If you’ve watched Gamestop over the last few days, its stock price has gone up to absurd levels, over $300 a share from this morning, more than 1000% its price at the beginning of the week.
It’s because a bunch of gamers from Reddit/4Chan got together and decided to inflate the stock price, and gamers are damn good at playing a game.
Wall Street hedge funds were shorting the company, trying to milk its destruction on its way down as games increasingly move to a digital format from disks.
But this begs the question — why are these shortings and derivatives allowed? Why are huge multinational investment firms allowed to sink companies at the expense of American workers?
This is exactly the kind of behavior that caused the 2008 financial crisis which put so may households in ruin. And yet congress did NOTHING to change these things. In fact, one of the hedge funds involved in shorting gamestop was directly involved in the financial crisis. They’re still operating with billions of dollars of investments today.
How does that happen?
All of these systems are rigged against the people. It’s great that a few gamers decided to cause havoc. But we need an overhaul on a massive scale. Maybe a few more of these incidents, we can get the powers that be to act on non-sensical “investments” that should be illegal.