Ultra-hypocrisy on the stock exchange
: money, January 30 2021 ▶
I want you to look at the picture and let the data sink a bit in your head. This is what happens when small people unite and beat the hedge fund vultures in their own game. 2 funds went almost bankrupt and some Robinhood-Reddit-users went wealthy overnight.
I.LIKE.IT!
Investor Michael Burry, who made a fortune on the 2008 subprime mortgage crisis, said in a now-deleted tweet on Tuesday that trading in GameStop is “unnatural, insane, and dangerous” and there should be “legal and regulatory repercussions.”
I will not go into the mechanics of the hustle - you are wise people and can google it yourself, but wanted to stress on the following: Nobody did anything illegal! But now there is a huge outcry from most of the Wall Street sharks, who are using the same shady practices in their ever-greed, that the government should crush the new competition. We will soon see a picture of some hedge fund CEO against the word "hypocrite" in the dictionary.
What is worse - if some of this funds really fail, guess who will bail it out (and with whose money). What is even worse is that the social media overlords reacted in an instant, to shut down the major means of communication and organization of the so-called "degenerates" - so much for the Freedom of Speech I guess.
Facebook Inc took down a popular Wall Street discussion group, Robinhood Stock Traders, in a move that its founder on Thursday described as backlash for conversations buoying shares of GameStop Corp and other companies this week.
So much for the Free Market also:"We are actively monitoring social media chatter and will halt stock if we match chatter with unusual activity in stocks," NASDAQ CEO Adena Friedman announced on Wednesday morning. Speaking to CNBC, Friedman demanded regulators intervene to stop the “manipulation” that’s seen amateur investors completely leave one of America’s top hedge funds, Melvin Capital, teetering on the edge of bankruptcy.
So it is OK when casual people lose their money (most of of the time caused by the same type of "fixtures"), but when a big corporation gambles and gets destroyed, then "we have a problem and intervene". People are not stupid and, having long and bitter experience with their own government, are already preparing for the counter-attack:...some WallStreetBets users predicted an impending regulatory crackdown, especially given the astronomical donations Wall Street gave to Joe Biden and the Democratic Party in the runup to last year’s election.
This "shitstorm" (I am sorry - I have no other words for it) is just the next (probably millionth) sign how flawed, hypocritical and corrupt the whole system is. Not just Wall Street, not just The Big Corpo-Social-Media-Censors, not just the rigged freely-elected politicians, but the sum of all moving parts. Denying, they play together against the average people, is no longer naivety - it is stupidity. If the professors in the Economics University I visited (back in early 2000), knew this will happen, they would have ripped and ate their own books (and probably turn to other field of study like potato farming or so...).