For veterans who’ve “seen it all” (so to speak), this kind of thing generally falls into the “stuff happens” category (and I’m omitting the expletive), or at least until the “contagion” headlines aren’t just headlines anymore and the dominoes start to tip.
While the GameStop saga served as a stark reminder that nobody has ever truly “seen it all,” margin calls and flameouts are things that happen. Colloquially, it’s risky to run around gambling billions using leverage, even if the leverage you employ falls well short of that associated with history’s most spectacular implosions.
Over the last 72 hours, myriad outlets and web portals have engaged in the usual hair-on-fire media race to pen the definitive take, but as ever, that’s impossible because the story isn’t over yet. Even if you fancy yourself the fastest, smartest “gun in the west,” you can’t tell the whole story because it’s still unfolding….
In all likelihood, this will end up being amenable to the following short summary: Sometimes, you blow up. It’s just a matter of whether you take a few people with you or not. Usually, it’s not systemic…
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