2021-01-29 10:37:27

Hedge Funds Nuked by Gamestop Short Squeeze

A group of Redditors are taking on Wall Street by investing in seemingly failing companies in order to stick it to short sellers. Short selling is when an investor borrows a stock, sells the stock, and then buys the stock back to return it to the lender. Short sellers are betting that these stocks will drop in price and they stand to make a lot of money if/when they do. In the past couple of weeks, people using the subreddit “wallstreetbets” have been encouraging people to buy Gamestop stock, along with AMC and a few other failing retail companies, in order to send rich investors into a tailspin. The Wall Street game of speculation and risky bets is being used against them and their losses could accrue into the billions of dollars.

Congresswoman Alexandria Ocasio Cortez took to Twitter to comment on the investing craze, saying: "So, market manipulation by federal reserve pumping $ into failing banks & corporations is okay. But Reddit users rallying GameStop is wrong and must be regulated? The entire stock market is disconnected from reality. Funny how quickly the financial press cries for hedge funds.” The current “meme stock” craze could be anything from a giant bubble to part of a large uprising in the world of finance. Where it goes from here, no one can say for certain.

--

The David Pakman Show is a news and political talk program, known for its controversial interviews with political and religious extremists, liberal and conservative politicians, and other guests.

Missed an episode?  Check out TDPS on FSTV VOD anytime or visit the show page for the latest clips.

#FreeSpeechTV is one of the last standing national, independent news networks committed to advancing progressive social change. 

#FSTV is available on Dish, DirectTV, AppleTV, Roku, Sling and online at freespeech.org

David Pakman economics Gamestop Hedge Funds Stock Trades The David Pakman Show Wall Street

Economy

Economic Update with Richard D. Wolff

Economic Update: Imagining a Different Economy

Economic Update: Imagining a Different Economy

Democracy Now!

Amazon Workers in Alabama Get New Shot at Union After NLRB Rules Company Broke the Law in 1st Vote

Amazon Workers in Alabama Get New Shot at Union After NLRB Rules Company Broke the Law in 1st Vote

Economic Update with Richard D. Wolff

Economic Update: Chris Hedges & US Prisons

Economic Update: Chris Hedges & US Prisons

The Thom Hartmann Program

Are Manchin's Votes Against Working People Lining His Pockets?

Are Manchin's Votes Against Working People Lining His Pockets?

Related

The David Pakman Show

Republican Plays One Character on Fox, Another on CNN

Republican Plays One Character on Fox, Another on CNN

The David Pakman Show

Trump Started Refusing Intel Briefings After Trump Riots

Trump Started Refusing Intel Briefings After Trump Riots

The David Pakman Show

Tucker Covers Story of CNN Host Firing His Nanny for Refusing Vaccine

Tucker Covers Story of CNN Host Firing His Nanny for Refusing Vaccine

The David Pakman Show

"Christian" Anti-Vaccine Skeptic Dead of COVID After Pushing Ivermectin, Hycroxychloroquine

"Christian" Anti-Vaccine Skeptic Dead of COVID After Pushing Ivermectin, Hycroxychloroquine

Proud Partners