U.S. GameStop (GME) short position storm continues, Robinhood and other brokerage firms once banned retail investors from buying, only allowed to sell, in essence, arbitrary changes to trading rules to suppress the stockholders to resist predators. A number of major Wall Street banks continued to criticize the behavior of retail investors and even warned that the financial markets would collapse if the short position situation continued. The incident inevitably turned political, and the people of Hong Kong, who experienced the anti-sending campaign and the suppression of the National Security Law, can easily feel that those institutions and regimes that control the stock market or the operation of society are all lose-lose, win-win goods, but the Internet world has changed the mode of operation of the world, and shareholders and citizens will no longer be at the mercy of the ravages.
Brokerage firms rob the poor to help the rich, the big investors lose and win
Short selling a serious loss, poor prospects of the stock, this is a normal stock market behavior, but the predators accumulated GME short position soared to 138%, finally angered many nostalgic game bystanders, a call for a hundred, the group held short positions. Naturally, there is no shortage of predators taking advantage of the opportunity to make profits, but Robinhood prohibits retail investors from buying goods, which has been questioned and criticized in terms of reason and law, and also attracted the White House, Congress and the Securities and Exchange Commission to express concern or intervene in the investigation.
Some media described the GME storm as an epic short position, and some senior analysts believe that the stock market is a generational battle, reflecting the conflict between the new generation and the Wall Street elite. Wall Street predators are more worried that if the retail investors succeed in holding the big investors short positions, and later follow the same pattern, will not be bad for them to make good and make light, turning the clouds and rain of their money? Therefore, there are analysts blasting the populism of the stock market, there are also big Wall Street banks to report that last week was the largest active reduction of positions since February 2009 hedge funds, if the situation continues, hedge funds will face greater pain, or even trigger a financial market collapse. Is this alarmist talk, holding the government hostage to the stockholders? Will retail investors be tightly regulated and find it difficult to “revolt” en masse again?
It is a great irony that the brokerage firms, under the name of the legendary Robinhood, have become accomplices in robbing the poor and giving to the rich, while the behavior of the big investors who lose and win highlights the shamelessness of the manipulators of the stock market and society. For Hong Kong people, who have been suppressed by the regime for two years, the GME storm is the 2.0 of the Hong Kong stock market and the U.S. stock version of Hong Kong politics. The GME version of Hong Kong’s stock market occurred last August after the police raided the Apple building, and Next Media’s stock price skyrocketed, the first “stock market referendum” in Hong Kong’s history. Although pro-communist politicians and the media repeatedly demanded that the SFC suspend Next Media’s trading, and the Hong Kong police arrested 15 suspected market makers, the stock market has not yet reached the point of lawlessness.
The destruction of the authority of governance will have its own consequences
Robinhood banned retail investors from buying goods, more like the Lin Zheng government’s control of the public, is a flouting of social rules, ravaging. In the anti-Send-China movement, instead of responding positively to the five major demands of millions of citizens who took to the streets to petition, the NPC Standing Committee enacted a Hong Kong version of the National Security Law, which deprived citizens of the freedom to march and assemble. In the fight against Wuhan pneumonia, the government did not face up to the problem of immigration control that led to waves of epidemics, but kept suppressing the health care workers who had gone on strike to call for the closure of the border. To the recent 10 days in Jordan, Yau Ma Tei, North Point, Kwun Tong, Tsim Sha Tsui, Yuen Long and other closed areas for testing, but the guidelines for the closure of the area is not available, the so-called government assessment after the decision, by whom and what is the basis for the assessment? This is just like Robinhood and some major Wall Street banks, which can set their own measures to deprive stockholders of their freedom to trade as long as they determine that it hinders their speculation and their interests.
In particular, brokerage firms such as Robinhood do not have the power to govern the operation of the stock market, but by virtue of their control of trading channels, they abuse their power to suppress stockholders. Some Chinese organizations in Hong Kong, like Robinhood, do not have the legal authority to govern Hong Kong, but they consider themselves to be the emperors, and they have accused professional organizations in Hong Kong of being out of their depth in advising on the formulation and amendment of laws. It is true that it is out of one’s depth to confront a high wall with eggs, but what law in the world cannot be questioned or amended? There have been four constitutions since the establishment of the Chinese Communist Party, and the current constitution has been amended five times.
The rules and norms of the stock market and social operation have been so wantonly violated and broken, as a result, the authority of the operators and governors will be destroyed first and foremost.
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