The Urban Legend that is GameStop

Chris takes a critical look at the GameStop trading frenzy and the myths surrounding it. While a few traders like "Roaring Kitty" made headlines and even inspired a movie, Markowski argues that the vast majority of participants lost big in what amounted to a pump-and-dump scheme. He warns against the dangers of gambling disguised as investing and emphasizes the importance of understanding the risks involved. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
The urban legend that is Game Stop. I was trying
to come up with an urban legend that could go
along with this, Chuba Cabra, the Jersey Devil. Honestly, quite frankly,
those stories are more believable than the narrative that is

(00:37):
out there that all sorts of youngsters out there made
of fortune, made a fortune trading Game Stop. Yeah, they
took on the Wall Street hedge funds and they won. Yeah,
a couple did no doubt about that, Roaring Kiddy did. Oh,

(01:00):
they ain't made a movie about it. For crying out loud.
Ninety nine percent of the people driving this stock up
to ridiculous levels. Basically one big fat pump and dump
lost and lost big time. Anyway, latest news at a

(01:23):
Game Stop here, they're going to be shutting down stores
all across the country. They closed three hundred locations last year.
Their sales have fallen twenty percent, twenty percent. You try

(01:43):
to explain to me how this company is going to
return to volativity. But hey, I'm going to tell you
right now, it wouldn't surprise me. Wouldn't surprise me, you know,
you know, Roaring Kitty or some of these others will
take take to the the idiot sphere out there and
tell people that they see value somewhere and pump the

(02:05):
thing up again, and then all the greater fools will
jump in and eventually lose their shirt. You know, It's
it's hard for me to get my arms around, quite frankly,
because people people lost a lot of money on this scan.
Oh I got diamond hands. I'm holding on, I'm holding

(02:26):
them up. I mean, honestly, I was begging people, okay,
but begging youngsters that got involved with this, that saw
their their returns jump through the roof lucky, I mean
lucky to get out, to get out. It's like it's

(02:47):
almost like you went to a casino. You went to
a casino, and you know what, You've never played it.
You never gambled your entire life, and you won, and
you won big. But rather than to take your money
off the table get the hell out of there, you
decide to go back in and keep going you're eventually

(03:11):
going to lose. This wasn't investing, This was gambling. And
I wish more people would get their arms around what
this is all about. This desire for everybody to get
rich quick. Guys, that's an urban legend in of itself.

(03:33):
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