The Stock market, no matter which country you observe it in, is one of the most corrupt entities on planet earth. Through time immemorial, people have shared stories of being robbed blindly of all the money they were worth by dealing with the crooks of Wall Street. It’s become so common to be robbed by big investment bankers that this concept has been propagated through American pop culture, like the movie, “The Big Short”, which covers the 2007 – 2008 economic collapse. Though no one has specifically been blamed on wall street there is plenty of evidence which suggests that the event was triggered by actions which occurred on wall street, by Wall Street bankers. This economic collapse was so bad that nearly 9 million people lost their jobs and nearly 10 million Americans got removed from their homes in 2008. Those Americans were members of homes with bills to pay and people to take care of. The lack of ability to sustain themselves was horrifying because it was created by greed and corruption which has yet to cease in the United States. In fact, one could even argue that it’s only gotten worse.
Another phenomenal example of the greed and corruption which Wall Street is responsible for spreading is the manipulation of stocks and their prices so people lose money when they invest. Everywhere you look, there is evidence of this all across the stock market. This is done through naked short selling done by large investment firms. In simple terms, stock prices are artificially manipulated by overwhelming amounts of shares which don’t actually exist, from hedge funds; causing people to lose money from daily price fluctuations that are made artificially by those large banks. Such as with Tesla Stock, which is one of the most heavily shorted stocks with 9.5 billion dollars in short interest. Most recently, one such stock that gained the attention of Americans from across the country was GameStop, also known as GME. This stock was heavily shorted by large investment firms on Wall Street such as Melvin Capital and Citadel LLC, which are big investment banks.
These banks typically borrow shares that don’t exist in order to commit to positions when short selling. In doing so, this artificially lowers the price of the company and makes it’s stock worth less than it should be. In order to expose this corruption a group of stock traders from a subreddit known as /r/WallStreetBets placed so many buy orders on the stock that it manipulated the price higher rather than lower, which is the objective of the investment banks. This action caused the GameStop stock to increase by roughly 12,500% or to approximately 347 dollars from its original price of less than 20 dollars in the year 2020. This not only made common investors very wealthy, but it also exposed more corruption behind Wall Street, which is that they artificially keep stocks at lower prices than they should through naked shorting. It’s illegal and should be more heavily regulated to keep the market fair.
The corrupt dealings on WallStreet are such that they allow “Too Big To Fail” banks the ability to get away with robbing people of their money through manipulation of the market. Perhaps the easiest way to fix market manipulation is to crack down on naked shorting which manipulates the values of companies on the stock market and therefore causes investors to lose money. Another big issue that needs correction is the lack of laws surrounding Wall Street activities regarding how stock prices are regulated. The GME short squeeze proves that people on wall street should go to jail because of their corrupt activities, but so far no one has been arrested. In order to create a more fair market, these Wall Street tyrants must be punished for their slimy actions.