First let’s start with #ThePeoplesBailOut (The People’s Bailout). Possibly the first profitable protest. It consists of two purchases individually or as a group of one stock and one derivative.
A derivative is a casino like bet placed on a stock. If you place a bet that IBM is going to increase by five points tomorrow. That’s a derivative. You don’t need to own the actual stock, to be clear. Derivatives are typically at great odds, for example at a 10 or 20 to 1 ratio.
Protesters would buy a Bank Acme stock, and a derivative that Bank Acme stock will drop in (n) days.
Basic rule of supply and demand when demand increases the stock goes up; when demand decreases the stock price drops.
On the (n)th day everyone sells the stock. Decreasing demand and resulting in a drop in stock price.
The dropping value of Bank Acme stocks will result in the derivative to win its bet that Bank Acme dropped in price.
Although you will lose money on selling Bank Acme stock, but you would be compensated greatly on your 10 to 1 derivative.
A Protest directly involving the Banks Power of Invisible Money.
I call it…The People’s Bailout!! What do you think?
People would be grouped in apx $100 circles as most bank stocks are around the $50.00 and another $50.00 for your derivative.
This is not insider trading because I made my stock choices based on a trend. Protest with our dollars in a way that has never been done before.
The People’s Bailout, if we can’t have one let’
s create one. #ThePeoplesBailOut (twitter)
This plan according to some on social media is too destructive. To quote one user “let’s screw over the bank because banks are bad, and make a quick buck doing it” and ““You’re still more likely to seriously hurt the people who do business with the bank than the owners/investors, which is why I consider it a kind of scummy way of going about protesting.”
The moral dogma, is playing a market with a strategy that has demised our lives in general a good idea? Regardless of the dogma the harsh reality is this if you do the math this is actually a win and here is why.
If you take the argument that playing markets this way could crash companies, and since we’re talking about “To Big to Fail” banks, it would need to be taken seriously. This kind of action could trigger a domino bank collapse, ironically leading to more derivatives and increasing profits for participating protesters.
For every dollar earned this way which is given to a debt, removes $0.35 of influence the bank has ($0.65 is interest). I do think protest profiteers would be responsible, considering how people are saving their money, and buying much less. Multiplied by the fact the people will not support another bailout, increasing pressure exponentially to nationalize the bank.
There’s the argument this could lead to restrictive barriers into playing the market to that I’d say to restrict any trading in order to protect the economy would be the end of wall street. Supply and demand dictate any obstacles you place on demand will be reflected by stock value.
Leaving the only option. Don’t allow derivatives. The only barrier that could be put up is not to allow this kind of practice, which would have to include Banks and Investors in turn, is a good thing for everyone!!
Considering all the Gold, Silver, fixing that has come out especially lately, and that’s just what we know. The Stocks is riddled with corruption right down to the regulators. Mitt Romney was in the business of destroying business for short term profits.
What is suggested here is to use that same fire against the source, distinguishing both fires. The very companies that are destroying our lives, forcing them in strategic position to abolish those laws once and for all, while helping people get out of debt.
Side Notes: To view or participate in the debate (Reddit) http://redd.it/2h2mgs
Twitter: #ThePeoplesBailout
theworldowl 