The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Markets: One month, two mobs

Mobilization of angry hordes is easy: those wishing to keep order are already being left behind.

binary-skull_960.jpg

What to make of the subreddit WallStreetBets? Surely this is capitalism in full flow, with all its positives and negatives? Tinker with its functioning at your peril, says the free marketeer.

There might have been grudging acceptance of bans on the short selling of financial stocks in the meltdown of 2008, but it is harder to see restrictions on buying the likes of GameStop in the same light.

First, dismiss the tempting notion that this is David versus Goliath. Democratization born of technology has changed the nature of markets, which until remarkably recently have remained the preserve of the few.

David, however, is the small saver that piles into the mob – only to be left high and dry when its instigators move on.

The facilitators of this dynamic are platforms

David is the investor in a pension fund, whose yield is trashed as the hedge funds liquidate the long positions that they held, and which are rather less talked about than their shorts.

The facilitators of this dynamic are platforms. The mob that invaded the US Capitol on January 6 organised itself in online venues such as Telegram.

Just

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree