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This is nothing like the size of the bubble (US housing market) that precipitated those crashes.
by danhak 6y ago
This is nothing like the size of the bubble (US housing market) that precipitated those crashes.
- swader999 6y agoIt is actually. The housing market had real collateral even if it was overly appraised.
- danhak 6y agoNo, it's not. Not even close. The current market cap of GME is $25 billion. Meanwhile, the size of the subprime mortgage market in 2008 was in the neighborhood of $50 trillion.
- swader999 6y agoShorting losses can be infinite. Then add in the derivatives at play. Who backs these trades? Who backs them? What gets triggered when any of these default on their contracts?
- carlmr 6y agoThe bubble may become more visible if a chain reaction is started.