Thursday, January 28, 2021

Game stop 2: What are stock markets for? — Peter Radford

The sudden attention being given to the gyrations of Game Stop stock prices has caused all sorts of hand wringing within the hallowed walls of high finance. In typical fashion the people who like to carry on their trading and associated activities beyond the public gaze are all a twitter because a bunch of apparently crazy outsiders are not adhering to the sedate rules of the game. This produces truly odd results. Normally virulently anti-government voices are suddenly calling for SEC investigations and even regulation to prevent outsiders spoiling things. Some are swooning over the event as a demonstration of the awful greed and selfishness that has overtaken even average Americans — rather than just Wall Street denizens.

How dare average people become as greedy as Wall Street bankers! The horror of it all. Whatever next?
Another clown show.

Real-World Economics Review Blog
Game stop 2: What are stock markets for?
Peter Radford

See also

Michael Roberts Blog — blogging from a marxist economist
Stop the game – I want to get off!
Michael Roberts

It gets even better (weirder) if that is possible.

Sputnik International
Twitter Giggles as Analysts Quickly Assume 'Foreign Powers' Are Behind the GameStop Short Squeeze
Sputnik News


Peter Pan said...

Radford nails it.

Ryan Harris said...

By looking at the House financial services committee dockets, the entire finance industry can do what they want so long as they meet racial quotas. If they had enforced naked shorting rules, the WSB fellas wouldn't have to. It is exactly because the rules are bent for coastal elites that lowly plebes could pull off this latest coup d'etat.