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GameStop, Stock, NYSE:GME, NYSE:AMC, AMC Theatres 🔥 The House of Cards part 2 🔥 How the GME & AMC Squeeze will end

This is fake money, but hey what’s, not fake is the fact that you guys have andrew mo money and professor mcbell here with you with the latest house of cards. 2 part 2 house of cards, part 2 and part 3 that came out yesterday, and i want you guys to be able to understand that austin tobit friend of the show he is going to be coming on to talk exclusively about what he means when he says That the financial system that we are currently running on is running on fumes, it’s, truly running on a platform that has a due date and when we start running like the cartoon characters, we are with a little bit of uh of a flare to our kick. We will start to fall and how this transcends uh beyond amc and gme, but let’s take a look at the toulon, didn’t read so at least we understand what this is about. Oh there’s, no freaking way that he can do this well. Let’S take a look anyway, and if this video doesn’t entice you until the very end uh, i don’t know what will i’m going to try to keep my commentary to a minimum to help you understand exactly what the word of gospel from austin tobit is all about, And if you guys want to make sure that you don’t miss out on that live interview on this channel, because he’s come on once twice three times four times he’s a friend of the show he comes on and co hosts very often.

So if you guys want to miss that bell button next to the subscribe button is for you and if this video is not up to 1 600 likes, yet you guys know what to do so 90 seconds away. Let’S get to it. He wasn’t looking into gamestop when all this began most of his time was spent researching the pandemic’s impact on the economy. He’S talking about the economic steam engine that employs people and puts food on their tables, especially the small businesses that were executively steamrolled by covid lockdowns. It was scary how fast they had to close their doors. He spent a lot of time looking at companies like gamestop, brick and mortar companies that were basically running out of bricks. To oh sorry, sorry, youtube. Frankly, gamesup looked a lot like the next blockbuster and it just seemed like a matter of time before they went under, had dfv deep effing value or roaring kitty uh had not done his homework it’s possible. We wouldn’t have a rocket to huddle or a story to total okay, fine, fair enough. Okay, uh let’s. Keep that to a minimum. Whoever has had a short position with gamestop was probably thinking the same thing. The number of shares that can be freely traded on a daily basis is referred to as the float gamestop has. 70 million shares outstanding, but 50 million shares represent the float with a small float like this. A short position of 20 becomes significant heck.

Volkswagen got squeezed with just 12.8 percent short position, so let’s use little numbers to walk through an example of how this works, and this is for the beginners. This is for the experts. This is for everyone under the sun to listen up and understand that you have a abstract understanding of what’s going on let’s, go through an example to have you get a concrete example assume volkswagen has 100 shares outstanding if 12.8 percent of the company has been sold Short, then, 12.8 shares or let’s say 13 must be available to purchase at a later date, assuming volkswagen doesn’t go bankrupt, which is what the shareholders want. However, volkswagen had a float of 45 percent when uh, which meant that there was no real strain to cover that 12.8 percent short position at any time. However, when porsche announced, they wanted to increase their position in volkswagen. They invested heavily. The kicker was that porsche owned. 43 of volkswagen shares 32 in options and government owned 20.2. In plain terms, it meant that the actual available float went from 45 down to one percent of outstanding shares: bullsbears.com there’s, the source right there let’s visit our scenario with a hundred shares outstanding and 13 shares sold short. What happens if only one share was available to cover instead of 45? Well this – and this is straight up. Factual historical data from the volkswagen squeeze gamestop is was the victim of price suppression through short selling they su.

He has actually discussed this with dr t, dr suzanne trimbath and carl hagberg and their amas. Every transaction has two sides: a buy and a cell short selling artificially increases the supply of shares and causes the price to decline. When this happens, the price can only increase if demand exceeds the increase in supply, and this is easy for you to understand. It’S, just basically uh using a credit card right. You use a credit card and suddenly you can have as many uh pulled pork, sandwiches and and maseratis up to a certain extent that you have wanted, but you always have to pay back that credit card. That is what we’re looking at an entire financial system built from the bottom to the top of credit cards paying off each other. He started looking at close the game stop after confirming their reported short position of 140 percent it’s important for him to explain why this is so much different than the volkswagen example. 140 of gamestop’s float was sold short. There were 50 million shares in that float. So 140 of this is equal to 70 million shares. The company has outstanding. This means that at least 100 of their outstanding shares has been sold short now compared to volkswagen, where the short was only 12.8 percent simply put that it’s mathematically impossible to cover more than 100 of a company’s outstanding stock. The peak of the volkswagen squeeze was reached when the demand for shares became surpassed by the supply of those shares.

