How the GameStop Stock Saga Proves Collusion Between Financial Elites and the MSM

How the GameStop Stock Saga Proves Collusion Between Financial Elites and the MSM

It’s not every day that Ted Cruz agrees with AOC publicly, much less on Twitter.

Republicans demand AOC apologize to Ted Cruz | Daily Mail Online

Then again, not every day can be like today.

Jeff Bezos and Elon Musk don’t have billions of dollars in the bank. They’ve got an unlimited, revolving fund of credit that’s backed by…

Their stock.

That’s right. The ability to manipulate stock and commidify the market in their favor is a hallmark of extreme wealth. Investigate the asset portfolio of anyone with over a 1B US and you’ll find something interesting; they’re likely to have at least 50% of their wealth hedged into stocks.

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And most of the stock market itself? Held in trust by the ultra-rich. Less than 10% of the population owns more than 87% of the entire market, for those who are wondering.

And this is very important to keep in mind as we consider the unprecedented stock situation currently unfolding in the US. A situation centered around some of the most unlikely actors one could imagine; only after the farce of 2020 could 2021 deliver such a gem.

Because a group of 5 million reddit meme-lords, from a subreddit known as r/wallstreetbets, are using Gamestop (GME) to sink hedge funds.

And. they. are. Pissed.

What is short selling?

Not many people understand how the stock market works, or even what it does or how it affects the economy more broadly, they tend to believe it is only a metric of wealthy investor’s feelings, and they’d almost be correct. It kind of is. But it’s not as complicated or out of reach of regular working class investors as people tend to think. And in a way, the stock market is a way for people to establish somewhat communal ownership of private industry, although typically a private company will never relinquish more than at least 51% ownership of the company’s stock. Many companies even give stock to their employees, so that everyone working there has a stake in the success or failure of the company, and assuming the business flourishes this can be a pretty lucrative benefit to the employees. For $500 or even less, anyone can can invest into a stock portfolio and begin testing their market bets. At the beginning of this hilarious saga, the average price in a stock for GameStop was only $14! And at point so far has become more valued than Delta Airlines!

((*Short sale (n) – An investment or trading strategy that speculates on the decline of a stock or other securities price.))

A short sale involves a couple different parties, a stock broker, a short seller, and a company with stock. Short selling essentially works like this. Someone believes that a particular company’s stock is over-priced and is destined to decline in value soon. The short seller doesn’t want to own and hold stock in this company, but instead sees a way to profit off of the current value of the stock, and the predicted fall in value. The short-seller will then “borrow” the stock from a broker, with a promise to “return” it back to the broker within a given amount of time with some form of interest. They “borrow” the stock, sell the (possibly over-valued) stock, and hope to see the value of said company’s stock fall beyond and below the determined interest they promised to pay the original stock broker, and then they buy it back, hopefully at the lowest price possible and return it to the original broker. If they predicted successfully, than after they borrowed the stock, and sold it, the stock value fell to a point that they could re-purchase the stock at a price low enough that they could not only return the stock to the broker, with interest, but they could also pocket the “left overs”.

Example: So let’s say Company A has a stock value of $100, but short-seller Bill anticipates that it is over-valued and destined to fall down to $70 in the upcoming month. Bill would contact a broker and offer to borrow the broker’s stock in company A for one month, and agrees to return that stock to the broker in one month, plus $10. If the broker agrees, Bill assumes the stock in company A and sells it for $100 dollars immediately. If Bill was correct in his prediction, after one month the value of a stock of company A would have fallen to $70. At that time, Bill would re-buy the stock, and give it back to the broker, plus $10. In this situation, the short-seller Bill, would have made $20 profit.

Sometimes a group of short-sellers will even protect their gamble by selling and then coordinating with their friends on wall street and the media to scare off investors from the company their betting will decline, by spreading rumors and bad publicity.

Some would say that this kind of profiting off a business’ loss is immoral. Other would argue that it helps the market more accurately represent a company’s value. But it’s no shock that a huge bi-partisan swathe of the population hates the caricature of wealthy wall-street sharks with slicked back hair, red sports cars and tax-deductible yachts.

