Hello! The Gamestop story was such a huge rant this week that I've split Brainfood in two. Tomorrow will be all your regular 4 fintech’s, things to know, and good reads but today I wanted to deep dive into Gamestop, economic populism, and how neoliberal economic policy has a lot to answer for.
Just to play devils advocate RE: your take on it being market manipulation. What's the difference between a Wall St. analyst publishing a price target indicating a stock being undervalued vs. a group of redditors posting "lol we like the stock so diamond hands"? I'm personally not convinced that it was 100% market manipulation, especially since the hedge funds had access to the same information being blasted all over reddit but chose not to take them seriously. It would be one thing if redditors were having secret meetings colluding.
I was originally tempted to call it your average "pump and dump," but can it be a pump and dump if the narrative is "buy and hold"? Afterall, we saw most of the selling as a reaction to the trading platforms' restricting trades and people panicking from that.
Just to play devils advocate RE: your take on it being market manipulation. What's the difference between a Wall St. analyst publishing a price target indicating a stock being undervalued vs. a group of redditors posting "lol we like the stock so diamond hands"? I'm personally not convinced that it was 100% market manipulation, especially since the hedge funds had access to the same information being blasted all over reddit but chose not to take them seriously. It would be one thing if redditors were having secret meetings colluding.
I was originally tempted to call it your average "pump and dump," but can it be a pump and dump if the narrative is "buy and hold"? Afterall, we saw most of the selling as a reaction to the trading platforms' restricting trades and people panicking from that.