It's very reminiscent of how fractional reserve amplifies the money supply. John... | Hacker News

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		nly on Jan 30, 2021 \| parent \| context \| favorite \| on: No, WallStreetBets isn’t robbing Wall Street to he... It's very reminiscent of how fractional reserve amplifies the money supply. John puts $100 in the bank. Bank lends $90 to Steve. Steve buys a thing from Ali. Ali puts $90 in another bank...Bank 2 lends $81 to Sheila... Does a short/float ratio of 100% require multiple brokers to participate? How is the bookkeeping on these shorts maintained?

monopoledance on Jan 30, 2021 [–]

I have no idea how all this works in detail. I think some of the GME naked shorts were not even really legal.

I don't see any value in all this shit and hope shortselling and similar metashit will be outlawed all together. How is speculation a valid business?

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