I have a question for some smart Freepers here who watch the investment world carefully... Wall St. dropped just a tad under 700 points today. Was all (or at least most) of the drop directly related to GameStop related stuff (and say the others where the hedge fund crew are pretty much in the same boat)? Or how much of it was related to collateral damage where even if they aren’t directly implicated, they still have indirect exposure and/or will get hit by the ripple effects?
Many believe the recent downturn is due to a lack of liquidly over these squeezes. However the market is already toppy.
The market is due a correction.
1. Biden just killed tens of thousands of jobs.
2. Phasing out gas is going to create a lot of loses abs upheaval.
3. Game Stop could squeeze the market and force a few hedge funds to sell but that’s a small amount overall.
4. Biden seems feeble and likely not going to last more than a year or two.
Dems in charge and the leftist Kamala. Chaos.
5. The main mover this week was vaccine rollout slow abs the J&J one isn’t effective. Just seems like more shutdowns and delays and hurts a ton of businesses.
“Was all (or at least most) of the drop directly related to GameStop related stuff (and say the others where the hedge fund crew are pretty much in the same boat)? Or how much of it was related to collateral damage where even if they aren’t directly implicated, they still have indirect exposure and/or will get hit by the ripple effects?”
Fact is, no one knows.
There is no sign of systematic financial distress of big institutions via the repo market
Compare to last year
https://www.dtcc.com/charts/dtcc-gcf-repo-index