On Thursday of last week, in the midst of the GameStop chaos, I put out the following Tweet.
There's a real case that none of the chaos of the past year, including the WSB stuff, the "insurrection", the riots this summer, wouldn't have happened - or happened as intensely - if the Fed stopped funneling $ to billionaires via QE and raised rates when it was supposed to— Quoth the Raven (@QTRResearch) January 29, 2021
My point was to bring attention to how Fed policy over the last couple decades is making volatility not only in the market worse, but also volatility amongst the country worse. The Tweet received an overwhelming response, with many people asking for further analysis of the GameStop situation and an explanation of exactly how I believe the Fed played a role in it.
And so, heading into the weekend, I put my thoughts down in a 15 minute video entitled "The Weighted Blanket Theory". The video offers:
- my take on who is at fault for the GameStop fiasco
- why short sellers do what they do
- my ideas on the implications for Wall Street
- questions about the ideologies backing the chaos, from both ends
- my thoughts on how clueless journalists and reporters are on the issue
- and how the Fed may have played a role
You can watch the relatively short 15 minute video here: