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It's very reminiscent of how fractional reserve amplifies the money supply. John puts $100 in the bank. Bank lends $90 to Steve. Steve buys a thing from Ali. Al
by nly 6y ago
It's very reminiscent of how fractional reserve amplifies the money supply. John puts $100 in the bank. Bank lends $90 to Steve. Steve buys a thing from Ali. Ali puts $90 in another bank...Bank 2 lends $81 to Sheila...
Does a short/float ratio of 100% require multiple brokers to participate? How is the bookkeeping on these shorts maintained?
- monopoledance 6y agoI have no idea how all this works in detail. I think some of the GME naked shorts were not even really legal. I don't see any value in all this shit and hope shortselling and similar metashit will be outlawed all together. How is speculation a valid business?