In the first week of Wall Street trading in January of 2021, stock in the video game retail chain GameStop (NYSE: GME) hovered at a price of around $18 per share.

Less than three weeks later, on Wednesday morning those same shares were fluctuating wildly between $250 and nearly $400. This kind of growth is unheard of for an established, brick and mortar retail chain — especially when a pandemic is keeping people indoors.

So what did GameStop do to deserve this incredible rally? Absolutely nothing.


GameStop stock price Google

If anything, you could argue that the company's lackluster performance was what triggered this incredible rise, as it was the proliferation of "short" positions — bets against the company's future value — that brought the stock to the attention of the WallStreetBets subreddit.

A subsection of reddit with millions of subscribed users, WallStreetBets describes itself as, "Like 4chan found a Bloomberg Terminal." In other words, it's a place for Extremely Online and unserious hobbyists to overanalyze the absurdly complex data that professional traders use to make investment decisions in the stock market.

Generally speaking, this leads to some pretty reckless speculation that often does not pan out well for the users. They're like small-time gamblers boosting each other up to play with the high rollers, and it's not uncommon to see a post from a redditor explaining how they lost their life savings.

But in this case they managed to turn that dynamic around. Like those little dinosaurs from Jurassic Park 2, individually they are small and vulnerable, but if they work together, they can take down the big assh**es...or, medium-sized ass**les anyway. They won't be tackling T-Rex or J.P. Morgan any time soon.

Tiny di

But what actually happened? The answer is complex, but the basic version requires a brief explanation of the slightly sketchy practice of short selling. Also known as "shorting," short selling inverts the standard "buy low, sell high" model of trading.

When a trader identifies a stock that they think is overvalued — because of hype, fraud, or expected trends — they borrow someone else's shares and immediately sell them at the current rate, planning to buy back once the value goes down and return them to the lender with some profit left over from the original sale.

There is also the short-call option, where — for a small fee — you offer a window of time in which to buy shares at a set price above its current value. If the stock rises above that price within the time limit, you have to sell it at a loss. But if it goes down — as you expect — you can just pocket the fee, and never have to truly own the stock in the first place.

In both scenarios you're relying on the idea that the company's perceived value will go down. But the truly sinister aspect is that — when a lot of these bets are being made against a company — it's often taken as a bad sign, leading traders to sell off their stock, driving the value down.

It's a sort of self-fulfilling prophecy that destroys businesses and small-time traders to the benefit of multi-billion-dollar hedge funds. It's the kind of trading that accelerated the financial crisis of 2009 while raking in billions for the scavengers. But if the stock's value just keeps going up — for whatever reason — the hedge fund can end up on the hook for some truly staggering losses.

Investor Chamath Palihapitiya: The GameStop story is pushback against Wall Street establishment www.youtube.com

So when WallStreetBets users noticed the overwhelming amount of betting against GameStop, they decided to intervene on the company's behalf — and to make some money for themselves while screwing over some big investors. Never mind that one of the subreddit's official rules prohibits market manipulation. It's for a good cause — kind of.

From there a strange and powerful feedback loop took hold. As more and more redditors bought shares in GameStop, driving the price above $60 over the course of a week, the incentive to treat the stock as overvalued increased — after all, there was nothing in the company's performance to justify the higher price.

Investors poured an additional $2.75 billion into Melvin Capital — one of the biggest short sellers — to cover the losses until the trend turned around. But the short sellers' dismissive attitude toward the early growth actually helped to inflate the price and spurred on the weirdos at WallStreetBets.

With some encouragement from Tesla CEO Elon Musk — who hates short sellers and generally holds a weird amount of petty grudges for a man whose 2020 earnings were literally higher than the GDPs of most countries on Earth — they drove GameStops share prices even higher. And as media coverage (hi there) spread news of this absurd battle — and the dire situation a bunch of weird hobbyists had created for Melvin Capital — the hype only grew, driving the price even higher.

