The stock industry drama that unfolded this week thanks to a massive group of Redditors proved that not only is the stock industry a casino, but that most of the wealth of some of the biggest groups in America is also a complete myth. And while regulations will be coming quickly, it will only put future events like what happened this week on temporary delay. Farron Cousins explains what happened.
Link – https://www.cnbc.com/2021/01/28/gamestop-republicans-warn-of-trump-style-populist-revolution.html
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*This transcript was auto-generated. Please excuse any typos.
One of the most interesting things that we have seen happen in this country at a very long time happened this week. When folks from Reddit got together, saw that game stock, uh, game stop stock, excuse me, game stop stock was being shorted by investors. Now I don’t want to bore you with all the intricate details. It’s very hard to understand exactly what all that means, but to put it this way, um, investors were shorting the stock that they, uh, had been lent. And then once the stock price goes down, down, down, down, down, then they all scoop it up. They make a big profit off it. When they sell it afterwards, they artificially drive prices higher or lower to benefit themselves. It’s a casino, they’re gambling, and they all get together and they all do this with their little hedge funds. And then Redditers said, Hey, if we’ve each got a little bit of money sitting around, why don’t we do this and save game, stop and force these people basically to go out of company.
And they did. They caused billionaire investors to lose, lose billions of dollars. Hedge might actually be going out of company because of what they did. It was phenomenal. It was remarkable. So what they did is they came and they bought up all the cheap GameStop stock, uh, before the shorters could come back and buy it, drove the price up well, over $600 a share. And then they attempted to do it with other equities, uh, AMC and a couple others. But the GameStop one is really the one that kind of sealed the deal. So again, it proved that wall street, the stock industry is nothing but a casino for rich people, and they don’t want us playing their game, but Reddit, uh, Redditers got together and he said, you know, we’re going to play the game and we’re going to play it by the same rules you do.
And then the second thing they proved with all this by actually bankrupting, these hedge funds is that all this wealth was imaginary to begin with. It didn’t actually exist. You know, when we think of wealth, we think of people in mansions, people, driving Maseratis people with billions of dollars sitting in a money institution account. But apparently for a lot of wealthy people, that’s not what it is. It’s money that doesn’t even really exist, tied up in a stock industry. That’s also a completely made up thing and they sell things and buy things without ever actually exchanging any money. And the things that they’re buying and selling aren’t even tangibles. It’s all a Mirage it’s fake. And it was exposed this week by a bunch of people from Reddit. That’s remarkable. Now the sad part of the story is that obviously regulators are. You know, you can do pretty much anything in this country you want, except for cause rich people to lose money. If you do that by God, they are going to come after you. And they did think of Bernie Madoff, right? Bernie Madoff was doing his little, a Ponzi scheme at the same time that other big banks were over consumers committing all these crimes. None of them went to jail, but Bernie Madoff, who was taking money from rich people did go to
Jail. And
Every time rich people lose money, new regulations come in to make sure that doesn’t happen again. So yes, uh, the Robin hood stock trading app, uh, gets like shut down for a while. There’s new rules saying, well, you can’t do GameStop anymore. We’re not allowing to trade trading of that or, or AMC. They’re now trying to come up with actual congressional regulations. You know, they’re begging Congress step in and do something. They’re also begging Congress step in bail us out because none of it was real. None of their wealth actually existed. That is what the stock industry is. It, it is no longer a method for companies to raise capital, to reinvest in themselves and grow. That’s not what the stock industry is. That’s what it was supposed to be. But it’s not what it is. It’s a giant casino meant only for rich people. And it got exposed this week because non rich people finally decided we’re coming into your casino and we’re going to do the same thing
You do.
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