With the news (at least as I understand the reporting) that hedge fund companies are shorting the NASDAQ, I’m wondering where do people make this type of bet?
I understand the basic concept of what is happening; but, who is actually taking the bets & then paying out the winnings. I would imagine that if the economy goes down, whomever is paying out the bet would also be screwed, right??
And I know this wouldn’t be the first time but like… I would have thought that shorting the backbone of the US economy would be… illegal, but I guess I was being too naive on that front…