By Wednesday morning, Melvin Capital and Citron Capital — another major proponent of shorting GameStop — had both announced that they were abandoning their short selling positions and swallowing the losses...but WallStreetBets doesn't buy it. Suspecting the investment firms of attempting to let the air out of the story so they can finally profit as the inflated stock collapses back to a reasonable value, redditors have continued pumping up the stock.

But as crazy as all of this is, on some level it serves to expose the insanity that was already there. The stock market is all based on speculation and hype and speculation about the trends in hype — all operating at degrees of removal from the economic realities of the companies involved.

Is GameStop's share price artificially inflated? Absolutely.

But so are a thousand other companies that have spent tax cuts and government bailouts on stock buybacks, rather than paying their workers a fair wage or investing in new ventures. It may make for a more dramatic story — and will probably end up inspiring more regulatory pushback — but is the game they're playing worse than the short sellers themselves working to depress stock prices?

For so long we have been taught to treat the stock market as an index of our nation's whole economy. Perhaps that's why, in 2020, the one area where the government wasn't stingy with its support was in propping up the financial sector.

As a result, the Dow Jones Industrial Average quickly recovered from an early COVID crash and ended up increasing in value by 10% over the course of the year. At the same time we saw record-breaking unemployment, endless lines at food banks, and thousands upon thousands of businesses folding as a result of the protracted half-measures of our noncommittal COVID lockdown.

More than any flash crash or high-frequency middlemen, some weirdos working together on Reddit have helped to expose how unreal the whole system is. The stock market is not the economy. It's just a weird, artificial, predatory game our billionaire overlords play with the economy. And at the moment, some regular nerds are outplaying them — and potentially making millions in the process.

There's no way of knowing quite how high GameStop's stock will rise, or what will happen to the company when it eventually crashes back to Earth — there's not really a precedent for this. But hopefully the whole ordeal will serve as a lesson for the hedge funds, investment banks, and other bloated parasites thriving in a hellish economy — that every now and then, the little guys can bite back.

As of Wednesday afternoon, the hype is still going, with the phrase "to the moon" trending on Twitter, and WallStreetBets continuing to inflate the share price of GameStop along with AMC and Blackberry — whose stocks were similarly targeted by short sellers.

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Home garden and porch

As anyone who has ever sold a house will tell you, you must prioritize curb appeal. Before a potential buyer even considers looking inside your house, they notice the outside first. Does it attract the right kind of attention? Does it take away from the feel you're going for? If you plan to sell sometime soon, you must think about these things. Here are some landscaping options to increase your home's curb appeal, so you can get the best price on your home.

Extensive Plants and Greenery

A barren front yard won't get you the price you want on your home. So, invest in at least a little bit of greenery to keep the surrounding area from looking too dead. Shrubs and bushes tie the house to the lawn that precedes it, and flower beds bring a pop of color to an otherwise drab structure. You can also strategically plant some trees to improve the overall feel of your home's exterior.

Lawn Care

As we mentioned, your lawn is one of the most prominent features of your home's exterior. A patchy, dried-up lawn will quickly drive your home's price way down. Some of the best landscaping options for your home's curb appeal involve improving your lawn for the next inhabitant. Overall fertilization, ground aeration, underbrush removal, proper mowing—all of these lawn care tasks contribute to a greener and more lively area that invites people to see your house, rather than stay away from it.

Paved Pathways

There's nothing like a broken and disheveled pathway to make someone think twice about buying a property. Just as you want the entryway in your house to be welcoming, so too should the pathway leading up to the house be inviting. The pathway from the street to your front door provides plenty of real estate to get creative with. You don't have to settle for a boring concrete pathway. Consider something more eye catching, like a cobblestone path or intermittent brick patterns, as a way to better welcome potential buyers.

Usable Outdoor Furniture

Landscaping doesn't just involve the ground you walk on; also included are the items you use as extras to the overall look. Outdoor furniture is one such extra that you don't necessarily need but can look quite attractive if done correctly. Staging is important with outdoor furniture. Old, broken-down pieces will only look like more work to the potential buyer. A few comfortable chairs, a bench, or a table with an umbrella really go a long way to improving your outdoor aesthetics.

