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00:00There are any number of research notes Dennis Gartman likened this back to the build up of derivative and leveraged bets of LTC. And some will even go back to 19 0 7 and J.P. Morgan. You and I have both been in that hallowed room at the JP Morgan Museum on Madison Avenue. Cohen and Griffin of hedge fund fame have come in and build on a hedge fund. Short game stopped. It's wrong. Are we seeing history repeat itself. This is a repeat of what we saw in 1982 when the Northern Pacific Railroad was squeezed by a Cuban low. By and by Harriman by. I'm trying remember the name of the other fellow that was involved in that squeeze. But the stock went from forty to a thousand dollars a share. It came a that was when we had that great comment that was made. He who sells what isn't his own must buy it back or go to prison. And that's what's happened. We have the most amazing short squeeze going on. I lived through a short squeeze in wheat. I've seen short squeezes at the turn of the century. But this one is 1982 revisited. This is unbelievable. The public is making money but the problem lies in the fact that with as many hedge funds as being caught short and watching this morning why we traded three three hundred thirty five dollars 340 350 dollars a share in GameStop which was trading 60 dollars a share a mere week and a half ago. You're gonna have DAX selling in other areas and look what's going on. The Dow this morning. We got the Dow down 150 points because hedge funds that are caught short are having to sell other stocks to raise cash. This is very serious circumstance right. Dennis you and I remember the sweat of August of 1998 where all of a sudden it wasn't a parlor game of people with fancy suits and ties driving Ferrari's or Maseratis wanted. What this comes down to. Dennis is at some point it rolls back on to global Wall Street. Do you anticipate this here or can they keep this discreet to a few recalcitrant hedge funds. I think it's going to be. I think it has wider implications than a few recalcitrant recalcitrance. That part is easy for you to say. Recruit recalcitrant hedge funds. There's a number of stocks out there that are heavily shorted. We've got a lot of people talking about the fact that so many stocks are shorted. The public is coming in on Reddit. The public is coming in on Netflix and things like well not Netflix but coming in on other Internet. I'm lost for word right now because I'm caught up with what's happening. It's just astonishing to watch. But this has wider implications for them for the near. I think that this. I think you're gonna see a number of hedge funds and declare bankruptcy and the start next several days and given a new administration that has tendency to overregulate. We'll use this as a reason to overregulate Wall Street again.

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GameStop Rally to Push Some Hedge Funds to Bankruptcy: Gartman

Dennis Gartman, endowment fund chairman at The University of Akron and retired editor of The Gartman Letter, offers historical perspective on the GameStop Corp. rally and explains how it is impacting markets and hedge funds. He speaks with Bloomberg’s Tom Keene on “Bloomberg Surveillance.” (Source: Bloomberg)

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