The Elites Move to Save the Hedge Funders from Reddit, and People Have Thoughts

AP Photo/Richard Drew

If there was ever an episode that thoroughly exposed our financial system as a rigged game, this is it. As I wrote earlier today, some Reddit trolls decided to beat Wall Street at their own game (see Reddit Trolls Beat the Stock Market, and the Elites are Really, Really Upset). GameStop stock had been shorted at 140% in an effort to see the company crushed for the profit of the hedge funds. That’s when a Reddit board decided to fight back. They mobilized and drove up the price of the stock causing the hedge funders to absorb their losses on the other side instead of cashing out with big gains like they had planned.

It was hilarious, but also a serious reminder of just how much goes on in the background of our financial system that most people never notice. Shorting a stock is legal, but it’s like being the jerk who bets the “don’t pass” line on the craps table. Regardless, just because someone makes a bet that is legal doesn’t mean they should be protected from the consequences of that bet if they lose. When stocks drop and it hurts your retirement, the market leaders aren’t rushing to bail you out.

Unfortunately, that’s what they are looking to do for these hedge funds, though.

Such manipulation of stock prices would be highly illegal if attempted by a typical investor in any manner, yet our elites seem to believe they can do whatever they want to benefit their fellow elites. And who could blame them for believing that? The SEC certainly isn’t going to stop them. In fact, the SEC is “assessing” the Reddit users, not the fact that market leaders may move to manipulate matters to save themselves. The full weight of the federal government isn’t going to come down on those trying to game the system. Instead, it’s going to come down on those who simply saw a legal opening and made money off the “wrong” people, i.e. the hedge funders.

When a bunch of hedge funds collude to short a stock at a ridiculous rate for their own gain, that’s all good according to the SEC. When some normies online decide to get together and fight back, they are treated like criminals. It’s gross.

Republicans need to get with the program on this. People are sick and tired of seeing a select class of people game the system while everyone else plays by a different set of rules. That doesn’t mean it’s wrong to be a billionaire. It does mean that there should be no shortcuts. Markets shouldn’t be shut down to help the privileged when that courtesy is never extended to normal people. You want a free market? Let’s have a free market, not the crony capitalist garbage the GOP has so long defended.