A group of rookie investors from the internet managed to beat hedge fund managers at their
own game last week and this has sparked a major upheaval in the stock market and how
it operates. I have Farron Cousins here to talk about it. I love this story, you know,
to me, it's economic populism. Okay. How many times have we done stories, Farron, when we
talk about these swine at the trough, you know, Wall Street, you know, just every time
they can figure out how to squeeze a nickel out of taxpayers or out of mom and pop investors,
they do that. This story really tells it. They were trying to crush, Wall Street hedge
funds were trying to crush GameStop because they wanted to make money on the back end.
Not for any good reason, except pure greed by Wall Street. Take it from there.
Right. You know, we, we've talked at length over the years about all these hedge fund
managers and they, they really do make tens of thousands of dollars an hour doing things
like this. And it's a game, it's a rich people's game, but it's super, super billionaire rich
people's game. So you've got folks from Reddit who stepped in, they understood enough about
the game to say, listen, we're watching what they're about to do to GameStop here. But
if we all band together and we buy this stock, we drive the price up. They lose all their
money because they short sold it and they were trying to get it back. We can do this.
Let's just, you know, a couple dollars a piece and they did it. That's the great thing about
this and it's not just about, oh, hey, this is a fun gag. These are the same people that
understand they're being left out of the game. That the whole system is fake and rigged.
Day in and day out little characters like right there on Wall Street are trying to figure
out how to scam the American public. They do it with massive computer trades. You have
these cats coming out of MBA school at 25 years old thinking I'm going to get rich quick.
They use a computer program to do it and one thing, one way they do it is with selling
short. That is where basically they borrow a share. Okay. They, they borrow a share from
another source. They sell the share. And when, and then, when it all starts happening, they
buy it back and that shorts puts a company like GameStop out of business. They, they
tried it with Air, American Airlines. They've tried it with, with Blackberry. I just hope
they lost billions of dollars and I hope this populism, because people can do this now.
Yep. We don't need Wall Street. You know, you don't
really need Wall Street. The average American can pick up their phone now and do, do this
to them again and again and I hope they do. Well, you know, that is until the apps come
in and that's the other side of the story. This is where lawsuits are starting to come
in. Yeah.
The apps tried to shut them down. The apps admitted, hey, we work for Wall Street.
Right. So we're going to shut you down. Congress,
you know, is looking at this and only a handful of them are saying that they agree with what
happened to these head fund managers. So that's scary. Elizabeth Warren, she's on the side
of Reddit, Bernie Sanders, we know he is, but the rest of them are saying, well, maybe
we need to regulate this so people can't. Oh, it.
Come in and take this from people who add no value to society, hedge fund managers add
no value to society. They don't make anything. They don't produce
anything. They don't sell anything. They don't invent anything. They play these money games
where we're going to go into the market and put a company like GameStop out of business
because no, no other reason other we can make money.
Right. And, you know, when you get, when the, when
the market gets like that, it's dysfunctional. So this correction, it could be, I'm telling
you it could be economic populism in the truest sense and this argument, oh gee, this conduct
caused the market to slide two points. I don't care. Whatever it takes. I'm in the stock
market in a big, big way. I don't care. I would rather see the American public fight
these freaks back rather than them stealing from mom and pop, stealing from taxpayers,
with things like the tech bubble, things like the mortgage bubble, where we went and bailed
them out because of this same kind of thing. I love this story. I love this story.