Reddit and other online financial institutions have been fighting back against a hedge fund that was betting against the stock of GameStop, a company that has a massive stake in one of the most hated companies in the world, Dogecoin.
00:03:09.920We went into some detail on what was going on in the markets yesterday because what's going on in the markets,
00:03:16.720more so than usual, is reflecting what's been going on in our politics, not just for the last two months, but for the last four years, five years.
00:03:25.020What happened yesterday is a bunch of people on Reddit gathered together.
00:03:30.720They saw that a big hedge fund had a massive short position on GameStop, which is not a valuable company in and of itself,
00:03:37.740but the institutional investor had this short position, meaning they were betting against the stock.
00:03:43.900So all these Reddit guys went in and put their money on GameStop, GameStop rather, GameStop stock, and that drove the price up.
00:03:54.240As the price went up, the people with the short positions have to shell out more and more money,
00:03:58.180and the premise of these Redditors is they were willing to remain completely insane longer than the financial institutions could remain solvent,
00:04:09.040and this would result in them making a bunch of money.
00:04:12.060So it was all going according to plan.
00:14:59.400This Robinhood CEO, who was shutting people out of making investments yesterday, but only specific investments where they could have made a lot of money.
00:15:11.100He is being sued, as of course he should be.
00:15:14.080There is at least one class action against him.
00:15:16.040There's probably going to be multiple.
00:15:18.880Brandon Nelson, who's a retail investor from Massachusetts, filed a suit in the Southern District of New York, claiming that the company violated, quote,
00:15:25.700the implied covenant of good faith and fair dealing with its customers when it restricted them from making transactions on high-yield assets.
00:15:32.960Quote, on or about January 27th, Robinhood, in order to slow the growth of GameStop and deprived their customers of the ability to use their service abruptly, purposefully, willfully, and knowingly pulled GameStop from their app, meaning retail investors could no longer buy or even search for GameStop on Robinhood's app.
00:16:24.900I know there were some conservative commentators yesterday who were afraid that we were delving into a kind of rich versus poor, 99% versus 1% kind of almost leftist sounding dialogue about this.
00:16:52.120They know how to search for these kind of positions that institutional investors have.
00:16:56.320They are smart enough to realize if someone's got a huge short position and you can gather a million people or two million people to go in and pump up this asset, then you're going to create a short squeeze.
00:17:08.440And if you hold on long enough, then the asset's going to go up unless there's market manipulation from the outside.
00:17:12.360But all of this to say, these are not idiots, all right?
00:17:16.000And one aspect of Reddit and Twitter and social media that makes it difficult to speak about this in a sort of scientific, data-driven, statistical way is people have anonymous accounts, right?
00:17:31.460So you just, you can't, you can't know that much about these people if you're just trying to analyze it from the outside.
00:17:38.460But in my own experience, the plural of anecdote will have to be data here.
00:17:43.340In my own experience, the people I know who spend a lot of time on Reddit or Twitter and who have anonymous accounts are very smart.
00:17:52.660And they're not living in their mom's basement and they're not waiting to eat the chicken tendies or whatever the memes say that they are.
00:17:57.780They're pretty urbane people, many of whom have kind of normal jobs, who go to normal cocktail parties, who have a kind of sophisticated, yuppie-ish way of living, but who just realize how corrupt this system is, right?
00:18:15.020They, they take, it is the same view I was describing yesterday on the show when we said, is it about elitism or populism?
00:18:20.660I said, when we have a good elite, I'm an elitist. When we have a corrupt elite, I'm a populist.
00:18:25.520Of course, I want to be governed by good, wise, serious, virtuous people.
00:18:35.300Elites could be that. And in that case works for me.
00:18:40.060But when the elites are not that, then I'm, I'm with Buckley.
00:18:43.460You know, when he says that I'd rather be governed by the first 2000 people in the Boston phone book than the faculty of Harvard College.
00:18:49.080Bill Buckley was the same way. He was an elitist of sorts, except when the elite was totally decayed and degraded and debased.
00:19:00.000I think this is about an establishment that comprises people who, of all different looks, of all different backgrounds, of all different economic levels, you know, socioeconomic levels.
00:19:14.200But some people are in, some people are out.
00:19:17.980It was funny, too, because yesterday, a bunch of sort of socialists tried to jump on the bandwagon and say, oh, yes, we're really showing it.
