#swarmpower and the revenge of the have-nots

Let me be clear, #gamestop is not the first stock whipsawed by social media and #robinhooders. We saw a number of stocks explode in similar fashion last year, like Hertz back in June 2020, after it filed for bankruptcy:

So what’s different? This is the first time I have ever witnessed people saying that the reason they are YOLO investing is to “stick it to the establishment.”

Not to make profits.

In fact, many have openly posted they don’t mind losing every single penny. 

While there are many examples, perhaps the one posted by Space-Peanut encapsulates the sentiment:

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This is for you, Dad.

I remember when the housing collapse sent a torpedo through my family. My father's concrete company collapsed almost overnight. My father lost his home. My uncle lost his home. I remember my brother helping my father count pocket change on our kitchen table. That was all the money he had left in the world. While this was happening in my home, I saw hedge funders literally drinking champagne as they looked down on the Occupy Wall Street protestors. I will never forget that.

My Father never recovered from that blow. He fell deeper and deeper into alcoholism and exists now as a shell of his former self, waiting for death.

This is all the money I have and I'd rather lose it all than give them what they need to destroy me. Taking money from me won't hurt me, because i don't value it at all. I'll burn it all down just to spite them.

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If you read #wallstreetbets you will realize posters there are not “dumb” retail traders. Far from it. They know exactly what they are doing w/option plays and #gammasqueezes. 

The #SEC has a tough job ahead - the #robinhooders aren’t doing anything different than what hedge funds and algorithms do when it comes to momentum trading. Attempts to block individual stocks will just result in #wackamole. Perhaps it should look into why stocks such as #gamestop were shorted over 100% to begin with.

I Don't Trade GameStop. In Fact, I Don't Trade At All. Who cares?

Here’s the systemic risk: we’ve seen the liquidity emergency occur with #robinhood and the bailout that happened in the middle of the other night. Then, we witnessed all the selling that happened to cover margin calls causing the general market to sink last week, in spite of excellent earnings news by big tech such as Apple, Microsoft, etc.

If #themovement moves on to derivatives such as silver where the paper assets must true-up to the physical underlying assets, large banks could be targeted, and this is where everyone may potentially be affected in one way or another. It’s a much larger scale, but underestimating the exponential growth of #themovement could be dangerous. 

Large scale liquidity and credit events are systemic risks that should be respected, even if not probable - the mere possibility warrants close attention.

For that reason, you should care. I do, and I'm watching very carefully.

Disclaimer: I don't hold, and have never held any GameStop stocks in my life.