Financial crises will always happen in spite of the Fed's efforts to prevent it. It is inherent to the logic of capitalism.
The current trajectory for this crisis is Melvin collapsing. Given the amount of capital Melvin raised in the past two days, I'm expected big players to collapse shortly thereafter.
The financial world is interconnected in ways that are not publicly known. The damage this will cause is unkown, but the financial system is frail right now.
And if it gets to the point that the Fed opens swap lines to hedge funds, so they can buy GameStop stocks at extraordinarily inflated rates from retail traders - we are in the craziest financial crisis I could possibly imagine.
I mean the South Sea Bubble had more share value in circulation than there was money or precious metals in the entire world to cover it. WSB has a ways to go.
Financial crises will always happen in spite of the Fed's efforts to prevent it. It is inherent to the logic of capitalism.
The current trajectory for this crisis is Melvin collapsing. Given the amount of capital Melvin raised in the past two days, I'm expected big players to collapse shortly thereafter.
The financial world is interconnected in ways that are not publicly known. The damage this will cause is unkown, but the financial system is frail right now.
And if it gets to the point that the Fed opens swap lines to hedge funds, so they can buy GameStop stocks at extraordinarily inflated rates from retail traders - we are in the craziest financial crisis I could possibly imagine.
I mean the South Sea Bubble had more share value in circulation than there was money or precious metals in the entire world to cover it. WSB has a ways to go.