The GameStop bubble driven by Reddit users revealed how arbitrary and ridiculous the stock market really is, asserts Doug Henwood of Jacobin Magazine. For decades it has been manipulated by businesses and the wealthy to enrich themselves even further. In the past 20 years, the biggest corporations have put around 20% of business investment into stock buybacks, which almost exclusively benefit shareholders and CEOs. Reddit pulled back the curtain, revealing a broken system that only works to make the rich wealthier while excluding everyone else.
The Reddit users that collectively supercharged the value of GameStop shares to undermine a hedge fund are wrongly celebrated, believes Jeremy C. Owens of Market Watch. The people leading this movement are likely seasoned investors with plenty of money to spare. However, they are misleading many small traders to go with a highly risky stock that is certain to crash. Financially literate individuals who know what they are doing will get out before that. Everyone else, including many that are investing their savings, are bound to get their fingers burned.