Sometimes people encounter such events and incidents that make them think about the fictional world of movies. The recently released movie, Dumb Money, is a tale that is anything but ordinary.
In the enchanting world of Hollywood, where dreams are whirled into reality, and celluloid heroes reign supreme, one question lingers: Is “Dumb Money,” the blockbuster sensation, truly based on a true story?
So, grab your popcorn and your magnifying glass because we’re about to venture on a truth-seeking mission. We will discover the truth about the movie’s inspiration. Is it imagination or reality? Let’s find out.
Released on September 15, 2023, the directorial masterpiece, “Dumb Money,” is earning seemingly positive ratings and responses from viewers around the world. But the movie has its roots connected to the reality of the Reddit GameStop incident in 2021. The incident is connected to a group of rag-tag investors coming together on the Reddit platform, r/WallStreetBets. These investors worked jointly to enact a financial coup against at least two hedge funds that had a bet on the deterioration of GameStop’s stock.
What Is the Plot of the “Dumb Money” Movie?
Dumb Money was released on September 15, 2023, under the distribution of Sony Pictures Releasing in the United States. The global release of the movie is scheduled for September 29, 2023.
The picture is an American biographical comedy-drama film which is directed by Craig Gillespie. Lauren Schuker Blum and Rebecca Angelo worked on the screenplay section, while the inspiration is taken from Ben Mezrich’s 2021 book, “The Antisocial Network.”
The film offers a compelling narrative of the remarkable GameStop short squeeze that took place in January 2021. The star cast of the movie includes Paul Dano, Pete Davidson, Vincent D’Onofrio, America Ferrera, Nick Offerman, Anthony Ramos, Sebastian Stan, Shailene Woodley, and Seth Rogen.
The picture starts with Keith Gill, who is also known as Roaring Kitty, a relatively obscure figure in the world of Reddit’s wallstreetbets community. His rise to fame started when he produced a short squeeze against GameStop. This one move was enough to shake the financial world.
These major hedge funds will lead his journey towards profit from the misfortune of companies by basically betting on their failure. This one step can lead to job losses and financial turmoil.
However, Gill somehow persuaded all his followers to buy GameStop stock, resulting in its value skyrocketing far beyond its initial low cost. As a result, Gill became a multi-millionaire but only on paper and still holding the stock. The sudden change sends shockwaves through the billionaire ranks around the world.
The chaos further intensified, leading to a controversial collaboration between the trading platform Robinhood and a hedge fund owner. It also affected the trading stock of GameStop and even triggered a series of Congressional investigations.
Prominent figures in the investment industry were left wondering how the ‘dumb money’ could have delivered such a massive blow to the financial elite, costing them billions in the process.
Is Dumb Money Based on a True Story?
There are so many movies influenced by any true life event, such as “50 First Dates”. In the series of such movies, “Dumb Money” is the new name. It is based on the real-life ‘Reddit GameStop’ incident of 2021, which involved GameStop (GME) and the surge in its stock price.
In January 2021, a group of investors from Reddit’s r/WallStreetBets community coordinated and bought GME’s stocks. While GME’s stock drove up to 600%, the other firms that bet on GME’s stock faced a massive loss. The event showcased the capacity of social media and retail investors. This further influenced the finance landscape to reshape and promote reform debates.
Those who watched the movie and were unaware of the background found themselves surprised by the reality check. Indeed, such events do seem like scenes straight out of a fictional flick!
What are your thoughts on such massive ploys in the financial world? Let us know in the comments section.
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