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Is there anyone that understands how this all works enough to tell us what would happen if the same number of hedge funds and banks, went out of business, as th
by Simulacra 6y ago
Is there anyone that understands how this all works enough to tell us what would happen if the same number of hedge funds and banks, went out of business, as the number of small businesses that also went out of business due to COVID. What would the fallout in the economy look like? Worse? Better?
- rswail 6y agoLehman and Bear Stearns went out of business in 2008. The mountain of derivatives that they were one of the parties to netted out at zero, but in the process, a lot of people got burnt, including the ultimate mortgagees. The share market and its derivatives net to zero. It's a mechanism for getting capital flowing between investors and producers.