Opinion

GameStop: The Big-Shots Got Their Butts Handed To Them

The one thing that every professional financial advisor and financial institution tells potential investors who are about to invest money in the stock market, is that the market is volatile and they could lose money.

But the big-shot, professional financial guys and gals are so used to making money hand-over-fist and losing practically nothing, that they forgot the volatility of the market last week, and they got nipped in the rear-end for their superior, arrogant attitude about making money and trading in the market, when they went short on GameStop stock. When they began losing to lesser beings who were driving the stock up instead of down, they began to squeal like the stuck pigs they are. Maybe these fools should be made to review their own warnings given to plebe investors, and maybe they’d think twice about trying to ruin other people’s serious businesses and corporations with their short positions.

The giant investment firms are used to making millions of dollars with little effort and even less risk, so when they began losing money as GameStop’s stock increased in value and their short position became a losing position, they didn’t know what else to do but claim that the little guys were not playing fair, and the trading was shut down.

But the practice of shorting a stock position has always seemed to me to be immoral, in that it requires the latching onto someone else’s stock, originally bought in hopes of making a profit for the original buyer, then speculating that the stock price will go down, meaning a loss to the original buyer of the stock and a loss of value for the company represented by the stock. A life-time of work and sweat to make the company successful and to provide a useful service or product, could be wiped out in a day’s time if the stock can be driven down enough, but the person who is shorting the stock would make an unearned profit at the company’s loss.

Anyone who creates a company that issues stock is trying to make a profit, which will create jobs and employment for people that the company hires and for people who invest in the company. But shorting the stock only profits the shorting investor, and hurts everyone else.

It’s good to see the big guys take a hit now and then, but the event last week further showed us how the biggest operators can manipulate the rules of the market to limit their personal loss, because they can just shut down trading on their own short positions, and thereby limit their losses, which a small independent trader cannot do.

Dave King

Retired AT&T supervisor.

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