GME - hold the line
(media.greatawakening.win)
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Good point.
Now I'm kinda curious how this all gets cleared if this investment gone wrong clears the entire value of the fund to zero, and the managers just throw their hands up and walk away... because limited liability (which is not a bad thing, at all, by the way).
Who enacts the actions to unwind these historically-underwater trades? Are there automatic executions?
And who is then on the hook for the losses over-and-above the total loss of the value of the fund? Obvious answer: somebody. More specifically, is it those who lent their shares?
And then how interesting will it be when this bubble pops? Nobody pretends it's not a bubble. Nobody bought into GME on the rise for "value". And many of those who bought in at all point above, and way above, its real value did so not to realize gains, but to deliver pain via the short squeeze. Will they try to sell near the top, or happily ride it down? I have no idea. This is fairly unprecedented. It'll be interesting, to say the least.
It’s my understanding that short contracts don’t go away even through bankruptcy.
So should this happen I think the government will have to get involved and either bail out the hedgies so they can buy the gme stock at whatever price the retards demand, or they get involved and confiscate the stock for little to no compensation and piss off a lot of retards while simultaneously red pilling them.
The only backstop in this case for the lender (who is getting paid significant interest for the duration) to a short seller is to force the immediate replacement of those shares at market price. If the short-seller/borrower cannot afford to replace the shares when called to do so, it's ultimately the share lenders who are on the hook for the remainder of the loss (through simply not having those share able to be returned/replaced).
https://www.investopedia.com/ask/answers/05/shortsaleclosed.asp
Of course, when short interest exceeds 100% (which I thought was illegal, but hey, what's that matter anymore, and I heard that the short interest on GME was 150% of the float!)... well, then I have no idea who's on the hook next.
But no way, no how, should it ever be taxpayers.
I agree it should never be the taxpayers but we both know that we have funded Wall Street bailouts multiple times during our lifetimes alone!