u/ Exceedingly writes:

Pretty sure Criand showed it’s the large banks / prime brokers acting as the counterparties, so Bank of America, JP Morgan, Goldman Sachs, Citibank and all the other ones who are DTCC members and have trillions in derivatives.

Plus there’s something I didn’t realise, in basic accounting principles you follow the equation Assets = liabilities + equity. This basically means any money into your company has to be transferred into some form of asset, if not it comes straight off equity. If equity goes negative, it’s a huge red flag that will prevent investment and the business would probably go under. Shorts are liabilities on a balance sheet, you take money in and keep an open debt, so Ken would have to use that money to buy some form of asset. But swaps mean his GME shorts can become assets, as it’s the prime brokers holding the short position. Ken has no short exposure from swapped GME shorts and they actually go up in value on assets if GME’s price drops.

And the banks holding the swaps have trillions to weather out a price rise in GME. But that’s why the bank collapses are actually bullish for MOASS, since last year $600b has been pulled out of bank deposits. If that trend keeps up and gets worse, then the FED won’t actually be able to print money to bailout banks. Just say for example bank deposits drops from the current $17.5t to just $7.5t. The Fed would have to print $10t just for banks to be able to keep all their current asset positions open, but printing 200% of the money supply just leads to hyperinflation which bankrupts the US. It just isn’t feasible or sustainable.

It sucks, but bank collapses might be the one true catalyst in this saga (other than DRS).