Jordan Belfort, the former stockbroker whose 2007 memoir ‘The Wolf of Wall Street’ became the basis for the hit 2013 film with Leonardo DiCaprio, praised the ‘brilliant’ uprising of retail investors last week in a Monday appearance in ‘Tucker Carlson Tonight’.
The share price of video game retailer GameStop rose dramatically last week after a group of Reddit users banded together to buy up the struggling retailer’s call options – hurting the market’s short sellers.
“I believe this is currently a paradigm shift,” Belfort, who spent 22 months in jail after pleading guilty to charges of security fraud and money laundering, told host Tucker Carlson.
“The little guy is finally equipped, information travels now immediately, it used to be just the big guys, they paid the analysts … so now the guy finally has the ability to play the same game, at least somewhat,” Belfort said. said. explain. “And there’s going to be a radical change, it’s not going to be the same.”
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Belfort says short sellers are investors who speculate that the price of a stock or value will fall in value. Their strategy involves borrowing shares to sell them with the hope of buying them back at a lower price in the future.
“My hat is for them … it’s brilliant what they did.”
“There are hedge funds that will shrink and sell a stock literally to zero without being busy. They’re trying to spread negative news, investigations, and that’s what’s seen with GameStop,” Belfort said.
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“I think everyone knows there’s something wrong in the pit of their stomach. You can silence people, you can deploy people … and get away with it. Everyone knows – Republican or Democrat – there’s something wrong. That’s why both sides of the corridor unites on this one thing, ‘he continued.
Belfort praised young investors ‘angry as hell’ who were “sick and tired of bumping through Wall Street, which they have been forever.”
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“By the way, my hat is off them,” he told Carlson. “It’s brilliant what they did. They found a real inefficiency in the market and a gap where something was dramatically too short and that they could actually get enough purchasing power. They finally have ammunition now to fight back.
“The danger,” he warned, “is that it will end badly for these stocks and I hope people do not lose money in the process.”