Internet prank or ‘revolution’? Making sense of the GameStop stock surge
I am quoted in this ABC News article:
“There was this feeling of, ‘Let’s get even with these hedge funds, let’s get back at them,’” said David Kass, a finance professor at the University of Maryland and former federal economic official.
“The hedge funds are indeed hurting, and, unfortunately, it’s not just the hedge funds that get hurt,” Kass said. “This has a ripple effect.”
Kass expects regulators will carefully review what happened with GameStop and other stocks in recent days to determine if new rules are needed. Officials want to promote free, open, and transparent markets, but they also value stability.
“I think we need to see, are more guardrails needed, because is there potential for systemic risk here?… This could build up over time. Somehow or other, we need to figure out a way to calm things down,” Kass said.
