Congress finally found a bipartisan issue to coalesce around after Big Tech’s Thursday assault on amateur stock traders, but Democratic Rep. Alexandria Ocasio-Cortez of New York couldn’t let go of her unhinged hyperbole for long enough to work with her colleagues across the aisle.
On Thursday, the stock trading app Robinhood stabbed its users in the back by restricting some trading related to Wednesday’s revolt against the elites who, to summarize, routinely manipulate the markets (within the rules). The wallets of some very wealthy people took a hit, and billions in wealth were lost.
Some savvy and amateur investors got together to push up the stock prices of GameStop, AMC and some other dying brands, and in doing so, they went after the billionaire hedge fund investors who make their money daily by manipulating stocks and betting on company losses.
Yahoo Finance summed up the situation for Wall Street’s wealthy: “In a matter of weeks, two hedge-fund legends — Steve Cohen and Dan Sundheim — have suffered bruising losses as amateur traders banded together to take on some of the world’s most sophisticated investors. In Cohen’s case, he and Ken Griffin ended up rushing to the aid of a third, Gabe Plotkin, whose firm was getting beaten down.”
“And it’s not just the big names: Jack Woodruff’s $2.8 billion Candlestick Capital has fallen 10 to 15% in January on its short wagers, while the $3.5 billion Maplelane Capital lost about 33% through Tuesday in part because of a short position on GameStop, according to investors,” Yahoo added in its summary of the events.
Average people buying GameStop shares to stop money from being made from hedge fund billionaires is tantamount to a bunch of vagabonds showing up and crashing the party by wearing overalls at the Masters in Augusta. Financial media isn’t pleased about it, and neither are big money investors and reportedly even President Joe Biden, according to MarketWatch.
Average Joes and Josephines organized on Reddit and other mediums to deny the Wall Street tycoons an opportunity to cash in, and the financial world is losing its collective mind. Now, a line has been crossed.
So what did Robinhood do? The app for amateur traders sided with the wealthy.
More than half of all Robinhood users own at least some GameStop stock.
They are now unable to freely trade it; the app is only allowing users to close out their positions. https://t.co/DgN1H496wx
— Motherboard (@motherboard) January 28, 2021
Normal people coordinated to push up the stock price for companies that are more or less losers with no future. The most notable of these companies were GameStock (GME), which is a fossil in the video game industry. Movie theater chain AMC Theatres (AMC) was also targeted by the populist stock-trading revolt.
Think of GameStop as the Blockbuster video of video games. In an era where people can pay for and download games straight to their consoles, the entire brick and mortar gaming industry is dying. GameStop is already dead, and wealthy Wall Street fat cats intended to manipulate the company’s stock price to their advantage, but a short squeeze halted what would have netted them a big payout.
That payout was denied when the loser stocks shot up in value, thanks to high volume buys from working people who strategized online.
The little people intended to deny profit to those who spend their days shortchanging small investors and failing companies, and Robinhood, the popular free trading app, did its part on Thursday to end it.
— Robinhood (@RobinhoodApp) January 28, 2021
Is the market really free, now that we’ve seen that only some people are allowed to be Gordon Gekko? Is investing really only a game where the rules are crafted to block the little guy from having an even playing field? It certainly appears so.
The stunning revelation that the investment game is, like many other games, rigged, actually drew a bipartisan backlash. Take a look at some of these tweets from people such as AOC and GOP Sen Ted Cruz of Texas:
WARNING: some of the following social media posts contain language that some readers might find offensive.
It took less than a day for big tech, big government and the corporate media to spring into action and begin colluding to protect their hedge fund buddies on Wall Street. This is what a rigged system looks like, folks! #RobinHood #RedditArmy #GME #GMEtothemoon https://t.co/UhrwGHCjng
— Donald Trump Jr. (@DonaldJTrumpJr) January 28, 2021
— Dave Portnoy (@stoolpresidente) January 28, 2021
This is unacceptable.
We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.
As a member of the Financial Services Cmte, I’d support a hearing if necessary. https://t.co/4Qyrolgzyt
— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
Fully agree. ? https://t.co/rW38zfLYGh
— Ted Cruz (@tedcruz) January 28, 2021
Unfortunately, after Cruz attempted to side with AOC on the matter, she decided to take a bipartisan issue and turn it into a hyperbolic and unhinged rant. The lawmaker is presumably still trying to cash in on the Jan. 6 Capitol incursion, which she appeared to even blame GOP Sen. Ted Cruz of Texas for partially inciting.
She claimed he almost had her “murdered” three weeks ago — when the Capitol incursion occurred.
I am happy to work with Republicans on this issue where there’s common ground, but you almost had me murdered 3 weeks ago so you can sit this one out.
Happy to work w/ almost any other GOP that aren’t trying to get me killed.
In the meantime if you want to help, you can resign. https://t.co/4mVREbaqqm
— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
“I am happy to work with Republicans on this issue where there’s common ground, but you almost had me murdered 3 weeks ago so you can sit this one out,” she wrote. “Happy to work w/ almost any other GOP that aren’t trying to get me killed. In the meantime if you want to help, you can resign.”
For a period of hours from Wednesday to Thursday, the country found a unifying issue when we discovered our free market wasn’t so free. AOC tainted it with her unhinged and self-serving rhetoric. She threw bipartisanship to the wind in an attempt to portray Cruz as a homicidal maniac for daring to challenge the electors on Jan. 6.
Washington is still more broken than Wall Street, apparently. AOC showed support for a unifying issue and then made it about herself.
Politics first — America last.
She couldn’t let an opportunity to bash a Republican go to waste, even as the Wall Street system she proclaims to loathe was finally in the crosshairs of all who called out what looked like corruption. So much for even just a little bit of that unity Democrats promised.
Democrats such as AOC hate Republicans more than they loathe corrupt Wall Street/Big Tech business practices.
Truth and Accuracy
We are committed to truth and accuracy in all of our journalism. Read our editorial standards.