A group of Reddit users under the Reddit post r/WallStreetsBet has bankrupt hedge funds company over night. These hedge fund companies are betting in the stock market, targeting GameStop's stock by betting against the company to fail in order to make a quick buck. However, earlier this week a group of Redditters came together to boost GameStop's stock causing several hedge funds company to go bankrupts.
This is a practice that the rich has been using since the beginning of the stock markets to squeeze company's out of the stock market business causing companies to shut down and many employees to lose their jobs. Once the stock market notice that their rich friends are losing money, the first thing they do was shut down all trading and selling on GameStop's stocks.
Apparently it's only okay if the stock market work out for the rich, but when the script is flip to benefit the regular people it immediately became a crime. I expect the news media to make the Redditters to look like the bad guys. What do you guys think?
Hmm... thank you for bringing this to light! I did a quick Google search and scanned through the wikipedia page on r/WallStreetsBet and learned about more interesting related stories such as "The 'infinite leverage' glitch".
ReplyDeleteWow! I really don't know how stocks work but I have always wondered how they work. I think I did see something on the news about GameStop.
ReplyDeleteI don't really know how stocks work, but I intend to learn about it sometime during the future. And based on what you said about rich, I guess it's about time that the rich get a taste of their own medicine.
ReplyDeleteI haven't read too much into this case, but I do stand by Reddit for a few reasons. One of them being that Wallstreet has been known for dumping huge sums of money into political campaigns, specifically Biden's this year, each election year. Also, they are protected by government interests, as you saw that Biden didn't even publically recognize or criticize this particular event. I'm not so much against the rich as much as I am against particular groups using their power to manipulate the market. Now if we can actually penalize politicians that do this all the time by changing laws to boost particular companies revenues, then recieving huge financial kickbacks from those companies. This is one way how a lot of politicians get rich while in office. Anyways, nice for you to bring this situation to the light!
ReplyDeleteThis has captivated the media entirely. I turn on NPR and it's literally all they're talking about. It's even cooler to know that there are people out there who, more or less, understand the irony. The market is something I love and am fascinated with, but there are just so many facets to this story and Wall Street as a whole.
ReplyDeleteThank you so much Nook for expanding on this topic. I do recall reading some information about it a few weeks ago, but I had no idea what was taking place. It sounds like a big mess, and I'll need to educate myself a little further on it as well. Thanks for bringing it to the table :)
ReplyDeleteI dabble with stocks and bought some good ones when most dropped when Covid happened. That is one stock I wish I had invested in while the prices were high and before the "lockout".
ReplyDeleteI can agree. I think in most cases rules apply to everyone but the rich. This is a direct example of that.
ReplyDeleteI don't understand anything about the stock markets, but I do understand that something fishy is going on.
ReplyDeleteMy friend literally called me in the middle of the night to tell me about the GameStop stock boom lol.
ReplyDeleteMy friend literally called me in the middle of the night to tell me about the GameStop stock boom lol.
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