Carney: Hysteria Grips Establishment over GameStop Trading
29 Jan 2021
One of the strangest things about the GameStop saga this week is how the mainstream media and prominent financiers have reacted, often with something bordering on panic.
Chris Cilliza, CNN Editor-at-large, said “Trumpism explains the GameStop stock surge.”
What’s the end game for the GameStop surgers? Like, now that they have proven the point that they can take a stock that the pros have declared moribund and revive it at least for a moment what do they do now? Because they don’t really believe that GameStop is suddenly the new Amazon or Apple or Google. It’s still mostly a business that derives its value from brick and mortar stores in malls. Which, again, is not exactly a big growth area in the coming years.
loss of at least $2 billion from a failed hedging strategy and that number could grow. we ll have to keep our eye on it. jamie dimon apologized on a conference call with analysts about that trade last might. in hindsight, bad strategy, bad execution, obviously the environment. these are mark to market positions. i don t want to make excuses and start talking about market and dislocation stuff because that s just an excuse. dimon has been a vocal critic of the volcker rule. we spoke to him in davos and he said you you need a psychiatrist to figure out what the sbents of the sbents of the trades are. here s what he said last night. we do believe you need on have the ability to hedge and that volcker allows that. this trading violates the dimon principle. and jamie dimon conceded that those losses were linked to a wall street journal report last month about a trader that had been nicknamed the london whale. the trader amassed an outsized position which hedge funds bet