Quote:
Originally Posted by Leondros
I don't see the exposure being that pervasive (ie. not every hedge fund was shorting GameStop). Worse case scenario the hedge funds that do have to cover their positions become insolvent and the fund collapses resulting in the fund liquidating all of their holdings - I believe Melvin was at $12B so thats $12B erased out of a $50 trillion dollar US stock market which isn't even a blip really.
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Well yeah, but the contagion here is funds and institutions needing cash so they start selling high quality assets to get that cash. It's not the pure GME exposure, it's the contagion from that.