Moral Hazard in Action in 2021

The GameStop phenomenon opens our eyes to moral hazard’s true effect

Hisham Foad https://prezi.com/lywon_erpgid/spring-2019_econ-4039-moral-hazard/

In January 2021 we saw an amazing phenomenon when people on Reddit banded together to buy up stocks for companies that were being shorted by hedge funds.¹ Hedge funds were shorting the GameStop stock by 140%, meaning they shorted more shares of stock than even existed for the company. They all…

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Write about politics, religion, economics, & finance. If you like most Medium articles you probably won’t like what I say. https://compiled.social/bryanwithawhy

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Bryan With a Why

Bryan With a Why

Write about politics, religion, economics, & finance. If you like most Medium articles you probably won’t like what I say. https://compiled.social/bryanwithawhy

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