The Daily The Sunday Read: ‘The Mystery of the $113 Million Deli’
Jul 18, 2021
Jesse Barron, a contributor to The New York Times Magazine who covers finance and crime, dives into the perplexing tale of a New Jersey deli valued at $113 million despite minimal revenue. He explores the wild financial landscape that allowed this small shop to rise dramatically, linking it to trends like GameStop and cryptocurrency volatility. Barron uncovers potential scams and the convoluted mechanisms behind OTC markets, illuminating the bizarre reality of pandemic-era investments and corporate strategies in a world turned upside down.
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Pandemic Finance Anomalies
- During the pandemic, bizarre financial instruments emerged, offering dubious paths to quick riches.
- Examples include GameStop, Dogecoin, NFTs, and SPACs, creating a sense that money was detached from reality.
$113 Million Deli Mystery
- Your Hometown Deli, a small New Jersey sandwich shop, saw its stock inexplicably rise by 1,200% despite minimal revenue.
- This became a Wall Street mystery, raising questions about market manipulation and the deli's true value.
OTC Market Structure
- Unlike major exchanges like NYSE and NASDAQ, the OTC market, where Your Hometown Deli traded, is decentralized.
- This structure allows direct trades between buyers and sellers, with less stringent listing criteria and oversight.