Investors and Wall Street professionals at odds with each other

The brawl between amateur investors and Wall Street professionals began with hedge funds and big corporations shortening the stock or betting on several small companies share prices falling.

That captivated people's attention on social media and in the wake of it, online campaigns led to the buying of the company's stock, with the aim of pushing up the price.

Companies like GameStop were shorted up by hedge funds, and were labelled as failing by big investors. However, the online movement caused a dramatic soar in prices with its stock trading between $112 and $480 a share, up from around $18 a share a few weeks earlier.

That's how some investors were also hoping to make a quick buck and others seeking to squeeze the hedge funds. The movement costs hedge funds and other big investors dearly, causing investment platforms such as Robin Hood, to put a ban on trading stock for GameStop, AMC, Blackberry limited, The Nokia Corporation, and several other companies, which resulted in shares falling by 50%.

GameStop Wall Street controversy

The brawl between amateur investors and Wall Street professionals began with hedge funds and big corporations shortening the stock or betting on several small companies’ fall of share prices.

This ignited protests outside the company's California headquarters and in the Manhattan banking district on Friday. Also groups of angry protesters gathered in front of the New York Stock Exchange and chanted: "I want my money, and I want it now." They were also holding up signs which read "Tax Wall Street and tax the rich."

The act of restricting stock trade sparked lawsuits and calls for investigations from lawmakers. Consequently, Robin Hood's co founder, Vlad Tenev, announced that the suspension of trading of the stocks will be lifted, though only a limited amount of shares could be traded under the company's supervision. He also rejected the notion that this act is in favour of the hedge funds.

Senator Warren: US stock market has become a 'playground for the billionaires'

Democratic Senator Elizabeth Warren has said that the US stock market has become a “playground for the billionaires.”

The war between amateur investors and Wall Street has caused mayhem in the US stock market with professional investors who are calling the stock movements being obviously disconnected from fundamentals.

So, how powerful are the big corporations, and can they restrict investors from buying shares to stop individuals acquiring a slice of the proverbial cake?

I think what we're seeing is people are extremely frustrated because a subgroup of people on Reddit has been able to game the system of Wall Street in their favour against billion dollar hedge fund managers, and they're finally seeing a clamouring for regulation all of a sudden on Wall Street now that it's the people at the top that are being affected.

For decades, ... the Wall Street fat cats have been able to profit off the misery of others, they've made billions, trillions of dollars, they've gotten bailouts, they've done speculative measures, they've profited off of the misery of others, yet nothing is happening.

Dakotah Lily, Author and Journalist

Regulators in the United States have warned that the situation is under their scrutiny, following a number of share-trading platforms suspension of trade in stocks of the GameStop company, as well as several other firms. One of the share trading platforms is Robin Hood, a company that's been accused of gamifying, share trades.

Robin Hood is also under fire for its decision to suspend trading and has sparked outrage among investors who accused the firm of working in favour of hedge funds and big Wall Street investors, who were losing millions of dollars to an army of novice traders.

The anger has now spread beyond the investment community with US politicians joining the backlash against Wall Street.

Racial inequality, poor health, the norm for African Americans

The COVID-19 pandemic which has disproportionately killed black Americans has drawn renewed attention to the persistent inequities in wealth between blacks and whites despite the economic prosperity of recent years.

Democratic Representative Alexandria Ocasio Cortez has called the restriction unacceptable calling for more details to be published on Robin Hood's decision. She also criticised suspending retail investors from purchasing stocks, while hedge funds are free to trade as they wish,

People are upset, people are upset they have been able to outsmart those on Wall Street, and turn a bigger profit for themselves. Some people were able to turn $30,000 into a million dollars, etc. They want to continue to be able to do that, and they see this as an attack on the free market.

Obviously the market has never been free, and it continues to be a game that's completely rigged. But then, the, I think the defining point is the fact that finally the free market was able, somehow, to be used to help those who are more at the bottom then more at the top, and obviously you have the free market intervening to prevent this from happening further.

Dakotah Lily, Author and Journalist

It seems that the online mania to steal from the rich and give to the poor has been betrayed by Robin Hood, who seems to be the real Sheriff of Nottingham in this case, however, the fury against control of the system of big corporations and hedge funds has left people with no choice but to unite, but could the army of novice investors win a battle against the Goliath of big corporations and hunt down the real wolves of Wall Street?

Powell warns US economic outlook still 'highly uncertain'

Federal Reserve Chairman Jerome Powell warns that the US’ economic outlook is still “highly uncertain.”

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk