Someone that knows a thing or two about how to commit financial crimes to make obscene amounts of money has an opinion on the GameStop and AMC stock manipulation fueled by people on Reddit. Jordan Belfort, the “Wolf of Wall Street” himself believes the investors from Reddit that are jumping on board late as the stock prices reach stratospheric heights are playing with fire.
Belfort also feels things have gotten to the point where he believes some sort of illegal activity is going on, but it would be very hard for the SEC or judiciary department to prove it. “If you could prove that they are actually colluding together, then that would be illegal. The problem is it is sort of this loose collision where one person says ‘Let’s stick together and stay strong.’ And theoretically, that’s illegal,” he told CNN Business. “But I doubt that the [U.S. Securities and Exchange Commission] would try to make a case out of something like that.”
Belfort worked on Wall Street and made millions in the 90’s as a stockbroker. He eventually was convicted and spent 22 months in prison for fraud and corruption. In 2013 Martin Scorsese made a movie on Belfort’s wild and meteoric rise, and dramatic crash, which starred Leonardo DiCaprio.
Belfort has been following the story closely, and told CNN Business that an average person could get rich through trading the stocks, but they also could easily lose everything too. “It’s truly a modified pump and dump because, at the end of the day, it will most certainly go back down because it’s not trading on any rational, fundamental value.
“Just remember, every time the market goes up, GameStop goes up, it’s going to be harder and harder to make that next move up because the market cap is just not sustainable. So, at a certain point, someone has to be crossing out the people who are selling and moving on to the next one,” he said.
No word on what Margot Robbie thinks about the whole GameStop and AMC trading situation.