Daily traders, gathered in the Reddit chat room, pour all the money they can into the GameStop stocks and a few other hit companies.
They endured financial hardship. Both recession and recession. Student debt mounds. Fixed payment. Expensive health care. Reduce job opportunities.
They saw the uber rich get richer as the epidemic threw tens of millions of people to work and left many alone and at risk at home.
Now, they hear, it’s time to pay.
Nearly a decade after the Occupy protest movement left Wall Street unarmed, the financial tower could face a new attack.
Daily Dealers, gathered in the Reddit chat room, have dumped all the money they can find in the stocks of a game-ridden video game vendor called GameStop and a few other failed companies. Their purchase has swelled the stock prices of those companies more than anyone could imagine – and, not by accident, has caused huge losses in the fund of the very wealthy, who have placed bets that will lower the shares.
Their strategy, of course, is taken for granted. The stock prices he bought now have more than double the level set for revenue, profits or future prospects. The danger is that at any moment, stocks could fall.
Maybe so. But as another Reddit user wrote on Friday, confirming that hedge fund funders would drink Champagne as they denigrated Occupy Wall Street protesters in 2011:
Their outrage and their attempts to pay for strong Wall Street investors have sent shockwaves through general investors and increased fears about market volatility in general after a long period of stock gains caused by very high interest rates. That fear has already led to the S&P 500 index suffering heavily in a loss week since October.
GameStop shares? They did a rocket of about 70% on Friday. Over the past three weeks, they have brought in a staggering 1,600% profit.
The frustration and anger of the growing financial inequality in the American economy has been growing for years. The richest 1% of Americans have accumulated about 19% of tax-free tax revenue by 2019, down from 11% 40 years earlier, according to the Global Inequality Database, held by Emmanuel Saez and Gabriel Zucman, economist in University of California, Berkeley, and other researchers.
New York University economist Edward Wolff found that the richest 10% of Americans own 85% of the stock, a share that has grown over time.
The financial crisis that exacerbated the Great Depression of 2007-2009 intensified the anger of the banks that repaid the documents borrowed from the documents after the disaster and ignored the obvious risks, only getting paid by taxpayers and very reluctant to respond.
Coronavirus has caused more pain, seized the economy, and caused more than 20 million Americans to lose their jobs. This week, a report from the anti-poverty group Oxfam found that the 10 richest men in the world had swindled their fortunes to a combined $ 500 billion since the outbreak in March. At present, about ten million people who lost their jobs as a result of the epidemic remain unemployed.
The stock market, targeted at Reddit traders today, has long stood as a symbol of the U.S. Prime Minister’s deep-rooted wealth. But technology, including forums such as Reddit, has made it easier, faster and easier for victims to integrate, exchange data and collaborative planning strategies. And e-trading apps, especially Robinhood, allow amateur traders to buy non-commissioned stocks with a single click.
See them at risk in the market: The so-called short-term.
But shortages can bring bad returns if stocks rise rather than fall. Then short traders can be forced to withdraw money from their bets by targeted stock purchases. Their purchase, too, could send the stock price too high and make things worse for short sellers in an area that reinforces the response.
GameStop, whose future is threatened by e-commerce and the scourge that has kept customers out, is among the most scarce shares. Some of Reddit’s rebels are players who want to protect the seller from the dangers of Wall Street. Or just pay fairly to hedge funds and financial assistants who live as much as others are going through hardships.
Not all vendors of the day are outraged. They just see the opportunity to make money and pay off debts.
“A lot of people have trouble paying rent,” said Alexis Goldstein, a veteran of Occupy. “Many people are at risk.