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From a social level, there is a huge difference between a bank run and a short squeeze. One affects regular savings, the other wipes out only those that opted i
by ashtonkem 6y ago
From a social level, there is a huge difference between a bank run and a short squeeze. One affects regular savings, the other wipes out only those that opted into a high risk short position.
- lazyasciiart 6y agoUnless those that opted in are “too big to fail”, and then everyone else pays for it.
- ashtonkem 6y agoIf you’re talking about 2008, then they actually paid for it. The loans that the US government made during the crisis actually paid themselves back with some interest.
- lazyasciiart 6y agoThey still paid for it at the time, and that's why the ones who got themselves into risky positions did not get wiped out. My engineering degree had a great ROI but I still paid for it.