Democracy has crossed over to nihilism and anarchy.
No, I am not talking about the storming of the Capitol, I am talking about the vicious nature of way too many of the champions of GameStop (GME) , the ones who truly believe in a paranoid style of investing: smash the tyranny of the hedge funds, or even mimic them, and you will win at this game.
First, the people who came in all at once and blitzed GameStop the other day weren't really about GameStop at all. They were about a "take back the market from the rich to those who deserve to be compensated because they've been ripped off all these years" line of thinking.
It's almost as if they are asking for reparations and they are going to get it through the jet propulsion of a stock that could go up tenfold or even more because of combustible combination of hedge fund shorts going up in flames and an insurgent on the board of the company, Ryan Cohen, who is cooking up something, something represented by an ice cream cone posting Thursday.
The big rally in GameStop hasn't happened, the insurrectionists claim, hasn't happened, they say, because the hedge funds are protected by a ragtag coalition that includes the government, other hedge funds, me, and those who would keep some of the more vociferous wallstreetbets crowd in their chains.
Twenty years ago I was a hedge fund manager. That's enough to brand me as a tool of the hedge funds. It doesn't matter that I am pro-Robinhood movement, versus, say, Charlie Munger, who was so rude and harsh against that that I was surprised it didn't seem like tongue in cheek. It wasn't.
It doesn't matter that I was an early champion of Robinhood long before most even heard of the thing. I, like anyone else who has done well in the market, got there and slammed the door against the working folk even if they pretend they are in favor of them. Many have said that I have to quit my job in order to demonstrate fealty to the movement.
So, let's take these arguments one at a time. When I quit the hedge fund I said I was done working for the rich -- which is surely what I was doing -- and I wanted to help those who weren't so they could get rich. I have done hundreds of shows, written seven books and have penned more than 30,000 articles about helping the not rich try to get rich. If that doesn't establish my bona fides, then nothing will.
Second, I have been in favor of GameStop going up, but I also want people to take some profits because you don't have a profit until you book it. Again, that is consistent with what I think is the right thing for the not rich to do to get rich. I do not think about how this could ruin the short squeeze. I think about how there are people who need my help to make money and I offer it.
Third, the threats have to stop. The notion that I speak to any hedge funds has to stop; I don't even in passing. I don't work for them and I don't want to work for them. I have had some teachers along the line who run their own money and I speak to them, but I have not taken a vow to scorn all who have made money in the market.
Finally, the playbook that these people are using has become a nihilist one, something right out of Lenin's treatise, "What Is to Be Done," and I don't bring the mass murderer up because I look like him.
So, here's what I think can happen. If these brigands can come up with another company besides GameStop, one that's simply a good company with good prospects -- and can we exclude Palantir (PLTR) -- and show how it can go up without the useful idiot hedge funds, then I am all ears. But right now the fight has descended into a nihilistic attempt to steal from the hedge funds to those who deserve it more and the battleground is some video game store that's not the playground of the hedge funds anymore. They are gone. It's the Capitol and the barricades simply don't hold up against the onslaught. But if they take the Capitol, they win in GameStop, is that the beginning? Or is that the end?