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Wall Street falls amid GameStop frenzy


Wall Street falls amid GameStop frenzy
Since the Fed injected trillions of dollars into the financial markets following a crisis last March, Wall Street has risen to new record highs in what has been increasingly seen as a speculative bubble on the way to bursting.
In recent days, the market frenzy has taken a new turn with a so-called “short squeeze” that has seen the shares of companies whose business models are in severe trouble, possibly putting them on the road to bankruptcy, escalate by hundreds of percentage points.
A GameStop storefront (Wikimedia Commons)
The exemplar of this phenomenon has been GameStop, a US firm selling video games, consumer electronics and gaming merchandise with more than 5,000 stores internationally. At the start of the year its shares were trading at around $19. Yesterday they had risen to more than $330, an increase of 1,500 percent, taking the market value of the company to more than $20 billion. ....

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