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A comment on Statement of SEC Regarding Recent Market Volatility. Parent comment

Re:Statement of SEC Regarding Recent Market Volatility by sanderjd on Friday January 29, 2021 @02:21PM (#25961193)
What about my comment seems to say that it is WSB's fault? I didn't comment on whose fault it is and I don't care, I just think pretty much everyone is acting like the only two parties involved are WSB memers and hedge funds. And maybe that was true for awhile. But it isn't now, there are lots of unsophisticated people who have bought into the frenzy and in a few months all the stories will be about how those people got screwed. Meanwhile, both the WSB folks and the hedge funds will be doing just fine.
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Re:Statement of SEC Regarding Recent Market Volatility by khawkins on Friday January 29, 2021 @04:52PM (#25963148)
Nobody cares about the people who are "unsophistocated people who have bought into the frenzy", especially if they get screwed. Further, they shouldn't care about them because anyone who doesn't understand what's going on deserves to get whatever happens to them. Stock trading is high risk, high reward, and that should be clear to everyone.

The problem is that hedge funds constantly benefit from a much lower risk due to market structures designed to stabilize the market. Many of the WSB people are willing to risk a big large loss in order to reveal this flaw of the system. Many of them will not be fine, and, if they're successful, some hedge funds will be bankrupt and all of them will be scared moving forward.

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Re:Statement of SEC Regarding Recent Market Volatility by sanderjd on Saturday January 30, 2021 @03:48AM (#25967432)
> Nobody cares about the people who are "unsophistocated people who have bought into the frenzy", especially if they get screwed.

This is in fact exactly who most people care about, in this situation. It may not be who the extremely-online people that this board is mostly comprised of care about, but they are not most people.

> Further, they shouldn't care about them because anyone who doesn't understand what's going on deserves to get whatever happens to them.

This is directly at odds with how markets are regulated, because there is a long history of this thinking leading to widespread scams and cons.

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