Friday, June 12, 2020

Guy Explains Stock Market Crash In Simple Terms


The devil is in the details here. Just accurate enough to be absolutely terrifying. 

1.

Text - •.. 5 Someone explain to me the Stock Market, Wall Street, the Dow, and Nasdaq. But do it like l'm a 5 year old. They don't teach me this in teacher school. O Like Comment I will attempt this 5h Like Reply Okay, so imagine that you have a lemonade stand. You've managed to generate a bunch of interest in your lemonade, but you want more $$$ to open one on Birch street 4h Like Reply

2.

Text - So you talk to the Lemonade Council, which is not a government thing, and they evaluate how much your lemonade stand is worth. So now you want to get $$$ for your expansion, but you have to pay loans back and banks suck. So, you offer stocks. You say "The lemonade council has valued my lemonade at $5,000. You give me $500, and I will give you 1/10th of my company." Then you hold the rest of the stocks yourself (I think?) You give out these stocks like trading cards. Once they leave your h

3.

Text - So Wall St is where people go to yell and scream about the value of trading cards, and make bets on whether or not a card's value will go up. If you've seen Trading Places, you'll

4.

Text - remember that something had to do with something called "orange juice futures". Trading futures is basically like if you agreed to sell someone a pitcher of lemonade for $4 next year no matter what, and gave out a trading card that was a voucher for that. 4h Like Reply If the value of lemonade goes up, it's super cool to buy a cheap pitcher for $4. If it goes down, you lost money on your futures trade.

5.

Text - So there's a bunch of different flavors of lemonade and trading cards, and everyone is doing a lot of kinds of different trades, and betting on other people's bets, and there's a lot of weird recursion and honestly it started out as a good idea but we lost track of shit and now there's probably like a trillion dollars in imaginary money that no one knows where it came from. 4h Like Reply

6.

Text - The NASDAQ is a place you can go to trade cards and make bets, and is the second biggest behind the New York Stock Exchange. 4h Like Reply The DOW Jones is an index, which if you remember Pokemon card price guides is sort of the same function. It's an average of a lot of big businesses that is used as a sort of a market indicator. The DOW goes down when the relative value of the trading cards of each of the lemonade stands it tracks loses value. The reverse is true when the value of the t

7.

Text - I think that's basically it? Wall St is a street that these trading places is on. 4h Like Reply Also watch The Big Short 4h Like Reply

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