by Doug Noland
Credit Bubble Bulletin
GameStop collapsed 80% this week, with Express and AMC Entertainment down 48%, Vaxart 36%, and Siebert Financial 31%. Riches have been made and lost. Wealth was redistributed – and count me skeptical that the flow was from professional speculators to retail traders.
February 1 – Bloomberg (Matthew Boesler): “Federal Reserve Bank of Minneapolis President Neel Kashkari… became the latest central bank official to push back against the idea that the trading frenzy in GameStop Corp. and other hot stocks calls for a monetary policy response. ‘GameStop has gotten a lot of attention. If one group of speculators wants to have a battle of wills with another group of speculators over an individual stock, God bless them,’ Kashkari said… ‘That’s for them to do, and if they make money, fine. And if they lose money, that’s on them… I’m not at all thinking about modifying my views on monetary policy because of speculators in these individual stocks.’”