Quote:
Originally Posted by cascavel
Isn't this all small potatoes, ultimately? The entire market cap of GME, at it's peak, was only $26 billion. TSLA, AAPL, AMZN, NFLX, NVDA and a host of other companies move that much every day. If a few hedge funds are wiped out due to poorly understood bets on GME, so what? If a small brokerage house is bankrupted or has a liquidity squeeze the Fed or Treasury steps in and provides a loan till they can be shut down and the accounts they had are transferred to a different company. Big Deal.
Isn't being short options on stocks an enormously risky affair and don't Ivy League educated MBAs know this? If their hedge fund investors are wiped out because of misunderstood risk assessment isn't that just part of the process?
We go through these "teaching moments" every few years and we should be grateful that this one, while highly visible, is, monetarily, tiny. Yeah, a lot of small speculators will get burned being long GME before it's all over but that could have happened if you owned GE, C, KHC etc.
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Agreed! I think the big deal will come afterwards, when people start asking "How did we end up in this position?".
Even though GameStop is a drop in the financial ocean, I think there is vested interest by HF's involved in 'winning' this trade in order to paint retail as reckless and avoid transparency.