InvestOrama's video: BILIONS x GAMESTOP Part 2 : The New Power - GameStop Movie

The 'crazy' trading action on GameStock could be an epic Billions episode, but there is something important and fundamental at play. It’s a battle between New Power and Old Power. Subscribe to get all the updates: http://bit.ly/2FQSunJ More videos from the BILLIONS series: https://www.youtube.com/playlist?list=PLXTR2SfmGn34U5W_AQ_KB0Humcee3ErHH Join the Fintech in Films Newsletter http://bit.ly/3adxF3A The video is inspired by an article Understanding “New Power” The crowd is challenging traditional leadership. Here’s how to harness its energy. By Jeremy Heimans and Henry Timms https://hbr.org/2014/12/understanding-new-power This article wa a revelation and a fantastic framework to understand what is happening with AMC and GameStock and what it could mean for the future. I hadn't yet read the book as I was preparing the video: https://thisisnewpower.com/ We use a scene of Season 1 Episode 2 from Billions and a short clip from the Big Short (fair use) FULL ANALYSIS: New Power vs Old Power in WallStreetBets vs Hedge Funds In a normal script hedge funds profit from crowded retail trades Because they have the power. Power is held by few. It is closed, inaccessible, and leader-driven. It is based on: -Capital -Knowledge -Technology So when the hfs lose, at first it doesn’t make sense. When It happened before, with Tesla there could have been many reasons for it: -the unusual amount of liquidity provided by central banks during the pandemic -the interest rate going to zero or under -or the amount of people trading because they’re bored in lockdown. But Gamestop shows a display of New Power. New Power is made by many. It is open and peer-driven. it is clear there is collective intelligence emerging from a crowd of amateurs on the wallstreetbets subreddit. They take on the short positions {news} and even when the hedge funds team up, the crowd still wins New power taps into people’s capacity—and desire—to participate, not just consume. Like the WSB community on Reddit are sharing, shaping, funding, producing strategies that they act on together. With GameStop they are also co-owning. The Reddit threads are a mess full of memes, but Collaborative knowledge emerges. This needs some nuance though. In the case of GME the buyers are not just retail investors. It’s owned by big funds and one of the winners is the same Michael Burry who made a name and a fortune with his big short against the housing market in 2008. And let’s not forget that on the other side Robinhood blocked the GME trades. HFs were aware of the risks, like Axelrod himself warns his troops. What the story showed, is that there can be a new power that erodes the old power models and win. It’s a battle about who can control and shape our society. OTHER SOURCES https://realmoney.thestreet.com/investing/stocks/youth-gone-wild-the-swarm-of-individual-traders-gamestop-melvin-capital-15547913 https://algotrading101.com/learn/retail-traders-vs-institutional-traders/ ABOUT THE BILLIONS SERIES Emmy® and Golden Globe® winners Paul Giamatti and Damian Lewis star in a complex drama about power politics in the world of New York high finance. Shrewd, savvy U.S. Attorney Chuck Rhoades (Giamatti) and the brilliant, ambitious hedge fund king Bobby "Axe" Axelrod (Lewis) are on an explosive collision course, with each using all of his considerable smarts, power and influence to outmanoeuvre the other. The stakes are in the billions in this timely, provocative series. ABOUT THIS CHANNEL FintechOrama is a channel that helps you discover and understand the world of fintech and modern finance Video Production Services http://orama.tv Newsletter: https://Fintechorama.substack.com/ http://instagram.com/fintechorama Podcast https://pod.link/1511595070