Cheesing
August 26, 2020·19 comments·In Brief
Systems have stopped rewarding the strategies they were designed for. In the 2020 political, financial, and social landscape, exploiting the cracks in the mechanics produces more reliable wins than executing proper strategy. This isn't desperation. It's the new dominant strategy.
- The game changed without anyone announcing it. Madden's cheesing, using Michael Vick's broken speed stats to repeatedly execute unrealistic plays, wins more consistently than balanced, realistic gameplay. The same principle now applies to election campaigns, stock valuations, and corporate strategy. The systems aren't broken by accident. They're being exploited by design.
- Competence is now a disadvantage. Running a company by maximizing real value, investing by studying fundamentals, or campaigning on straight-shooting integrity means losing to people executing edge-case strategies. Everyone else is doing non-value-additive things that add stock price. Everyone else is using manufactured threats to drive narrative. Refusing to participate means accepting defeat.
- The vulnerability appears once you see it. AI in video games can't handle extreme behaviors. Government regulators can't handle coordinated narrative flooding. Elections can't handle the interaction of memes and polarization. These aren't design flaws. They're newly exposed seams that work every time someone exploits them. Kodak's bailout and Tesla's stock split exemplify what happens when you understand the mechanics better than the game designers.
- The system hasn't broken. It's been revealed. The rules we thought governed competition still exist on paper. But something more troubling has happened: the environment has become so distorted that the edge cases are now the center. The question becomes whether you can compete at all without adopting these tactics. For most participants, the answer is no.
- The real crisis is what holds the system together. If everyone knows the game rewards cheesing, and everyone is forced to choose between losing honorably or winning dishonestly, what keeps it from collapsing entirely? The article identifies the trap but leaves the answer uncertain. That uncertainty is what readers need to understand.
Subscribe Today to Read More
Unlock instant access to this and hundreds of other evergreen essays that explore the world of narrative through hard science and human wisdom.
- Make more informed decisions as an investor and citizen.
- See through the nudges of Big Politics and Big Media.
- Become a better consumer of news.
- Maintain your autonomy of mind in a swarm of narratives.
- Join a community of more than 100,000 truth-seekers.
Looking for Deeper Insights?
Unlock exclusive market intelligence, trade ideas, and member-only events tailored for investment professionals and active investors with Perscient Pro.
VISIT PRO
DISCLOSURES
This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the personal views of the author(s). It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. Any action that you take as a result of information contained in this document is ultimately your responsibility. Epsilon Theory will not accept liability for any loss or damage, including without limitation to any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Consult your investment advisor before making any investment decisions. It must be noted, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future results.
Statements in this communication are forward-looking statements. The forward-looking statements and other views expressed herein are as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and there is no guarantee that any predictions will come to pass. The views expressed herein are subject to change at any time, due to numerous market and other factors. Epsilon Theory disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein. This information is neither an offer to sell nor a solicitation of any offer to buy any securities. This commentary has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Epsilon Theory recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives.
Comments
Boy, Tecmo Bowl nostalgia! Completely forgot about the Bo Jackson exploit, although I used it practically every game.
Nice piece and tie in to widening gyre.
LT was a monster, too!
In the old days we called this ‘gaming the system’.
Now i suppose we could say that the entire system has been turned into a game…
Well spotted, and yes, I think that’s the only distinction.
In all of the D&D campaigns I’ve experienced, I’ve seldom seen someone pull off lawful good effectively: people usually end up as lawful stupid or with the ‘lawful’ part slowly decaying.
That’s been my experience, too, although I’m not sure how much it has to do with my network of friends being so naturally chaotic / conscience-driven that they have difficulty playing the role.
Frankly, in all of this stuff, I think I’d happily settle for Neutral or Chaotic Good.
Cheesing is everywhere.
Mother-in-law and wife’s coworker both brought up a recent sermon at a local church and are professing “end of times”
When normal messaging loses its efficacy, the edges are the only place to garner attention
Absolutely. That’s a great example, John.
I think/hope I’ve settled into someone who’s neither of the guys above. Haven’t lost my soul either…as a 23-year vet in the brokerage industry. I’ve witnessed the financialization of everything (although not fully aware of it until I joined the ET pack). I think I’ve done well by my clients. Have played the hand that’s been dealt even if I haven’t been crazy about the game itself, the room it’s been played in or even the brand of the cards.
My hope is there will be truly transformative changes in capital markets and the financial services industry. The collapse of share buybacks gives me hope that we’re heading in that direction in capital markets, but I’m sure it’ll be a mighty struggle. Thoughts on the things we need to be doing as participants in the industry to hang onto our souls?
To be, or not to be, that is the question:
Whether 'tis nobler in the mind to suffer the slings and arrows of outrageous fortune, or take arms against a sea of troubles and by opposing end them.
Its great to live in a time and place where we are allowed choices and that preserving that ability requires an ethic beyond win at all costs.
Thanks Rusty.
Continue the discussion at the Epsilon Theory Forum...