Comments by "Scott Franco" (@scottfranco1962) on "GAMESTOP DRAMA, EXPLAINED (with Pokémon cards)" video.

  1. Its a good overview. Just a couple of comments: 1. The very act of having the shorts buy back stock at a higher price makes the stock move upward as well, increasing the damage for shorts who don't sell. This produces panic to sell. Its balanced by the belief that the stock will peak and head back down, meaning some short will hold on to the stock. 2. Robinhood's trading stop didn't really work. Other brokers still traded the stock. 3. Stocks aren't just up to whim for value. Eventually, a stock price will return to fundamentals. The company either can or cannot actually produce a profit. Certainly people can get tulipmania, but eventually it crashes and there is a reckoning. In fact, betting that a bubble in a stock is happening and betting against it can be quite profitable.
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