Are Reddit traders using market manipulation, when it comes to stock trading and should Reddit trading be allowed or not?
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Now these Reddit traders were not hurting the economy, nor were they conning or scamming people, they were just discussing stocks and trading strategies, in an open forum, for everyone to see.
But somehow Yellen felt, that what the Reddit traders were doing, was so detrimental to the financial system, that she assembled the so called “dream team”, consisting of the famously slow and ineffective SEC, the, let’s just wait until there’s no other option Federal Reserve and the ever so sleepy CFTC.
Could this, swift call to action, perhaps have something to do with the fact that Yellen was paid over $7 million dollars in just two year, to give speeches to banks and Wall Street investors. Those must have been some serious mic drops.
Yellen even received over $800,000 dollars form Citadel, the very same company that lost big, due to the short squeeze of the Reddit traders and then she was put in charge of the investigation, so no conflict of interest at all, right?
#reddit #marketmanipulation #stocktrading #wallstreetbets #memestocks #gamestop
Video Structure:
00:00 Intro
00:09 Reddit Traders vs Hedge Funds
00:48 Treasury Secretary Yellen reacting really fast
01:49 Why target Reddit traders?
02:52 Is Reddit trading legal?
03:51 What is Market Manipulation?
04:38 Comparing this to Reddit trading
07:45 The mind of a regulator
08:30 New definition of Market Manipulation
10:15 The giant double standard
The initial outburst from politicians and regulators focused mainly on the Reddit traders and completely disregarded the real problem.
Which was, how can you even short more shares than are actually available and why are these big companies allowed to take on soo much leverage & risk.
The funny thing is, we got an answer to question real quick, since a couple months later, Bill Hwang of Archegos Capital, lost $20 billion dollars due to over leveraging the company and pulling in major Banks like UBS and Credit Suisse.
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