“Young Male” Bitcoin & GME Investors Setting Up for an ‘Explosion’ in Depression: NYU Professor
Much like young women “became very depressed by sitting in their rooms looking at Instagram,” said Scott Galloway, who also feels these men staring at their phone watching BTC and AMC price are “not having (enough) sex.”
On one side, we have the likes of the billionaire owner of Dallas Maverick Mark Cuban and Social Capital CEO Chamath Palihapitiya, who are calling what transpired around heavily shorted stocks like Gamestop and AMC as a change in the financial system.
On the other side, we have Scott Galloway, a professor of marketing at NYU Stern, according to whom the matter is much simpler — these retail investors on Reddit are actually “young men not having (enough) sex,” he said. It’s just not related to sex alone, either; according to Galloway,
“We are setting ourselves up similar to how there’s a ton of young women out there who became very depressed by sitting in their rooms looking at Instagram, self-cutting and self-harm skyrocket.”
He goes on to say that this will result in an “explosion” of depression in young males only to add further, “it is going to be reverse engineered to apps that convince you, you’re part of a movement or physically addict you to your phone.”
The Biggest Loss of Capital
Galloway started with his theory on Twitter last week when he explained how:
“Arm young men, in a basement, not at work, not having sex, not forming a connection, with an RH account, a phone, and stimulus, and you have the perfect storm of volatility as they wage war against established players while squeezing the dopa bag, harder and harder.”
He further pushed his theory on MSNBC when he said the “biggest loss of capital” is the loss of human capital of “young men sitting and staring at their phone and watching the price of Bitcoin, or the price of AMC.”
Galloway basically wants these young men to form relationships with people rather than be “the person on the other side of the trade.”
Galloway, who has been around the markets for two decades, went on with, “the arc of the market is jagged and irrational, but it typically bends towards reattaching to the fundamentals,” which puts these stocks “much lower,” so “be prepared to lose 80% to 90% of it.”
“The greatest loss in capital here is from young men who are more prone to gambling addiction, who don’t understand the markets.”
–A bored/angry young man is the most dangerous person in the world.
–When countries have unemployed young men, who are single, the likelihood that country goes to war escalates
–We have cut the share of wealth of young people in half in last 30 years (19% to 9%)
— Scott Galloway (@profgalloway) January 27, 2021
It’s nothing new, he said, noting that hedge funds haven’t played out already. Just an age-old contract of “old men” to “stick it to the man and have young people attack the castle so they can get wealthier.”
Galloway is not alone in this; such attempts have been made by wealthier investors since last week. However, this time, the losses were felt by international investors as well as hedge fund Melvin Capital lost 50% of its investment.