The Great GameStop uprising. And why it didn’t change anything.
The GameStop story is a lesson that should be taken to heart. It is not an inspirational story, but a cautionary tale. The brave army of Reddit investors took on the big hedge funds and won. Yey! The little guy carried the day! But this is no cause for celebration because, fundamentally, nothing changed. That is not to say I agree with the practice of short selling. On the contrary, there is no economic basis for making a gain by betting on the failure of others. On the other hand, there is also no economic basis for artificially raising the stock…