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The most likely alternative, and the one that is least considered, is that short funds do not cover their position at all. Everyone loses.
by christopherwxyz 5y ago
The most likely alternative, and the one that is least considered, is that short funds do not cover their position at all. Everyone loses.
- deleted 5y ago[deleted]
- dgellow 5y agoYep. That would make it clear that the system is fucked.
- christopherwxyz 5y agoLehman Brothers and Bear Stearns disintegrating did not bring total collapse to the financial markets. Citadel would be just one institution in a small collection of others. Ordinary investors lose, one or more funds lose. Nothing changes.
- sumedh 5y ago> Lehman Brothers and Bear Stearns disintegrating did not bring total collapse to the financial markets. The market started to collapse when the Fed stepped in to bailout banks and AIG and others.