A remarkable shift is taking place in financial trading at the moment, indicating a potential transformation in the balance of power in U.S. stock markets. The excitement revolves around Gamestop and the powerful trading tool called options, which can bet on and against financial securities and increase returns and losses. The video game chain, which has been devastated by the coronavirus, has struggled to stay afloat for years due to the online marketplace.
Currently, Redditors, led by Subreddit r/WallStreetBets, along with private investors and GameStop enthusiasts, have joined together to buy the video game retailer’s surging stock (along with other random stocks such as Blackberry, Nokia and AMC), and they have a lot to be happy about. In what is termed a “short squeeze,” many individual investors have become millionaires on paper as GameStop shares have skyrocketed more than $300 from $17.25 at the beginning of the new year. On the flip side, short-sellers have lost over $19 billion in betting against GameStop as they wage war with Reddit traders.
Emergency Press Conference – Everybody On Wall Street Who Had A Hand In Today’s Crime Needs To Go To Prison pic.twitter.com/aKr8aPbB3Z
— Dave Portnoy (@stoolpresidente) January 28, 2021
A closer look at the movement driving this incredible rally reveals something much greater than a mission to serve a struggling gaming retailer or sharp trading skills being put to good use. Instead, the driving force could be defined as a powerful populist uprising in the financial markets that is squarely political. To be clear, the same government that jumps to support Wall Street and Washington DC is also brazenly defending the deep state swamp.