This situation is a complex one, and I think you've done a great job explaining it. I think allowing short selling is something that should be reevaluated. I don't believe it is an ethical way of making money. Also, it seems like a stupid risk for hedge funds to take with other people's money. When the stock was already very low, they were looking at relatively small potential returns ($5-10 per share) but with an unlimited risk factor. And ultimately, that is what these hedge funds are doing, they are taking our retirement, our life savings, and betting it on a company failing. I'd much rather see them use those funds to invest in companies with solid fundamentals.
And, the fact that some of the retail brokers stopped trading seems like unjust market manipulation. If no one can buy the stock, of course the price is going to do down. It just seems like we have some pretty serious gaps in our economic guardrails.
This situation is a complex one, and I think you've done a great job explaining it. I think allowing short selling is something that should be reevaluated. I don't believe it is an ethical way of making money. Also, it seems like a stupid risk for hedge funds to take with other people's money. When the stock was already very low, they were looking at relatively small potential returns ($5-10 per share) but with an unlimited risk factor. And ultimately, that is what these hedge funds are doing, they are taking our retirement, our life savings, and betting it on a company failing. I'd much rather see them use those funds to invest in companies with solid fundamentals.
And, the fact that some of the retail brokers stopped trading seems like unjust market manipulation. If no one can buy the stock, of course the price is going to do down. It just seems like we have some pretty serious gaps in our economic guardrails.