00:19:25.720We're showing it to this Wall Street folks.
00:19:27.900Now, the people on Reddit, they were not socialists.
00:19:47.800It's, it's people of all levels of education and all levels of whatever, everything else, who realize that something about this system is rigged.
00:19:58.840I know you're, you're not allowed to use that word when you discuss elections or when you discuss the administrative state or when you discuss the financial establishment.
00:20:10.740I'll give you, give you an example of this different set of rules for the liberal elite.
00:20:14.820We talked yesterday briefly on the show about how some dude on Twitter, I think he's 34 years old.
00:20:21.600So at the time he was, if they, somewhere, in his 30s somewhere, I think at the time he was in his 20s, during 2015, 2016, he had an anonymous Twitter account, which was Ricky Vaughn.
00:20:34.080And it was very politically incorrect and very offensive and he would say all these mean things.
00:20:37.620He was just posting memes and everything.
00:20:39.340He might go to prison for 10 years because he posted a meme which said, hey, if you're a Democrat, text your vote to this number.
00:20:47.440And you can text your vote and then you don't need to worry about voting.
00:22:12.760She's not being investigated because she's a liberal.
00:22:16.340She did 100% exactly the same thing as the guy behind Ricky Vaughn.
00:22:23.440But Ricky Vaughn is going to go to the can because there's a different set of rules for the liberal elite.
00:22:28.160John Kerry, climate czar under President Biden, telling coal workers, oil workers, natural gas workers that they are not going to have their jobs.
00:23:31.780In a way, I'm glad to see what happened yesterday.
00:23:38.720It's too bad because some people lost a lot of money because Robinhood, and it wasn't just Robinhood, by the way.
00:23:44.900When they say use a different broker dealer, basically all of the broker dealers shut out the ability to buy positions in GameStop or AMC or all of these assets.
00:23:53.960So you couldn't do it, and I'm sorry that people lost money because of this sort of thing, but I am glad to see it.
00:24:02.420I think we now know what we're dealing with.
00:24:05.920All this talk, all this silly talk that Republicans even had duped themselves into believing.
00:24:47.680And if they support liberal candidates and even liberal Republicans when they do support a Republican, why do I need to defend them?
00:24:55.480Why do we need to carry water for people who hate us, who hate our views, who won't let us participate in society, and who have no particular loyalty to our country or our traditions?
00:25:06.420This is why conservatives like to invest in physical assets like gold.
00:25:14.120And you got to go check out Acre Gold.
00:25:18.200The price of gold has been skyrocketing lately.
00:25:21.640Now there is a new way to buy gold through a company called Acre.
00:25:24.840Acre lets you subscribe to gold bars for as little as $30 a month.
00:25:28.700You pay each month once your gold stash reaches the price of their gold bars.
00:25:32.660They ship discreetly Acre Gold to your house.
00:25:36.700Acre lets you invest in physical gold without coming out of pocket all at once.
00:25:41.140The way that this happens, because obviously bar of gold costs a lot of money, you pay into it, you pay into it, you pay into it.
00:25:47.240Once you reach the price of the bar of gold, they ship it to you.
00:25:51.780They've recently introduced their new $100 per month subscription for their 5 gram gold bar.
00:25:55.280If the last few days have not convinced you that having some of your investment in physical precious metals might be a good idea with all the crazy market stuff, I don't know what will convince you.
00:26:44.680We need to know more about Robinhood's decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.
00:26:51.320As a member of the Financial Services Committee, I'd support a hearing if necessary.
00:26:57.340So I read that and I say, wow, I have common ground with AOC.
00:27:53.700Shows that we are trying and they are not.
00:27:56.200But now we've learned a lesson there, too.
00:28:00.300First of all, I like how AOC says, well, I'm willing to work with any Republican, but not Ted Cruz and not Donald Trump and not this one and not that one and no Republican.
00:28:08.380She doesn't think any Republican is legitimate.
00:28:23.840They have been saying for months now that we are all Nazis and white supremacists who should be kicked off of Twitter, who should be kicked out of our jobs, who should be kicked out of our schools, who should be kicked off of our investing apps, who should be kicked out of our banks, who should be ostracized utterly from society.
00:28:45.540And conservatives, we do this thing where we try to win their respect.
00:29:18.880Dr. Fauci, our true leader, he just came out.
