The surge of stocks like GameStop, which we all have seen a lot of in the headlines lately, is most often attributed to the use of leverage by hedge funds. But the r/WallStreetBets subreddit has got small investors coming together and using this leverage against what they call big, rich, and greedy guys.
The case is unprecedented because, in most Wall Street fights, common members of the public like you and me have no rooting interest, nor any effect on what’s going on. But this one is the exact opposite. And while independent WallStreetBets traders continue purchasing GameStop stocks, they’re essentially betting against the hedge fund giants. And they’re nowhere near stopping.
And a trader who goes by the handle u/ssauronn has just penned a powerful open letter and laid out all the reasons, black on white, why the independent traders are not backing down and selling. Turns out, the shared resentment for the major Wall Street investors came as a result of the financial crisis of 2008.
“When that crisis hit our family, we were able to keep our little house, but we lived off of pancake mix, and powdered milk, and beans and rice for a year,” u/ssauronn wrote. The Redditor also addressed Melvin Capital in particular, stating that “you stand for everything that I hated during that time.”
Read the full letter down below, which should shed an illuminating light on the much deeper motives that fuel the current wave of independent GameStop traders.
One r/WallStreetBets trader has penned this powerful open letter which explains the resentment for Wall Street investment firms
Image credits: ssauronn
On Tuesday, the investor Michael Burry called trading in GameStop as “unnatural, insane, and dangerous.” In his now-deleted tweet, and said that “legal and regulatory repercussions” should be made accordingly. But it’s not just GameStop that’s getting a boost from a gang of small Reddit investors, though. The chain AMC is also having its stocks reach heights, among other companies.
Another similar letter on how the 2008 crisis affected an entire generation has also been circulating online
Image credits: Hungry_Freaks_Daddy
According to a member of the subreddit WallStreetBets, the stock trading frenzy has nothing to do with the organized attempts to occupy Wall Street. “There’s no targeting going on—WSB is far less organized than all the articles are making it out to be,” a member of the subreddit, Lucas Severyn, commented. “From time to time, WSB gets obsessed with some stock, now it’s GME, and for the first time ever, this stock just keeps giving.”
Meanwhile, the co-founder of Reddit, Alexis Ohanian, told CNBC that the stock buying was instigated by the “challenges against the mainstream media, threads of this in the rise of the populist right… there is this sentiment that cannot be escaped. It is clear to me this is a gesture.”