But it’s still a gamble. There’s a catch. The short-seller is obligated to return the stock to the broker. If the short-seller predicts wrong, and the value of the stock increases after they’ve “borrowed” and sold it, they still have to purchase it and return it to the broker, plus interest, regardless of the new price of the stock.

Example: So let’s go back to Bill. If short seller Bill is wrong, and after he sells the “borrowed” stock of company A, it instead rises from the original value of $100, to $130. At the end of the month Bill is obligated to return it to the broker with the $10 interest, so he is forced to purchase the stock of company A at $130, and pay the $10 interest. So Bill would lose $40.

And this was a gamble reddit “meme-lords” plotted to exploit. With hilarious success, enjoyed by huge numbers of progressive’s and populist patriots alike, so far…

What happened

Long story short: the boys at wallstreetbets (who affectionately refer to themselves as retards) really didn’t like notorious short-seller Citron.

They soon discovered that a number of prominent hedge funds, like Melvin Capital, had taken short positions in GME.

The GME Short Squeeze And The Brilliant People At r/WallStreetBets »  Capitalmind - Better Investing

The big guys were trying to scare off investors and make boatloads of money by selling borrowed stock for more than they thought it would be worth in the future. They tried their hardest to tank GME stock, because if it was to rise they’d lose far more money then they could have stood to gain.

Instead of selling off shares of GME when it was in the 20 dollar range, the WSB’ers doubled down. Then tripled down… and then other hedge funds got in on the short-selling action. They were demanding a drop in price for GME, but 2.2 million redditors were having none of it. They bought, they held, and the price of GME skyrocketed with their investments.

Skyrocketed. To a maximum price of $450. From an average price of 14 dollars a few months earlier.

Gamestop (GME) Stock Price and Forecast: White House monitoring, TD  Ameritrade limits trading, also on AMC

The market took notice. GME’s cap swelled billions of dollars overnight. And just like that, the redditors were in control.

But it is a double edged sword. Like a big game of chicken between the wall-street sharks, and the meme-lords. Remember that the initial bets the short-selling Hedge-fund managers were making, was that they predicted that the GameStop stock value was over-priced. And now they know with certainty that it is over-priced. This “so-far” funny ploy by the Reddit gang has been effective in screwing some of these Hedge-fund bros. But this is only going to work as long as people are buying and holding, not selling. Eventually more and more people who have hopped on the band-wagon, are going to decide it’s time to “cash-out” and reap the benefits of artificially boosting GameStop’s stock. And when this does, it’s potentially the new-wave of short-sellers who can successfully predict when this stunt inevitably ends, that stand to profit. If this happens then this stunt will have successfully accomplished the very thing that the pranksters were fighting against. That’s why the new rallying cry from the Reddit gang is “Don’t sell. HOLD THE LINE!” As more people cash-out, the ploy is up and people will try to profit while it’s still up, and the stock value will exponentially fall faster until the GameStop stock reaches a more honest representation of it’s value. Even Ja Rule has urged people to, “Hold the line!!”

Unfortunately, as hilarious as this has been so far, my instinct suggests that the short-sellers may have the advantage in the end. Only time will tell…

Corporate responses

I’ve been bashing on corporate America since I was young, hot-blooded, and intelligent enough to bash. For as much as liberals love to tout the idea of Republicans being in bed with them, it stands that the kleptocratic corporate overlords are in a class all their own.

In fact, Obama and Romney’s top ten campaign donors were literally the same wall-street, banking, and corporate interests. And in this recent election, wall-street interests overwhelmingly donated to Biden over Trump, to the tune of at least 74 million dollars in only the last couple months of the election. And that’s only the formal, public campaign contributions. There is almost certainly other avenues of political investment in Biden, that wall-street interests have never been shy of exploiting. And in return “Most Progressive president in history” Joe has quietly allocated cabinet positions to his wall-street titans like Goldman Sachs, big-tech execs, and military-contractor buddies.

((Bucky did an entire episode of his morning radio show on Biden’s so-called Progressive-ism, you can watch here.))

Nothing has displayed this more clearly than GME stock. These hedge fund short-sellers who wanted to bankrupt GME by selling them short are losing their collective shirts and financial asses. They’ve been wiped of upwards of 20 billion so far, and that number is climbing by a few bills daily.

