I don't mean to revive the frenzy that was the GME stock fiasco from a month ago, but for folks that have tuned out since then (an understandable thing to do), the saga didn't end after the massive price spike was squashed. Hedge funds involved appear to be shorting and shorting the stock endlessly in an effort to (as far as I can tell) bankrupt Gamestop (this is the only way so far as I can tell that these hedgefunds would escape this situation victoriously). At this point, when this bubble pops, I reckon that this is going to be absolutely catastrophic as the entire market contracts in order to cover the debts that they've incurred by shorting this so much.
Apparently hedge funds are just allowed to do "failure to deliver" for their shorts and shit for a few weeks and just do whatever they want. They can just blatantly naked short sell (where they never actually held the stock their shorting or borrowed it from someone else) and the SEC doesn't say shit, neither does the financial media because they're completely dependent on wall street and big funds. Natsec media and tech media are a bunch of ass kissers too, but nowhere is it as blatant and bad as in the finance world. To me, it's so obvious that the entire market is based on complete fraud. Kinda feels like 2008 again, then again we never really did anything to systematically overhaul the financial system so of course none of the damage ever got fixed and we just sort of... pushed off the reckoning into the future. Guess the proverbial bill is coming due.
Would be really funny if game stop, a brick and morter retailer of video games in an era of Steam and Epic and digital downloads, is what shudders the entire neoliberal economy.
Oh, apparently 105% of outstanding shares are held by institutional investors right now. So, pension funds for teachers and cops, mutual funds, sovereign wealth funds, etc. All of those people would be damaged pretty bad.
deleted by creator
deleted by creator