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It's not clear to me that anyone is irresponsible here. Let's say that everyone on reddit got together and decided to turn every single appliance in the house o
by Traster 6y ago
It's not clear to me that anyone is irresponsible here. Let's say that everyone on reddit got together and decided to turn every single appliance in the house onto full at exactly 5am. The electricity grid wouldn't be able to spin up capacity fast enough and would have to shed load, causing black outs everywhere. Do we say the energy company is irresponsible for not having enough capacity on hand at all times to handle an immediate spike to 100% usage? No, that would be ridiculous and insanely expensive. In the same way there are reams of regulations around the minimum requirements and the risks associated with these events.
It's not even clear that continuing to allow low margin on these high volatility stsocks would've been good for consumers. The price would've got driven up further, the shorts would go bankrupt, the companies that loaned the shorts the stocks would recover pennies on the dollar, likely forcing them to sell off their position in GME to cover the losses driving the price through the floor, at which point all those RH traders who don't have quick accecss to the market would be left holding worthless stock, wiping out both their initial investment and probably getting margin called.