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Fmr. SEC commissioner compares GameStop short squeeze to Capitol riot

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On Thursday a former commissioner at the U.S. Securities and Exchange Commission (SEC), while discussing the ongoing short squeeze involving GameStop, compared the situation to the deadly January 6 Capitol riot.

Former SEC Commissioner Laura Unger made the comparison while talking to CNBC on Thursday afternoon about the market volatility and short squeeze sparked by users on the Reddit community r/WallStreetBets. To briefly explain the complex situation, some users on the subreddit had encouraged other retail investors in the forum to purchase stock in GameStop—a failing video game retailer—through entities and calls, which caused its stock price to skyrocket and fluctuate dramatically within the span of more than a week.

MORE ON GAMESTOP, ROBINHOOD: Class-action suit filed against Robinhood app for blocking trading of GameStop, other stocks

“Everybody is scratching their heads about this: ‘What should happen? What is the right thing to do to control this or stop this?'” Unger said

She then said that the ongoing GameStop debacle is “[n]ot unlike what we saw on January 6 at the Capitol.”

“If you don’t have the police in there at the right time, things go a little crazy,” Unger continued.

Watch the full CNBC interview here.

“And that kind of feels like what’s happening with this,” she added but quickly walked back from her comparison, saying the Capitol riot was “much different, much lesser degree; it’s financial harm, not personal bodily harm.”

Though, Unger called the short squeeze of GameStop “the same kind of platform-created frenzy that people are operating under, and these are very trying times.”

Here, the former SEC commissioner is most likely referencing the litany of reports detailing how rioters utilized platforms such as Parler and Telegram to plan the violent storming of the U.S. Capitol.

Unger, a Republican, was appointed to the SEC as a commissioner by then-President Bill Clinton in 1997 and served until 2002, once briefly serving as the acting chair. Currently, Unger sits on the board of CIT Group, which she joined in 2010, according to her biography on CIT’s website.

MORE ON GAMESTOP, ROBINHOOD: ‘You almost had me murdered’: AOC doesn’t want Cruz to join bipartisan push to investigate Robinhood

You can follow Douglas Braff on Twitter @Douglas_P_Braff.

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Economy

Federal Reserve Economist on hidden camera: ‘we don’t want Trump to be in the government’

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Hidden Camera captures Principal Economist at the Federal Reserve talking about Jerome Powell’s legacy as “somebody who held the line against like, Trump.” According to hidden camera footage of Aurel Hizmo, principal economist at the Federal Reserve, the U.S. agency could have fixed inflation a while ago but refused to do so for fear of hurting President Joe Biden’s re-election efforts.

Hizmo told an undercover reporter that the Fed stopped raising the rates to tackle inflation because it could cause a recession that would likely end Biden’s 2024 campaign.

The influential agency responsible for maintaining a stable monetary system appears to not just be establishing interest rates, but to be setting policies for desired social outcomes. “Under Powell, the Fed has changed to think about equity issues, like racial issues, think about wealth inequality as part of the mandate, as part of the things we are following. Think about climate change.” Aurel Hizmo, Principal Economist at the Federal Reserve, who prior to working at the Fed was an Assistant Professor helps write speeches for Federal Reserve Board Chair Jerome Powell for the Federal Open Market Committee.

Hizmo says “Trump is just a crazy person” and conservatives are “dumb” as he describes to OMG’s American Swiper Citizen Journalist a politicized Federal Reserve Board where Powell has promoted ESG issues like climate change and “wants to be remembered in history” “as a savior.” But shhh…don’t tell anyone because Hizmo says: “I’m just really worried that I’m saying stuff that’s classified…It’s all classified.”

 

 

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