Harrison Hong in the Washington Post
The GameStop stock situation isn’t about populism. It’s about whether the market is ‘real.’
Harrison Hong, the John R. Eckel, Jr. Professor of Financial Economics and Executive Director of the Program for Economic Research, was quoted in the Washington Post.
Do you think value in the market is merely socially constructed or an efficient, working system that follows certain rules and trends?
Last week, my younger sister, who is still in high school, texted me. “how can i buy stocks i wanna be rich,” she wrote. She hoped to buy stock in GameStop and AMC, as well as the cryptocurrency Dogecoin...
... “Unless they thought there was obvious malfeasance, or they thought that something really bad was going to happen, then you can justify it,” said Harrison Hong, professor of financial economics at Columbia. “When you put on that big of a trade, you have to pretty much expect on the short seller side that news is imminent. … The stock is finished.”