Quote:
Originally Posted by JSH
No different than me loaning Frank $10, Frank loans it to Jack, and Jack loans it to Sam. There are twice as money dollars loaned than actually exist.
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Quote:
Originally Posted by JSH
The contracts can't have the same end date. You can only loan stock in the window that you own it. Loaning it outside that window is illegal.
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There's a big difference between borrowing a fiat currency from the government that makes it and borrowing a share of a company. If I borrow more stock than actually exists, do I outvote the current Board and take control? No, because that's silly, you can't do that.
But it's what Wall Street does, and it's a problem.