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  1. #1
    Whiteboy Summer Violator's Avatar
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    I am not very smart when it comes to stocks etc, can someone read this and see if it makes sense?

    https://www.reddit.com/r/amcstock/co...t_of_the_next/

    AMC, GME Squeeze will be apart of the next financial crisis. Reverse Repo market and Synthetic Shares.
    DD
    Hello, my fellow apes

    I am a 20 year old Canadian university student that invested in the original AMC "squeeze". I had little investing experience and knowledge, but over the past 6 months I have read so much to do with AMC and GME stock that I think this is going to be the next financial crisis. Here?s a screenshot of my positions, as well you can check my post history. I am no shill.

    https://imgur.com/a/e2kXPZ8

    Let?s begin, over the past few weeks the FED has been going crazy with reverse repo operations. Today they past their cap of 500 billion dollars and settled a reverse repo operation of 502.904 billion dollars. Here is the history of reverse repos.

    https://apps.newyorkfed.org/markets/...ate=01/01/2000

    What is a reverse repo? Well from Investopedia "A reverse repurchase agreement (RRP) is an act of buying securities with the intention of returning, or reselling, those same assets back in the future at a profit. This process is the opposite side of the coin to the repurchase agreement. To the party selling the security with the agreement to buy it back, it is a repurchase agreement. To the party buying the security and agreeing to sell it back, it is a reverse repurchase agreement. The reverse repo is the final step in the repurchase agreement, closing the contract."

    https://www.investopedia.com/ask/ans...-agreement.asp

    Why has the FED been going so crazy with these reverse repo agreements? Simple, there is way too much money in the American economy. Since the pandemic started, the FEDs money printer has been going BRRRRRRRRRRRRR. Here is a screen shot of the current inflation adjusted charts of the S&P 500, Dow and NASDAQ:

    https://www.advisorperspectives.com/...eir-2000-highs

    Why is this an issue? Well, because the fed has been printing money and giving it to the American people through stimulus checks and the amount of spending has gone down through the pandemic, the American people have more money parked in the big banks than ever before. The big banks are currently losing money on interest payments because of all this money. This is where the repo market comes into play. The banks don't want all this money, so they perform repo contracts with the FED. The banks are buying securities in the form of treasury bonds from the fed in order to get rid the money. The Fed then has to buy these securities back at a later date, and higher price. This is the essence of the repo market. The banks and the fed are using the repo market as a way to keep interest rates within their targets and control the amount of liquidity they both have. The FED wants to keep printing money to keep the economy running and the banks want to get rid of the printed money to keep the lights on. Now, how does this tie in with AMC and GME? Throughout the pandemic, large hedge funds such as shitadel have been shorting the absolute shit out of everything. This includes AMC, GME and other "meme" stocks, as well as treasury bonds. Yes, citadel has been even shorting treasury bonds.

    https://www.localsuccess.org/shortin...ury-bond-2021/

    This is where it gets interesting. Since apes like you and I have been buying and holding AMC, GME the price has gone up due to gamma squeezes, momentum and some legal shorts covering. Shorts have been losing hundreds of millions of dollars on these stocks every day. The hedge funds currently are using options contracts, along with purchased shares to keep some profits going from the rising price, in order to short the stock even more. This is why it has been going on for so long. They lose money from these terrible short bets, but allow the price to rise and gain some cash from options contracts and other derivatives. As well, they route buying trades through the dark pools so it does not affecting the current market price, but then sell those same shares on the open market, which lowers the price. There is a feedback loop between the banks, FED and hedge funds.

    FED prints money which goes into economy.

    Banks receive this money and have to pay interest

    Banks perform repo operations with the FED to get rid of this money

    FED then has to buy these securities back at a higher price, as seen today with 502.904 billion dollars bought back of these securities.

    Since citadel is a market maker, they allow the flow of these securities. But they have been shorting the fuck out of these bonds and a lot of different stocks throughout the pandemic. So how does it all end? The feedback loop will eventually be broken due to the increasing interest payments of losing short positions. When this happens, the banks won't be able to keep performing these repos, the FED won't be able to perform reverse repos, interest rates will either sky rocket or go negative I?m not sure which but I can tell you either one of those options will crash the economy. The FED and the banks have two options right now, hyperinflation and great depression. They can't keep this dance going for much longer since it is pretty much confirmed today that there is indeed ILLEGAL shorting happening to AMC and probably GME too.

    https://investor.amctheatres.com/new...20120%20shares.

