Institutional trust is the real meme – ClearTips

Hello friends, this is the week in review.

Last week, I worked at the AR maneuver from Apple and Facebook and what it means for the future of the web. This week, I am aiming to touch on the meme stock phenomenon dominating the US news cycles this week and seeing that with an eye towards the web of the future, there is nothing worth learning from it.

If you are reading this on the ClearTips site, you can get it in the inbox from every Saturday morning Newspaper page, And follow my tweets @lucasmtny.

Statue of robin hood in nottingham

(Photo by Mike Egerton / PA Image via Getty Image)

Is a big deal

This week you got what you wanted. The rise of the proletariat. Case of weapon disintegration. A rally for regulation… or perhaps control of financial markets. Choose your own adventure with the starting point being a taste of chaos in a slightly more populist mix of chaos.

To that end, many long-time financiers are confused, many Internet users are using rent money to buy stock in the totsy roll, with many billionaires feeling how addictive a “for- Adopting “The-Little-Man”! “There can be a persona on Twitter, and here I am staring at the roof wondering if any institution in the world is so reliable that the Internet cannot turn it into a lie.”

This week, my little didi meme is about stock, but more about the idea that once you overcome the need to question why you really trust something, it’s just It can be easy to believe a superstitious place that is in more incredible places. All are better off adjoining places where others trust.

The Dow Jones had the worst week since October as retail investors held on Reddit turned the US financial markets into the real front page of the Internet. Serious stocks such as Boring, Facebook and Apple reported adjusting their earnings and markets accordingly, but apart from serious bits of news, the Wall Street page was snapped up with a neck lead from “meme stocks”. While the rise in scrap shares is not new, the idea that a stock can earn outrageous profits on the basis of nothing Possibly Holding that value based on a new shared belief is new and more dangerous.

The most notorious among these stocks was GameStop. (If you’re curious about GameStop’s week, there are at least 5 million stories on the web to grab your attention, here’s a side note: Collectively we think Trump got more attention after the trance is.)

Therefore, Americans do not already have much institutional trust. Looking through some longer-lasting Gallup research than at the turn of the century, faith in organized religion, the media, most wings of government, big business, and banks has dropped significantly. Americans are much smaller than what small businesses and the military believe they were 20 or more years ago.

All of this is to say that it’s probably not stellar that people don’t trust anything, and I think the Internet can probably disrupt every credible institution except the military probably only reflects my lack of creative thinking when It comes down to how democratic the web can be the Defense Department. As you can infer from that statement, I think the use of democracy can be bad for some institutions. I say that there are footnotes with about a thousand asterisks that you will never get. I also don’t think the web is disrupting institutional trust by a long shot, for better or worse.

The democratizing system sounds much better than the democratic lift, until you realize that the users competing against are playing a different game with other people’s money. This saga will change a lot of lives but it will not end, especially for most people, for the “infinite upside” day business.

Until this week, Robinhood was careless in my mind simply because it was exposing (or “democratic access” – their words) to risk consumers in a way that most of them were probably not equipped to handle. Now, I think they are careless because they did not anticipate or how democratically outreach could lead to such a possible doomsday and bankrupt Robinhood. He quietly raised a $ 1 billion liquidity lifeline this week as he had to temporarily shut down meme stock trading, a move that essentially shook his brand and left him the web’s most hated entity. (Had a quiet week on facebook)

All of this kind of comes back to the idea that I am feeding a scale that can be very dangerous. Platforms require a certain amount of head count to handle a global audience, and almost all of them are insufficiently staffed. Facebook announced in its earnings call this week that it had about 60,000 employees. It is a company which now has its own Supreme Court; it is too big. If your institution is going to be large-scale and centralized, chances are you will need a ton of people to moderate it. This is something at odds with most existing Internet platforms. Realistically, the Internet would probably be happier with fewer of these wider institutions and more intimate bubbles that are loosely interconnected. This is something that the network effects of the last few decades have made difficult, but may assist with regulation around data portability.