Here. Demand represents 12.8 percent of their stock, which must be available to close the short position, with only one percent of shares available. This guaranteed to squeeze until the number of shares available to trade could satisfy the remaining short interest. So when a company has a short position with more than 100 of total shares outstanding, the preceding argument is thrown out. The window supply cannot surpass demand because the company can only issue 100 of itself at any given time. Therefore, the additional 40 could only be explained by multiple people claiming ownership of the same share. Surely this is a mistake right? I thought this level of short selling was impossible until he saw this number of short selling violations issued by finra, and this is one of the six bullet points that we sent to rokano, something that we worked with uh with him live on. This show uh something that austin tobit and i had been pushing to get it to all of your senators and your congress. People finra number one finra is not part of the government. Vendor is a non profit entity with regulatory power set by congress. This makes finra the largest self regulatory organization sro in the united states. The sec is responsible for setting rules which protect individual investors. Federer is responsible for overseeing most of the brokers collectively referred to as members in the u.s as an sro finra sets the rules uh by which their members must comply.

They are not directly regulated by the sec point case in point why we saw the sec chair. Mr gary gensler and the finra president or chair uh come in the same congressional hearing which we covered live on. The show, if you guys are con, are curious. What those faces actually look like, then, just search engine money, congressional hearing number three for gme finra, investigates cases at their own pace when looking at date initiated on their reports. It is not synonymous with date of occurrence many times. Finra will not say when a problem occurred just resolved. It can be years after the initial occurrence. The dtc participant report is littered with cases with that were initiated in 2019, but occurred in 2015, etc. Many of the violations occurring today will take years to discover. Finra can issue a violation for each occurrence, using a one to one format when it comes to violations like short selling. However, these occurrences can, last months or even years when this happens, finrail issues a violation for multiple occurrences using the one to many format. Now, if you guys, are interested in entity relationship diagrams suddenly, this is starting to get you nice and excited hot and heavy. I discussed this real event in citadel, has no clothes, where one violation represents four years of market referee. What a bad what’s bad is that finra doesn’t tell you which violations are, which you have to read each line and see if they mention a date range of occurrence within each record, if they don’t, you must assume it was for one event: brutal finra’s investment portfolio Is held by the same entities, they were issuing violations to let that sink in for a minute.

So that is telling you guys the lowdown, the skinny on how finra has been showing up to the uh whoop whoop whoop, everyone pay attention alerts and violations for the past few years. So this is not an isolated moment. Number two state your case. Can you think of a reason why short sellers will want to understate their short positions, put yourself in their situation and imagine you’re running a hedge fund? If you operate in a self regulated, sro environment and your records are basically private, if the sec asks you to justify suspicious behavior, you really don’t have to provide it. The worst that could happen is a slap to the wrist. They wrote about the exact same thing on citadel, has no close. They received a cease and desist order from the sec on the 10th of december 2018 for failing to come, submit, complete and accurate records. This occurred from november 2012 through april 2016 and contained deficient information for over 80 million trades, their punishment three and a half million dollars. So why even bother keeping an honest ledger? This is the kickback mentality, essentially you’re, giving money to the uh. The government agencies that uh basically assigned paltry fines that doesn’t actually prevent any of this illegal behavior. So as we are paying attention to how the government profits from criminals existing in the criminal ecosystem, we have a better understanding of who stands to profit when crimes occur. Now suppose, you short a bunch of shares into the market when you report this to finra, they require you to mark the transaction with a short sale indicator.

In doing so, finra b builds a paper trail to your short selling activity. However, if you omit this indicator, finra can’t distinguish that transaction from a long sale. Who else would there be to hold you accountable for covering your position? This is especially true for self clearing organizations like citadel because there are fewer parties, less parties, but fewer parties involved to hold you accountable with record keeping if finra thinks you physically owned those shares and sold them long on long sale. They have no reason to revisit the transaction in the future. You could literally pocket the cash and dump the commitment to cover, so this is starting to get very dicey, essentially print your own money and then make it seem like that money was, you know, totally legit. If you can give finra a reason, just give me a reason to not investigate you, they’re not going to and they’re not going to ever come back to it either. So another uh very important advantage is that it allows short sellers to artificially increase their supply of shares, while understating the outstanding short interest on that security. The supply of shares being sold will drive down the price, while the short interest on the stock remains the same. So aside from paying a fine, how could you possibly lose by forgetting to mark that trade with a short sale indicator? It would seem the system almost incentivizes, this type of behavior he’s combed through a dtc participant report and found enough dirt to fill the empty chasm.

