game stop deja vu January 28, 2021
Posted by Bradley in : financial regulation , add a commentFascinating to read the coverage of the clash between short sellers and others over GameStop, and the calls for regulators to address the issue of divergence between the performance of stock markets and the real economy.I have my first International Finance class today and (though this story is essentially, at least on the surface) an American story, I am going to spend some time on this story. The idea that market participants want to push, that what they are doing is legitimate trading, and what the redditers are doing is inappropriate gambling/trading for entertainment is not new. About 20 years ago I wrote about similar discussions prompted by the rise of day traders: Disorderly Conduct: Day Traders and the Ideology of “Fair and Orderly Markets,” 26 J. Corp. L 63 (2000).