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*> But if the stock gets crushed, so what? Stocks are not sentient beings
- there is not an inherent morality in 'saving' them, and delivering what could amount to a Coup de grâce isn't inherently immoral if the
stock is dying .*
This is the point. The company was solvent, and had more cash than debt at the start of this whole thing. Why should a solvent company have to fold (and all their employees lose jobs) just because a hedge fund decided they were doomed and got greedy?
Edit: no idea what happened to the formatting there...
- there is not an inherent morality in 'saving' them, and delivering what could amount to a Coup de grâce isn't inherently immoral if the
georgert-
This is the point. The company was solvent, and had more cash than debt at the start of this whole thing. Why should a solvent company have to fold (and all their employees lose jobs) just because a hedge fund decided they were doomed and got greedy?
Would that have been the outcome should the short have gone un-checked by WSB? I think I missed that bit. Maybe it would. But if GME was to be finished off, you have to ask some serious questions about the mid-long term viability of the company at the time the short strategy was implemented. If the company was healthy and had an obvious future, investors would pour back in at the lower share price.
Obvs had the short gone unchecked GME's life isn't going to have been made easier but then nothing about being listed makes a company's life easier - it's just a way of getting access to capital in exchange for losing some control.
Howard
They identified a stock that was, in their view, over valued. And they made a big bet that the value of the stock would decrease towards the 'real' value. They aren't looking to 'crush' it although that might be the outcome. It certainly will be now. It's arguable that the GME business was worth nothing.
But if the stock gets crushed, so what? Stocks are not sentient beings - there is not an inherent morality in 'saving' them, and delivering what could amount to a Coup de grâce isn't inherently immoral if the stock is dying . There is only so much value and it's better that value finds the right places sooner rather than later.
Heh I am so fucking reductionist.