Replies to post #339230 on SPDR S&P 500 (SPY)

[Vandalayind]

The FED are the enablers.

The problem is leverage and margin.

Wrong side of the trade is just the catalyst.

[Vandalayind]

How many hedge funds is this now?

The real problem is these guys aren't really hedged and they are all over levered.

Collateral damage of the FED giving away money for nothing indefinitely.

The only way to take advantage of what the FED is doing is to lever up.

All they are doing is LOANING money cheaply.

[Vandalayind]

They are almost doing it ass backwards.

They should be invested with cash and hedged with leverage.

Instead they are levered 5 times their value(Archegos), and don't have the assets to back it.