The most glaring outcome of the GameStop/Robinhood/WallStreetBets/Hedge Funds brouhaha is the proof in stark relief of the utterly non-existent adherence to SEC regulations by brokerages, clearinghouses, hedge funds, and regulators as it pertains to naked short selling.
With the short interest in shares of GameStop Corp. (NYSE:GME) reported at 136 percent of the tradable float at the height of the action on Wednesday, that fact alone is worthy of a wholesale SEC and DOJ raid on the records offices of these illustrious market participants. That implies that 25% of the short interest was in violation of securities laws and was visible in plain sight, yet regulators do nothing to stop it.
It's a remarkable paradox that both Gamestop and AMC Entertainment Holdings Inc (NYSE:AMC) (another WallStreetBets darling) have used their unexpected stratospheric share prices to raise colossal money and thereby gain a new lease on life.
You watch: All the tantrums and class actions and chest-pounding in the weeks ahead will be met with a wall of indifference and bureaucracy that will consign the events last week to the footnotes of history.
They have caused the giant to stumble, but that is only going to make him angry.
Yes, he's as corrupt and criminal as Al Capone, but the only survivable choice is to observe the outcomes, learn the lesson, and then get on with life.
There will be no revolution in the marketplace. You don't walk into the Mob's casino and change the rules of the tables. The desert is full of the shallow graves of those who have tried.
Watch the entire interview and read my complete thoughts on the Gamestop/WallStreetbets/Robinhood saga here
| 
No comments:
Post a Comment