An American revolt against the Wall Street volcano lair hedge funders is finally under way, and normal people could not be more delighted by this story. If you haven’t paid any attention to this story about a defunct mall chain store called GameStop, a group of internet investors, and Wall Street, now is the time to stop and relish this moment. It’s one of those rare David versus Goliath stories that crosses party lines and shows the real division between Americans today, which is the wealthy oligarch 0.1 percenters versus all normal people.
This story gives me great hope that we’re going to see Donald Trump or someone even more Trumpy back in the White House in 2024.
GameStop is a doomed, publicly traded company. You’ve seen one in virtually every mall in America. Its business model is almost as outdated as Joe Biden’s real opinions on race relations. The store sells physical copies of video games and other related paraphernalia. Yeah. It’s that outdated. Most video gamers these days don’t buy physical copies of games on discs the way they used to. Heck, the last computer I bought from an electronics store doesn’t even have a disc drive, because discs are so outdated that almost no one uses them anymore.
But… a lot of video gamers are nostalgic about GameStop. They remember their teenage years when they used to wait in line every week for the newest Tomb Raider or Madden NFL game. So, when a group of gamers and amateur investors who belong to a sub-Reddit group noticed that Wall Street hedge funders were short-selling GameStop shares in an evil plan to crush the already-pretty-much-doomed company, those sub-Redditors formed a plan.
When a hedge fund short sells a stock, it doesn’t work like normal stock trading. It’s a weird form of gambling that would put a casino to shame. They borrow a stock at one price, sell it at a lower price and then have to pay back the difference to the original owner on a sell-by date. They short sell the stock when they think the price is going to go down, and then they pocket the difference as profit. But if the share price goes up, the short seller loses money. If the share price goes up a lot, they lose their shorts.
It’s vampire squid vulture capitalism at its very worst. Hedge funds frequently short sell a stock and then go on CNBC to talk down the price by convincing investors to dump shares – and they make a bundle off of the intended company’s misery when its value goes down.
Several hedge funds saw GameStop circling the drain and leveraged billions of dollars to short sell it. Using the exact same rules of the market that Wall Street operates under, several thousand people in a sub-Reddit investing/gaming group decided to invest their $600 COVID stimulus checks in GameStop on a lark. If they could drive up the price of GameStop shares by just one dollar, it could cost some hedge fund villain millions of dollars.
GameStop was selling at $20 a share a few days ago, and the hedge funders were expecting its price to tank to around $4 or $5 a share. Instead, the first day that the sub-Redditors jumped into the market, the share price doubled to $40 a share. Uh oh. The hedge funders were over-leveraged suddenly, to the tune of billions of dollars. By Tuesday of this week, one of those hedge funds had to borrow $2.5 billion from his other hedge fund volcano lair friends, just to cover his losses.
But then as people started to realize what happened, more everyday investors and day traders started jumping in. They figured, “If I can dump a couple thousand into GameStop and stick it to one of the slimy Wall Streeters, why not?” Suddenly, GameStop shares jumped up to about $150 apiece, to $347 apiece… to more than $500 at one point on Thursday of this week.
This is so amazing because… once those margin calls come in on the hedge funders’ losses, billions of dollars in wealth is about to be transferred from Wall Street to the normal, everyday people who dumped a few hundred bucks into GameStop just a few days ago. Instead of insane amounts of wealth being transferred from the poor and working class to Wall Street through debt and usury, the money is flowing backward for once.
All of the smartphone trading apps are now colluding together to prevent people from buying more GameStop shares (and other short sold companies), in an attempt to help the volcano lair vampire squid hedge funders from losing more money. Hedge funders are calling the White House and suddenly demanding that everyday people should not have the right to play under Wall Street’s rules and make money because… because… *sputters*… it’s JUST NOT FAIR!!!!
I love this story! Normal, everyday people just made a bunch of money playing by Wall Street’s rules and some of the greediest, most anti-capitalist, globalist d**kwads on the planet took it in the shorts!
There are three major populist issues in America that everyday people on the left and right agree on by huge margins: Opposition to mass immigration, opposition to “free” trade agreements that ship American jobs overseas, and opposition to the slimy volcano lair Wall Street creeps that caused the 2008 financial crisis.
Now, we’re about to find out if Congress has learned anything from the rise of Donald Trump. Will they bail out the volcano lair guys, or will they say, “Sorry, Wall Street. You’re the ones who made these rules. You placed your bets and you lost to normal, everyday Americans who played fairly by those rules.” I already know how the illegitimate Biden regime is going to react. But what do you suppose Congress will do? We’re about to find out.
We dare you, Congress. We triple-dog dare you to bail out Wall Street on this one or change the rules after the fact so the “wrong” people can’t make money by playing the market. Just try it and see what happens.
P.S. Man, I love this story! Sorry, I just can’t stop talking about it!
As Wall Street and the media continue to act like the billionaire hedge fund vultures are the victims of this story, because normal poor and lower-middle class people played by their rules, it just keeps getting funnier and funnier.
One of the hedge funders, who flies to his gilded office on Wall Street in a private helicopter every day because traffic is for the little people, is complaining because the sub-Redditors found his home phone number. Actual quote from the hedge funder:
“They keep calling my house asking if I have copies of Battletoads. I don’t even know what that is.”
(Battletoads was a 1991 video game which was a blatant rip-off/copyright infringement of the Teenage Mutant Ninja Turtles. The game reference is about as old and outdated as GameStop’s business model, not to mention that Battletoads was a famously counterfeit idea, which makes it that much funnier.)