00:29:21.800He said, if you get the vaccine, which you soon will probably have to do, if you get the vaccine, that's not a free pass to travel.
00:29:30.700It is not a good idea to travel, period.
00:29:34.480I mean, if you absolutely have to travel and it's essential, then obviously one would have to do that.
00:29:40.700But we don't want people to think because they got vaccinated, then other public health recommendations just don't apply.
00:29:48.820One of the biggest things that are really not well understood is people ask, why should I even have to wear a mask after I get my second shot?
00:29:58.660And the reason is very clear that the primary endpoint of the vaccine trial was clinically apparent infection.
00:30:07.040So you could conceivably get infected, get no symptoms and still have virus in your nasopharynx, which means that you would have to wear a mask to prevent you from infecting someone else,
00:30:20.280as well as the other side of the coin where you may not be totally protected yourself.
00:30:25.940So getting vaccinated does not say now I have a free pass to travel.
00:30:31.080Yeah, look, just just because you do all the stuff that we're telling you to do, even though sometimes it contradicts our previous advice day by day,
00:30:39.420just because you do that doesn't mean you have a free pass to travel.
00:30:42.720You know, travel, what all of us in the establishment have often called a human right, travel, a constitutional right that you have to move freely.
00:30:56.260Yeah, you don't have a free pass to do that anymore because of science.
00:31:00.760Joe Biden made this point the other day.
00:31:02.700He tweeted out, science will always guide my administration.
00:31:07.840He capitalized administration in a weird way.
00:31:11.940You know, they always made fun of Trump for weird capitalizations.
00:31:15.800He probably intentionally would capitalize science, though, even if it didn't begin a sentence, because he's referring to science as a sort of God.
00:31:25.960What he means by science here, obviously, is not what we think of as a science, the system of material inquiry and empiricism and observation to lead us to new knowledge about the physical world.
00:31:40.680I mean, they've contradicted themselves sometimes by the hour.
00:31:43.700He's referring to science in a political way, which the left has done for years and years, in the same way that Marx would refer to science and Marxists would refer to the science of politics or the science of history.
00:31:56.540The new left would refer to these sorts of terms in the mid-20th century.
00:32:01.860This is why AOC is not going to work with Ted Cruz and not going to work with any other Republican.
00:32:09.300They are on the right side of history.
00:32:31.800You know, we on the right, we often point out the hypocrisy of the left.
00:32:36.600That's probably what we spend most of our time doing.
00:32:39.100Say, so much for the tolerant left, so much for healing and unity, so much for this, so much for that, as though in this sort of innocent, naive hope, we think that one day the left is going to realize, oh my goodness, we're not being tolerant.
00:33:20.480And because we're so afraid of ever using political power, they succeed even when we win, even when Republicans win elections, even when we had unified government from 2017 to 2019.
00:33:37.200What did we do as a matter of real sweeping legislative change?
00:33:41.560We passed a tax cut because we are beholden to a shallow, silly idea that pretty much just became the boilerplate conservative talking point in the 90s and 2000s, that we can never exercise political power.
00:34:00.660We have to, we have to respect the free market.
00:34:05.340We need to live in holy fear of the free market.
00:34:25.440Doesn't look very free from, from my vantage.
00:34:27.580It looks like it's full of a censorship regime from the left.
00:34:34.000And even when we look back further before, say, the 60s and into the maybe the 50s or the 40s, even then when conservatives had much, much better hold on the culture.
00:34:44.280We did, we had a free speech regime in the American tradition of free speech.
00:34:53.580We had all sorts of rules about speech.
00:34:56.760We had, we had just a different set of standards, right?
00:34:59.180We had the traditional conservative standards.
00:35:01.200And we've convinced ourselves to abandon that.
00:35:03.500We've convinced ourselves to abandon financial standards because of a shallow ideology that ironically, the left foisted on us during the mid 20th century to convince us to stop exercising power.
00:35:20.840And the, the game appears to be rigged.
00:35:23.840What we started to wake up to that in 2016, how much longer is it going to take before we realize the, the real nature of this system, the real nature of our elites and for us to begin to exercise our political power to push back.
00:35:39.160One way we do that in the culture is by releasing our movies.
00:35:43.840We just had our first movie come out here at the Daily Wire, Run, Hide, Fight.
00:35:47.320It's exclusive for Daily Wire members.