01-28-2021, 09:23 PM
hal wrote:
It appears that 100s of people joining together can dictate the market. If this is allowed to stand, these groups will grow to 1000s then millions. Then there will be no marketplace at all. If this isn't illegal collusion, it should be.
I don't see an equivalence of this group and a hedge fund. This is a mob against a single entity.
Non-sense. There is no law that requires hedge funds to be financially viable. Most of the 'mob' would lose money if there were no short sellers.
I have a simple test - if the retail traders who bet against the company did not exist, would the 'mob' lose money? If so, there is no reason for laws as the market will protect most against this behavior.
Simple - if banks or fund managers don't want to lose money betting on failure, they can just stop shorting stocks.