"Wall Street" likely isn't suffering that from this. The firms heavily invested in shorting GME are a myriad of relatively small Hedge Funds, and not bigger financial institutions . Wall Street isn't a small hedge fund with a few million, or even billion, in capital. Wall Street is Blackrock, an investment management company with $8.67 trillion in assets, and whose supercomputer, Aladdin, controls around 10% of the world's finances. And Aladdin has incomprehensibly more data than any of us do.
If Melvin Capital collapses, it would have approximately the same effect on the health of Wall Street/Global Finace, as your local Cofee chain going bankrupt would on the overall American economy.
What has the biggies worried is that retail investors are organizing and attacking the financial markets with their pooled capital. It’s systemic risk that they don’t control, and that’s extremely upsetting to these folks.
The stock will crash and burn eventuallly, but it hurt some rich folks and some hedge funds and that’s NOT supposed to happen anymore, at least not by the hand of little guys.
The response is predictable: regulate small guys out of existence, accuse them of manipulating markets (fucking lol at that), bailout the rich and scare boomers.
But this time, hopefully a lot of people are seeing the backlash and calling bullshit.
"Wall Street" likely isn't suffering that from this. The firms heavily invested in shorting GME are a myriad of relatively small Hedge Funds, and not bigger financial institutions . Wall Street isn't a small hedge fund with a few million, or even billion, in capital. Wall Street is Blackrock, an investment management company with $8.67 trillion in assets, and whose supercomputer, Aladdin, controls around 10% of the world's finances. And Aladdin has incomprehensibly more data than any of us do.
If Melvin Capital collapses, it would have approximately the same effect on the health of Wall Street/Global Finace, as your local Cofee chain going bankrupt would on the overall American economy.
What has the biggies worried is that retail investors are organizing and attacking the financial markets with their pooled capital. It’s systemic risk that they don’t control, and that’s extremely upsetting to these folks.
The stock will crash and burn eventuallly, but it hurt some rich folks and some hedge funds and that’s NOT supposed to happen anymore, at least not by the hand of little guys.
The response is predictable: regulate small guys out of existence, accuse them of manipulating markets (fucking lol at that), bailout the rich and scare boomers.
But this time, hopefully a lot of people are seeing the backlash and calling bullshit.