I really don’t understand this whole Reddit/Robinhood/GameStop affair, but at least I can sense something is wrong with all this stock-price manipulation. That cannot bode well for an economy.
Like you, I don’t understand the ups and downs of all this, but it must be similar to that old Eddie Murphy movie, “Trading Places”. Funny as hell.
Tucker Carson has a really nice piece on this as of this morning. Also take a peek at TimPool’s bit on same thing.
Basically, the long-term scam is that Hedge funds have been buying trading info from outfits like Robinhood — unbeknowst to anyone. Using this they figure out what stock to short. Then, they call over to some “stock weasel” at MSNBC or thereabouts and that hack goes on the air and (with free time from the network) screams about how the stock is bad and everyone should dump it. When the stock takes a dive the hedge managers make $$$B.
All of this from Hedge funds which contribute nothing to anything (they make nothing, they employ only other stock weasels) except the insiders who get the tip off — like members of Congress.
Well, some rebellious dingalings at home because of shutdowns ( and a few hunder $$ from Congress) used Reddit to “conspire” and bought heavily of GameStop, AMC, Nokia, etc. This caused stocks to skyrocket. Not only did they make tons of $$ buying and selling as stock rose, but they stuck it to the Hedge funds who have to buy back the stock they shorted. Within 48 hours of this they lost $14B, yes billion.
That is when Robinhood ( and other outfits) showed who they trully worked for by freezing out any more buys. This bought time for the hedge fund managers to figure out how to dispose of their short sells with minimal losses.
This is not capitalism. This is crony-cap. This is insider trading. This is stock manipulation. This is the DeepState sending out a shaft at the request of WallStreet. Why say DeepState? Because short selling has been a curse for years, and no body in DC (or NYC) wants to make a change that protects middle America.