Now They’re Scared: “The Fed warns of social media ‘echo chambers’ that pump up meme stocks.”
July 29, 2024
“…“To date, the broad financial stability implications of changes in retail equity investor characteristics and behaviors have been limited,” the Fed said. The central bank specifically assessed what happened to shares of AMC Entertainment and GameStop in January, noting that activity and volatility in those stocks came alongside high activity on Twitter.
While the report concluded that “recent episodes of meme stock volatility did not leave a lasting imprint on broader markets,” the Fed said a few trends “should be monitored.”…
The Fed also warned that “episodes of heightened risk appetite may continue to evolve with the interaction between social media and retail investors and may be difficult to predict,” and that financial firms may not have calibrated their risk-management systems to reflect the volatility and losses that meme stock episodes might trigger…”
https://www.nytimes.com/2021/11/08/business/fed-meme-stocks-social-media-volatility.html
We have them ladies and gentlemen! This topic wouldn’t have came up if it wasn’t a problem. They wouldn’t be “monitoring” the situation if it wasn’t a problem. Best case scenario for the Fed is Meme stocks are not a problem currently but **will be** if retail investors keep buying and holding shares. In my opinion this is more evidence leading towards a stock squeeze. It’s going to be so big that even the Federal Reserve is concerned. The only question is what will the trigger be? My guess is the stock market crash due to commercial real estate collapse. That’s at the absolute latest. Remember everyone. I was the 1st person to say this.
Hopefully the squeeze comes sooner but with all the criminality in the stock market via Governments around the world, including the US, passively facilitating the fraud, the squeeze is being delayed. In my opinion this stock squeeze is historic. Either the “powers that be” step in and remove corruption or the market will remove bad actors by force.
The squeeze is coming. It can’t be stopped and there’s nothing the Federal Reserve or the U.S. Government can do about it.
Let me add this: This is not financial advice. The government uses that excuse to rob people. If giving advice has so much power then why don’t the SEC take my advice and give me 10 billion dollars? [Without consequences of course] Financial advice is akin to some godlike power that manipulates people correct? Where’s my money SEC? I’m waiting. Everyone needs to realize how evil these people are. They will use ANY excuse to steal everything you own.