The Real Risk of the Gamestop Short Squeeze February 1, 2021
The Real Risk of the GameStop Short Squeeze February 1, 2021 The past two weeks have seen an astonishing number of allegations about the motives of the main actors in the GameStop drama. The players include the Wall Street Bets forum on Reddit, the Robinhood trading app, long-short hedge funds, politicians, and regulators, to name a few. However, to equate this event with the other issues facing our country – the pandemic, social unrest, economic despair and political discord – is a false “. the hypocrisy of the political equivalency. It is an attempt to right one injustice with another. In short, leaders who say you can’t open your it is a canard – a decoy to lure attention from the real risk of the GameStop business and run your business and short squeeze and the accompanying spike in other, heavily-shorted stocks. make a living in the pandemic. We won’t pass a stimulus bill on time. And oh, by the way, now you can’t An Issue Bigger than Sound Bites trade.” - Tyler Winklevoss, CNBC, That risk is the threat posed to the orderly functioning of the financial January 28, 2021 markets. The United States, and the world generally, have benefited for centuries from the discipline of properly regulated and executed rules of Robinhood, meanwhile, is “saying, financial exchange. Companies have been able to raise capital to seed new ‘Hey, hedge funds are gettin’ smoked, business ideas and expansion opportunities. Savers have been able to invest billionaires are getting smoked, so in these companies, knowing there are stringent rules for how their capital we’re no longer gonna let you trade on will be treated.
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