‘Market Democratization’ or’Populism’s Victory’-Maeil Economy

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“One thing to remember is that there are new investors on the market. They are realizing that they can have power as a group.” (Financial Times)

There is a heated debate over the unprecedented US’Game Stop’ situation.

There is a perspective that interprets the rebellion of ants (individual investors) as the victory of’market democracy’.

It is evaluated that it is necessary to pay attention to the ants who won the confrontation between’David and Goliath’ and to reflect on Wall Street financial institutions such as hedge funds.

The Wall Street Journal (WSJ) called the incident on the 30th (local time) as a’game stop revolution’ and “the corps of’Couch Potatoes’ (who only watched TV on the sofa) lying on the sofa and watching TV jumped into the basketball court and LeBron James He gave the meaning of “he took a dunk shot by intercepting the ball of.” It was evaluated as “the pinnacle of’market democratization’ that has been developed for nearly 50 years since the late Jack Vogel Vanguard Group founder.” Vogel founded the Vanguard Group in 1975 and helped low-cost investments, such as creating an index mutual fund for individual investors.

The reason why this strategy was able to succeed is attributed to the dramatic development of SNS technology in recent years. Bloomberg said, “As social media gained worldwide attention during the’Arab Spring’ in the early 2010s, Reddit turned diversified investors into a collective force with the same purpose.” The protests triggered during the global financial crisis in the past ended up condemning the protests to occupy Wall Street, while those gathered at the online community Reddit acted out the anger of individual investors.

The New York Times (NYT) said, “Depending on who you ask, Gamestop is an act in which violent geeks play a joke to return to them and neutralize the stock market. It can be seen as” he explained.

On the other hand, many views are concerned about the confusion that the collective action of ants will bring to the stock market in the future. There is also an opinion that if investors who have tasted’realization of justice’ through collective action show similar movements in the future, the damage will eventually return to individual investors.

The Financial Times (FT) said, “This story in which social justice has been practiced is literally just a story,” he said. “The real motive is the desire for money.” In the so-called’dot-com era’, he had to quit his job to become a full-time investor, but today there are overflowing people with free money, time, and gambling-friendly mindset.

Reportedly, it is reported that 400,000 new accounts opened last year on major stock platforms. These account holders were 50% more likely to get investment ideas by watching so-called’memes’ made for satire, parody or fun on social media than existing investors.

The Washington Post (WP) said, “It’s like wanting to overthrow the system, rather than (the ants) acting inside the system. The real worry is that from now on, the’Gamestop forces’ will target others.” Looked out. The WSJ feared that “thousands of people could bring together microtransactions and whip each other into collective madness.”

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