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02022021Over the last few weeks, we have witnessed one of the wildest rides of an American Stock to date, and also a glaring light on of the darkest practices within these markets. Recently, a short squeeze of the stock for GameStop and a few other securities took place, causing major financial consequences for particular hedge funds and large losses for short sellers. Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further. The short squeeze was initially and primarily triggered by users of the subreddit r/wallstreetbets, an Internet forum on the social news website Reddit. At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share, nearly 30 times the $17.25 valuation at the beginning of the month. The price of many other heavily shorted securities also increased. A number of major brokerages including Robinhood, halted the buying of GameStop and other securities, later citing their inability to post sufficient collateral at clearing houses to execute their clients' orders. This decision attracted criticism and accusations of market manipulation from prominent politicians and businesspeople from across the political spectrum. Dozens of class action lawsuits were filed against Robinhood in U.S. courts, and U.S. House Committee on Financial Services chair Maxine Waters announced a congressional hearing on the incident set for February 18. In reaction to brokerages halting the buying of GameStop and other securities, the total market capitalization of cryptocurrencies and metal futures increased as well.
It is the monthly open phone lines event this week on The Malliard Report, and I’m sure by now you can guess what one of the primary topics of discussion is. Receiving calls from former guests that are experts in the field, and the thoughts and opinions from the “man on the street”, there is a lot to be said about what has happened over the last few weeks. This is a great show (as all call-in episodes are) and it helps clear up a little as to what exactly happened. It certainly can be confusing. Remember to join in on the excitement for the live calls every first Tuesday of the month over at malliard.com where you can also subscribe to the newsletter, catch up on past shows and more. Connect with Jim on all social media outlets @malliard and don’t forget to rate and subscribe through your favorite podcasting/streaming service.
01052021The plot thickens, the water temperature is getting hotter, the noose is getting tighter, and any other analogy that you may be able to think up regarding the current situation that we find ourselves politically. As we sit here just a few days out from the certification of the Electoral College the tension in the air is palpable. Rumors of chaos unfolding. Clamors of elections being overturned. Q. You name it, it has been out in the universe lately. If you believe in any of it, or none of it at all, the one thing is that is absolutely certain, we seem to have reached a tipping point, and not for the better.
This week on The Malliard Report, Jim wants to get an actual pulse on what is happening on “the streets” and it just so happens to fall on the first Tuesday of the month. On this episode Jim opens up the phone lines for live calls and the audience does not disappoint. As chaotic as the idiot box would want to tell us, nothing is more telling to what is actually happening than what is referred to as the “kitchen window view.” What is actually happening in our day to day. What does it really look like, not what we are told that it looks like.
Make sure to be part of the action every Tuesday night in the duck pond chat over on malliard.com where you can do more than just chat with other fans. On the website, you are able to catch up on past shows, subscribe to the newsletter, score some awesome merch, and much, much more. Help The Malliard Report grow and make sure to rate and subscribe on your favorite podcasting app. You can follow Jim on all the social media platforms @malliard.
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