Disclaimer: In no way are we stating that capitalism is either good or bad - simply giving the facts in a digestible format. In this episode of the Outside of US Podcast, we'll be talking about what shorting is and how that led to the whole debacle with GameStop. In addition, we delve into the history of shorting and the different effects it can have in an economy - both positive and negative. If you want to learn about shorting in an easy to understand method, listen to this episode for analogies and examples to help you understand. Sources Alex Sirois, Feb 12, 2021, et al. “GME Stock: GameStop Has to Go Down But the Implications Are Strange.” InvestorPlace, 12 Feb. 2021, investorplace.com/2021/02/gme-stock-gamestop-has-to-go-down-strange-implications/. Alfonso, Fernando Alfonso. “Class-Action Lawsuit Filed against Robinhood Following Outrage over GameStop Stock Restriction.” CNN, Cable News Network, 29 Jan. 2021, www.cnn.com/2021/01/28/investing/lawsuit-robinhood-gamestop-wallstreetbets/index.html. Deng, Xiaohu, and Sandra Mortala. The Real Effects of Short Selling Constraints: Cross-Country Evidence. Fogelman College of Business and Economics, Sept. 2016. Fitzgerald, Maggie. “Robinhood Appears to Be Benefiting from the Trading Controversy, Seeing Record App Downloads.” CNBC, CNBC, 3 Feb. 2021, www.cnbc.com/2021/02/01/robinhood-appears-to-be-benefitting-from-the-trading-controversy-seeing-record-app-downloads.html. Gonzalez, Oscar. “Robinhood Backlash: Here's What You Should Know about the GameStop Stock Controversy.” CNET, 5 Feb. 2021, www.cnet.com/personal-finance/robinhood-backlash-heres-what-you-should-know-about-the-gamestop-stock-controversy/. Klimentov, Mikhail. “Analysis | The GameStop Stock Situation Isn't about Populism. It's about Whether the Market Is 'Real.'.” The Washington Post, WP Company, 1 Feb. 2021, www.washingtonpost.com/business/2021/02/01/understanding-gamestop-situation/. Matthew Frankel, CFP. “The Day-Trading Boom and Why It's So Concerning.” The Motley Fool, The Motley Fool, 18 June 2020, www.fool.com/investing/2020/06/18/the-day-trading-boom-and-why-its-so-concerning.aspx?source=awin&awc=12195_1613856937_22a1cdc0911519eefacf9ffe58bf8d7a&utm_source=aw&utm_medium=affiliate&utm_campaign=143466. McEnery, Thornton, and Lisa Fickenscher. “Robinhood Blocks Users from Buying GameStop and AMC Shares.” New York Post, New York Post, 28 Jan. 2021, nypost.com/2021/01/28/robinhood-blocks-users-from-buying-stock-in-gamestop-and-amc/. Medleva, Valerie. “What Is Shorting?” Capital.com, 29 Apr. 2019, capital.com/what-is-shorting. Menton, Jessica. “'Looking down Their Nose at You': GameStop Frenzy Showed a Fresh Contempt for Hedge Funds. Why Do Americans Hate Them?” USA Today, Gannett Satellite Information Network, 11 Feb. 2021, www.usatoday.com/story/money/markets/2021/02/11/hedge-funds-gamestop-what-are-hedge-funds-best-hedge-funds/4371758001/. Morrow, Allison. “Confused about This GameStop Saga? Here Are the 5 Things You Need to Know.” CNN, Cable News Network, 30 Jan. 2021, www.cnn.com/2021/01/30/business/gamestop-reddit-rebellion-explained/index.html. Robinhood Team. “What Happened This Week.” Under the Hood, Robinhood, 30 Jan. 2021, blog.robinhood.com/news/2021/1/29/what-happened-this-week. Stankiewicz, Kevin. “World Bank President Warns the Global Coronavirus Recession Will Hurt Poorer Countries the Most.” CNBC, CNBC, 15 Apr. 2020, www.cnbc.com/2020/04/15/world-bank-president-david-malpass-recession-to-hurt-poor-countries-most.html. Yuille, Brigitte. “Short Selling: Making the Ban.” Investopedia, 25 June 2019, es/stocks/09/short-selling-ban.asp.
