STOCK EXCHANGE: WHEN TRADERS ARE 10 YEARS OLD … A FAILED COMPANY CAN ALSO ISSUE SHARES FOR 1 BILLION …

Today the US stock market had a slight rebound. Nothing exceptional, an uncertain "Dead Cat Bounce", rebound of the dead cat, following the famous saying that "Even a dead cat, thrown from a skyscraper, can bounce"

The problem remains the same: the bad news about covid-19 and the possibility, now very likely of a second wave. Today the CDC said that if things continue, a second shutdown, a second closedown, may be necessary, which would be a very hard blow for the US economy. But there are areas, or even states like Arizona, where there is an increase in cases.

All this should lead not only to caution, but even to a stock market drop. It is becoming increasingly clear that we are moving towards a recovery that is not V-shaped but will be U-shaped or even L-shaped, also due to the simultaneous combination of various political factors. The economy does not bode well at all, yet dead cats rebound.

One of the reasons we read it in this tweet, just one of many that you can find online:

My son tells me that he can only play Fortnite in the evening, because half of his team has started trading (stocks). He is 10 years old.

Other parents of pre-adolescent children have confirmed the trend: 10-14 year-old children have abandoned the games and, after opening accounts with their parents' documents (so you learn to leave the data stored on the PC) they spend the days trading on mobile platforms. After all, day trading in a "normal" situation does not require any culture of an economic nature: just having a little intuition, perhaps not even that, a little patience and practice, a lot of attention and ability to stay long, without moving , from the PC. These kids use new mobile trading apps, like RobinHood, which saw interest explode during the closedown.

The results are as follows:

Today's biggest gain is made by a company that is already bankrupt. Not at risk, but already under the control of the court, he runs an extremely risky business in an industry that no one would bet a penny on. A normal thing, meanwhile, who cares about logic and economics. Too bad we are 16 years late if not Tanzi would have saved even Parmalat.

The miracle of the new traders is so great that Herz has been authorized to issue new shares for a billion dollars. Moreover, an action that should be worth zero, is worth 2.83 dollars, after having come to worth more than 5. Every day a chicken is born….


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The article BAG: WHEN TRADERS ARE 10 YEARS OLD … A FAILED COMPANY MAY ALSO ISSUE SHARES FOR 1 BILLION … comes from ScenariEconomici.it .


This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/borsa-quando-i-trader-hanno-10-anni-una-societa-fallita-puo-anche-emettere-azioni-per-1-miliardo/ on Fri, 12 Jun 2020 21:30:07 +0000.