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Sounds bad? RIP retirement?
(hexbear.net)
hahaha jokes on you I have no money for retirement anyway
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this post was submitted on 31 May 2026
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Chapotraphouse
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so they're cutting the requirements to join the stock exchange so SpaceX can IPO?
They are cutting the requirements for inclusion in index funds. It is not the trading on the stock exchange. Index funds are supposed to track various indicies (e.g. S&P 500, Dow Jones, NASDAQ, etc.) as a way of passively investing in the entire market or a sector of the market. This is a common thing to include in retirement funds and other conservative portfolios, because you are assuming you are tracking the whole market, so it is really safe if the line keeps going up over the long term. By waiving all of these rules to include SpaceX in the indicies, it is a way to force all of these funds to dump a bunch of money into SpaceX immediately after the IPO to immediately inflate the price and provide exit liquidity for current shareholders that worry that the inflated price wont continue long after the IPO and shares selling more openly on the market.
Edit: TLDR it is a way to force all these retirement and hedge funds to dump a bunch of money into SpaceX shares and be a bag holder after the share price almost immediately spikes as they buy it, and then deflates afterward.
So it’s a pump and dump but instead of using hype and fomo to lure the bag holders, Elon us bribing the indices to passively make index funds the bag holders.
In other words, helps the investors but fucks the workers?
Well, it helps SpaceX investors and hurts other investors which includes worker's retirement investments.
How big is this when compared to the rest of the market though? Like there are so many other businesses, won't that dilute it? Obviously it's no justification to just say there is lots of money so it's OK to give a bunch to Elon Musk.
Say I have my 401k which is currently $1000. Assuming that SpaceX, idk, goes out of business immediately after IPO, or every pre-IPO investor pulls out, or whatever is the worst case scenario, what's the damage?
Probably only a few percent. I am looking for the numbers, and from the FT, this IPO is only a ~4% stake that SpaceX is claiming should be worth 75 billion of his claimed valuation 1.75 trillion. And I can't find the reference, but I think I have seen up to some 30-40% of the IPO shares would need to be bought by ETFs if it is included on the major indices. But since these large index funds are valued in the several trillions, it wont seriously tank the value. The real issue is that this is directly showing an issue several analysts have been raising at the FT for a while. Since so much of the investment market has gone into the ETFs and other forms of index funds, there is a huge amount of power given to these indices. And these funds are basically hostage to the whims of the people that manage the indices. The other thing is that that is enough of the shares that the value can get very inflated and allow people currently holding SpaceX equity to make out very very well above even its current inflated price.