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Radio host Rush Limbaugh called GameStop’s story “the most fascinating thing” that has happened in a long time because it reflects politics with elites trying to keep ordinary people out of it – just as the political establishment has tried to hold back average Americans.
Robinhood, TD Ameritrade and others restricted trading on Thursday and Wednesday, respectively, following an unexpected increase in the trading volume of shares of GameStop, AMC Entertainment, Bed Bath & Beyond, BlackBerry and others. Limbaugh believes the move was made to protect billionaires from hedge funds.
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“People, it’s not just politics now. The elites are distorted that a group of average and ordinary users have figured out how to become billionaires,” Limbaugh said Thursday. “I’ve been studying this all morning and the best thing I can tell you is… whatever you think about politics, the Washington establishment, the Deep State, what the hell have you got? , it’s the same in finance.
Limbaugh said there are “those who are allowed to make a lot of money” and those who cannot.
Rush Limbaugh called the ongoing GameStop story “the most fascinating thing” that has happened in a long time because it reflects politics with elites trying to keep ordinary people out of it.
“If you figure out how to make a lot of money, and if you’re like Donald Trump and how to get elected, you find out how to beat the Deep State, they’ll come and they’ll make it wipe you out,” he says. “They’re going to destroy you, and that’s what’s happening with GameStop.”
Limbaugh went on to explain that a group of people on Reddit figured out how to “play with the system” and turn the stock market into a “profit device for themselves,” but it had consequences.
“In the process, they hurt the intended winners in this financial situation and that would be the hedge funds out there.” Hedge funds are supposed to be the ones that make a lot of money. They don’t and they beg for another blanket. funds to bail them out, ”he said.
Instead, GameStock’s stock prices have climbed this week as retail investors, boosted by the online Reddit WallStreetBets forum, piled into the stocks. Volatility continued on Wednesday as platforms like Robinhood and Interactive Brokers limited trading in some stocks.
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The actions of GameStop Corp. have risen more than 1,900% since the start of this year, which has affected short sellers in the market. Shares rose from $ 17.08 a few weeks ago to $ 347.51 at Tuesday’s close. GameStop’s action had struggled for six straight years before a slight uptick in 2020 and its most recent explosion.
Limbaugh said the elite no longer simply called ordinary people racists, sexists and fanatics when they sought to shame Americans.
“Now they make it clear to anyone who has the ability to notice that you are not allowed to use the stock market the way they do, that you are not allowed to make a profit, that you are not allowed to. do those kinds of things – the money they make, ”he said, noting that the“ elites ”expect many benefits.
“And the benefits are, the ability to secure your child’s financial future. The ability to secure you a financial future, the ability to secure you a position of power, depending on who you are in the facility, the elite club , whatever. you want to call it, and it’s about more than just politics, “Limbaugh said.” This GameStop activity now makes it something that’s understandable beyond the political world and that’s its value. It is no longer just political. It’s not just that you can’t think for yourself, on problems and questions of politics … everything is rigged in favor of the elites and it has come and set this rig up. “
Limbaugh said the establishment censors or quashes anything that does not benefit the ruling class, whether it’s free speech or even attitude.
“Well now, with this GameStop story and the revelations it contains, the elites, the same people who were determined to get rid of Donald Trump, the same people are now trying to tell you what you can and can’t do with your money, ”he says.
GameStop had lost most of its charm among investors in recent years as a brick and mortar store trying to survive in an Amazon world, but a spike in video game purchases amid the coronavirus pandemic has suggested. that things could change for the video game retailer.
Meanwhile, a lone investor on Reddit, a social website where users can discuss news and opinions, was promoting GameStop and suggesting users band together to scale back its action, despite the initial low interest. from other investors, on a forum called WallStreetBets.
After the Reddit user suggested a short squeeze, small investors online urged each other to keep GameStop’s stock higher as short sellers bet against it.
As a result, the big bets that the short sellers made that GameStop’s stock was going to plummet took a turn for the worse, leaving them facing billions of dollars in collective losses. In such bets, called “short sales”, investors borrow a stock and sell it in the hopes of buying it back later at a lower price and pocketing the difference. GameStop is one of the best-selling stocks on Wall Street.
As GameStop’s winnings increased and short sellers struggled to get out of their bets, they had to buy stocks to do so. This accelerated the momentum even further, creating a feedback loop. On Tuesday, GameStop’s short sellers were already down more than $ 5 billion in 2021, according to S3 Partners.
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Much of Wall Street’s pros remain pessimistic that GameStop’s stock can keep its huge gains. Analysts say the company is unlikely to start making a profit large enough to justify its market valuation of $ 22.2 billion.
Mobile brokerage apps faced outages on Wednesday and Thursday due to market volatility.
The Robinhood app, popular with new and young investors, restricted transactions for certain titles, including GameStop, according to a press release. TD Ameritrade has also restricted certain transactions.
Aubrey Conklin of Fox News contributed to this report.
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