This past week has shown the U.S. Government and owners of hedge funds not to mess with the average Joe.
GameStop common stock was averaging out $40 closes before subreddit r/Wallstreetbets told their followers to help the struggling business out and buy the stock. Later that week GME topped out at 347.51 per NYSE.
Out of this the short-sellers, people who buy struggling to almost failing stocks to flip for profit, and hedge fund owners, aggressive group investors, struggled to make money and asked for buyouts.
In my opinion, they should absolutely not be granted buyouts. One, they knew what they were doing, just because they profit most of the time, they know the high risk, high reward part, they should not get a bailout.
Two, hedge fund owners should not be comfortable in that being their only job, just because the internet can band together and mess up your business does not mean you should be mad at them, be mad that this risky job was yours and you lost it. Sorry, not sorry.
The government should always stay out of the NYSE in my opinion. The government and the NYSE is not a good measurement anymore. In 2020 we saw a Bear and Bull market just a few days from each other.
This should not happen if the government is struggling to help others and the NYSE is a counter-way to measure what the government is doing.
If the government allows a bailout, I will be the first to write a list of names who voted to do so and make sure we see their replacement in the next election cycle.
I’m glad there is a probe with the market and how it stopped buyers from getting stocks and different terms being put in place because of GME and Reddit buyers.
Honestly, the government needs to focus on the struggling not the struggling to get rich. It makes no sense for the government to help out the people who do not need it, but just watch the people who need help the most struggle.
The governments place in a free-market is to keep it free, the invisible hand should not be the government. They should not help out hedge funds at all.
Market manipulators should not get a free pass or get out of jail free card because most of the government has shares in these hedge funds, it sucks to watch money go down the drain but again you knew what you were doing.
If it has to come down to it, I think there should be more probes into businesses that decided to put caps on stocks that only reach a fraction of the cost of a fortune 500 that has no caps.
Let the market be free and let the people control it. Just because you do not like what is going on does not mean you have to stop it. Let the people actually trade, take down big money, and let average Joe win if they found a loophole in the NYSE. If not, expect a list of names to vote against soon.