The short positions put on by the hedge funds are posing a systemic risk to the market. Bail out both sides by liquidating the hedge funds, but not the brokers or clearinghouses, but also put a buy order in for $10k per share to allow GME shareholders to exit. Isn’t $700 billion better than a financial meltdown? Just like last time you can ‘put rules in place to make sure this won’t happen again’
In 2008 the banks held risky assets and got bailed out because they said the innocent normal people would be hurt even more if you didn’t bail them out, so the government did it.
We posed a risk to the liquidity of the hedge funds, brokers, and clearinghouses yesterday. By bankrupting them it would probably cause a temporary stock market crash as they liquidate their positions.
Are we not now in the same position as the banks were in 2008? Buy us out of our positions for $700 billion to save the rest of the market and the normal people right?
Edit because it got attention: if this ever was a reality it would in the form of a loan to clearinghouses and brokers to cover any losses up to $10k per share. They would have to pay it back over time. The government would get the money back and reimburse taxpayers, while at the same time collecting taxes from the gains of the retail investors. Long term the clearinghouses and brokers recover, the market continues to function, and then they never let hedge funds put on a risky play like that ever again. The hedge funds involved are deservedly bankrupt, and the retail traders get the reward they deserve by playing the free market game by the rules.