Comments by "kazedcat" (@kazedcat) on "Ironsides' Knapp on Archegos margin call: 'It's amateur hour on the Street'" video.

  1. You buy a stock. You can earn money buy lending the stock to institutions. But earning money by lending takes time so instead you sell the rights of the expected earnings with a discount to people who can wait for the returns of lending them. Selling swap gets you money quickly that you can use to buy more stock to use for more swap. The house of cards fall when institution does not want to borrow anymore because the hedge funds are now afraid of shorting stocks.
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