There’s everyday, run of the mill Washington, D.C. corruption, and then there is this story.
Obviously, the story of the week in the financial wars, and really across the globe, has been the effort by a group of Wall Street traders to take down major hedge funds on Wall Street who had short positions against Gamestop and other small stocks.
They succeeded, bringing several hedge funds to their knees, and costing them billions of dollars.
One of those hedge funds was Citadel.
Why does that matter?
Citadel may not be a name you’ve ever heard of before. They are one of those shady, behind the scenes Wall Street hedge funds that control billions of dollars in investment but have no public face. They’re waging the financial wars in secret.
But this week, they got pulled out into the open. And in the process, reporters broke the story that new Biden Administration Treasury Secretary Janet Yellen was paid over $800,000 by Citadel for various speaking engagements.
The former Fed member is now the first-ever female Treasury Secretary, but far from a trailblazer, she’s as “lifelong politician” as they come.
And now, it’s clear that she’s in the pocket of one of the biggest hedge funds at the center of this scandal, the hedge fund that may have asked Robinhood to throttle trading on these stocks earlier this week.
If politicians had any decency, and transparency, or cared about you or your money at all, Yelen would obviously recuse herself from any further involvement in this situation.
It’s clear that she has a vested interest in protecting Citadel and punishing anyone who threatens it.
But as of this writing, no such recusal has come forth.
You’re not alone…
This is a reminder that while you’re certainly not alone in the financial wars, it’s not Washington who has your back.
Washington is as much in the pocket of the Wall Street elite as anybody.
So it’s on you to find the tools and community you need to fight back. That’s what we’re here for.
But, this week was also a reminder of the incredible power of the retail trader (that’s us!)
A group of Reddit traders banded together and brought some of the biggest hedge funds to their knees, begging for mercy and relief from the government.
The story is incredible, relatively unprecedented, and a breath of fresh air in this difficult year.
Right now, we can’t predict the response from Washington.
How hard they will crack down on Wallstreetbets or on retail trading in general remains to be seen.
But you can be sure that we’ll be right here with you every step of the way keeping you up to date on the stories.
Semper bellamus: always fighting.