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Anonymous G

Editor In Chief, Content Curator

 

United Against Wall Street: The Gamestop/Reddit Stock Market Saga

United Against Wall Street: The Gamestop/Reddit Stock Market Saga

Alternative To The Mainstream
Buisness, Economics, Technology

(Chaz Anon) The type of investors that hang out on r/WallStreetBets come from various positions on the political spectrum, but many of them are not very political at all. The majority of them are just looking for an opportunity to make some money, learn about investing and sticking it to the Wall Street elite every chance they get.

This sub Reddit forum has over two million small-dollar, speculative retail investors who are credited with pushing GameStop’s stock price to “the moon”. 

User FlexinJack wrote, “FOR ALL THE BIG F—ING HEDGE FUNDS MONITORING US, THIS IS A MESSAGE… WE F—ING OWN YOU… GO BUY THE F—ING NEWS.”

This move against Wall Street by this group of investors on Reddit has seemed to unite the left, right and center better than Joe Biden ever could. They teamed up against big finance, and the establishment pundits and politicians to give them a real run for their money.

Using the app Robinhood to “steal” from the rich, the r/WallStreetBets subreddit investors bought GameStop options, sending the cost of shares skyrocketing, emptying short selling Wall Street investors’ pockets. Robinhood allows investors to make micro stock investments, opening the market door to almost anyone.

The GameStop stock (GME) began the month at around $5 and closed around $350 on January 27th.
The amateur traders from r/WallStreetBets invested against the Wall Street hedge fund firms short positions all month, but got the most criticism from leftist media, NASDAQ, and Wall Street elites this week when the price began to skyrocket.

Here’s a quick summary of how it went down. Hedge fund Melvin Capital had opened a large short position (i.e., it sold borrowed stock) on GameStop in hopes that the price would fall and it could buy the stock at a lower price in the future to profit on the difference.  Instead, GameStop’s stock price increased thanks to r/WallStreetBets.  Facing unknown and unlimited risk, the hedge fund had to cut its losses by closing its short positions, i.e., paying a much higher market price for the stock they’d borrowed and sold, thus absorbing heavy losses.

These losses were so heavy that Melvin Capital had to secure billions in “rescue capital” from other prominent hedge funds, according to the New York Times. These hedge funds are collectively such influential players in the stock market that this event had ripples felt throughout the marketplace, manifesting as a declining market even as GameStop’s stock surged. 

This was an opportunity for the “average Joe” to get a win against an elite class that continually take more and more from them financially, politically and socially. In a brutal year full of bankruptcy, isolation and fear based programming this is a type of revenge on the elite class. Small businesses have gone under while mid-sized companies like GameStop, are struggling to survive.

Many Americans lost their jobs during COVID lockdowns and have been forced to rely on government handouts and unemployment insurance, while their children are abandoned at home barely getting an education, becoming depressed and many committing suicide.

Wall Street firms and their allies in the mainstream media are now vilifying the Reddit investors by associating them with the Alt-Right, Trump and white supremacy. These are the go to bad guys of the pay to play mockingbird media. And while they pointed fingers at the amateur investors, it turns out everything they did was legal within the investment system, and really nothing worse than your average hedge fund does everyday.

Wall Street firms make a lot of money shorting a stock and betting it will fail. This is regular practice, betting on what a stock will do and angling to make a profit from it. This practice can destroy a company. Most investors are not altruistic, and don’t care about a business or its employees when they gamble on the stock market. They have money on their mind.

The anonymous investors from r/WallStreetBets just wanted a piece of the pie, so they went after it. Some people are mad about the way they profited, and the losses of corrupt Wall Street firms, so they are now pushing for more government regulation. But nothing that was done was illegal, and was simply a case of beating them at their own game.

And now the gatekeepers of wealth are calling them hateful, racist, and baseless names to shame people in the future from making a play for Wall Streets profits.


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