This mess might be about many things, but mostly it seems to be about power. Power not just to shape the stock market, but also to shape a narrative. r/wallstreetbets discovered a game being played by big Wall Street short sellers and turned their bet against them to the tune of tens of billions.
If you’re dumb like I am, here’s a quick 5 minute explanation of what’s happening with GameStop and Wall Street $GME. The Robinhood Reddit bros are making millions and essentially took out an entire hedge fund. David vs Goliath. POWER OF THE INTERNET pic.twitter.com/G2iJVeBRsl— KFC (@KFCBarstool) January 26, 2021
Crowdsourcing has shaken the financial world...
... by exposing and exploiting illegal naked short selling. It has revealed the hypocracy of many short sellers now facing losses. Perhaps most importantly, it has prompted stunning responses from multiple major online brokers.
This is unacceptable.— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.
As a member of the Financial Services Cmte, I’d support a hearing if necessary. https://t.co/4Qyrolgzyt
> 50% of Robinhood users own at least some GameStop stock...
The drastic reactive measures taken by brokers to benefit themselves as well as shorting hedge funds has shaken the faith of investors from all walks of life in this evermore apparently centralized market. Might this turn of events actually mark "the beginning of the end of centralized finance"?
What a thing to bring us all together...
How can we best sum up what we're witnessing as crowdsourced financial empowerment meets with supposed free market integrity?
'What’s good for the goose is good for the gander'?
'The cat is out of the bag'?
'The kids have found the matches'?
There is surely plenty more debate to come over 'what's happening'. To put it simply, retail investors have come to recognize their strength in numbers, along with a way to take advantage of some especially greedy Wall Street funds. It seems 'the tables have turned'.
u can’t sell houses u don’t own— Elon Musk (@elonmusk) January 28, 2021
u can’t sell cars u don’t own
u *can* sell stock u don’t own!?
this is bs – shorting is a scam
legal only for vestigial reasons
Free markets are not looking so free...
As the struggle for control over the lens this story will be viewed through carries on, the integrity of our financial system is being tested like never before. It is r/wallbtreetbets who deserves much of the credit for directing the spotlight to the Wall Street reaction. An abrupt reaction which seems to embrace a perspective of insiders and outsiders.
They are just protecting unsophisticated investors from themselves...
The lens Wall Street criminals would have everyone see things through is unlikely to reveal anything resembling a two-tiered system, cultivating what essentially amounts to class warfare.
Speaking of warfare, it is hard not to wonder what other illegal naked shorts might be targeted next.
Bullion Dealers Face Sudden Shortage As Reddit-Raiders Take Aim At Silver
"Everyone we talk to is afraid of a gap up at Sunday night market open" - Tyler Wall, CEO of SD Bullionhttps://t.co/Kjg0mldXUG— zerohedge (@zerohedge) January 31, 2021
This is about ready to get really interesting...
'Reddit user 'TheHappyHawaiian' posted the following thesis on buying silver noting that "the worlds biggest short squeeze is possible and we can make history."'