Sorry to be the little grey raincloud on this Hate The Hedges party, but you might want to understand the implications of what just happened

Y'know that fund that's getting all attention, Melvin Capital? Yeah, fuck them, right? Fuckin' shorters all shortin' and shit -- they played, they paid!

There's a reason they were bailed out and with all due haste.

Here's the issue: they were VERY good at the shorting game. So good that they actually had to turn away business. They made money like horses makes shit. When clients couldn't get in at Melvin, they went elsewhere. That opened the door to a lot of other firms basically mirroring exactly what MC was doing, which included shorting the fuck outta GME.

Fuck those guys too, right? It's their money, so why should I care?

Let's go back a few year, shall we, to the glorious chapter in finance and economics that was the 2008 Crash. Remember when Paulson lost his shit because he realized that in about 36 hours, the basic system called Western Capitalism was going to shit the bed; the bedroom; the whole house and pretty much every surface above the ocean within a planetary radius? This is sorta like that. Only worse.

The thing about short squeezes is that the losses can be infinite, and that's exactly why WallStreetBets did what they did. They knew if they bought and held -- diamond hands -- the stock would have to rise as the shorters had to cover their bets. Melvin Capital and a shit-ton of other, smaller firms had to do that and ran out of liquidity long before GME was even at $50. For every share of stock they shorted, they need to cough up another share at a higher value -- and they HAD to actually have the higher-priced share.

And here's where things get VERY ugly.

Shorting GME was such a sure thing that a huge number of shorts were placed. In fact, more shares of GME were shorted than actually existed. Oops. But hey, SURE THING, BABY and what's the worst that can happen?

Yeeeah, y'see where this is going now?

So these firms, not only are they broke, they don't have the shares, either. They need to come up with shares, pronto, at any price, because contractual obligations are a motherfucker in the finance world. But again, more shorts than there are shares and the people who have the shares, WSB and 4chan's /biz/, aren't letting them go. The longer they hold, the higher the price will go as short after short faces having to cough up the shares they borrowed.

A lot of people are about to lose a LOT of money -- the kinda losses that have so many zeros attached that looking at the number bores the eyes.

Back to 2008: the reason the whole world almost started Mad Max LARPing back then is that a narrow number of highly-important financial institutions were a wee bit thin on liquidity because they were having to pay it out by the boatload. That's bad. What would be better is if risk were more distributed, and how could that little plan POSSIBLY go wrong? Maybe a Black Swan event involving a huge amount of money that needs to be paid out by all of them due to this annoying bird.

That's where we are now, but no one even remotely knows what that figure is going to be. Again, (potentially) infinite losses multiplied by 150% times the number of shares actually available, multiplied by the dogshit risk factor on the loans and the leveraged payouts -- your best case scenario might be a loss of about $500 billion. Someone has to come up with that money, be it the Fed or other banks/investors, but that latter group has to come up with the money themselves, which is generally accomplished by selling profitable holdings. We all know what happens when a lot of people have to sell, right?

I always wanted to live in interesting times, thus proving what an utter fuckwit I am.

Dude could stand to edit his intro down, but mostly solid info. I had no idea the movie had so many sequels and "sequels"!

At the end he suggests Americans should catch up on some Aussie classics. Any suggestions? The only four that I've seen and know for sure to be Australian, off the top of my head, are Young Einstein, The Adventures of Priscilla Queen of the Desert, The Castle, and Mad Max. No doubt I've seen more than that, but I don't want to assume set in / starring an Australian means it was actually made by Australians...

I assume from the video title it is a GoPro MAX (360 degree camera

*related=http://videosift.com/video/Raised-by-Wolves-New-Trailer-HBO-Max

Raised by Wolves | Full Episode | HBO Max has been added as a related post - related requested by ant on that post.

Raised by Wolves | New Trailer | HBO Max has been added as a related post - related requested by ant.

*relatedto=http://videosift.com/video/Raised-by-Wolves-New-Trailer-HBO-Max

That's great, but I have hbo with directv so hbo max comes free. I just never activated it before. I'll have to remember for the next free trial I try.

Your video, Raised by Wolves | New Trailer | HBO Max, has made it into the Top 15 New Videos listing. Congratulations on your achievement. For your contribution you have been awarded 1 Power Point.

That's what flying out of John Wayne in Orange County feels like. The last time I flew out of there, the pilot didn't do a standard roll. He pushed the throttles to max while holding the brakes, then popped the brakes and off we went. There's a noise-abatement zone just beyond the airport, so the pilots go up like rocket, then cut the throttles back and it feels like the plane is dropping out of the sky.

Saw Max Cooper earlier this year in L.A. It was outstanding! All of his videos are masterpieces. Boy, I miss going out...

Your video, Max Cooper - Repetition (video by Kevin McGloughlin), has made it into the Top 15 New Videos listing. Congratulations on your achievement. For your contribution you have been awarded 1 Power Point.

I loved Max Headroom. Remember the sci-fi TV series? I member.

Blipverts are exactly like skipping commercials at 3X speed imo. Surprisingly not many obese viewers have spontaneously exploded.

I liked this, but ran out of interest around 20 minutes in. I really didn't need a >7 minute explanation of what late night talk shows are. Even with Max narrating this should have been maybe 10 minutes long, not near 40.

this is a great song with an absolute shit animation. I have seen rule 34 with better animation. Actual animation frames replaced with tweening looks hella awkward. Also the story of the video..

I dont get it. There have been MANY music videos that have replicated the exact same setting. A music performance in a mad max post apocalyptic world. But instead of actually showing a performance they throw a ton of scenes that make no sense, no reasoning. Why would a performance be held with so few people? Why would a performance be held near a riot situation where people are lobbing cocktails? Who the hell would do such a thing?

And yet here we are, another music video who thinks they can pull the same story board and creates yet another ridiculously believable video. Many videos feed off the energy of a live event and synergize with the crowd, and they rock. Then there are those videos who think they are a 4 minute movie and F_ it all up.