The ongoing Gamestop ($GME) debacle proves one thing: Wall Street Cheats.
Some hedge funds were caught selling more shares of $GME than existed in *all* of the world. As much as 40 percent more!!! (that’s like 40% more people voting than actually living in a district.)
Anyway, some smart people on Reddit figured this out. They realized if they were able to drive the price of the stock up, the hedge funds could be trapped for a big loss. And so they did, and so they were.
But the hedge funds had a few tricks of their own, as well as some more powerful players in their corner. While the outcome is pending, the debacle shows how wall street normally works.
Hedge funds with virtually unlimited capital wage financial war on their prey. They’ll even sell fake stock to bring down share prices and entire businesses.
And it’s not just stocks. The same problem appears to exist in the silver market, as the split between paper and real-world pricing (which should be the same) more than doubles.
Until next time …