Quote:
Originally Posted by apar
Quote:
Originally Posted by antzcrashing
"Not to mention there currently is no way to stop them from just kicking the can down the road for years and just resetting the FTDs, potentially forever at relatively little cost to them. "
The thing that might stop them is either 1) thinking there is another stock with a better outlook for shorting 2) thinking gamestop has a real bright future as a company
As spiteful as any human-being can be, another better opportunity is also a high motivation.
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What? I'm confused. Why would that make them close out their liability?
Lets say for example that I owe $20K in credit card debt. There's nothing that stops me from opening new credit cards at 0% interest and just using the new credit card to pay off the old one. That's essentially what they do when they reset the FTDs. They can just keep resetting them forever. Why would Gamestop doing well or another opportunity make me pay back my debt? I'm just choosing not to pay it back. Ever. It doesn't matter how much I owe, or how many shares I have to buy if I never have to pay it back. |
The cards are stacked in favor of hedge funds because they have enormous capital and access to liquidity, yes. But there are limits. Ask LTCM.