SME Stock – Carol Ross: Gamestop, AMC was just the beginning, our entire economy looks fraudulent
We are in the midst of a digital version that occupies the Occupy Wall Street, as explained to me, as one of those known as the “Ape Army.” This time around, these retail investors aren’t having “Ape” gathering around AMC stocks, other meme stock traders, members of subreddit forums such as r / wallstreetbets and r / Superstonk, and other individuals holding signs on the streets. .. Instead, they are trying to fight back with their balance sheets.
What are their concerns? The Wall Street is leaning towards them and favors big market insiders. And they are right.
In fact, it’s much deeper than that. Our entire economy is now largely fraudulent as we move further from free market capitalism to the nightmare of favoritism in which central planners and large corporations work together to unite their strengths. They scratch each other’s backs and eventually tie loose ends that prevent them from rolling up money and control. SMEs and individuals that make up the backbone of the economy and support economic freedom have been passively and deliberately targeted.
Don’t believe my words, look at the evidence. Last year, the government decided which businesses were essential and which were not, based on political ties and influence, rather than scientific evidence.
Former Secretary of Labor Elaine Chao Lips “double” job vacancies
As a result, more than 400,000 SMEs have been permanently closed (reported so far), and millions more are struggling to survive. This declined in parallel with seven tech companies gaining $ 3.4 trillion in value, raising funding to historic levels, and completing record numbers of IPO and SPAC transactions in 2020. Did. Large companies were the main beneficiaries of SME fallout. ..
This happens over and over again, with large companies quietly and sometimes overtly defending the pesky regulations that are anti-competitive. Large enterprises can absorb costs into large overheads when small businesses cannot. They prevent new entrants from entering the market.
Our entire economy is now largely fraudulent as we move further from free market capitalism to the nightmare of favoritism in which central planners and large corporations work together to unite their strengths.
A good example: During the last financial crisis, the major banks involved in the turmoil should have been curtailed. However, the Dodd-Frank regulation that came into force had the opposite effect. The number of independent community banks has fallen by double digits, and after the law came into force, the average rate of new bank establishments has dropped from about 100 to 3 per year. This meant that SMEs had less access to capital. The amount of loans to SMEs has decreased, but the amount of loans to large companies has leveled off.
Financial market participants played a major role in crushing the economy during the Great Recession, when many have not yet recovered financially or psychologically, but they say they are “too big to fail”. Was considered.
However, when SMEs were obliged to abandon their private property for “public interest,” they received very little bread crumbs. Indeed, there is no proper compensation anywhere near what they should have received for such a mission. They were too small to be a problem. Moreover, these independent agents are too difficult to manage. They are not just outsiders, they are in the way of the power center.
Republicans blow up tax and spending bids in bids to “regain financial responsibility mantle”
All the while, this crony capitalism is criticized when the central plan that enables this crony capitalism causes economic turmoil and undermines the free market.
The ape army and other retail investors told me they were fighting for free market capitalism. They want a fair game. They want transparency and their move is not about these particular stocks, but about having a fair competition. They are mostly fine for the rich. They have problems playing with different sets of rules for the rich.
Insiders will now trade in dark pools that hide the free flow of information. Malicious actors are often fined small for violating the rules. Perhaps illegal inside information drives the market before news reaches the media.
This is by design, and while Wall Street insiders often refer to these retail investors as stupid money, they aren’t. They are just not inside. They don’t have a VIP pass. And when they work, they are considered a threat.
One of the main practices that the ape army is most angry with naked short selling. Although illegal, this practice of selling stocks that sellers haven’t borrowed (or probably haven’t found) is a loophole for market makers.
Click here to get our opinion newsletter
The concern for apes is that the same strain can be sold multiple times, creating the existence of the strain from essentially nothing. Concerns are valid, but short-selling and prime brokers are not the biggest perpetrators who create something from small businesses, retail investors, and those that tilt the market at the expense of individuals. Federal Reserve System.
The Federal Reserve effectively creates synthetic funds rather than synthetic stocks, which amount to trillions instead of millions.
As of this writing, the Federal Reserve Balance Sheet has over $ 7.9 trillion in assets. Interference with the market confuses risk and not only makes assets more expensive for the average investor to add to their portfolio, but also makes the value of the dollars they are investing worthless.
Large companies, including “zombie” companies that are not profitable enough to cover their debt interests, have unparalleled access to capital that SMEs do not have, making competition difficult and making dollars out of investment. I’m robbing you. With innovation.
Savers and retirees will not be able to live on bonds without chasing risk. And now, the world’s largest companies based on this unprecedented Fed intervention are now competing with individuals looking to buy a home.
This is not capitalism. This is a war against small businesses and individuals.
Click here to get the Fox News app
We are now in David’s battle with Goliath, a political and large corporate class. It was created simply because the central planner does not want to admit free market capitalism that anyone can win. They rather want to equip the game, ensure that people “in the club” are successful, and get rid of everything else that doesn’t serve its purpose.
Whether it’s an individual investor, a small business, a gig worker, a crypto enthusiast, or someone else who understands that decentralization guarantees financial freedom, in the spirit of America or independence. There is none. We continue to look for ways to maintain independence, but we meet for fairness, free choice and opportunity. That is capitalism.
Click here for more information on Carol Ross
Carol Ross: Gamestop, AMC was just the beginning, our entire economy looks fraudulent
Source link Carol Ross: Gamestop, AMC was just the beginning, our entire economy looks fraudulent