History Has a Warning for GameStop Traders: Arthur Levitt Jr.

They say history occurs first as tragedy, then as farce — I fear we’re about to see that in U.S. financial markets.

Two decades ago, U.S. financial markets were riding all-time records. Day traders were using chat rooms to swap what they thought were reliable tips about stocks that were about to pop. Stocks with negative earnings were trading at astronomical valuations by almost any measure. People without any experience in stock market trading — no less any understanding of how to read a financial statement or earnings report — were confidently pouring dollars saved for college tuition or rent ...