The ongoing GameStop controversy could be just the beginning of what could become a “global disaster” if China’s markets get involved, according to one prolific investor.
Famed journalist-turned-investment banker Porter Bibb is a managing partner at Mediatech Capital Partners. His storied career includes time as a White House correspondent, the first publisher of Rolling Stone magazine and he launched the first investment banking “boutique” in London. Bibb, who thought he’d seen it all, feels the GameStop saga will look like “child’s play” if the same thing happens in China.
The chaos started when a Reddit group called WallStreetBets banded together to squeeze short-sellers out of their positions by buying up shares in video game retailer GameStop and other flailing companies.
The Reddit group temporarily went private. Trading app Robinhood and online broker Interactive Brokers restricted trading in certain securities because of the recent volatility in a number of stocks, igniting controversy.
“Look out if and/or when some bright young Internet celebrities decide to play the same game in China,” Bibb told Fox News.
“With AMC in mind, China’s markets are much more vulnerable and rolling the dice on a Sino short squeeze can turn into a global disaster unless Beijing steps in quickly to bring China’s markets back under control,” Bibb continued. “With the Lunar New Year almost here and Year of the Ox momentum, keep an eye on the Shanghai, Shenzhen and Star markets in China. They could make our Reddit/GameStop problems look like child’s play.”
Asked about the market volatility amid the GameStop chaos during Friday morning’s press briefing, White House press secretary Jen Psaki punted on the question and directed reporters to statements by the Securities and Exchange Commission.
“They are closely monitoring this situation but it is under their purview at this point of time,” Psaki said, declining to speak specifically about the situation.
Fox News’ Morgan Phillips and Alex Pappas contributed to this report.