The SEC spent nearly half a million dollars on the ‘meme stock’ ad campaign that ridiculed millions of retail investors.
A Twitter user had sent in a FOIA application inquiring about the costs to produce “Investomania”, the video published on the SEC’s official YouTube channel.
The agency that was established in the early 1930s to protect retail investors took a shot at millions of investors who participated in the ‘meme stock’ frenzy.
The frenzy became one of the biggest movements worldwide and exposed Ken Griffin’s Citadel, mainstream media, and the SEC in a web of conflicts of interest which catered to an array of market injustices that favored institutional investors over retail investors.
“Investomania” was a cold hit to the millions of average people who joined the stock market for the first time.
It ridiculed new investors and diminished what could possibly be one of the biggest movements in market history.
Let’s discuss it.
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Is the SEC Complicit to Market Injustices?
The SEC has put retail investor’s concerns on the backburner for over a year now ever since the ‘meme stock’ frenzy of 2021.
Although Redditors and social media participants from around the world managed to create big success by driving up the share price of AMC, GameStop, and others (BBBY, etc.), much much more was discovered during the process.
This is why retail investors simply couldn’t just walk away.
‘Meme stocks’ became the average person’s first-ever investment in the stock market which means many entered plays based on FOMO, or fear of missing out.
When these stocks began to come back down, many faced serious losses in the process.
Those who didn’t take profits argued that the stocks were heavily manipulated and suppressed from further rising.
The U.S. House Committee on Financial Services found Robinhood and Citadel negotiated in ‘blunt’ conversations the night before ‘meme stocks’ were halted.
The DTCC on the other hand waived a total of $9.7 billion of collateral deposit requirements on January 28, 2021.
This act saved institutional investors from taking further damages and completely ripped off retail investors from either cashing in larger profits or becoming profitable in the first place.
The SEC Shows a Warm Welcome to New Retail Investors
SEC Chairman Gary Gensler said in an interview with Jon Stewart that they barely have the budget for coffee at their agency, let alone the budget to fight crime in the market.
Dark pools, off exchange trading, and various other loopholes have been used to work against retail investors feeding the pockets of multi-billion-dollar hedge funds.
Many have wondered whether the SEC or Gary Gensler himself is lobbied into allowing these market injustices to occur – a fine to play if you will.
Out of all the incredible findings retail investors have brought to surface, the SEC decided to spend nearly half a million dollars to ridicule retail investors – the very same people they swore to defend, instead of tackling real market issues.
A Twitter user shared the campaigns production and advertising expenses with the retail community.
The costs of the “Investomania” meme stock advertisement campaign also include skits on ‘crypto’, ‘margin calls’, and ‘easy money’ aimed at the retail crowd.
Former SEC Branch Chief Lisa Braganca stated she was “very disappointing to see SEC disparage investors in meme stocks as if they must have done it thoughtlessly”.
“Especially when the SEC permits most trading to take place in dark pools… how about a video about dark pools @GaryGensler?”
Leave your thoughts below
Is the SEC complicit to the market manipulation that’s occurred over the decades?
What do you think was the purpose of the SEC’s ‘Investomania’ meme stock advertisement campaign?
Was it merely fun and games or do you think it was out of line?
Leave your thoughts below.