Some Thoughts on the GameStop Saga
I see that a lot of people have questions about what’s happening with GameStop, especially now that the powers that be are trying to convince people that it’s in a gray area legally. It’s not.
Greedy hedge funds were selling short on GameStop ($GME), hoping that it would go bankrupt. But they were too greedy, and they got so deep into their short positions that there were more shares sold short than actual shares that existed (shares can be sold short more than once, creating artificial shorts).
Once GameStop got a little good news — an activist investor, followed by a beat on earnings, then new board members with a new vision — the price started going up. The only problem for the hedge funds is that there were very few shares available on the market and they were already tied into their short positions. This caused the price to go up much faster than with a regular stock.
It was an obvious wise investment, and a lot of smart people all over the internet were talking about it. The real story here is not Wallstreetbets coming together to win this battle- the real story is why this situation existed in the first place. And that’s due only to the greed and avarice of those scum-sucking funds.
Don’t let anyone tell you that a bunch of retail investors caused this, or are the reason that the market is frothy, or anything else. This was caused 100% and solely by the funds who were committed to destroying a company, and by people who had every chance to close their positions but instead doubled and tripled down, while manipulating the market the entire way. They deserve every ounce of this pain.
A final thought. I don’t want to hear anyone complaining or worrying about the common man “getting hurt” from all this when the market (and capitalism in general) does violence to us every single day.
Our society was decimated in 2008 during the financial collapse caused by bankers. They got bailed out, nobody went to jail, and we got left holding the bag.
Just a few months ago, MULTIPLE members of Congress sold stocks after a private briefing on the coronavirus when the market was about to crash 35%. To this day, Democrats and Republicans continue to basically insider trade right in the open.
Do you suddenly have a lot of interest in the market and ethics? Are you suddenly a stock market genius? Then focus your energy on those things. I don’t want to hear another word about what retail investors have done with $GME.
