<story><title>SoftBank unmasked as ‘Nasdaq whale’ that stoked tech rally</title><url>https://www.ft.com/content/75587aa6-1f1f-4e9d-b334-3ff866753fa2</url></story><parent_chain><item><author>woeirua</author><text>The efficient market hypothesis is the biggest lie in modern history.  Bubbles don&amp;#x27;t happen in efficient markets.</text></item><item><author>tarsinge</author><text>As an outside observer, I used to believe the stock market was solid and mostly rational, and that obviously it could not be influenced by a single actor or a subreddit community, contrary to a &amp;quot;playground&amp;quot; like the Bitcoin market. I get the feeling everyone says they see the emperor&amp;#x27;s clothes in the stock market reliability, anticipating everything, but in reality it&amp;#x27;s just short term gambling and post rationalization.&lt;p&gt;Edit: punctuation</text></item><item><author>synaesthesisx</author><text>This is hands down the most entertaining thing I’ve read today. SoftBank is responsible for the spike in gamma across the board, dumping massive amounts of money into OTM calls. Retail (WSB) speculators see unusual options flow, end up piling in  on calls and amplify the effect. Market makers are forced to buy the underlying in order to delta hedge, and the price goes up even higher. Rinse and repeat...the positive feedback loop continues and stocks actually only go up.&lt;p&gt;The financial system is far more broken than people realize.&lt;p&gt;I’m guilty of taking advantage of this myself, but it’s basically been free money for the last several months. Up until yesterday at least...</text></item></parent_chain><comment><author>Fordec</author><text>Research paper: Markets are efficient if and only if P=NP &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;arxiv.org&amp;#x2F;abs&amp;#x2F;1002.2284&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;arxiv.org&amp;#x2F;abs&amp;#x2F;1002.2284&lt;/a&gt;</text></comment>
<story><title>SoftBank unmasked as ‘Nasdaq whale’ that stoked tech rally</title><url>https://www.ft.com/content/75587aa6-1f1f-4e9d-b334-3ff866753fa2</url></story><parent_chain><item><author>woeirua</author><text>The efficient market hypothesis is the biggest lie in modern history.  Bubbles don&amp;#x27;t happen in efficient markets.</text></item><item><author>tarsinge</author><text>As an outside observer, I used to believe the stock market was solid and mostly rational, and that obviously it could not be influenced by a single actor or a subreddit community, contrary to a &amp;quot;playground&amp;quot; like the Bitcoin market. I get the feeling everyone says they see the emperor&amp;#x27;s clothes in the stock market reliability, anticipating everything, but in reality it&amp;#x27;s just short term gambling and post rationalization.&lt;p&gt;Edit: punctuation</text></item><item><author>synaesthesisx</author><text>This is hands down the most entertaining thing I’ve read today. SoftBank is responsible for the spike in gamma across the board, dumping massive amounts of money into OTM calls. Retail (WSB) speculators see unusual options flow, end up piling in  on calls and amplify the effect. Market makers are forced to buy the underlying in order to delta hedge, and the price goes up even higher. Rinse and repeat...the positive feedback loop continues and stocks actually only go up.&lt;p&gt;The financial system is far more broken than people realize.&lt;p&gt;I’m guilty of taking advantage of this myself, but it’s basically been free money for the last several months. Up until yesterday at least...</text></item></parent_chain><comment><author>bumby</author><text>I’m reminded of some research I tried to get published a while back. One editor comment came back with a suggestion to reject simply with “this appears to contradict the EMH.” No further explanation.&lt;p&gt;Well, no shit. It said so right in the introduction. I think this is what’s called “theory induced blindness”</text></comment>