Wall Street Bets is Occupy Wall Street Part II. Occupy Wall Street recognized back then in the wake of the 2008 financial crisis that the problems came down from Wall Street.
“That was a good observation,” said Max Keiser, host of the KeiserReport and Orange Pill Podcast. “People in the activist community were right to target Wall Street, but there was no way for them to get inside and affect change, whereas Wall Street Bets and the Reddit group were able to get inside the system. They were able to attack a hedge fund that was exposed with naked short sales.” They collectively swarmed the stock they had shorted, forcing a major short squeeze, explained Keiser.
“Melvin Capital, the hedge fund in question, had a multi-billion dollar margin call after that,” he said. “They had to get bailed out by Citadel.” Cital of course bailed them out with money that they received from the US taxpayer last year in the form of a bailout.
“WSB exposed a lot of ugly business going on in the hedge fund community and on Wall Street, with big players like Citadel, who has on their board people like Ben Bernanke, the former Fed Chairman.”
If you ask Keiser, he’ll tell you WSB is a populist uprising. The New York Times recently claimed that populism hadn’t really entered finance. Keiser doesn’t think that is entirely true. Bitcoin has been around since 2008.
“Stacy Herbert and I have been calling for a global insurrection against banker occupation now for almost twenty years,” he points out. He’s referring to the Crash JPMorgan Buy Silver campaign back in 2010. Before that, we founded in 2003 a project called KarmaBanque, which was tying activists to hedge funds.
“We’ve been talking about Bitcoin since 2011, primarily as a way to unseat the current fiat money system and to replace it with Bitcoin, which is the best money ever,” said Keiser. “That’s been a thread present throughout all of our work.”
Keiser sees everything as having come together in WSB. “You go back to Crash JPMorgan Buy Silver. We got the price of silver from $15 up to 50, which was the old Hunt Brothers high,” he said. “And then JP Morgan, who was short millions and millions of ounces at the time, were able to jawbone the regulator’s into changing laws around so they could expand their naked short position and do all kinds of things to get out of it.”
Keiser added: “There was some damage done to JPMorgan, and they did take a loss. Blythe masters, who was the architect of the whole thing, got fired. They suffered some minor damage. But, they became much bigger as a result, because every time there’s a crisis, Wall Street has that trick up their sleeve of causing a stock market crash.”
Despite WSB, Keiser says that over on Wall Street it’s just another day at the office. “If WSB becomes a real problem, they’re just going to cause a stock market crash,” he said. “And then they’ll hold the politicians hostage, who will print a lot of money.”
Keiser says WSB will take a lot of the blame from Wall Street as being evil. “Fill in the narrative there, there is plenty to pull from.”
Listen to GoldSilverBitcoin’s Podcast with Max Keiser today: