Can someone explain this statement? My brain hurts. @eigenrobot you seem to know shithttps://twitter.com/williamlegate/status/1354238295622955008 …
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this is fine because the contracts only stipulate that ONE unit of stock be returned to the lender not the "same" unit of stock, stocks are basically fungible
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it's sort of like when you make a deposit in a bank and the bank turns around and makes a loan to someone else, who then goes and makes a deposit in the bank, ad infinitum lots of dollars are owed and owned, beyond the initial paper currency you deposited
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Fun fact, this is also how bank loans work and where most money comes from
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it's only fractional reserve banking if it's from the regulated banking sector, otherwise it's just sparkling finance
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