4 ms·
It's not inefficiency. Recklessness isn't the word, neither. It was greed and arrogance. (1) They borrowed more shares than in circulation (2) They double dow
by alephnan 6y ago
It's not inefficiency. Recklessness isn't the word, neither. It was greed and arrogance.
(1) They borrowed more shares than in circulation
(2) They double downed on their losing position and lost a $3 billion bailout within a day.
Their bet was, really, that financial institutions can stay solvent longer than retail can be "irrational". It was a game of chicken, but The emperor has no clothes.