NASDAQ CEO Adena Friedman responded to the Reddit-GameStop trading boom (explanation at the end of this post if you’re new to what’s going on with this story) this morning on CNBC, saying regulators need “to understand that manipulation is manipulation whether it’s happening through a new technology medium or it’s happening through traditional mail”:
"As we look at these new technologies that are available … it's important for regulators to understand that manipulation is manipulation whether it's happening through a new technology medium or it's happening through traditional mail," says @Nasdaq CEO @adenatfriedman. pic.twitter.com/iSP31KoXvm
— Squawk Box (@SquawkCNBC) January 27, 2021
And she wants retail investors to focus on a company’s fundamentals instead of getting tips from message boards and such:
"If you think it's too good to be true, it likely is," says @Nasdaq CEO @adenatfriedman about high-flying stocks. "Focusing on fundamentals and at least understanding the underpinnings of a company's performance as you're making investment decisions is also an important element." pic.twitter.com/16bs3AcjHr
— Squawk Box (@SquawkCNBC) January 27, 2021
Oh, sorry. Do you need a tissue?
— McCindy ⏳ (@MCCindy64) January 27, 2021
Because we’re having a hard time right now cheering against what Reddit did to these hedge funds:
Bunch of Reddit shitposters who subsist off of Cheetos and Mountain Dew just dismantling hedgefunds for having mean ideas about a video game store is the best story to happen since the revolutionary war.
— Drew Holden (@DrewHolden360) January 27, 2021
And it really isn’t a good look when CNBC and the regulators are more concerned with protecting hedge funds from the mob instead of protecting everyone else from what hedge funds have been able to do in the past:
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There is nothing about the Gamestop thing that isn't disturbing. But taking steps to protect hedge funds from retail investors is NOT a good look.
First, if a hedge fund CAN be clobbered by retail investors trading a single issue, the retail investors ain't the main problem. https://t.co/kfuMq5sn8o
— Mike Dunford (@questauthority) January 27, 2021
These hedge funds are just pissed that the Reddit masses beat them at their own game:
Haha. Hedge fund manager can go on Squawk Box & tell everyone why they are short GameStop & why you should also be & they are called investing geniuses.
But if you post on Redditt,
"Bought GME. To the moon fellow idiots" ????
that is concerning to regulators. https://t.co/twVpLK4V2X
— Chris Arnade ? (@Chris_arnade) January 27, 2021
And the one thing you always hear about shorting a stock is that the exposure is potentially unlimited. They took the risk with GameStop and got burned — “That’s the game”:
OF COURSE the response is to make it explicit via new regulations that only billionaires and hedge funds are allowed to "play" the markets.
You took a gamble with a short position, it blew up in your face, now you owe billions. Tough. That's the game. ?https://t.co/JZFvekmhXm
— sunset commentator ? (@comradesipho) January 27, 2021
Maybe these funds should ask themselves why people are so angry?
Second, I took a scroll through r/wallstreetbets yesterday. A hell of a lot of the motivation behind this is anger, and, @adenatfriedman it's anger at y'all – at the whole make-money-with-money scene. And at, frankly, some of your past antics that are still causing people pain.
— Mike Dunford (@questauthority) January 27, 2021
Doing something that even looks like it could be interpreted as changing the rules of the game to protect your favored players is not going to decrease anger. Not even a little bit.
— Mike Dunford (@questauthority) January 27, 2021
Editor’s note: Background on what’s going on with Reddit and the stock market here:
If you’re dumb like I am, here’s a quick 5 minute explanation of what’s happening with GameStop and Wall Street $GME. The Robinhood Reddit bros are making millions and essentially took out an entire hedge fund. David vs Goliath. POWER OF THE INTERNET pic.twitter.com/G2iJVeBRsl
— KFC (@KFCBarstool) January 26, 2021
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