Writing this newspaper, I am often reminded that it seems that everything is always changing, some things are completely new. This great NYT profile of 2001, written by Michael Lewis, is a stark reminder of a man who was dilapidated at the age of 15, using a web of dummy accounts to scam the markets and be hounded by the SEC , But still went with 500k. Read a lot.

In the end, the prospects would calm down on Robinhood. There is also the distinct chance that they do not and those meme merchants have just ignited a revolution that is going to bankrupt the company and torch the globals markets, but you know things will probably go back to normal.

Until next week,
Lucas matni

Facebook CEO Mark Zuckerberg Antitrust testifies before House Judicial Subcommittee on Commercial and Administrative Law

(Photo via Getty Image by MANDEL NGAN / POOL / AFP)

other things

SEC is pissing
I’ll try to keep these updates GameStop free, but a quick note from Peanut Gallery. The SEC is not happy about the people coming to the market this week and they are crazy, probably mostly in Robinhood. He was impressed with his statement. Excess

Facebook oversight board wants you
Zuckerberg’s Supreme Court wants public comment to decide whether Facebook should give back its Instagram and Facebook accounts to Trump. I’m sure any Facebook official would have stopped putting the platform’s dead on its tracks in the years since its inception, if they knew how difficult it was for them to end the complex restraint, but you might not be able to make up your mind. Could change by showing them the market cap. Excess

Apple EdTech-Murder Update in Spring
After its launch was delayed, Apple committed to the spring rollout of its “App Tracking Transparency” feature this week, which has a lot of edtech worlds. The update will force the application to essentially ask users if they want to track the entire application. Excess

Robert Downey Jr. bets on startups
Celebrity investing has become popular forever, but it has become more common in the enterprise world in recent years. Reputation transfers are coupled with the fact that it is very easy for top founders to come in money, which means that if you are choosing from a few second-tier funds or The Channelsmakers, you can probably choose The Channelsmakers. On that note, actor Robert Downey Jr. raised a rolling fund to bring back Climate Tech startups, we’ve got all the details. Excess

Ah poor Adam Newman, poor softbank. If only they had kept their small “tech company” wrapped up for another couple of years and that S-1 would have been reduced to the kinder market, with little creative waste. WeWork seems to have the next goal of acquiring SPAC’d and bringing it to the public markets through acquisitions. I’m sure everything will be alright. Excess

Tim Cook and Zuckerberg Spur
Big tech is a gentlemen’s game, usually big tech CEOs play with each other in public and save their disdain for a political party that just got out of power. This week, Tim Cook and Mark Zuckerberg were a little less friendly. Zuckerberg called Apple by name in his earnings investor call and took some potentially unfair advantages that Apple might have. Words fighting them. Cook was as attentive as ever and gave a speech that was at times, in perhaps the most indirect way, direct to how much he hated Facebook. Excess

Additional things

Tidbits from our paid extra crunch material:
5 biggest mistakes I made as a startup founder for the first time
“I and the rest of the leadership team will work 12-hour days, seven days a week. And tricked many other employees who did the same. I did not think twice about sending email, text or slack at night and on weekends. As with many startups, Monster Hours was just part of the deal. “

Fintech could see $ 100 billion in liquidity in 2021
“For the fourth straight year, publicly traded fintech extensively interpreted each mainstream stock index, along with large-scale financial services providers. The underlying performance of these companies was tremendous, yet the epidemic yielded more results, as consumers avoided personal exposure for both shopping and banking. Instead, they sought – and found – digital alternatives. “

Increasing African enterprise investment powers in 2020
“What is the generally positive venture capital outcome for Africa in recent quarters? Giuliani told ClearTips in a follow-up email that ‘investment in Africa is being driven by a broad base for early-stage ecosystem support organizations, including accelerators, seed funds, syndicates and angel investments. ” And “consolidation,” which is “the burden of the development phase deals and an M&A market.”

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