GameStop Stops the Game
As the week unraveled, it became more and more clear that the GameStop story was not just about gambling day traders, but the systemic implications of the stock market’s structure and the expectations investors have of it. During the dotcom bubble twenty years ago, high-flying retail investors lost their shirts but most considered it just their bad luck because, in that way-back, markets were known to go down as well as up and most households with a bit of extra money put it in the bank, not in the stock market. Ultra-low rates of course now give such households no choice – money must go into the market or lose its value every moment it’s in a savings account.