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The surge of stocks like GameStop, which we all have seen a lot of in the headlines lately, is most often attributed to the use of leverage by hedge funds. But the r/WallStreetBets subreddit has got small investors coming together and using this leverage against what they call big, rich, and greedy guys.
The case is unprecedented because, in most Wall Street fights, common members of the public like you and me have no rooting interest, nor any effect on what’s going on. But this one is the exact opposite. And while independent WallStreetBets traders continue purchasing GameStop stocks, they’re essentially betting against the hedge fund giants. And they’re nowhere near stopping.
And a trader who goes by the handle u/ssauronn has just penned a powerful open letter and laid out all the reasons, black on white, why the independent traders are not backing down and selling. Turns out, the shared resentment for the major Wall Street investors came as a result of the financial crisis of 2008.
“When that crisis hit our family, we were able to keep our little house, but we lived off of pancake mix, and powdered milk, and beans and rice for a year,” u/ssauronn wrote. The Redditor also addressed Melvin Capital in particular, stating that “you stand for everything that I hated during that time.”
Read the full letter down below, which should shed an illuminating light on the much deeper motives that fuel the current wave of independent GameStop traders.
One r/WallStreetBets trader has penned this powerful open letter which explains the resentment for Wall Street investment firms
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Liucija Adomaite
Liucija Adomaite
Writer, Community member
Liucija Adomaite is a creative mind with years of experience in copywriting. She has a dynamic set of experiences from advertising, academia, and journalism. This time, she has set out on a journey to investigate the ways in which we communicate ideas on a large scale. Her current mission is to find a magic formula for how to make ideas, news, and other such things spread like a virus.
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Mindaugas Balčiauskas
Mindaugas Balčiauskas
Author, BoredPanda staff
I'm a visual editor at Bored Panda. I kickstart my day with a mug of coffee bigger than my head, ready to tackle Photoshop. I navigate through the digital jungle with finesse, fueled by bamboo breaks and caffeine kicks. When the workday winds down, you might catch me devouring bamboo snacks while binging on the latest TV show, gaming or I could be out in nature, soaking up the tranquility and communing with my inner panda.
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Hey pandas, what do you think?
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Leo Domitrix Leo Domitrix Community Member Follow
I'm Gen X. We all get it. My generation is on its fourth or fifth economic crisis right now (depending on luck). We are all burned and scarred. By the 1980s, the early 1990s, 2008, Covid-19, and for a few of us oldies, even the 1970s! This isn't new, it isn't just one generation, can we please stop "claiming" victimhood? We're all screwed by the so-called "free market capitalism" that costs so much. Peace, and unity, b/c if we poor folks get together, we can scare teh bejeepers outta Wall Street :-)
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David Retsler David Retsler Community Member
Boomer here- Survived the OPEC crisis, 18-19% mortgage rates, the 1986 Market crash, the dot com bubble, the housing bubble and many other crises. ALL generations have been or will be screwed. It's a fact of life living in the USA. My generation has f****d over the next generations to come. We know it and some of us actually give a s**t. But this isn't a Boomer vs. Millenial vs Gen X issue. This is a people vs the system that is rigged to serve everyone BUT the people. Until the majority of the country understands this, we will continue to get f****d like we are in every election regardless of who wins.
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N G N G Community Member
Hello downvotes, but I have a genuine question (because I'm not US-based).Do some people have their 401k's linked to some hedge fund companies? So more people WILL lose their pensions when these Wall Street giants fall?
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J. Normal J. Normal Community Member Follow
401k, is the way most people lost "everything" in 08. We had options for investment - possible large returns or steady small returns. Most people want to gamble on the big payout (hedge fund) but don't realize the possibilities of total loss.I see the stock market as a rich mans casino. It is all gambling with "our" money.
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Gyro Pilot Gyro Pilot Community Member Follow
I'm pulling for the retail investors in this case but I fear that most will be burned badly by what will prove to be a pump & dump play by the Reddit leaders. And even if the origins of this movement are purer than I suspect then basic game theory (think "tragedy of the commons") predicts large-scale defections which eventually will mean those in early on GME and out first will profit at the expense of those slower to see the falling knife. Man the barricades, comrades, but don't gamble more than you can afford to lose.
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Craig Silberman Craig Silberman Community Member Follow
exactly; there's no way to know what the real position of those posting is, and just as the shorts put out papers trying to get others to sell their long positions, many stock and call buyers are hoping they can convince people to push up the price for their own gains
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Leo Domitrix Leo Domitrix Community Member Follow
I'm Gen X. We all get it. My generation is on its fourth or fifth economic crisis right now (depending on luck). We are all burned and scarred. By the 1980s, the early 1990s, 2008, Covid-19, and for a few of us oldies, even the 1970s! This isn't new, it isn't just one generation, can we please stop "claiming" victimhood? We're all screwed by the so-called "free market capitalism" that costs so much. Peace, and unity, b/c if we poor folks get together, we can scare teh bejeepers outta Wall Street :-)
Vote comment up
31points
Vote comment down
reply
David Retsler David Retsler Community Member
Boomer here- Survived the OPEC crisis, 18-19% mortgage rates, the 1986 Market crash, the dot com bubble, the housing bubble and many other crises. ALL generations have been or will be screwed. It's a fact of life living in the USA. My generation has f****d over the next generations to come. We know it and some of us actually give a s**t. But this isn't a Boomer vs. Millenial vs Gen X issue. This is a people vs the system that is rigged to serve everyone BUT the people. Until the majority of the country understands this, we will continue to get f****d like we are in every election regardless of who wins.
Vote comment up
54points
Vote comment down
reply
Load More Replies...
N G N G Community Member
Hello downvotes, but I have a genuine question (because I'm not US-based).Do some people have their 401k's linked to some hedge fund companies? So more people WILL lose their pensions when these Wall Street giants fall?
Vote comment up
12points
Vote comment down
reply
J. Normal J. Normal Community Member Follow
401k, is the way most people lost "everything" in 08. We had options for investment - possible large returns or steady small returns. Most people want to gamble on the big payout (hedge fund) but don't realize the possibilities of total loss.I see the stock market as a rich mans casino. It is all gambling with "our" money.
Vote comment up
19points
Vote comment down
reply
Load More Replies...
Gyro Pilot Gyro Pilot Community Member Follow
I'm pulling for the retail investors in this case but I fear that most will be burned badly by what will prove to be a pump & dump play by the Reddit leaders. And even if the origins of this movement are purer than I suspect then basic game theory (think "tragedy of the commons") predicts large-scale defections which eventually will mean those in early on GME and out first will profit at the expense of those slower to see the falling knife. Man the barricades, comrades, but don't gamble more than you can afford to lose.
Vote comment up
11points
Vote comment down
reply
Craig Silberman Craig Silberman Community Member Follow
exactly; there's no way to know what the real position of those posting is, and just as the shorts put out papers trying to get others to sell their long positions, many stock and call buyers are hoping they can convince people to push up the price for their own gains
Vote comment up
5points
Vote comment down
reply
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