Here comes the Sun do-da, do, do.
The Justin Sun, that is. He is a purported tech billionaire in Xining, Red China. He tweeted his plan to buy more GameStop stock as small investors continue their attempt to shortchange the hedge funds that shorted the stock.
His tweet said, "$1 Mil doesn’t seem enough, I’ll be buying $10 Mil $GME [GameStop stock] instead tonight from Asia when market opens! It’s time to unite & squeeze out those greedy hedge funds! Wallstreetbets, 4 billion Asian community & 20 mil $TRX community supports u! Let’s do this!"
Now we have to be cautious here. Never trust Red China and you don't get to be a billionaire in Red China without kissing Chairman Xi's ring. Sun may buy the stock. He may not. This may be Red China trying some stock manipulation.
But Sun may just be trying to ruin the hedge funders, in which he arrived Justin time. I do not care that these vultures are American.
The narrative is that someone on a Reddit's Wallstreetbets subreddit (chat room) told people he was buying GameStop stock in September. The price of the stock had doubled since that January, even though the company is a bricks-and-mortar merchant of video games that people now get online. Its move to online retail is on. Given its brand name, that may help.
Hedge funds saw the stock rise and shorted it, which means betting on the stock price falling. The opposite happened as Redditors kept buying the stock, once they realized that hurts hedge funds.
That's a nice narrative that fits my anti-establishment bias but the reality is that except for a few instant millionaires who bail before the inevitable fall, buying GameStop stock now is a way to get poor quick.
Many people are buying the stock for spite. The few thousand bucks you lose may be worth the satisfaction. What good is money if you cannot spend it? Most people go to casinos knowing they will lose money.
Zero Hedge quoted a Redditor who wrote, "This is for you, Dad.
"I remember when the housing collapse sent a torpedo through my family. My father's concrete company collapsed almost overnight. My father lost his home. My uncle lost his home. I remember my brother helping my father count pocket change on our kitchen table. That was all the money he had left in the world. While this was happening in my home, I saw hedge funders literally drinking champagne as they looked down on the Occupy Wall Street protestors. I will never forget that.
"My Father never recovered from that blow. He fell deeper and deeper into alcoholism and exists now as a shell of his former self, waiting for death.
"This is all the money I have and I'd rather lose it all than give them what they need to destroy me. Taking money from me won't hurt me, because I don't value it at all. I'll burn it all down just to spite them.
"This is for you, Dad."
Spite is a powerful emotion.
There are other ways that are just as legal to get back at the Man.
But the loathing for destroying the American economy after Donald John Trump made America great again is right. We will make people pay.
Our grievances are many. Shuttering our factories and moving the jobs overseas was wrong. Shuttering and moving online our mom-and-pop shops was wrong. Shuttering and harassing us over covid 19 was wrong.
The rank-and-file supporters of Democrats also have their grievances as they get played by their elected officials.
Conservatives though have every reason to take this personally.
We were called deplorable by a woman who bombed Libya and triggered a civil war just to show she was strong enough to be president.
We were called the dregs of society by a man whose cocaine-addicted son could continue to collect bribes from Red China.
No matter what is really behind this uprising, we have every reason to root for the rebels. History says the establishment will pancake them eventually, but sometimes you just have to fight.
Hedge funds are not the only people getting a comeuppance.
Robinhood, the online trader that targeted under 40s to become day traders, totally screwed itself by blocking GameStop trades after the hedge funds lost. There went Robinhood's anti-establishment credibility. Allowing trades of two shares or less doubled down on the stupid.
I always thought the company was a ripoff, but what do I know? It may be as legitimate as Solyndra.
The professional investors are watching.
Via Zero Hedge, Bill Gross, co-founder of Pacific Investment Management Co. (PIMCO), wrote, "The current GameStop short squeeze resembles the populist political uprising characteristics of recent U.S. and other foreign elections. While the Capitol of Capital has not exactly been stormed as in recent weeks, the will of the 'common' investor has imposed significant hurt on short selling, 'unpatriotic' hedge funds that have long profited at retail's expense, not only with their 2/20 fee structure but their financial clout to drive equities up or down and to issue capital calls if only to stay alive to rule another day.
"My heart has been with Main Street for many years and there is no doubt that billions of dollars have flowed if only temporarily to the good guys. But the government cavalry is on the march and deservedly so. The volatility has spread from GameStop to other heavily shorted stocks, to the current darlings called SPACs, and on Wednesday perhaps to the overall market. There is justification to the cries from Senator Elizabeth Warren and future SEC Chairman Gary Gensler to control this new form of social media investing which in and of itself seems democratic, legal, and a wonderful invitation for groups of 'investment clubs' to innovate."
Once again, the fat cats want the federal government to protect them.
That Gross sides with Pocahontas tells you that her claims to protect the poor and middle class are as phony as her claims to be an Indian.
If it is wrong for us to do it, then it was wrong for hedge funds to do the same thing for decades.
The feds may put a few heads on the pikes over this, but the establishment cannot stop the rebellion. It won't be armed because they have nukes, but it will happen because Americans have had all they can and they can't stands no more.
And we will prevail.
I offer as proof the election and re-election of Donald John Trump.
Here comes the sun do-da, do, do.
Here comes the sun.
And I say it's all right.
