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thursday, 02.11.21
T H E
ALESTLE
THE ALESTLE WILL NOT BE PUBLISHING NEXT THURSDAY, FEB. 18 vol. 74 no. 19
The Student Voice Since 1960
New employee listserv policy aims to keep discussions civil DALTON BROWN copy editor
The Revival sculpture, as well as the rest of the campus, was covered in snow during the coldest week so far this year. I Alex Aultman / The Alestle
Unusual activity on Wall Street sparks students’ interest in investing JOHN MCGOWAN reporter
After AMC and GameStop (GME) stocks skyrocketed in January as a result of a short squeeze, students at SIUE are excited about investing despite seeing mixed results with their investments. When a forum on Reddit called /r/wallstreetbets discovered hedge funds had been short selling AMC and GameStop stocks – essentially betting against a company’s success – they decided to perform a “short squeeze,” which meant they got thousands of users across the internet to invest in the companies and raise their stock prices. In the span of a week, GameStop’s price grew from $40 to $370 a share and AMC’s grew from $3 to $19 a share. Economics professor Alicia Plemmons said she doesn’t think anything like this has happened before. “It’s a play that hedge fund m a n a g e r s use against each other all the time. T h e difference is that this is just your average sort of pers o n
that’s doing it this time. It’s not multimillionaires sitting in an office, it’s students,” Plemmons said. On Reddit, and eventually most other social media, phrases like “eat the rich” were thrown around. Many posters said they were intentionally investing to interfere with the Wall Street professionals profiting on the companies’ failures. Freshman undeclared major Lucas Hollenkamp of Highland, Illinois, said he invested because he was mad about the state of the market. “The markets always seemed like it’s always been one-sided, it’s always working out for the people that are already in power. It was more of a middle finger – jumping in on it,” Hollenkamp said. Economics and Finance Professor Jie Ying said there were a couple of reasons the internet was so quick to collectively invest in GameStop. “There’s a kind of rebellion … This is kind of a behavioral emotional consequence. Or it is also related to a form of nostalgia regarding GameStop, because many of the users grew up with GameStop,” Ying said. Plemmons said while many are interpreting the actions as hostile, those who invested are doing nothing wrong. “A lot of people are treating this almost as a hostile move, but really it’s a novel market strategy,” Plemmons said. Though many are still holding and buying shares hoping for another spike, GameStop has dropped to $60 a share and AMC to $6 a share. Economics Instructor Laura Wolff said this should have been expected.
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“The reality of it is that they overpaid for something. In the end, stock prices do have to reflect the underlying values of the businesses, and GameStop’s business is in big trouble,” Wolff said. While some profited off the stocks, others ended up losing money. “People were making it sound like that Friday, the hedge funds were going to be forced into having to buy back their borrowed shares and it would spike the number up to $2,000 … It just kind of collapsed. I sold at $85 I think, so I lost, like, $500 of my money,” Hollenkamp said. “I sold [GME] at the beginning of the spike and made a good amount of money off of that, but then it skyrocketed even more beyond what I could even imagine,” sophomore economics and finance major Jack Crum of Rochester, Illinois, said. Despite all that, the students are still happy to be investing. “The /r/wallstreetbets Reddit forum that did all this – I’ve been a part of it for a while – but I never really got into anything that they were doing because it was straight gambling, but now they have so much power. If they’re getting into something, you could definitely make some money off of it,” Crum said. Hollenkamp said he has lost interest in individual investing after the event. “It’s gotten me more interested in mutual funds, but I’ve definitely lost my interest in using apps and doing individual investing like that,” Hollenkamp said. Those interested in investing can check out the School of Economics and Finance and /r/wallstreetbets.
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After a heated faculty exchange resulted in the temporary shutdown of an employee discussion listserv last summer, a committee was convened to review the listserv’s purpose and draft possible solutions. Now, the committee has revised University Policy 6B3 with measures aimed to prevent similar incidents in the future. According to Chancellor Randy Pembrook, the original exchange was uncivilized at best and considered racist at worst. “We got to a situation in July and there was an exchange, and there were some people that felt like the quality of the conversation … maybe wasn’t as civil as it needed to be — at minimum, that was what it was. Some people perceived it went beyond that and was actually starting to have elements of racism in it,” Pembrook said. The exchange and temporary shutdown may have been influenced by a number of factors, according to Director for Equal Opportunity, Access and Title IX Coordination Jamie Ball. “With the stressors of the pandemic and the social justice reckoning and everything else that’s been happening, I think the temperature is sort of heating up a little bit, and that created a good opportunity to kind of push the pause button and reflect on …
how can it be used constructively so that people can share questions and ideas in a way that’s not sanitized completely of controversy, but is not harmful?” Ball said. This review process would be led by a group of campus constituents who met over the Fall 2020 semester to suggest revisions to the listserv policy — one such revision, now part of the official policy, is the need for employees to opt themselves in rather than opt themselves out. Professor of Applied Communication Studies Diane Hayes said every employee should do the former. “Please, opt in,” Hayes said. “Please let your voice be heard. Please don’t shy away and think that this listserv is not for you to engage in the democratic process of free speech and exchange … but the thing that we’re asking is, [you] do it civil, [you] do it with all perspectives in mind, back up your arguments and please don’t sell your wares.” Employees will soon receive instructions from ITS on how to opt in if they so choose. Another revision created a dedicated five-member panel for monitoring reported messages considered in violation of listserv policy. Pembrook said monitoring was actually a part of the original policy which simply hadn’t been enforced until now. “One of the things that that group found out in reading the see LISTSERV on page 2
Ward 6 election to be decided in April; city’s layout and social issues on the table NICOLE BOYD copy editor
As the Edwardsville Ward 6 City Council election approaches, SIUE professors discuss how the election could affect the future of Edwardsville. Trish Oberweis, professor of criminal justice studies, said city council members plan how a town will look. “The city council plans for the allocation of services around the city, stuff like paving roads and fixing sidewalks and putting in stop signs and speed bumps and all of those kinds of things, but they also plan for the use of space in the future,” Oberweis said. “Because Edwardsville is growing, they make lots of decisions about what kind of a personality the town will have.” Oberweis said Edwardsville is currently facing questions about its future, such as whether to have lots of chain restaurants like Fairview Heights, Illinois, as well as social issues.
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“There’s lots of pedestrian paths that are proposed or partially underway. There’s lots of parking questions. There’s questions about the unique vibe, particularly of Main Street, but of the town more generally. Should we invite more chain-type restaurants into Edwardsville?” Oberweis said. “There’s also some more sensitive issues that are on the table, things like the relocation of the statue of Ninian Edwards, [and] support or opposition to the anti-racism task force that the mayor has put together.” Andrew Theising, professor of political science, said since city council candidates do not campaign on a party platform, they must focus on more local issues, although they may speak out on issues that align with a larger party platform. “Even though these individuals may have some kind of Democratic or Republican preference, they don’t campaign as members see ELECTION on page 2
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