The biggest lesson of GameStop

An economy based on asset inflation is not a stable one

A GameStop store in New York City. The GameStop story has unnerved people, reminding Americans how incredibly dependent they are on markets that can be very, very volatile.
A GameStop store in New York City. The GameStop story has unnerved people, reminding Americans how incredibly dependent they are on markets that can be very, very volatile. PHOTO: REUTERS
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Much has been written about whether the GameStop trading fiasco is the result of illegal flash mobs or righteous retail investors storming a rigged financial system.

Robinhood's decision to block its retail customers from purchasing the stock while hedge funds continued trading elsewhere has turned the event into a David and Goliath story.

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A version of this article appeared in the print edition of The Straits Times on February 09, 2021, with the headline The biggest lesson of GameStop. Subscribe