In case anyone has not been following the news.....
GME is up 85x since August.
----------------------------------------------------------------------
from Bloomberg
A Treasury Department spokesperson declined to comment.
A retail-investor frenzy over the company has caused GameStop’s shares to soar in recent weeks, squeezing hedge funds with large short positions in the company.
Shares in the video-game retailer more than doubled as of 1 p.m. in New York, triggering at least two volatility halts as it at one notched its biggest-ever intraday advance. GameStop has surged eightfold in the past week, adding almost $20 billion to its market value.
GameStop’s meteoric rise has captivated Wall Street, as an army of small traders spurred on by Reddit message board posts have pushed the company’s stock price to unheard-of levels. Shares in the company began the year at just $19. Hedge funds who held short positions in GameStop, such as
, have closed out of them as the rally continued, suffering billions of dollars in losses.
While some commentators have cast the frenzy as a populist uprising against Wall Street institutions, others see a dangerous play that could eventually leave investors exposed to major losses. Some wondered if it was the result of purposeful market manipulation.
--------------------------------------------------------------------------
I think this has a National Security nexus:
1. If bunch of mofos on reddit can cause this much chaos, imagine what a wealthy sovereign fund can do.
2. As money moves into equity speculation is could create a opportunity cost as it sucks the oxygen out from tangible investments in greenfield CAPEX, such as labor and engineering.
3. When the dust settles, there could be a run for the exit as investor seek stable shore of China.
Thoughts?