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> His point is that the index funds don't own the stocks at all What? Where did you see that? Not only do the index ETF issuers own the stock but I believe the

• blacksqr 7y ago
  "Potentially making it worse will be the impossibility of unwinding the derivatives and naked buy/sell strategies used to help so many of these funds pseudo-match flows and prices each and every day. This fundamental concept is the same one that resulted in the market meltdowns in 2008."
  • gniv 7y ago
    The keyword there is "help". They use derivatives to handle the daily fund flows. They should be a tiny percentage of the whole fund value.
    • dclusin 7y ago
      You only find out who's swimming naked when the tide goes out.
    • blacksqr 7y ago
      Burry's point is, whatever the percentage of leverage, it's reaching levels that are dangerous for the larger economy.