Comment on The Irony in the GameStop StoryparentComments−swader9995yIt is actually. The housing market had real collateral even if it was overly appraised.−danhak5yNo, it's not. Not even close.The current market cap of GME is $25 billion. Meanwhile, the size of the subprime mortgage market in 2008 was in the neighborhood of $50 trillion.−swader9995yShorting losses can be infinite. Then add in the derivatives at play. Who backs these trades? Who backs them? What gets triggered when any of these default on their contracts?
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It is actually. The housing market had real collateral even if it was overly appraised.
No, it's not. Not even close.
The current market cap of GME is $25 billion. Meanwhile, the size of the subprime mortgage market in 2008 was in the neighborhood of $50 trillion.
Shorting losses can be infinite. Then add in the derivatives at play. Who backs these trades? Who backs them? What gets triggered when any of these default on their contracts?