1) The Larger Impact of the GameStop Investor Wars
"The fundamental issue currently being fought over is who gets to have a role in determining financial value, access and outcome."
theepochtimes.com/the-larger-imp…
"The fundamental issue currently being fought over is who gets to have a role in determining financial value, access and outcome."
theepochtimes.com/the-larger-imp…
2) In some respects, the market has traditionally been seen as the ultimate arena of opportunity and free speech.
We can all invest in companies we deem attractive, and if we’re wrong, the market quickly shows us the error of our ways.
We can all invest in companies we deem attractive, and if we’re wrong, the market quickly shows us the error of our ways.
3) But recent events have exposed the extent to which this belief may be unfounded and the manner in which the financial system has been systematically weighted towards certain players, at the expense of others.
4) This time, it’s suddenly different because it’s the retail investors—the little guys—who are doing the pushing.
This time, it’s the hedge funds that got caught offside in this mess.
And now that they’re feeling financial pain, they want to change the rules.
This time, it’s the hedge funds that got caught offside in this mess.
And now that they’re feeling financial pain, they want to change the rules.
5) But what happens if you allow a small group of individuals or institutions—government figures and regulators, certain hedge funds, and Wall Street investment houses — the power to determine the appropriateness of decisions made in the broader financial markets?
6) This “We know better than you” mentality quickly leads down a path toward greater government influence and determination on which companies are successful and, perhaps more importantly, which industries are successful.
7) Does the government get to decide where and how capital should be allocated?
What if the government doesn’t think a particular company—or a particular industry—deserves funding at all?
What if the government doesn’t think a particular company—or a particular industry—deserves funding at all?
8) The fundamental issue currently being fought over is who gets to have a role in determining financial value, access and outcome.
Is it all the participants that make up the market?
Or is it only the entrenched Wall Street players and the government regulators?
Is it all the participants that make up the market?
Or is it only the entrenched Wall Street players and the government regulators?
9) Instead of placing blame on small investors, we should be looking at the risk management policies of the big hedge funds.
It was their poor risk controls that allowed them to get into this situation.
/End
It was their poor risk controls that allowed them to get into this situation.
/End
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