Beware the zombie meme stocks

Plus: No Taiwan war just yet. [Bloomberg]( Follow Us [Get the newsletter]( This is Bloomberg Opinion Today, a zombie spider of Bloomberg Opinion’s opinions. [Sign up here](. Today’s Agenda - The [meme stocks are back](, and they are zombies. - A [Taiwan war isn’t happening soon](, knock on wood. - The big climate bill [leaves a planet-sized loophole](. - Putin is [winning the energy battle](. Night of the Living Meme Stonks One of the most extreme examples of how absolutely metal nature can be is [a wasp]( in Japan that takes over spiders’ bodies, forcing them to spin cocoons for its young and then submit to being eaten slowly alive by its precious little grub darlings. The meme-stock short-squeeze revolution that gave us all a laugh back in January 2021 [has been similarly zombified in 2022,]( by the very hedge funds it was meant to target, writes Jared Dillian. Old Reddit favorites such as GameStop, AMC and Bed Bath & Beyond have recently horrified the townspeople by [rising]( from their graves to shamble about the countryside in an obscene mockery of real life.  Day traders might be providing a little of the juice keeping these rotting legs pumping. But Jared suggests the real controlling entities here are hedge funds who absorbed the lessons of r/wallstreetbets, waited for short positions to rebuild in these stocks and then jumped on the chance to squeeze their own magic. The few Redditors who clutched these stocks in their diamond hands through the heat death of their universe are getting a surprise reward. But the thing about zombies, zombie spiders and probably zombie meme stonks is that they eventually stop moving. Bonus Gen Z Investment Reading: A [conversation with Kyla Scanlon](, who coined the term “vibecession.” — Conor Sen China’s Sound and Fury China today [announced]( the end of its most intense phase of kicking and screaming about Nancy Pelosi’s visit to Taiwan but warned there could be periodic after-tantrums to come. Xi Jinping needs a nap and some juice right now, but expect him to keep tediously reminding everybody that Taiwan is his, all his. What he probably won’t do, however, is [start a war over his island precious]( anytime in the near future, James Stavridis writes. This may run counter to warnings you’ve heard, possibly even in this very newsletter, that World War III is right around the corner. The former admiral lists five very specific reasons China is afraid of war right now, including the fact that Xi’s best pal Vladimir is getting his зад handed to him all over Ukraine. It’s enough to make you throw a tantrum. Read the [whole thing](. Brandon’s Revenge May Be Served Really Cold That [Dark Brandon]( magic has been working for the Democrats lately. They outperformed in a special election in Minnesota last night, Jonathan Bernstein writes, in the [latest sign of their improving chances]( in the midterms. Dems are now [even]( with Republicans in generic congressional polls. President Joe Biden’s approval rating is still deep underwater but at least has a [4-handle]( now after a string of unexpected legislative accomplishments and gas prices taking a swan dive. Then again, it’s only August. The bigger-than-expected [drop]( in CPI in July was a nice surprise for those of us who like to “buy” “things” and another political lift for the Dems. But Jonathan Levin warns it’s still unsettling for people to [watch inflation swing around wildly]( the way it’s been doing. Only when we get back to those halcyon days of being bored to death by inflation can we sound the all-clear. As for Biden’s biggest legislative accomplishment, the Inflation Reduction Act — which should perhaps more accurately be named the Climate Change and Other Stuff Joe Manchin Liked From Build Back Better Act — Carl Pope warns it leaves [a giant loophole that will let oil and gas companies keep pumping methane]( into the air. That gas, you should know by now, is significantly worse than carbon dioxide when it comes to Crockpotting the planet. Fortunately, these leaks are easy enough to fix. But the IRA offers no incentive for doing so. Dark Brandon’s work is far from done. Telltale Charts Vladimir Putin may be losing the war on the ground in Ukraine, but [he is winning the war in energy markets](, Javier Blas writes. Despite sanctions, Russia is having no trouble pumping and selling its oil. Meanwhile, the West faces a harsh winter of energy shortages that will test its patience for backing Ukraine. Further Reading The government is [spending way too much on dialysis care](. — Bloomberg’s editorial board Global [financial hubs are losing their allure](. — Anjani Trivedi [Gensler’s ideas about regulating crypto]( exchanges are a bad fit. — Aaron Brown  [Mario Draghi won’t help]( Italy’s center-left anymore. — Maria Tadeo We need to [understand why BA.5 is fading now]( so we can fight future Covid variants. — Faye Flam ICYMI The Rhine is [about to become impassable](. Donald [Trump took the Fifth](. Elon [Musk sold a lot of stock](. Oh, goody, [another new virus](. Kickers Stunning “photo” of a star was [actually a slice of chorizo](. (h/t Scott Kominers) The [strong force is strong](. How to [tie all the climbing knots]( you’ll ever need. We should all [be like Puddle Kid](. Notes: Please send chorizo and complaints to Mark Gongloff at mgongloff1@bloomberg.net. [Sign up here]( and follow us on [Instagram](, [TikTok](, [Twitter]( and [Facebook](. Like getting this newsletter? 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