2008's housing market collapse only cost the banks around 50 billion.
$1000 GME/Funcoland is WORSE FOR THE BANKS THAN THE 2008 HOUSING MARKET CRASH.
This is going to crash the entire financial system.
And it's not limited to Gamestop, or AMC, or BBRY.
This has exposed a serious vulnerability in a system that is already propped up by MASSIVE amounts of debt.
These funds make up a significant amount of trading volume on the NYSE, and the average hedge fund has $30-40 in debt for every $1 of actual money on their books.
It has now become apparent that the sustenance of the entire system is dependent upon fund managers and bankers trading on inside info at the expense of retail investors who hold positions opposite theirs.
Retail and "outsiders" have now figured out a way to break their game, rendering them unable to service that debt.
If the government intercedes, they can only do so unconstitutionally and screw tens of thousands of regular people out of money they made fairly.
If they don't, I don't know if you realize this, but we are looking at a system-wide collapse that can't be stopped.
Hedge funds have a total of $3.25 trillion under management, and nearly every dollar of that is intertwined and levered up to the extent above.
The value of the US dollar will be at risk. There's no amount of stimulus the government can pour in to help service that debt without triggering hyperinflation.
Exciting times.