What happened this week was, and is frightening.
It is a shocking wake up call.
Hedge funds and those that short stocks are heavily regulated. Most importantly, shorting provides some balance to the market and expectations are known, and prices built in. It is expected, as part of the rules of engagement. Economists for decades now have said it is a healthy check-and-balance to a free market.
What happened on Reddit was a new phenomenon of massive market manipulation via social media. The market is NOT prepared for this kind of coordinated effort to manipulate stocks, nor are their rules to address it, nor are the massive price swings pre-baked into the market. This wasn't a few happy basement-dwelling millennials buying some lame Gamestop stocks, it was a grassroots movement to sabotage the ebb and flow of the base of our economy.
While perhaps nothing illegal actually happened, this is pretty unprecedented, and I am not in the "happy camp" that this chit show is happening.
But, you all keep high fiving. Reddit and Robinhood are liberal whorehouses. And that's where this all started.
That should tell you something.
The Wall Street Swamp got spanked, and you're defending it.
Hedge funds make zillions, destroying retail investors. They could care less, and the big investors could care less. This is much like President Trump's election in 2015. The swamp-rats howled and griped. They act like they are demigods who are too important to vanish.
I sincerely hope the small retail investor movement burns down all hedge funds and levels the field.
