant volatility in a host of stocks as well as in silver. However, questions are now being asked as to how much of the frenzy was driven by regular social media users, and how much was professional investors or algorithmic traders trying to force prices up.
WallStreetBets says Reddit group hit by large amount of bot activity By Stephen Gandel Reddit s WallStreetBets hit by bots
Moderators of the WallStreetBets online discussion forum, which has been credited with creating a frenzy in the shares of GameStop and others, said bots are responsible for a large amount of the stock-recommendation content being posted in its popular Reddit group.
Bots are computer-generated accounts that post automatic messages on Reddit, Twitter and other social media platforms.
In a statement to CBS MoneyWatch, a spokesperson for the popular Reddit group described the bot activity as recent and said the group has done its best to remove the posts.