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Sounds great, right? Not so fast. This is where things start to take that disgusting turn that everyone knew they would when the elites got challenged by the little guy. The same people who never saw a criminal conviction after the 2008 crash are now begging lawmakers to regulate this kind of ‘stock market rigging’.

As if that’s not what these schmucks have been doing for years.

Even the president of the God damn NASDAQ went on live television to demand regulations against redditors with stimulus checks.

The same people who’ve been bleeding us dry for decades.

The same people who witnessed one of the greatest wealth transfers in history ala COVID.

CNBC's full interview with Anthony Scaramucci on GME, bitcoin

The guys who crashed the economy, profited off it, and then gave us a paltry $1200 bucks to wipe our tears with as 10% of our population lost their homes and jobs overnight.

Which leads, again, to another chapter in this epic and ongoing saga: collusion with the people we’ve been raving about on this site and channel since it’s inception: the mainstream media.

Why the Media can Shove off

‘How Trumpism Explains the Gamestop Stock Surge’

That’s a real headline. From none other than our favorite propaganda machine for the grifter class: CNN. (Or as Bucky affectionately refers to as FNN)

CNBC, CNN, MSNBC, and a handful of other media outlets have been doing their best to demonize the retail traders pumping the price of GME and the expense of the billionaires who wiped out a quarter of the world’s wealth a little over a decade ago.

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The best part? Not a single person is buying it. When the NASDAQ cartel and Melvin Captital get together to call for trading regulations, every normal person in the US is wise enough to call them out on their BS no matter what the talking heads have to say about it.

They thought they could use Trump to demonize WSB. They thought they could fall back on their tried-and-true SJW rhetoric to turn the population against the redditors, and get them to side with the hedge funds. And they exposed their true colors in the process.

The backlash has been extreme. Everyone from Elon Musk to Kanye West and Mia Kalifa has been adding GME to their portfolios in an effort show solidarity with the little guy. More than a handful of politicians (who all ought to be lauded for their efforts) have joined hands to push back against these big-money elites.

See the disconnect here? The media panders for their corporate overlords because they are quite literally owned by same. And the backlash on every other end of society that’s never seen wal.street as anything but a flaming pitchfork is gaining serious momentum.

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In this the media cartel has profoundly ousted themselves as shills, as snake-oil salesmen mouthing whatever happens to be politically savvy for their constituents. Normal people, celebrities, and surprisingly many politicians see no value in siding with the financiers. Because these financiers provide no value to anyone but themselves. They’ve been the antithesis of public value since 2008.

And that’s why GME is glorious. It has wiped out half the wealth of predatory asset management companies like Melvin Capital (seriously, half their value has disappeared thanks to Reddit rallying GME) and redistributed it to those who were savvy enough to understand the importance of sticking it to the hedge funds.

The funniest part? The financiers have been crying market manipulation! every day on CNBC in their calls for regulations when they’ve been manipulating the markets for decades.

The moment someone beats them at their own game they cry and decide not to play anymore. And their pals in the media are holding the tissues while they’re left holding the bag.

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Brokerages like Robinhood (oh, the irony that can be in a name!) sided with the big dogs and restricted trading of GME two days ago to deflate the price, probably illegally. They’ll see class-action lawsuits for trying to protect the assets of the uber-rich against the interests of their retail traders. It goes to show who the game is rigged for and who’s helping to rig it. Even Reddit temporarily blocked the subreddit pages associated with WSB under the guise of “hate-speech” lending further and undeniable credibility to the conservative’s notion that “hate-speech” guidelines are distorted and expanded selectively and disingenuously to protect desired groups at the whims of our social-media overlords.

But WSB have shown that there will be no backing down. This has morphed from a bunch of normal folks getting rich and trying to get richer into straight-up stock and class warfare.

And at this point it’s looking harder and harder for the big guys to win. After all, their only reall friends are the disgraceful suits who defend their interests on television – and only because they bankroll them.

Heck, if WSB manages to sink enough big-money funds then maybe they’ll sink their mouthpiece too!

This is not financial advice and I wouldn’t advise taking a position in GME. Though I do have skin in the game with my single stock!

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