Re:AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
by FabHK on Wednesday February 03, 2021 @01:45PM
(#26017424)
On the bright side, though, at least it was a zero sum game (well, it will have been by the time the stock is back to where it started). Money was transferred from the early shorts and late longs to the early longs and late shorts; with the market makers taking a bit of a cut.
Many other scams (or, for example, theft and robbery) destroy value (as, for example, a stolen wallet is a much bigger loss to the owner than it is a gain for the thief). Or, say, the 2008 GFC made a few people extremely rich (unscrupulous mortgage peddlers, investment bankers creating "complex, highly leveraged, exotic trades [...] without necessarily understanding all of the implications of those monstrosities", etc.), while wreaking havoc orders of magnitude greater on the entire world.
Many other scams (or, for example, theft and robbery) destroy value (as, for example, a stolen wallet is a much bigger loss to the owner than it is a gain for the thief). Or, say, the 2008 GFC made a few people extremely rich (unscrupulous mortgage peddlers, investment bankers creating "complex, highly leveraged, exotic trades [...] without necessarily understanding all of the implications of those monstrosities", etc.), while wreaking havoc orders of magnitude greater on the entire world.