The stock market is a strange and confusing place for the uninitiated. The lingo, the volatility, and the speed at which is all moves are completely foreign to many of us who, even if we own stocks, likely have the squirreled away in some pre-managed account for our retirement.
But Reddit users and an onslaught of other social media users, who’ve been home staring at the internet for 10 months now, discovered a way to beat Wall Street at their own game, by forcing hedge funds to pay a premium for stocks that they’ve shorted.
The fat cats on the street aren’t thrilled, and you can see for yourself by flipping on CNBC and watching the exasperation on their faces.
But a growing number of experts, pundits, and public figures agree: These retail investors are doing something revolutionary, and exposing the evil wiles of Wall Street in the process.
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Tucker Carlson’s Thursday night monologue was full of revelations regarding the situation.
What’s happening on Wall Street is so clearly awful and so obviously destructive, the question is, who is going to fight back against it?
As it turns out, a bunch of guys on Reddit will. It fell to them to push back against the short-sellers because no one else even tried, so they did. A group of independent investors in a Reddit group called Wall Street Bets learned that hedge funds planned to short the stock of a fading retail company called GameStop. So the Reddit investors began buying shares of GameStop.
GameStop surged in value ultimately up by more than a thousand percent. The hedge funds, for all their calculation hadn’t seen that coming and they lost billions as a result of it. One hedge fund lost so much money it needed a bailout from two other hedge funds.
Meanwhile, some of the investors on Reddit got rich, but getting rich was not the whole reason they did it. They also wanted to send a message for the hedge fund managers.
Then Tucker turned on the trading apps that halted the retail investors in their tracks:
Today, the investment app Robin Hood, which is used by independent investors to buy and sell stock, banned its users from trading GameStop shares, as well as from several other company shares. No one even knew that was legal. Maybe it isn’t. But Robin Hood did it anyway, and they did it under pressure from the hedge funds, who they really work for.
So much for the free market, you’re always hearing about, there’s nothing free about it. That turned out to be a lie. It turns out that what Wall Street really hates is outsider trading. The idea that people from outside their world might be getting rich, that’s the one sin they can abide.
The full monologue is certainly worth a watch:
— Michael Wayne Little (@retiredkyng) January 28, 2021
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