Meanwhile in an Abandoned Warehouse 052
The Gamestop Furore
February 5, 2021
The last few weeks have seen shares in Gamestop, a bricks and mortar games store that has seen declining sales over recent years, suddenly and dramatically increase in price. Initially puzzling, it quickly became clear that a sub-reddit had banded together to deliberately push the share price up in order to cause pain to professional investors who had begun to short the stock.
Sophie Hope and Owen Kelly discuss the way that this has unfolded to date, and its resemblance to the first economic bubble: the Dutch tulip mania of 1637. They ask whether this amounts to the empowerment of the ordinary person or an invitation to reckless stupidity.