With the continued market frenzy and pandemonium occurring again today in the likes of GameStop, Bed, Bath, and Beyond, AMC Entertainment, and BlackBerry, it is time to step back and gain a better understanding as to what is really going on. The media and social media narrative is that a bunch of “little guys” on message boards are banding together to take down the “big guys” (a couple hedge funds). While the narrative plays very well and there is no doubt that there are separate rules between the smalls and the bigs, this does not mean that two wrongs make a right. The Kapital News discusses on a near daily basis the amount of market rigging and manipulation that takes place and talk about all of the fines and deferred prosecution agreements that are given to the major banks whom engaged in such fraud. Of course if anyone else engaged in such behavior, they would be locked up and they would throw away the key. So, this makes the narrative compelling and allows people to justify the current actions that are underway with respect to these stocks. An eye for an eye is not the solution. In fact, this is likely going to cause more short and long-term damage to the markets and society at large.
What is failing to be understood by many on these message boards, is that going after a hedge fund, does not mean that they are only going to do financial damage to the managers alone. What they fail to grasp, is the fact that these funds on many occasions are managing money for the little guy through pension funds, university endowments, hospital chains, non-profits, and charities et cetera. There is going to be collateral damage and the group mostly likely to the suffer the greatest losses is ironically going to be the little guys.
The Kapital News is gravely concerned with these actions on both sides of the trade as well as with the brokerage houses that halted trading on these stocks today with respect to the buy side. This seems more likely that this is a pump and dump scheme, which is illegal, as opposed to some sort of organic uprising of new day-traders against hedge funds. Unfortunately, most of these little guys, do not understand financial statements and fundamental analysis. So how is one to believe that all of a sudden they go after a company that is heavily shorted by a couple of hedge funds, and prove somewhat successful in hurting the hedge funds’ position – at least momentarily? Furthermore, what does not pass the smell test is the fact that we have some strange bedfellows in Congress right now with the likes of AOC, Ted Cruz, Elizabeth Warren, and Maxine Waters joining forces to investigate what is going on in this matter.
So let us understand something, for years there has been open and blatant market manipulation, tweets from the former President, massive amounts of money printing from the Federal Reserve and spending from the Congress juicing asset prices, deferred prosecution agreements being handed out like candy to the largest financial firms on the planet, and now all of a sudden these politicians are concerned with market manipulation? This does not pass the smell test. Something is afoot. The Kapital News suspects that there will be a concerted effort in Congress to clamp down further on the markets. This will likely pertain to financial institutions as well as to the individual investor. So be careful what you wish for, because this is not just a story about David v Goliath. Oh no, there is much more underway and it is not going to be for the best. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Fraud #Markets #Debt #Liberty #EndTheFed #USA #Revolution #Justice #Inflation #Gold #Silver #bananarepublic #FireCongress