The GameStop saga continues to unfold, and things are really heating up now that the US government is keeping tabs on transactions. White House press secretary Jen Psaki confirmed as much during her daily briefing, revealing that the US Secretary of the Treasury is watching events closely as they unfold.
Psaki didn’t discuss whether the government would carry out any actions that would restrict or limit trading, although it’s clear the White House has a vested interest in the stock market’s performance.
“Our team, our economic team including [Secretary of the Treasury Janet Yellen] and others, are monitoring the situation. It’s a good reminder, though, that the stock market isn’t the only measure of the health of our economy,” said Psaki.
A few of those other measures – if you’re curious – would likely include Gross Domestic Product (GDP) and unemployment rates.
GameStop’s stock has surged to incredible prices over the past few days. Just this Monday it was trading for around $100 per share – today, that number’s climbed to over $350. The surge in price isn’t due to a positive outlook for the company, but rather by a wild combination of shorted shares and interest from Reddit.
To put it simply, traditional investors thought GameStop would perform poorly, Reddit said “Nah, let’s buy stock anyway,” and the rest is history.
Of course, that’s an oversimplification. If you want the full, dirty details, you can check out our in-depth explanation.
Needless to say, watching the stock price of a struggling business climb to new heights has set off alarms in Washington. Investors have already lost $5 billion this year due to GameStop price swings, although several others are getting rich off the new evaluations. Even more surprising is the effect this is having on other stocks. In fact, the practically defunct Blockbuster saw a 700% rise in share prices on Tuesday. And if that company can rise from the dead, we’re in for a wild 2021.
NEXT: Forget GameStop, Blockbuster Stock Surged 700% On Tuesday
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Jon Bitner is an Associate Editor for TheGamer. His passion for gaming started with his first console (Sega Genesis) and he hasn’t stopped playing since. His favorite titles include The Legend of Zelda: Ocarina of Time, Team Fortress 2, Rainbow Six Siege, Pokémon Sword & Shield, Old School Runescape, Skyrim, and Breath of the Wild. He can usually be found playing the latest RPG, FPS, or some obscure mobile game. Before working as Associate News Editor, Jon earned a Biology degree and worked in the Biotechnology sector — experiences that taught him how to put words together and make sentences. When not playing or writing about the gaming industry, he enjoys sleeping, eating, and staring at birds.
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