The ‘apes’ have exposed a number of problems within the financial markets and now experts are curious as to what’s next.
Investors have been fighting the SEC on market injustices over the decades but have had no luck in creating change.
Jon Stewart recently interviewed Gary Gensler but even the SEC Commissioner seems to be hearing a foreign language when asked how we can find solutions.
What is it going to take to create change in the markets?
Welcome to Franknez.com – the ‘ape’ community has been exposing market manipulation for over a year now. The SEC has acknowledged this, but what are they doing about it?
Let’s dive right into it!
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Sure, there are proposals but…
The SEC released a market transparency report going over proposals that would essentially micro-manage short seller activity.
Now, on paper these proposals are outstanding and could lift suppression imposed on heavily shorted stocks.
However, retail investors aren’t convinced the SEC will actually enforce them.
Many new retail investors aren’t willing to stick around in the market if it weren’t for AMC or GameStop’s short squeeze potential.
It makes you wonder, is the stock market doomed?
Gary Gensler is worth more than $100 million according to Bloomberg.
Which makes us question how would he benefit from protecting retail investors?
Leave the answer in the comment section below.
Lobbied politicians and government officials seem to be a real problem, something I’ll discuss more about down below.
Jon Stewart calls Gary Gensler out on blatant market manipulation (MUST WATCH)
Jon Stewart asked Gary Gensler to give him a better system because the current one is getting its butt kicked.
To which Gensler responds with “I believe in this system, I believe in our democracy.”
This statement demonstrates that Gary Gensler isn’t willing to make drastic changes to level the playfield, at least in my opinion.
Jon does an incredible job at asking the hard questions and being very direct with his statements.
Watch this short clip of the interview.
Many of these clips have been circulating Twitter and retail investors now seem convinced Gary Gensler is not the person that will be calling the shots here.
After all, the SEC does have a sign that says “coffee donations” to which Gensler implies they lack many resources, something I’ve touched about in previous articles.
He dodges a lot of very straight forward questions and gets off topic to manipulate the conversation a little to play in his favor.
Though Jon did mention in a space call on Twitter he did think Gensler was honest.
You can watch the full episode on Apple TV for more context which I highly recommend.
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Congress lobbied by financial institutions write the laws
In this exclusive interview Gary Gensler says congress writes the laws and that the SEC only has civil enforcement power.
This means that lobbyist indirectly write the laws when pitching proposals and regulations to congress according to Jon Stewart.
Financial institutions use their money and influence to keep lawmakers and regulators in check.
And while the Department of Justice may be looking into banks and hedge funds, will the hunt be successful?
Elon Musk is quite optimistic about the DOJ taking action saying this is something the SEC should have done, but curiously did not.
What’s lacking here is accountability.
And Gensler says they need whistleblowers to individually come out and let them know what they know.
He says nothing is stronger than someone actually demonstrating accountability.
So, while regulators are aware of the issues retail investors are facing, it’s going to take individuals to come out and address these problems through the SEC’s whistleblower program.
Do you think this is a solution?
Leave your thoughts in the comment section below.
How can retail investors fight back?
Raising awareness through dedicated persistence is how retail’s message gets louder and has gotten this big.
It’s going to take time, but as Jon Stewart said on a Twitter space call, they’re betting on retail to get impatient and throw in the towel.
But ‘apes’ are far from throwing in the towel.
AMC just released their Q4 earnings call, and it came as no surprise that over 90% of retail investors now own the float.
Previously only 80% of retail owned it so we’re seeing that more investors are buying and holding AMC stock in efforts to squeeze shorts from their positions.
By raising awareness of the problems retail is facing, ‘apes’ have been able to attract more high-profile figures to join the fight for a fair market.
This new wave of retail investors did not come this far to only come this far.
The ‘ape’ community continues to grow and be a beacon for change.
What do you think can be done?
While I don’t necessarily think investing in the stock market in general is a complete gamble, AMC and GameStop are unique plays.
That’s because they are highly potential short squeeze trades.
While 65% of you so far say you will not invest in the stock market again after AMC squeezes, there are a variety of ways to invest in the stock market that many have not been exposed to.
Long term, safe investments such as index funds, REITs, and dividend stock investing will still beat inflation.
But that doesn’t mean the problems in the markets should be ignored.
Especially in incredible trades such as AMC and GameStop.
In your eyes, what do you think can be done to set the proper system in place?
Knowing what you know now, where does one start to begin manifesting change for a fair market?
Leave your thoughts below.
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Related: 95% of retail orders don’t go through lit exchange
I gathered from the GG/JS interview that we need let the companies we invest in know that we don’t want them trading on certain exchanges or well stop investing in them. Blockchain is therefore the likely solution.
Corruption is so deep and done by so many powerful, rich people/organizations (HFs and banks that control politicians) that I think retail should get out completely and let these guys steal from each other. It is controlled by most powerful criminal organizations in the history of the world. The head of SEC wants to rely on whistleblowers where it is clear as a day with substantial proof that HF and market makers with support from banks are manipulating the stock market and stealing from everyday average people.
He talks about whistleblowers. Well, there were more than one calls to the SEC about Bernie Madoff for about 10 years before he was finally exposed. So for 10 or so years, he kept getting away with it while nothing was investigated. What a joke.
The answer is to start a new market and leave the uncertainty of the current stock exchange behind. Plant the seed.
Why can’t we get Harry Markopolos, the best forensic accounting and financial fraud investigator, to go after the law breakers?
No, I don’t think a whistleblower program would be helpful very much. Nothing good ever befalls whistleblowers.There are more examples than I care to remember.
Why no comments on DRS (Direct Registering Shares) via ComputerShare? This takes shares out of the DTCC where they are being used to short and do other financial trickery. GME apes locking the float might be the key to finally trigger the big squeeze.
Let’s start a discussion!