Average Americans are growing ever more furious this week, as a coordinated effort between some of the biggest banks on Wall Street looks to crush a retail investor rout that would have toppled a number of massive, bloated hedge funds and made millionaires out of innumerable small time investors.
It all began after Reddit users discovered that a cheap stock, GameStop, was being shorted at 140% of the total volume of stocks available. When redactors started buying, the price went up, forcing those who were short on $GME to buy back their stock at the higher price as the scarcity grew.
If enough people invested enough money, the hedge funds would be crippled by the debt and be forced to back back just about everything, bankrupting them and transferring billions to small-time investors.
On Thursday, a number of retail investing apps, all of whom have ties to Wall Street via their clearing houses or holding firms, began restricting the sale of $GME to prevent Americans from “squeezing” the shorted hedge funds. The legality of this maneuver has yet to be fully reckoned with, and there are two lawmakers already fired up about it, agreeing with one another after years of bitter vitriol.
Rep. Alexandria Ocasio-Cortez, D-N.Y., who also sits on the Financial Services Committee, said she would support a hearing if necessary, condemning Robinhood’s move as “unacceptable.”
That tweet was, almost unbelievably, “fully” supported by Ted Cruz.
Wall Street bringing Ted Cruz and AOC together. pic.twitter.com/X89SXLjCtP
— Zach Rael (@KOCOZach) January 28, 2021
The honeymoon was short, however.
I am happy to work with Republicans on this issue where there’s common ground, but you almost had me murdered 3 weeks ago so you can sit this one out.
Happy to work w/ almost any other GOP that aren’t trying to get me killed.
In the meantime if you want to help, you can resign. https://t.co/4mVREbaqqm
— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
AOC and Cruz weren’t the only politicians weighing in either.
Rep. Rashida Tlaib, D-Mich., a member of the Financial Services Committee, went further, calling Robinhood’s move “beyond absurd” and demanding a hearing on “Robinhood’s market manipulation.”
“They’re blocking the ability to trade to protect Wall St. hedge funds, stealing millions of dollars from their users to protect people who’ve used the stock market as a casino for decades,” Tlaib said.
And then there was Don Jr.
It took less than a day for big tech, big government and the corporate media to spring into action and begin colluding to protect their hedge fund buddies on Wall Street. This is what a rigged system looks like, folks! #RobinHood #RedditArmy #GME #GMEtothemoon https://t.co/UhrwGHCjng
— Donald Trump Jr. (@DonaldJTrumpJr) January 28, 2021
Elon Musk has also weighed in, with previous tweets on the subject working to move the needle on $GME price.
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