Thread by @LongShortTrader

“Casino-like swings in stock prices of GameStop reflect wild levels of speculation that don’t help GameStop’s workers or customers and could lead to market instability.”

The inconvenient truth is that should GameStop issue capital, this false as it would help workers + customers

https://twitter.com/SenWarren/status/1355187260514250754

And actually, my assessment was way too conservative: actually, the skyrocketing stock price has given the business free publicity, which benefits the company, its employees, and customers. I think the $30 billion question is why the company hasn’t issued equity yet.

https://twitter.com/ldncalling/status/1355457398220214276

So as counterintuitive as it may seem, the massive losses for short sellers has benefited the company, and may permanently alter its trajectory in a manner that benefits employees and customers. We shall see.

Exactly. $AMC is a parallel example and proof of what I’m saying. Elizabeth Warren couldn’t be more wrong. These companies, employees, and customers are BENEFICIARIES of these short squeezes. The biggest and likely only victims are short sellers. Maybe they should bail out shorts

https://twitter.com/LDNCalling/status/1355459777762119681

What scares me is that this is real world microeconomics, and an example of equity price as currency for corporates. If these politicians don’t understand this, lord have mercy on us because I’m concerned they don’t understand macroeconomics, e.g. fiscal + monetary policy.

Actually let me qualify that: forget the politicians, it scares me more that many market participants don’t understand these dynamics either. Some actually think that it would be dilutive of gme to issue equity... 🤷‍♂️

The authorities have no choice but to look into this case. I don’t blame them, It’s a matter of public interest. I pray that they will be wise & seek sound counsel from those who understand these subjects truly + deeply well.

I don’t think any of us know how this will play out.