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Bloomberg/Sarah Ponczek and Claire Ballentine/1-27-2021
“Cooped up at home, glued to Reddit and Stocktwits chat forums, empowered by Robinhood accounts, funded by massive government money-printing and emboldened by a bull market that has turned reckless risk-taking into a virtue ……”
USAGOLD note: Those who have studied the history of money printing know that it not only has an economic impact, it also has a psychological impact inciting uncontrolled greed, financial recklessness, and moral hazard – in short, a mania. Among the references in the foregoing snippet, perhaps the most damning is that the current mania is funded by “massive government money printing.” It goes without saying that Gamestop is unlikely to be the one and only manifestation of the phenomenon.
“Have you ever seen in some wood, on a sunny quiet day, a cloud of flying midges — thousands of them — hovering, apparently motionless, in a sunbeam? …Yes? …Well, did you ever see the whole flight — each mite apparently preserving its distance from all others — suddenly move, say three feet, to one side or the other? Well, what made them do that? A breeze? I said a quiet day. But try to recall — did you ever see them move directly back again in the same unison? Well, what made them do that? Great human mass movements are slower of inception but much more effective.” – Bernard Baruch (1870-1965)
Image: South Seas Bubble Card from the original edition of John Mackay’s Extraordinary Popular Delusions and the Madness of Crowds (Click to enlarge)
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