Wall Street Vs The Internet
In the last twenty four hours I have been absolutely captivated watching the internet do something truly good for a change.
Instead of letting the rich get richer at the expense of a few businesses that are in almost inevitable death throes bought about by the global pandemic and changing habits in the market place, what started as a few people on Reddit has grown into a movement bigger than Occupy Wall Street.
This time around the goal is more than bringing awareness to the corrupt and immoral systems used by hedge funds, stock brokers and other professional investors. In 2011 those activists hoped to bring about legistrative change and ultimately did not succeed. What they did manage to do was open a lot of eyes and now, ten years on, it feels like the next step is taking place.
GameStop is the focal point but there are other companies involved. Much like the housing market in 2008, these companies were being shorted and instead of letting it happen people are investing and holding their shares.
This is driving the price back up as the hedge funds were effectively trading without owning anything. As the chickens come home to roost they have to buy the shares they’ve already pre-sold except now the price they are paying is a lot higher.
That is a very, very, rudimentary way of explaining what is happening at the moment.
There is also the illegal activities and market manipulation they are doing in order to prevent everyday people from getting in on this action.
I would have loved to have been a part of it with even just five or ten pounds but all US stocks were closed off from international trading today, something that is being investigated for its legality, so I have just been a casual observer.
You push the people around for long enough and eventually they will push back.
Eat the rich. Fuck the system.