That is ken griffin. So, who is the ceo of citadel? Take a guess at what their most common short selling violation is i’m. Just going to assume you said, failing to properly mark a short sale transaction, essentially, basically going into the account books in the irs. Like all the taxes your parents pay, you pay, maybe your kids pay uh depends on where you are in life, but essentially lying to the government about what is a short sale. That seems like a huge problem right. It seems like an audit waiting to happen. Every single time uh for the next few years, once you discover that, but no this is just something that happens over and over again for the record uh. They want to say that they call this in march when they wrote citadel, has no clothes citadel has one of the highest concentrations of short selling violations in their federal report at the time he didn’t truly understand or fully understand the consequences of this violation. After seeing how many participants received the same penalty, it finally made sense, there are roughly 240 participant account names on the dtc’s list. Should you not? They looked at every single short selling violation that was published on brokercheck.finra.org to be fair. He eliminated participants. That was only one to two violations related to short selling. There were plenty of bigger fish to fry, so reminder what michael bury did to find out about mortgage backed securities and how they were sub.

Prime, this man has gone through every single short selling violation on this website so understand he knows what he’s talking about cracks knuckles. He literally picked the first participant at the top of the list and found three violations. Abn amro clearing chicago llc is the third largest bank in the netherlands. They pro they got popped for three short selling violations, one of which included an ftd, a failure to deliver. So in total they have 78 violations from finra. Several of these are severe compared to their violations for short selling. However, the short selling violations revealed a much bigger story, so abn amro uh abn amro submitted an inaccurate short interest position to the nyse and finra and lacked the proper supervisory systems to comply with practically everything in 2014 amro forked over 95 000 to settle this and Didn’T even say they were sorry in these situations: it’s easy to think man. It could have been a fluke event, so he took a closer look and found violations by the same participants which made it much harder to argue their case for sheer negligence here’s. A couple for amro so here’s a couple more read at your own peril: abn amro got slapped with a one million dollar, fine for understanding capital requirements, failing to maintain accurate books and failing to supervise employees. If you mess up once or twice but end up fixing the problem great, but if you have your primary business is to clear trades and you fail this bad there’s a much bigger problem going on.

It gets hard to defend this as an accident when every stage of the trading recording process is fundamentally fraud. The following screenshot came from the same violation. Cme group found that the firm had improperly used a customers withdrawn warehouse receipts as collateral for margining purposes. Without these warehouse receipts, the customers accounts were under margined on several occasions, so these warehouse receipts are kind of like the receipts you get from buying lumber online that’s a weird analogy, but let’s go with it. You can print these out and take them to home depot. Where you exchange them for actual lumber, like you proved, you bought them right and then you go to home depot and then you can exchange that, but instead of trading the actual goods, you can trade a warehouse receipt instead, so yeah the. Since this one record allowed amarillo to meet their customers margin requirement, it seemed extremely suspicious that they didn’t appropriately remove it once they were withdrawn. Do you think it’s an accident? No, because finner reported them eight years later doing the exact same thing. So as a reminder it’s like keeping those receipts and then using them illegally, illegitimately badly, you are bad for even trying to think of that in not you viewer, i like you, but once again reminder uh. This is something that they have noticed over and over again. It’S not an isolated incident once again, amro got caught understating their margin requirements. Last time they used the value of withdrawn warehouse receipts to meet their margin requirements here, they’re using securities that aren’t eligible for margin to meet their margin requirements.

You can paint the apple orange but it’s still an apple that’s, fine walk like a dog quack like a duck it’s still a ken griffin, the bs they’ve read in the reports, doesn’t really shock them anymore, it’s. Actually, the opposite. You begin to expect bigger fines as they set higher benchmarks for misconduct when they find a case like this, like amro they’re, going to put more time into it, because certain citations represent puzzle pieces once you find enough pieces, you can see a bigger picture so believe Him when he says that he’s generally shocked by the detail report on the case, aacc understated the portfolio margin requirements for 22 accounts at various points. This has been going on for eight years from 2007 to july, from april 2007 to july 2015.. Without a doubt, this is the greatest example of violation where the misconduct supposedly ended in 2015, but took another four years for finra to publish the dang report. If their math is correct, the eight year relevant period plus the four years finra spent on the reviewing yields a total of 12 years. In other words, from the time this problem stayed it started to the time it was publicized in finra. The kids in first grade had graduated high school so now you’re understanding, just the sheer amount of pain that these hedgies are going under the sheer amount of uh of disaster that they are putting one foot after another to continue feeling like everything’s fine.

When you see these price actions for gma and amc, you know that it’s not close to fine. I don’t want this video to take up too much of your bandwidth so i’m going to make it piecemeal we’re not only going to cover part 3, but we’re. Also going to cover the next half of this dd in the next video, so i want to be able to thank the people that make this show possible. As a reminder, mr butter venom is asking to make more. We need more y axis shirts. Those are in the merch store at andrew momoney.com. So as a reminder, you are you and you know exactly what is the price point for you to have life changing money so don’t? Let anybody tell you the squeeze is over don’t. Let anybody tell you when to sell you decide where and if it turns out your paper hand for doing so. At the very least, you had a clear and compelling understanding of the fact that you are part of the largest wealth redistribution in the entire world.

What do you think?

Written by freotech

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