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Jordan Belfort, the former stockbroker whose 2007 memoir “The Wolf of Wall Street” became the basis of the 2013 hit film starring Leonardo DiCaprio, hailed the “brilliant” retail investor revolt at the a Monday appearance on “Tucker Carlson Tonight”.
Video game retailer GameStop’s share price rose significantly last week after a group of Reddit users teamed up to buy the ailing retailer’s call options, hurting sellers at discovered from the market.
“I think it’s a paradigm shift right now,” said host Tucker Carlson, who spent 22 months in jail after pleading guilty to securities fraud and money laundering charges .
“The little guy is finally equipped, the information travels instantly now, it was just the big guys, they were paying the analysts … so now the little guy finally has the ability to play the same game, at least a little bit. “said Belfort explained. “And there’s going to be a drastic change, it won’t be the same.”
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Short sellers, Belfort added, are investors who speculate that the price of a stock or security will fall in value. Their strategy is to borrow stocks in order to resell them in the hope of buying them back at a lower price in the future.
“I take my hat off to them… it’s great what they did.
“There are the hedge funds that band together and literally will sell a stock near zero, bankrupt. They are trying to spread negative information, investigations, and that’s what you see with GameStop,” said Belfort.
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“I think everyone knows there’s something wrong with the pit of your stomach. You can shut people up, you can tear people up… and get away with it. world knows – Republican or Democrat – there is something wrong. That’s why both sides of the aisle united on this one thing, “he continued.
Belfort praised the “angry as hell” small investors who were “tired of being trampled by Wall Street, which they always have been.”
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“I gave them my hat, by the way,” he told Carlson. “It’s great what they did. They found real inefficiency in the market and a loophole where something had been bypassed drastically and they could actually get enough buying power. They finally have it now. ammunition to retaliate.
“The danger,” he warned, “is that things are going to end badly for these actions and I hope people don’t lose money in the process.”
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