A good tip for deciding on curb appeal items is to decide what you personally would want to see as a part of a welcoming home's exterior. You don't need to go overboard, but a little bit of forethought could net you quite a lot of extra cash in the sale.

Unfortunately, giving back can sometimes go haywire. If you're ready to make a donation, first consider common mistakes made when giving back.

Many people strive to support their community by donating their time or their money. When you find a meaningful cause, you might be quick to cut a donation check. Though it's admirable to be quick to act charitably, you should be wary of several common mistakes made when giving to charity. Being mindful of these mistakes and learning tips for making informed charitable choices can help you make the most out of your generous check.

Acting Quickly Out of Emotion

Mission statements are meant to be compelling. If you're an emotionally driven individual, it's natural to pull out your wallet at the sight of a sad puppy on TV or when informed about food insecurity over the phone. Unfortunately, not all charities are as effective or official as they may seem.

Take your passion for helping others one step further by making sure your chosen charity is legit. Speaking with a representative, reviewing their website and social media accounts, and looking at testaments online can give you a better idea of whether the organization is worth your donation.

Forgetting to Keep Record of the Donation

Don't forget that you can reap some financial perks from giving back! With the proper documentation of your donation, you can acquire a better tax deductible.

If you donate more than $12,400 as a single filer or $24,800 as one of two joint filers, you're eligible to deduct that amount from your taxes. So, when a charity asks if you'd like a receipt of donation, always answer yes.

Donating Unusable Materials

Most charities can utilize a monetary donation—it's the physical donations that usually cause some issues. Providing a local nonprofit with irrelevant materials or gifting them with unusable products are surprisingly common mistakes made when giving to charity.

Always check your intended charity's website for a list of things they do and do not accept. The majority of places will provide a guideline to donating or offer contact information to clarify any questions.

Strictly Giving at Year's End

As more and more people get into the holiday spirit at the end of the year, nonprofit organizations see an influx of donations. While it's great to spread holiday cheer via a monetary donation, it's important to keep that spirit going year-round.

With regular donations, charities can more effectively allocate their annual budget. Setting up an automatic monthly donation with the charity of your choosing can maximize your impact. You can account for a monthly donation by foregoing a costly coffee every once in a while.

Knowing how much you should spend on home maintenance each year is hard to figure out and may be preventing you from buying your first home. The types of costs you'll incur depend on the house you buy and its location. The one certainty is that you should start saving now. Read on to figure out how much to start setting aside based on the home you own.

The Age of Your House

Consider several factors when budgeting for home repairs. If you've purchased a new home, your house likely won't require as much maintenance for a few years. Homes built 20 or more years ago are likely to require more maintenance, including replacing and keeping your windows clean. Further, depending on your home's location, weather can cause additional strain over time, so you may need to budget for more repairs.

The One-Percent Rule

An easy way to budget for home repairs is to follow the one-percent rule. Set aside one percent of your home's purchase price each year to cover maintenance costs. For instance, if you paid $200,000 for your home, you would set aside $2,000 each year. This plan is not foolproof. If you bought your home for a good deal during a buyer's market, your home could require more repairs than you've budgeted for.

The Square-Foot Rule

Easy to calculate, you can also budget for home maintenance by saving one dollar for every square foot of your home. This pricing method is more consistent than pricing it by how much you paid because the rate relies on the objective size of your home. Unfortunately, it does not consider inflation for the area where you live, so make sure you also budget for increased taxes and labor costs if you live in or near a city.

The Mix and Match Method

Since there is no infallible rule for how much you should spend on home maintenance, you can combine both methods to get an idea for a budget. Average your results from the square-foot rule and the one-percent rule to arrive at a budget that works for you. You should also increase your savings by 10 percent for each risk factor that affects your home, such as weather and age.

Holding on to savings is easier in theory than practice. Once you know how much you should spend on home maintenance, you'll know what to aim for and be more prepared for an emergency. If you are having trouble securing funds for home repairs, consider taking out a home equity loan, borrowing money from friends or family, or applying for funds through a home repair program through your local government for low-income individuals.