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The Breakdown

'I Am Not a Cat': The GameStop Hearing Shows How Desperately a New Financial System Is Needed

The Breakdown

Blockworks

Investing, Business

4.8786 Ratings

🗓️ 20 February 2021

⏱️ 23 minutes

🧾️ Download transcript

Summary

This week, instead of our normal Weekly Recap, NLW digs into Thursday’s congressional hearings around GameStop, Robinhood and WallStreetBets.  He explores:  Why there was a significant focus on T+2 settlement  Bipartisan agreement on retail investors getting screwed, but different diagnoses on how to address Why Keith Gill, aka Roaring Kitty, aka DeepFuckingValue is a new American folk hero Ultimately, NLW argues that any congressional action needs to make it easier for retail investors to be full participants in the market, rather than further limiting their options. -- Earn up to 12% APY on Bitcoin, Ethereum, USD, EUR, GBP, Stablecoins & more. Get started at nexo.io -- Enjoying this content?   SUBSCRIBE to the Podcast Apple:  https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M=   Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW   The Breakdown is produced and distributed by CoinDesk.com

Transcript

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0:00.0

I'm happy to discuss with the committee my purchases of GameStop shares and my discussions

0:05.0

of their fair value on social media.

0:07.8

It is true that my investment in that company multiplied in value many times.

0:13.0

For that, I feel enormously fortunate.

0:16.0

I also believe the current price of the shares demonstrates that I've been right about

0:20.0

the company. A few things I am I've been right about the company.

0:28.1

A few things I am not. I'm not a cat. I am not an institutional investor, nor am I a hedge fund.

0:33.9

I'm just an individual whose investment in GameStop and posts on social media were based upon my own research and analysis. When I wrote and spoke about GameStop and social media

0:38.9

with other individual investors,

0:40.8

our conversations were no different from people in a bar

0:43.9

or in a golf course or at home talking or arguing about a stock.

0:48.5

Hedge funds and other Wall Street firms

0:50.2

have teams of analysts working together

0:52.4

to compile research and analyze shares of companies.

0:56.1

Individual investors do not have those resources. Social media platforms like Reddit,

1:01.5

YouTube, and Twitter are leveling the playing field. The idea that I use social media to promote

1:07.4

game stock to unwitting investors and influence the market is preposterous.

1:12.8

When the stock price broke $20 in December, I knew my investment was a success.

1:18.1

I was so happy to visit my family in Brockton for the holidays. The money will go such a long way for us.

1:24.3

We had an incredibly difficult 2020. Most difficult was the tragic and unexpected loss of my sister, Sarah, in June. I am grateful to be in a position to give back to and support my family. As for what happened in January, others will have to explain it. It's alarming how little we know about the inner workings of the market. And I am thankful that this committee is examining what happened.

1:46.0

I also want to say that I support retail investors right to invest in what they want,

1:50.6

when they want.

...

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