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Please forgive my ignorance on this subject, but something bothers me about the GME potential huge price gains. It seems, from my reading of various posts/comm
by bloopernova 5y ago
Please forgive my ignorance on this subject, but something bothers me about the GME potential huge price gains.
It seems, from my reading of various posts/comments that pop up on Reddit, that GME will increase massively in price based on short sale strangeness. But, hand in hand with that huge price gain will be a market/economic crash. Surely there won't be any buyers for these shares?
Won't that make GME worthless, or at least worth much less? Why hold stock if the only way you might get rich is during a terrible economic crash?
- voisin 5y agoThe point the Reddit guys were making was that the hedge funds that shorted GME would eventually capitulate and buy back the shares because the cost of borrowing them is astronomical (thanks in part to Reddit users instructing their brokerages not to loan out their shares). I think it is largely insulated from market behaviour.