A hedge fund manager who cried over a Democratic tax proposal – then voted for Joe Biden anyway – criticized Robinhood investors who buy GameStop shares as “losers”, spending government stimulus money to gamble on markets.
People “Sitting at home receiving your government checks, negotiating your shares” are the problem, said Leon Cooperman on Thursday.
In a long appearance at CNBC’s Quick money: break report, the CEO of Omega Advisors, based in New York, targeted small investors who bought shares in “More knowledgeable” short sellers had undervalued, blaming the Federal Reserve’s low interest rates and even government stimulus checks for coronavirus.
GameStop is overrated because there are “Speculators joking”, said Cooperman, who added that his hedge fund was not involved with the company in one way or another. Robinhood’s investment is a “Losers game,” he added, and the people involved “I have no idea what they are doing”.
For the past week, small investors have been using brokers like Robinhood to buy shares in GameStop and several other companies, having discovered that hedge funds had been “Openly” short selling them – borrowing more than 100% of the company’s shares to bet on their failure – to make a profit. As a result, hedge funds have suffered losses of more than $ 70 billion so far.
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Earlier in the day, Robinhood actually blocked new purchases of GameStop and several other stocks, leaving the option to sell them open – triggering a class action lawsuit in New York accusing the broker of “Manipulating” the market.
Later in the program, Cooperman complained about the market conditions that led to this situation, denouncing calls by Democrats in power for the rich to pay a “Fair share” in taxes.
“I hate that expression with passion!” Cooperman said. “What does fair sharing mean?” He said he was willing to accept a 50 percent marginal tax rate, but in places like California, Connecticut, New Jersey and New York “You are past that.”
This lot is a shit concept! It is just a way to attack rich people.
Listening to angry New York hedge fund billionaire Leon Cooperman on CNBC lamenting people “sitting at home getting their government checks, trading their shares”. attacking rich people. ” pic.twitter.com/zFW6o1MFND
– Jake Offenhartz (@jangelooff) January 28, 2021
Cooperman wept at another CNBC presentation in 2019 when he objected to Senator Elizabeth Warren’s (D-Massachusetts) wealth tax as part of his primary presidential candidacy. Senator Bernie Sanders (I-Vermont) even introduced the segment in a campaign ad, which he called Cooperman “Sad billionaire” does not want to pay more taxes.
Ironically, in the same appearance Cooperman denounced President Donald Trump for not being “presidential” even while praising his economic policies. On Thursday, he revealed that he voted for Democrat Joe Biden, whose government is now contemplating a Warren-style tax plan.
Despite all the talk about defending the little one against billionaires and bankers, Sanders and Warren approved Biden’s appointment as former Fed chairman Janet Yellen to head the Treasury. Yellen had pocketed more than $ 800,000 in lecture fees from Citadel, the same hedge fund that may have influenced his client – broker Robinhood – to stop buying GameStop shares on Thursday to stem losses from the fund. hedge.
Janet Yellen received $ 810,000 in lecture fees in 2019 and 2020 from Citadel, the hedge fund involved in the GameStop saga. Citadel spent $ 240,000 a year lobbying Congress and the Treasury Department. https://t.co/nf5gHJ18o3
– Chuck Ross (@ChuckRossDC) January 28, 2021
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