How Long Can The Populist Surges Continue?  These surges illuminate the nature of stock markets that many do not understand.

If you have ever played a video game, you know about GameStop, a store that sells new and used games.  In recent years, the company has been struggling because of dramatic shifts in the gaming and film industry toward streaming services.  This makes physical purchases of games at stores like GameStop less common and, increasingly impossible.

GameStop, though, began restructuring to find a fit in the new market using equally dramatic changes in their board members as well as their business model.

However, because they apparently didn’t have the right connections in Wall Street, billionaires and hedge funds sought to destroy the company with massive short sells, which are essentially bets against the success of the company on the stock market.  These elite sharks see a struggling company trying to keep a brick and mortar store alive as blood in the water.  Then, they swoop in with billions of dollars in short sells to bet against the rise in price of GameStop.  This sends the price of the share plummeting downward  and ensures company failure regardless of whether it is a solid company or not.

Because of this, the stock price of Gamestop shares have plummeted in recent years to only about $2.50 per share at its lowest point in 2020 from its previous all time high of about $63.00, despite their business updates.

But that is not where the story ends.

Now, a populist uprising online via the Reddit forum WallStreetBets has completely wrecked the predatory Billionaire vultures that were pummeling the Gamestop stock and wiped out an estimated minimum of $12 billion in negative bets against the company.  For now, at least, that means the money has been multiplied and put back in the hands of the populist uprising.  Charles Payne summarized the situation here:

This, along with a tongue-and-cheek acknowledgement from Elon Musk resulted in a 700% rise in the stock  price in just the last week!

Stonk is bastardization of the word stock used humorously by people discussing stocks.

How did they do this?

Many people on the website Reddit (called Redditers) are members of a forum on the site called WallStreetBets.  People on that forum banded together to buy the stock en masse by the millions.  Doing this creates demand for the stock, forcing the stock to rise–often called a ‘pump’.  This begins to wipe out negative bets made by Wallstreet elites against the stock (short sells) that are lowering its perceived value.  This destroys these ‘shorts’ because they only make money on the bet if the price of the stock continues dropping, otherwise they can lose much more money than they put in if they do not sell immediately.

In addition, the automatic algorithmic trading bots that these Wallstreet elites used against this struggling business (and all businesses) were likely turned against them as well.

When trading ‘bots’ see a stock price change direction and gain momentum, their coding automatically triggers them to change their own buy/sell behavior.  In this case, it likely means that many Billionaire sharks were automatically forced to sell their shorts at a loss because a rag-tag group of online misfits banded together to pump up the stock.

Now, the stock is at $341 dollars per share.  This means that any bet previously made against it when it was inexpensive that hasn’t already been sold will not only lose all the money paid for the stock at that low price, but also the difference between that initial price and its current price.  So, if the hedge fund bought at $6 and the stock is now $341, they will lose $341-$6=$355 per share, roughly speaking, unless they can come up with that much money in collateral to float the price until the price comes down again–assuming it does come down.

So, if a hedge fund bought thousands of shares, their $355 loss multiplied per share will add up very quickly, assuming this populist gang can maintain a high price long enough to make these hedge funds liquidate (give up) their short bets.

But it doesn’t end there.

Today, the David vs. Goliath Story continued as the populist online Redditers began pumping up the price of AMC Theaters  which had been pummeled intentionally by Wallstreet shorters and film studios for months using Covid lockdowns as an excuse to cut out theaters who they have long seen as useless middle men. Many people love going out to a movie, though, despite their fancy digital home theater systems because many theaters are now designed for an experience you cannot get at home.  But, they haven’t been allowed to go to them. In order to knock out movie theaters for good, Wallstreet has shorted them very hard as film studios have begun releasing all their new content to streaming services rather than the theater.

Redditers also banded together to pump other stocks as well

The heads of globalists and leftists online and in the media have begun exploding.  They have already begun shaming the populist uprising against corporatism and stock market rigging, clownishly calling people who are buying AMC and Gamestop stocks as “Nazis”.  Leftist dumpster fire Vice News called the Redditers of the WSB forum “white supremacists” while CNBC warned about WBS producing “misinformation” and needing to be somehow stopped, even though Wallstreet elites do the same thing to stocks on a daily basis for a living.

While globalist establishment TV personalities became angry and flabbergasted trying to explain the populist price surge against Wallstreet and demanding that the government restrict this somehow:

It even led Market Watch, a very popular stock market industry platform with a show on NPR to quote and link the Redditers.  Humorously, they also cited a person named Thicc Dads Club who they found to be exceptionally insightful:

Biden’s completely inept press secretary responded to the incredible stock market circus by mostly ignoring it and saying how wonderful and important it is that America has “it’s first female treasury secretary.”

Due to globalists and leftists, and accelerated by their lies and lockdowns surrounding Covid19, America is experiencing the largest transfer of wealth in the history of mankind while inequality has risen more in the last 6 months than in America’s entire history and poverty is the highest it has been in over half a century.

Much of this transfer occurs on Wallstreet, whether you know it or actively participate in it or not.

Essentially, the point of many of the Redditers is that companies that pay the Wall Street billionaire mafia elites or go along with whatever their Great Reset plans are won’t get shorted to their death, while those who are not welcomed into the fold are not allowed to exist.  The Redditers aim to turn the tables on that in whatever way they can, in this case through a stock price battle.  Hedge funds, it could be argued, are essentially the same thing as this reddit forum, except hedge funds are legally codified as acceptable by elites in Washington and Wallstreet who allow only the most elite people to participate in them.

This is not to be considered financial advice of any kind and I am not going to be purchasing any stock at such an artificial price, but a story like this should be seen by everyone so they get a glimpse of how these crazy stock markets currently work.  It also shows how they can be easily manipulated by those with enough money to support or destroy a publicly traded company, regardless of the merit of that company.  So, while the market is in a very dangerous place, it is best to go in with eyes open and more knowledge rather than less.


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