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> A lot of people are getting a 101 education on how the stock market really works and they are learning just how little it actually has to do with real value a
by AmericanChopper 6y ago
> A lot of people are getting a 101 education on how the stock market really works and they are learning just how little it actually has to do with real value and the economy.
I don’t see how you can draw this conclusion from these events. If this level of price volatility was commonly caused by market participants, then it would be such big news when it happens. They’re not common at all, they represent a small number of events where a small number of shares were traded overvalue for very short periods of time. Nobody is concerned that stocks are overvalued because short squeezes are just happening all the time. Squeezes are also short sellers getting punished for trying to profit off somebody else’s losses, which as far as I can tell most people think is very morally righteous. The only time they’re controversial is when intervention occurs to rescue the short seller.