Financial Censorship Invades the Markets

 

Over the past few days, starting last week, we saw an upheaval in the financial markets.

Let me first begin by saying I have some money in the Robinhood app, though due do the events I am about to outline, I am not sure how long that will be the case.

Let me also add, that I am by no means an expert in the stock market, and I am doing my best to lay out the facts as they are currently known.

It all centers around Game Stop, a brick-and-mortar video game seller who focuses on the console market.

A hedge fund decided to short Gamestop’s stock; meaning that they bought the stock at one price, expecting them to lower in price, so they could sell the stock back and pocket the difference.

A sub-group on Redit found out about this, and decided to buy the stock, thus raising the price and market value of the stock. These actions sent Gamestop’s stock to over $295/share or around that.

This meant that when the hedge fund must sell back the stock, per the terms of the option contract they took out, they would lose a lot of money.

The managers, as well as a few of the trading platforms, such TD Amaritrade, and Robinhood acted, preventing anyone else from buying any more stock, thus raising the price further.  At this moment as I write, Gamestop’s stock price is sitting at $220/share.

Adding to the tech censorship, Redit removed the group that banded together to raise the price of the stock. The Biden administration said they are keeping an eye on the “volatile market”.  The SCC said they are also looking for any legal violations by the Redit group in question.

Now, that I have outlined the facts, here is my take on what happened:

I do not have an issue with anyone putting their money in a hedge fund, it is your money, you can do what you like, at your own risk.

Where I do have an issue is just because someone else did opposite of what you preferred, and you lost money, the trade platform saw fit to bail you out?  Question:  “Who whispered in Robinhood’s ear and told them to halt trading on that stock?”

Further, why is the government getting involved?  Unless…this is a question of profit for me and not for thee?

We saw fore shadows of this with the automotive bailouts when Obama was in office.  While no money from the government has changed hands, I believe the principle remains the same; only those we deem worthy will be able or allowed to take risks, and if you are not in the elites you do not have the right to sit at the same table.

I see something else coming…just like they used the January 6th events to tar and feather anyone who was a freedom-supporting, liberty-loving Trump supporter, they will do the same here for anyone who believes in capitalism.

Our founding fathers never wanted this, and we must be vigilant, as this is only the beginning.

We must pray up, armor up, and war strong.

God bless,

Teresa Blaes.