Do we have the capability to eliminate booms and busts in economic activity? The answer in my judgment is no, because there is no tool to change human nature. Too often people are prone to recurring bouts of optimism and pessimism.
March 11, 2021
If you follow financial news you are undoubtedly aware of the story about millennial stock traders using a computer network to challenge a 12 billion hedge fund. They impacted a stock appropriately named GameStop. Millions of them “colluded” in buying this heavily shorted stock, creating a short squeeze. Their effort drove the stock up 1,600%...