DANG!
Posted on 01/29/2021 8:32:13 PM PST by John Semmens
This week, a small contingent of retail stock traders discovered that big hedge funds had taken large short positions on several stocks. In some cases, the shares shorted exceeded the total number of shares issued by the companies. "Shorting" means selling stock you don't own. With the cooperation of market opinion makers, negative assessments can be created and circulated driving the share prices down. The hedge fund that shorted the stock can then close the deal by buying the shares at a lower price and net billions in profits. This time, though, outsiders used the large short position in GameStop shares to "squeeze" the hedge fund insiders.
The Biden Administration is reportedly highly concerned about this very unusual turnabout from the normal outcome. Incoming Secretary of the Treasury Janet Yellen is said to have spent many hours on the phone talking to key Wall Street friends of the Biden Administration trying to work out a resolution that would rescue the hedge funds from their predicament. Notably, Yellen has been paid more than $800,000 in speaking fees by Citadel, a hedge fund involved in the GameStop affair.
Biden Press Secretary Jen Psaki characterized Yellen's actions as "constituent services. Wall Street has been a major donor to the Biden campaign. When these firms asked for help we got right on it. These big investment firms are essential businesses. Their financial failure, even if due to their own greed and miscalculation could have a major impact on the economy. The individuals on the other side of short squeeze are not essential. Weighing these two salient facts supports efforts to prevent the essential businesses from being crippled by excessive losses in the marketplace. On the other hand, the financial world can go on with hardly a ripple if the people who really shouldn't be meddling in these markets are the ones who ultimately have to bear the losses."
Meanwhile, Sen. Elizabeth Warren (D-MA) called the turn of events surrounding GameStop "disturbingly abnormal. Non-professionals outsmarting Wall Street insiders disrupts the circle of life. It's as if zebras started eating lions. It's scary. The Democratic Party counts on generous donations from these insiders. These unselfish benefactors regularly dedicate a portion of their profits to assist our Party to win elections. Consequently, the $20 billion in losses they have suffered due to outsider interlopers threatens our democracy. I am asking the SEC to take whatever steps are necessary to see that this kind of thing never happens again."
If you missed any of the other Semi-News/Semi-Satire posts you can find them at...
https://www.freedomsphoenix.com/Opinion/298865-2021-01-29-semi-news-semi-satire-january-31-2021.htm
ping
Does China short-sell anything?
Asking for a friend.
We live in a cronyist kleptocracy. The republic is dead.
While this is satire Rush spoke of this quite extensively the last two days. He made many salient points and spoke like a a man well versed in this area. His basic point is, that The Elites are not just in Politics. They are in Finance as well. They view themselves as superior to the average American. They are Entitled to Perks and Protections WE the People have no right to. Both Politically and Financially.
And, IF we ever encroach on their Sacred Turf we must be dealt with. Put in our place.
The response by Wall Street to average Americans playing and beating the “Elites” at their game is no different than the reaction by the Political Elites to our support of President Trump and voting President Trump into office. It offended and outraged the “Elites” and they mobilized to stop us at all costs. The Constitution and the Rule of Law Be Damned!
I thought Rush explained it very well....and I also think he is spot on.
The message is clear in both politics and finance.
NO TRESPASSING
MEMBERS ONLY
DEPLORABLES KEEP OUT
To borrow a quote from the great Michael Baxter of ODM
“Capitalism works...but only in a functioning democracy.”
Last November proved that our democracy is no longer functioning
“The message is clear in both politics and finance. NO TRESPASSING MEMBERS ONLY DEPLORABLES KEEP OUT”
Clear and succinct. Spot On. This is how those Ivy League snobs view us. Remember the statement, “I can smell the Trump supporters?” The DC and Wall Street “Elite” see themselves as our SUPERIORS. We need to shut the F up and do what they tell us to do. And, never, ever, DARE to challenge them. Ever! Or Else!
Bookmark
We saw a lot of that in the Trump Administration, where many recoiled when they learned that Trump disagreed with their opinions, and barred their path to future promotions by ending the wars that had been going on for decades.
Headline should be: “Wall Street Losses eke into Democrat donations. Legislation imminent.”
Excellence in Semmens-casting.
Gift on loan from God.
DANG!
What would Johnny E. do?
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