GameStop is back in the news after Roaring Kitty, the man behind the short squeeze movement in 2021 that ultimately took down Melvin Capital, scheduled a YouTube livestream for tomorrow afternoon at 12PM Eastern. The stock rose 33% to just over $42 per share before being halted by the exchange. GameStop enthusiasts are currently butt hurt because they would like to see the hedge funds who are short the stock get blown out of their positions. An implosion of the hedge funds who are short the stock is seen as economic justice for the Common Man, who has been handed the short end of the stick financially while hedge fund managers and their ilk have reaped the benefits of a corrupt and rigged financial system.

I understand the sentiment of the GameStop retail investors, but in 2024 it is hard to have any sympathy for those who are still holding out hope that they will win the battle against Wall Street. The system was laid bare (yet again) in 2021 when Roaring Kitty and the retail army that was birthed on r/wallstreetbets were swiftly put in their place by the entrenched Wall Street insiders who turned off the buy button on Robinhood and took the wind out of the sails of the movement. Today's stock halt is another reminder that the game is fixed.

Who knows what happens from here. There may be enough momentum and enough capital to push the price of $GME to levels that force those holding short positions to bail out and eat their losses. Roaring Kitty and the Tendies Army may reap the rewards of stock on a rocket ship to the moon. But, what next? It would be a victory, sure. But would it be the victory people really think it is?

Sure a few hedge funds may have to shutter their doors. If hedge funds that go under prove to pose systemic risk to the financial system the Fed and the government will step in to backstop the system yet again. Reinforcing the reality of a two-tiered systems separated by the haves - connected individuals and firms with proximity and social access to the money printer - and the have nots - the Common Man. A victory would likely be followed by new rules being put in place to prevent retail from being able to take advantage of these short squeeze opportunities and Wall Street would adjust and move on.

The only way to truly send a message to Wall Street and right the wrongs brought to the world by the ills of a fiat monetary system that embeds perverse incentives into the financial system that favor a certain class of people is to not play their game. They make the rules of the stock market and can, have and will change them on a dime when things start moving against them. Instead of pouring your wealth into the rigged game in an attempt to kill it from the inside, the focus of the Tendies Army should be to leave the game all together and seek out a game that cannot be manipulated and changed on a whim. This is what bitcoin brings to the world.

Taking out the investors who are short GameStop is swinging at branches when the root of the problem is the monetary system, which favors those in close proximity to the money spigot. The hedge funds were officially granted access to the money spigot in September 2019 in the wake of the overnight repo market rate spasm.

The repo market demand has been identified

Check out this chart.

TFTC – Truth for the CommonerMarty Bent

The Fed created a new facility shortly after rates went haywire due to a liquidity shortage in the overnight repo market that granted systemically important hedge funds direct access to the Fed window if they were in need of liquidity lest their portfolios blow up and set off a contagion event through the markets. To think that this facility wouldn't be used again in the future if the Fed believed a contagion event was possible is naive. Everything is too big too fail and the Fed will do everything it can to make sure the large players don't go under.

GameStop pumping may give the Tendies Army a large windfall of profits. However those profits will have been made in vain if nothing changes, which is the most likely scenario.

The real way to stick it to Wall Street and the Federal Reserve is to make their monetary system obsolete by adopting bitcoin as your monetary system of choice. Bitcoin cannot be changed on a whim, there are no circuit breakers to stop people from sending and receiving bitcoin, and it is much preferable to $GME when thinking about storing your value long term.

In conclusion, I admire you, Tendies Army, and think your heart is in the right place. However, you're fighting on the wrong battlefield.

Final thought...

Journalists doxxing open source developers is infuriating.