Wall Street is melting down over the GameStop saga

Short-selling has been placed on the map once again, but this time it’s exposed an interesting double-standard that exists in the free market on how investors “should behave” in the eyes of Wall Street titans. To provide context, for those unbeknown to the workings of the free market, this beloved tradition of hedge fund managers is when investors make money off stock prices falling. In a short sell, an investor borrows a security and sells it on the market with the intention to buy it back later for less money when it falls, as expected. Remember when Eggs flew as Panama Papers spark populist anger in the streets Capitalism faces a crisis of credibility as leaked documents show global rules are rigged for the rich and powerful. As you can imagine, a downturn is the perfect time to whet the appetites of these hungry hedge funders who profiteer from the decline in a company’s value. This practice got so out of hand in 2008 that it led to U.S. regulators (as well as Australian) to temporarily ban the short-selling of stocks out of fear it would exacerbate the market downturn by perpetuating a downward spiral in stock prices during the crisis.

Wall Street is melting down over the GameStop saga

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