Edited and Curated by ZYTrade
Gary Gensler thought he had all the answers when he took the helm at the Securities and Exchange Commission this spring….
Then the meme-stock frenzy came roaring back, and Gensler was reminded that being the sheriff of Wall Street means you get held accountable when bad stuff happens on your watch.
These money-losing stocks went bonkers in January, fell back to earth and then soared recently thanks to hordes of retail investors once again plowing whatever savings they had into some of the most speculative companies in the market….
But the madness of crowds only lasts until something changes the sentiment, making investors suddenly suspicious of hype. People start selling stuff. The smart money gets out first, while the average investor is usually left holding the bag.
That’s when the pitchforks come out and public starts looking for scapegoats….Here is an easy way for Gensler to avoid being the next market scapegoat: He should pick up the phone and call Fed Chair Jerome Powell.
Then Gensler can alert Powell that printing money always leads to speculative bubbles and investor losses. If Powell normalizes now, the meme bubble might burst on its own – before people mortgage their houses to buy more AMC.
Original post on New York Post
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