More like using a credit card to buy chips at a casino
In fact, now that I think about it, that's exactly what it's like.
They borrowed money from a bank and told a bunch of people that if they would let them borrow their shares for a little while, they'd give them all back soon and they put up the borrowed money as collateral.
Then they sold the shares they borrowed expecting them to fall in price so they could buy them back cheaper, give them back, get their collateral back, and pocket the price difference.
Problem is, the price went up instead and they don't have the money to buy those shares back now, so they have to buy them all at an inflated price or forfeit their collateral and also pay the original owners for the shares they didn't return.
They took a cash advance from a credit card, bought casino chips, bet it all on a "sure thing", and are losing so now they're trying to get the government to kick all the other players out of the game.
I don’t know much about much, but is what they’re doing just an upscale version of using a pay day loan to pay off another pay day loan?
except you never earned the first paycheck to begin with you just bet or leveraged against someone else's work.
More like using a credit card to buy chips at a casino
In fact, now that I think about it, that's exactly what it's like.
They borrowed money from a bank and told a bunch of people that if they would let them borrow their shares for a little while, they'd give them all back soon and they put up the borrowed money as collateral.
Then they sold the shares they borrowed expecting them to fall in price so they could buy them back cheaper, give them back, get their collateral back, and pocket the price difference.
Problem is, the price went up instead and they don't have the money to buy those shares back now, so they have to buy them all at an inflated price or forfeit their collateral and also pay the original owners for the shares they didn't return.
They took a cash advance from a credit card, bought casino chips, bet it all on a "sure thing", and are losing so now they're trying to get the government to kick all the other players out of the game.