Recently, there has been a large, ongoing drama over some people on the internet breaking a hedge fund called Melvin Capital by buying Gamestop stocks. In case you haven’t heard of what happened, or you’re reading this in the future and don’t know, here’s a short Twitter thread to give you the gist of things.
As things stand right now, Melvin Capital is the primary “enemy number one” hedge fund in this debacle. It is run by a certain Gabriel Plotkin, who is the founder and CEO of Melvin Capital Management. He is Jewish. This hedge fund tried to short Gamestop’s stock – which essentially means they were due to return some stock after taking care of it, but instead tried to sell it and hope they could buy it back at a lower price later. Some people on the Reddit subreddit r/WallStreetBets caught on and bought up Gamestop stock so Melvin could not complete the short; they “squeezed” Melvin. This has so far been costing Melvin billions of dollars, and could potentially result in its total collapse.
Here to save the day for Melvin are Point72 Asset Management and Citadel LLC. Both of these two are collectively investing billions to try and keep Melvin afloat. Point72 was founded by Steven A. Cohen. He is Jewish. Citadel LLC was founded by Kenneth C. Griffin, who resides as its CEO and co-CIO. Citadel LLC’s Senior Advisor is none other than Ben Shalom Bernanke, who previously served as the 14th chair of the US Federal Reserve Bank from 2006 to 2014. He is Jewish. Another hedge fund having issues is Maplelane. It is run by Leon Shaulov and Robert S. Crespi. I’ll allow you to assess those names yourselves and reach a conclusion.
Citadel has also come under scrutiny for its involvement with the app RobinHood. RobinHood is a retail investor app that allows normal, non-finance savvy people to jump into the world of stock trading. When the GameStop debacle began to pick up momentum, RobinHood put a stop to the buying of new GME stock, citing “security and safety of its users” [paraphrased]. This triggered a massive backlash and vigorous response across millions of people observing and involved with the whole situation. Some traced this back to Citadel, whose large-handed involvement in RobinHood may have prompted them to make this decision to halt buying of GME to protect Citadel.
The following is a passage from a Verge articled titled “How r/WallStreetBets Gamed The Stock Of Gamestop”:
What does Robinhood have to do with this? Well, it makes options trading much more accessible to retail investors — but there’s something else. Trades on Robinhood are free! But Robinhood isn’t offering free trades to be nice; the company gets paid by some big-time investors such as Citadel Securities to see what retail investors are doing.
Pure opinion time.
It would be a fair assumption to presume that Robinhood’s trade restriction on GME was triggered by Citadel’s interests.
At this point, anyone who still believes there is a “free market” in this country is clearly not paying attention. This event of lower and middle-class people gaining a small amount of wealth at the expense of the top, resulting in a total lockdown of certain market functions to accommodate said top, is an opaque display of the normally invisible guardrails keeping our “free market” on its little railroad tracks, moving forward with exactly what certain people would like it to do.
Many leftists are trying to jump in on this train to make their usual critiques of capitalism. Unfortunately for them, they sputter and throw their hands in the air when confronted with the fact that capital is overwhelmingly and disproportionately controlled by a certain minority ethnic group. They’re all gung-ho to criticize “rich white men” for their control… but if you point out one extra property many of those “rich white men” disproportionately possess, they freak out and go on the defensive about how one cannot be allowed to take note of such a property. This fundamentally will result in them being unable to properly fight capitalism; as Sun Tzu said, you must know the enemy and yourself. If you do not allow yourself to know the enemy, and make a physical, conscious effort to block out your noticing of something about the enemy, like most leftists tend to do… how can you expect to defeat them? The answer is… if you don’t, you won’t.
Thanks for reading. I’ll pick up anything I left out in the comments later on. Feel free to write a comment and share your thoughts.