Lol, gme_meltdown.
The issue I have with most of Reddit is their inability to look past the immediate thing in front of their faces and make a connection to other stuff.
Three quarters know the MSM is active propaganda but fail to question J6 or the holocough narratives, and discount Michael Burry because he's hardcore conservative. smh.
Shitadel is not acting in a vacuum. They are deeply interconnected with the market, other MMs, HFs, and depository banks. When, say, JPM is facing its own liquidity crisis, they won't hesitate to yank assets and recall loans that represent operational capital for HFs. If those assets include GME or ETFs holding GME, the cascade begins. If they're not GME directly, they reduce the latitude HFs have in hiding / moving their shorts until there's nowhere else to go.
I'm not counting on the SEC (or for that matter, any branch of government) to do shit. But the market makers will turn on each other when their existence is threatened, and Shitadel / Virtu / Point72 are not the biggest fish in the pond. Blackrock, JPM, BofA and Wells Fargo each could sell them out of existence tomorrow if they wished.
As far as the faith in the market goes, I could see that being a super legitimate concern- next up in terms of capital wealth would be the Chinese market. The Fed will step in to backstop, because by law, they have to support the DTCC as a "strategically important FMU". OTOH, "The Fed" is realistically just representation from the biggest banks out there and a couple of government perfunctories. They know they'll get hurt too, but at least it'll be shared pain- shared 50/50 by taxpayers funding the Treasury. In the end, though, it'll all be worth it to be allowed to continue doing business as they have for hundreds of years, because China won't allow that.
Lol, gme_meltdown. The issue I have with most of Reddit is their inability to look past the immediate thing in front of their faces and make a connection to other stuff. Three quarters know the MSM is active propaganda but fail to question J6 or the holocough narratives, and discount Michael Burry because he's hardcore conservative. smh.
Shitadel is not acting in a vacuum. They are deeply interconnected with the market, other MMs, HFs, and depository banks. When, say, JPM is facing its own liquidity crisis, they won't hesitate to yank assets and recall loans that represent operational capital for HFs. If those assets include GME or ETFs holding GME, the cascade begins. If they're not GME directly, they reduce the latitude HFs have in hiding / moving their shorts until there's nowhere else to go.
I'm not counting on the SEC (or for that matter, any branch of government) to do shit. But the market makers will turn on each other when their existence is threatened, and Shitadel / Virtu / Point72 are not the biggest fish in the pond. Blackrock, JPM, BofA and Wells Fargo each could sell them out of existence tomorrow if they wished.
As far as the faith in the market goes, I could see that being a super legitimate concern- next up in terms of capital wealth would be the Chinese market. The Fed will step in to backstop, because by law, they have to support the DTCC as a "strategically important FMU". OTOH, "The Fed" is realistically just representation from the biggest banks out there and a couple of government perfunctories. They know they'll get hurt too, but at least it'll be shared pain- shared 50/50 by taxpayers funding the Treasury. In the end, though, it'll all be worth it to be allowed to continue doing business as they have for hundreds of years, because China won't allow that.