When the Reddit investors embarked on a stock-buying frenzy, leading demand to the roof and, consequently, pushing the price of stocks up, hedge fund investors were left in a really tight spot. Although numerous big Wall Street investors are rushing back to the market to limit their losses, the damages caused already led to the bankruptcy of Melvin Capital Management, which allegedly had to be bailed out with more than $ 2 billion to cover losses on some shares, including those of Gamestop.
For many online investors, it’s not just about making money. They want blood. According to market analyst Neil Wilson, by reading the group’s conversations on Reddit, it is clear that the battle of the Reddit traders with Wall Street is clearly personal. “It is a generational, redistributive battle. It is about stealing from the rich to give to the ‘poor’,” says Wilson.
Recent publications have been arguing that the Reddit Rebellion is migrating to one of the most manipulated markets of all: the precious metals market. Considering precious metals ETFs and mining stocks suddenly went up yesterday, the predictions appear to be accurate. A recent ZeroHedge article has exposed what one of the WallStreetBets users posted on the message board a couple of days ago.
The message reads: “Silver Bullion Market is one of the most manipulated on earth. Any short squeeze in silver paper shorts would be epic. We know billion banks are manipulating gold and silver to cover real inflation. Both the industrial case and monetary case, debt printing has never been more favorable for the No. 1 inflation hedge Silver. Inflation-adjusted Silver should be at 1000$ instead of 25$. Why not squeeze $SLV to real physical price. Think about the gains. If you don’t care about the gains, think about the banks like JP Morgan you’d be destroying along the way.”
ZeroHedge has also posted some charts showing that Silver is already spiking, and Gold is on an upward path too. But Argentum is the one that is going through the sharpest rise, which means that that the hedge fund investors’ nightmare is far from being over. Meanwhile, a heated debate over the legitimacy of the Reddit Rebellion is taking over the mainstream media as well as social media as both the RobinHood platform and Reddit limited the actions of the group.
WallStreetBet’s discord was shut down allegedly for “hate speech”, and Robinhood has suspended new long positions in Gamestop, AMC and a few other junk stocks hedge funds were shorting. But many have been calling out the hypocrisy of the measures. Economy scholar Tom Woods noted that if the average American suffers a loss, that’s a darn shame. But if big players suffer a loss, everything is shut down.
Overall, this whole narrative is indicative of how the financial system is rigged. When profits stayed inside the accounts of wealthy traders, no one complained about the fact they were betting and profiting on the decay of our businesses, but when a bunch of young rebels dare to question this manipulation, they’re practically seen as criminals. The system is structured so that the public always loses, and the Establishment always wins, even if they have to change the rules or endlessly move the goalposts to do so.
But one of the things WallStreetBets has done that might spark a change of winds inside the markets was exposing how investors’ insanity and manic euphoria are completely unsustainable no matter on what side they are on. In a time when the U.S. economy keeps crumbling every day it passes, unemployment rates continue to climb, and 24 million Americans told Census Bureau interviewers that they’re having trouble getting enough to eat, keeping all eyes on a market play is clearly deviating the attention from our real problems. And we can’t afford to do that.
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