    "Commenting about the share count, AMC President and CEO Adam Aron said, ?The number of investors who want to own a part of AMC continues to increase and now stands at approximately 4.1 million. More than 80% of AMC shares are held by a broad base of retail investors with an average holding of around 120 shares."

    Taken from Yahoo finance:

    Shares Outstanding 513.33M

    % Held by Insiders 0.33%%

    % Held by Institutions 23.33%

    Apes own at least 80% of the shares

    513.33MM *.8 = 410.664MM shares owned by retail.

    Let?s take a look at institutional ownership.

    https://fintel.io/so/us/amc

    Institutional Shares 135,848,911. Uh oh, let?s add these shares up now.

    410.664mm + 135,848,911 = 546.492911MM shares

    Oh no! There is more shares owned then what the company publically states is available. What does this mean? NAKED FUCKING SHORTING/SYNTHETIC SHARES ARE REAL. Oh boy oh boy are we ever in for a shit show now. The FED will keep printing money, but the banks can no longer get rid of it because shitadel and friends are getting squeezed up the ass by apes like us, the whole market crashes worse than anything we have ever seen before. Before every historic market crash the margin debt of the market hits new highs, take a look what it?s at now.

    https://www.investors.com/how-to-inv...s-margin-debt/

    https://www.advisorperspectives.com/...s-record-trend

    I can also talk about Michael burry (the big short) taking short positions against tesla and the S&P 500, big institutions such as banks and insurance firms taking large long positions and how the price of AMC remained at around 5-8 dollars for many weeks during February, even though I would check the subredddit every day and it would be nothing but people posting how much stock they have been buying with stimulus checks, but I think this post is enough evidence for anyone with a mind to understand AMC,GME will moon and the market will crash. It will rebound because apes will buy up the cheap blue chip stocks and live of dividends for the rest of their lives, at least that?s what I am planning to do. I am liquidating any amount of cash I can get my hands on and buying more AMC, GME. It is all in my tax free Canadian savings account so the tax man won't fuck me.

    TL; DR: The banks and the fed perform repo operations with each other to keep the economy afloat. Shitadel and friends have been shorting the securities used in these operations. Synthetic shares are real and there is at least 30ish millions of them, but there could easily be billions off the books. Add that on to a known REPORTED short interest of around 20% or 100MM shares and we are in for the biggest transfer of generational wealth in history.

    I am not a financial advisor, this is not financial advice, and I am just a 20 year old student that really likes the stock and sharing publically available information to other people that like the stock. Thanks!
    Weird Energy Crew

  2. #2
    Senior Member Distract & Deny's Avatar
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    Quote Originally Posted by Violator View Post
    I remember hearing about gamestop and all the crap surrounding it but AMC I'm actively watching. The whole thing with naked shorts and synthetic shares sounds legit. Some of these guys have shown their portfolio and have made good money. This sounds like only the beginning. Be prepared for insane volatility though. Lots of good channels on youtube that explain it really well. Interesting stuff imo. Some of these guys understand it inside and out. I wouldn't even be able to carry their jockstrap.
    Last edited by Distract & Deny; 2021-06-10 at 03:10 PM.

  3. #3
    Senior Member Distract & Deny's Avatar
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  4. #4
    Senior Member Distract & Deny's Avatar
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  5. #5
    Senior Member Distract & Deny's Avatar
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  6. #6
    Whiteboy Summer Violator's Avatar
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    Quote Originally Posted by Distract & Deny View Post
    I remember hearing about gamestop and all the crap surrounding it but AMC I'm actively watching. The whole thing with naked shorts and synthetic shares sounds legit. Some of these guys have shown their portfolio and have made good money. This sounds like only the beginning. Be prepared for insane volatility though. Lots of good channels on youtube that explain it really well. Interesting stuff imo. Some of these guys understand it inside and out. I wouldn't even be able to carry their jockstrap.
    I wish I could just take my time and read it or have someone that understands explain it to me. It is very interesting. I will check out those videos later. Cheers mate
    Weird Energy Crew

  7. #7
    Toilet Humor ArmitageShanks's Avatar
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    When I read that this is what I saw:


  8. #8
    Senior Member Distract & Deny's Avatar
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    Quote Originally Posted by Violator View Post
    I wish I could just take my time and read it or have someone that understands explain it to me. It is very interesting. I will check out those videos later. Cheers mate
    Same. Those guys write about things that I don't understand, so I watch videos and follow along like a good little monkey.

    Quote Originally Posted by ArmitageShanks View Post
    When I read that this is what I saw:


  9. #9
    Senior Member Distract & Deny's Avatar
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    This guy breaks down the math so it is very simple. Extremely helpful IMO.

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