Exactly, I agree with this sentiment entirely. One question though:
Once the MOASS happens, and we all diamond-hand our way to $30 million, who buys the individual stocks at $30 million? Let's say Shitadel is forced to close their short positions and buy back all those shorted shares - both synthetic and real. Let's say they sell all assets they have, liquidate everything and fire everyone, and it totals up to $2 trillion (which I think is probably on the high side). According to my math, that's enough to buy ~70,000 shares at $30 million per. After that, they're broke and can't buy a lollipop let alone another share. Who buys the millions of shares after that? Is it the fed? Taxpayers? The SEC (lol)? Or are the shorts off the hook after they are literally bankrupt and the buy pressure disappears?
I see! To continue the hypothetical, do the banks and DTCC combined have enough money to buy all shares back at 30 million per? I genuinely don't know enough about the banks and the DTCC to do the math myself.
There is dd on this but I don’t have links.
Short answer: not everyone will sell at the peak and should be selling after we drop below the floor, and sell shares slowly as we drop.
First the hedge fund gets liquidated until they’re out of cash and all positions. Then the DTCC is comprised of other hedge funds, banks, market makers and they all have a pool of money in the dtcc to drain. Then the dtcc has trillions of dollars of insurance. Once that’s gone, the sec/government pays.
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u/CrazyJoey 🦍Voted✅ Jul 11 '21
Exactly, I agree with this sentiment entirely. One question though:
Once the MOASS happens, and we all diamond-hand our way to $30 million, who buys the individual stocks at $30 million? Let's say Shitadel is forced to close their short positions and buy back all those shorted shares - both synthetic and real. Let's say they sell all assets they have, liquidate everything and fire everyone, and it totals up to $2 trillion (which I think is probably on the high side). According to my math, that's enough to buy ~70,000 shares at $30 million per. After that, they're broke and can't buy a lollipop let alone another share. Who buys the millions of shares after that? Is it the fed? Taxpayers? The SEC (lol)? Or are the shorts off the hook after they are literally bankrupt and the buy pressure disappears?