The Beanie Baby Shorting analogy is perfect.
It’s not a coincidence that Tesla is one of the stocks beloved by the WallStreetBets Redditors. Like Donald Trump, Elon Musk is as much a TV Celebrity as he is a CEO. While the cars are no doubt cool, the more sober commenters have noted that Tesla makes its money selling a kind of “carbon credit” to the “real” automobile companies. Since electric cars have zero emissions, they can sell all their Global Warming Tickets to the real car companies.
The beauty of electric cars is how simple they are. There are something like 80% fewer actual “parts” in an electric vehicle compared to an internal combustion automobile. The ICE is a complex piece of machinery with a century of meticulous engineering. By comparison, electric motors are dead simple: it’s basically a coil of copper wire.
The issue is the battery and infrastructure like charging stations. Right now it makes a lot of sense for the real car companies to pay off the government via Tesla and allow them to do some heavy lifting in battery R&D. When Ford, GM and VW believe the technology and the market are ready, it’s not particularly a big deal for them to put an electric motor into one of their cars – and Ford, GM, and VW have seriously deep experience engineering automobiles that Tesla simply does not.
Tesla is also – can we be frank? “Spooky.” Anyone dealing with “Space” is spooky. That is obvious, right? Sure, it is considered crass, or rude, to say it in public, but you don’t know the name of Ford’s CEO, nor is he some sort of Celebrity CEO for the Redditors now is he?
I’m sure as hell not predicting any stock prices but this narrative is great, isn’t it?
“Hey, 24 year old with no expenses yet – why not put this app on your phone and put your money in the stock market? See, if you read Reddit you can join your fellow Sparticuses (Sparticii?) and take down the Snooty Hedge Fund Elite! The Power of the Crowds! The People vs. Wall Street! The Bazaar vs. the Cathedral!”
The GameSpot stock did what it did, and some shorts got hurt. But when the “average” person is rushing into some particular investment, the conventional wisdom says that is the time to sell.
If anything, this whole Reddit vs. Hedge Fund narrative is a wonderful piece of “viral” advertising for not just the RobinHood app, but that style of investing in general.
Is the stock market in trouble? Get the average person, the public, to invest their extra two or three thousand dollars into a highly speculative bet based on which celebrity CEO’s get a lot of media exposure.
The time to sell Bitcoin was the day after Time Magazine did a cover on it. The time to buy Bitcoin was after the newbies got taken to the cleaners and no one was irrationally enthusiastic any more. But then again I’m a textbook contrarian and not rich, so …
Curtis Yarvin’s latest …
As usual, I’m torn between thinking that Yarvin is good, if deceptive, or if he’s not even worth it. He himself might admit he’s not saying anything new – Hobbes said it first. Certainly, every time he brings up the Plum Book I’m reminded that Newt Gingrich was bellyaching about the “permanent federal bureaucracy” thirty years ago. In this instance, too, calling the left a “Watermelon” – green on the outside, red on the inside – is older than Gingrich. Hell, Bob Whitaker pointed it out, the day the USSR fell every Communist became an “Environmentalist” overnight.
I stand by my analysis of Yarvin: he’s a neo-con. He is surrounded by neo-cons. He was introduced to the public by arch neo-con Andrew Sullivan working for the new neo-con management of the Atlantic. He was funded by Peter Thiel, who was himself “mentored” by Arch Neo-Con Irving Kristol. Yarvin was then funded by the neo-con Claremont Institute.
And Curtis Yarvin himself, in this very article, gives us yet another personal detail that fits the stereotype of a neo-con. His grandparents, he tells us, were members of the Communist Party and called themselves “progressives.”
So a Red Diaper baby – a third generation Communist – all of a sudden turns “right-wing.” Typically, for neo-cons, turning “right-wing” means “supports American soldiers fighting in wars for Israel.” Yarvin would never advocate for a war – he would instead advocate you not do anything to oppose a war and would spill a lot of digital ink explaining how that war is certainly not for Israel, and is not being pushed by Zionist Jews in the American establishment, but instead is caused by the Left-Wing Cathedral of Secular Calvinists that support Palestinians only because they hate Jews and are Universalist.
In this case, Yarvin certainly asks some interesting questions. Two in particular:
- Who organized the 900-person Zoom call?
- Who funds all these people?
There’s a probable answer to question number 2, but it’s so obvious you actually get negative points for guessing correctly – because it is too obvious.
The funding is coming from George Soros. Any conservative Republican will tell you that. Those same conservative Republicans will also tell you that George Soros is a Nazi that hates Jews and Israel.
That is not what George Soros himself says, of course. Soros is a proud Jew and admits he has a fondness for his homeland, Israel. Soros has in fact declined to support the same types of things in Israel as he does in the “goyim” countries. Soros was funding “Pussy Riot” to attack Christian cultures and churches, but when they set up shop in Israel to fight “religious patriarchy” Soros cut off their funding, and they went home.
I’m sure Curtis Yarvin would say two things about George Soros: he’s not “really” a Jew, he’s a “secular Universalist Progressive Calvinist Puritan” and he totally isn’t a Zionist.
Question number one? Who actually organized the 900-person Zoom call?
Does it matter? It could have been Soros’ VP. It could have been one of a hundred others. Yarvin is right to collapse all the labels down to “communist” but if he wanted to be more subtle he could have said “progressive” and it wouldn’t have mattered.
But let’s pull out a few choice quotes that Yarvin chose from the NYT source material:
The purpose of the 900-person Zoom call was “to make sure that Joe Biden won and that the ‘election stayed won'”” … “Joseph R. Biden Jr., an avowed moderate who has often boasted of beating his more progressive primary opponents, was a beneficiary of their work.”
OK – so let us put partisan labels aside for a moment here. It’s likely that the vast majority of people on the 900-person Zoom call would truthfully tell you that Biden was not their first choice.
All this political energy, from these Champagne Socialists, went into installing Biden into power.
And as anyone who has read his Mencius Moldbug could have predicted, Old Joe Biden – 78 years young – immediately staffed his cabinet with Progressive, secular Calvinists like Ron Klain, Antony Blinken, Janet Yellen, Merrick Garland, Alejandro Mayorkas, and Avril Haines.
As Moldbug told us, it’s the “International Liberal Protestant Conspiracy.”
A bunch of White Shoe establishment Anglo-Saxon Protestants that kept poor Yarvin’s Communist grandparents from joining the Presbyterian Golf Club.
Oy, the humanity.