[danielmarkbruce]

Various government agencies are on calls to bail out various players in the financial system all the time and will continue to be. That isn't dumb per se.

[motohagiography]

some things are about other things too. gamestop was peak dumb. nobody knows anything.

[danielmarkbruce]

Any entity with a bunch of counterparties and large numbers who blows up will potentially be saved.

[eru]

Alas, yes. One of the perils of giving the relevant authorities too much discretion.

[danielmarkbruce]

in retrospect i should have said "any entity who has GS as a counterparty will be saved"...

[eru]

Not at all. Goldman Sachs had and has plenty of regular folks as counterparties for their credit cards (branded as Apple Cards, I think). These regular folks don't get bailed out.

See also https://en.wikipedia.org/wiki/Archegos_Capital_Management which had Goldman Sachs as a counterparty and was not bailed out.

[danielmarkbruce]

It was tongue in cheek. But, when someone says that, they generally mean a counterparty who owes money to GS, not the other way around. And I don't think goldies lost money on archegos.