Unless you’ve been living under a rock, there’s been a kerfuffle in the stock market around GameStop stock. Here’s what happened: GameStop stock surged under WuFlu lockdowns. It went from $4 a share all the way up to $40. Hedge fund managers positioned themselves to short the stock, to “ride it” all the way back down, profiting on the decline of the stock. A few important people figured this out and started buying up the company’s stock. Lots of it. In short order, it became a “thing” over the internet and, as more people jumped on that bandwagon using day-trading apps, the price of the stock shot up, topping $400 a share.
I should know. Mine was sold just north of $400. Heh.
In short order, Wall Street, sensing way too much Wall Street blood in the water, shut down trading for GameStop stock on certain day-trading apps. Now, here’s the important part – all you need to know about this whole beautiful mess: normal everyday people figured out how to game the market better than the fat cats on Wall Street, doing the exact same thing, out in the open, the fat cats do behind closed doors all day long on Wall Street. There’s no difference, there were no scruples or morays or laws twisted or broken that hedge fund managers don’t do all day long, every day of the working week when they play board games with the stock market. That won’t stop politicians and the big wigs from trying to convince you otherwise, but it isn’t so. The fun part, and the only important sentence everyone needs to know about this is and why Wall Street freaked out and shut it down is this:
The wrong people made the money.
Normal, average, everyday Americans who normally have to hit the lotto to win, rode the stock from nothing all the way up to the stratosphere and sold their stock, paying off student loans, car loans, even mortgages. It won’t be portrayed that way by most; there are stories coming out about rogue day-traders who are unfairly gaming the system and so forth, but in the end, GameStop was all about the wrong people making money with the help of a few billionaires. And for once, you’ll find out who the real bad guys are here… this is one of those things people on the left and right can finally agree on.
Except Bernie and his mittens. Bernie’s going to be pissed. Elon Musk and a few app makers did more for the little guy in 79 hours than Bernie did in 79 years. If this is the new normal for the Harris-Biden administration, it might not be all bad.