What if the retail brokers will be forced by law/politics/general public to undo the restrictions on meme stocks. This would probably fuse the sqeeze to insane hights (correct me if I'm wrong). What happens if Melvin Capitol has to cover these shorts by selling off their positions and would probably need a big bailout (by Capital?) to prevent it from falling over.
Eventhough Melvin Capital is only worth 20 bil in marketvalue which is merely a dent? A bailout would probably come by liquidation of market assests. Could this result in big down pressure on the market?
Considering the discrepancy between the economy and the stockmarket and probably new lockdowns around the world as a result of Britisch Covid variant in combination with unexperienced retail money, could this be the catalyst to pop the market bubble?
- Edit: Excuse my English (not my native language)
Leave a Reply