Memetics

Folks like Melvin Capital and Citron Research think that GameStop is a dying business. The general public is optimistic though, be it for fundamental reasons (e.g. Ryan Cohen (chewy.com) will help GameStop can re-invent itself in the online space ), or for personal amusement, or FOMO. In particular, /r/wallstreetbets members are buying lots of call options . Or maybe it’s rage against the financial machine.

Programmable Money

South Korea’s COVID-19 stimulus payments were programmed to expire in Aug 2020, and could only be spent at qualifying shops. Australia’s cashless welfare card [currently in pilot stages] cannot be withdrawn as cash, nor used at alcohol, tobacco and gambling joints.

Monzo, a UK-based digital-first mobile baking app, supports IFTTT recipes. This enables budgeting logic, “If I spend at KFC, then move $5 to my penalty pot”.

The Self-Esteem Craze in America

In the 80s and 90s, there was research that low self-esteem was related to undesirable results, but there wasn’t any conclusive work that high esteem causes good outcomes. The self-esteem craze was defined by a simple inspiring message, a lot of half-baked research, prevalent confirmation bias, cottage-industry (books, videos, seminars). Self-esteem grew into a panacea for academic performance, crime, teen pregnancy until more rigorous research arrived. Similar overhyped[?] panaceas: power posing, growth mindset, grit.

The Tulip Bulb Craze

Virus causes colored stripes in tulip petals. The Dutch valued such bulbs. Prices rose (just when one thought they couldn’t go higher). Let the tulipmania begin.

Tulip bulbs options. 20 for a bulb currently worth 100. If the price moved to 200, the option holder exercises his right: buys at 100 and simultaneously sells at 200, making a profit of 80.

The Tulip Bulb Craze

Virus causes colored stripes in tulip petals. The Dutch valued such bulbs. Prices rose (just when one thought they couldn’t go higher). Let the tulipmania begin.

Tulip bulbs options. 20 for a bulb currently worth 100. If the price moved to 200, the option holder exercises his right: buys at 100 and simultaneously sells at 200, making a profit of 80.