Strong doubt, and I'm VERY surprised so many chapos are just gobbling this up. I'm not sure how much exposure Goldman will have to these funds when their margin calls fuck them to death, but they're almost certainly just hyping up the risk to pressure the government into crushing the GME hold to get back to business as usual. This is barely a blip on the rest of the financial industry's radar outside of shorts, and it certainly won't create the market-crashing waves people are hoping for.
Obligatory I'm not a WSB cunt and I hope that the market dies itself to death.
Yeah this is definitely just fear mongering. The hedge fund that went under did so with like a $10 billion loss or something, just seems like way too small or a fish for the ripples to cripple the financial system. I more find it funny that on the off chance that this does happen it's, yet again, the irresponsibility of having these risky financial instruments.
Yeah man it's insane isn't it, and they keep on making more of them while wanking off over their genius. Banks creating debt by borrowing from future economic growth was an absolute death sentence for the global economy but they all just keep on patting themselves on the back at how smart it all is, and will be patting away right up until it all implodes
Counterparty risk (leverage that blew up on them) caused 2008, so it’s not an unreasonable take. We actually came close to it on Wednesday; hence clearing firms putting in place requirements that forced a number of brokerages to freeze purchases.
Had that happened, it would probably cause a very brief but severe flash crash, until whatever entity collapsed got bailed out the next day
The scale of counterparty risk within the dogshit CDOs combined with the sheer volume of them in 2008 is orders of magnitude larger than this though. A flash crash wouldn't come close to bringing about the change prophesied by the people claiming it's all coming down
Right; that’s why I’m saying it would be a flash crash, it would cause temporary panic, but then there’d be a bailout and it would bounce back, unlike the systemic unraveling of 2008
I was responding mainly to the part in your first comment about it not being an unreasonable take and I misinterpreted, I didn't realise you were talking about what Goldman said. Sorry, I must have jumped to it cos my tolerance for bad takes on the GME stuff is wearing super thin - I'm in a group chat containing some right wing fuckheads and call options and market crashes are their new favourite things to talk absolute bollocks about, so this week has been non-stop cringe and wanting to scream
Strong doubt, and I'm VERY surprised so many chapos are just gobbling this up. I'm not sure how much exposure Goldman will have to these funds when their margin calls fuck them to death, but they're almost certainly just hyping up the risk to pressure the government into crushing the GME hold to get back to business as usual. This is barely a blip on the rest of the financial industry's radar outside of shorts, and it certainly won't create the market-crashing waves people are hoping for.
Obligatory I'm not a WSB cunt and I hope that the market dies itself to death.
Yeah this is definitely just fear mongering. The hedge fund that went under did so with like a $10 billion loss or something, just seems like way too small or a fish for the ripples to cripple the financial system. I more find it funny that on the off chance that this does happen it's, yet again, the irresponsibility of having these risky financial instruments.
Yeah man it's insane isn't it, and they keep on making more of them while wanking off over their genius. Banks creating debt by borrowing from future economic growth was an absolute death sentence for the global economy but they all just keep on patting themselves on the back at how smart it all is, and will be patting away right up until it all implodes
Counterparty risk (leverage that blew up on them) caused 2008, so it’s not an unreasonable take. We actually came close to it on Wednesday; hence clearing firms putting in place requirements that forced a number of brokerages to freeze purchases.
Had that happened, it would probably cause a very brief but severe flash crash, until whatever entity collapsed got bailed out the next day
The scale of counterparty risk within the dogshit CDOs combined with the sheer volume of them in 2008 is orders of magnitude larger than this though. A flash crash wouldn't come close to bringing about the change prophesied by the people claiming it's all coming down
Right; that’s why I’m saying it would be a flash crash, it would cause temporary panic, but then there’d be a bailout and it would bounce back, unlike the systemic unraveling of 2008
I was responding mainly to the part in your first comment about it not being an unreasonable take and I misinterpreted, I didn't realise you were talking about what Goldman said. Sorry, I must have jumped to it cos my tolerance for bad takes on the GME stuff is wearing super thin - I'm in a group chat containing some right wing fuckheads and call options and market crashes are their new favourite things to talk absolute bollocks about, so this week has been non-stop cringe and wanting to scream
Ha I can imagine...