I haven't seen anyone talk about GameStop (symbol: GME) stock as it relates to Q and the cabal co-conspirators. At least, not the way I see it.
For those unfamiliar with the stock market, GameStop is traded on the New York Stock Exchange. The NYSE was purchased in 2013 by Intercontinental Exchange. The founder and CEO of IE is Jeffrey Sprecher, husband of Kelly Loeffler, loser of Georgia race for US Senate, and back stabber du jour on January 6th.
https://heavy.com/news/2019/12/jeffrey-sprecher-kelly-loeffler-husband/
To understand what is going on with GameStop, you have to understand a few financial/legal terms that seem very similar.
Shares Authorized: This is the total number of shares that a corporation has authorized to be issued to investors. The board of directors makes this decision, and not all of the shares authorized need to be actually issued. For example, a company could authorize 100 million shares to be issued, but only issue (sell to investors) maybe 60 million. The other 40 million would be unissued (authorized, but not yet issued). This would allow the company to issue some or all of that 40 million at a later time, without having to do as much paperwork. Companies do it all the time.
Shares Outstanding: This is the number of shares that have actually been issued and are currently owned by someone.
Shares in the Float: The "float" is the number of shares outstanding (actually issued) that are NOT owned by "insiders" (founders, directors, and corporate officers). The float is the number of shares that the general public owns.
Shares Short: This is the total number of shares that are short (someone is betting the price will go down, not up).
Short Float: This is the number of shares of the float that are short, (not including shares owned by insiders).
Some people do not understand how a "short" position occurs. Imagine going to the bank and borrowing money. Let's say you owe US$1,000. You pay interest and/or payments for a period of time, and then at some point in the future you pay the full amount of principle back.
A short stock position is the same thing, except you don't borrow money. Instead, you borrow the stock. You borrow stock you do NOT own. So, you are short 1,000 shares of Apple Computer stock (AAPL), and at some point you have to pay it back by buying back the stock. You hope to buy it back at a lower price than you sold it short ("buy low, sell high" -- just in reverse order). If you do that, you make a profit. But if you have to buy it back at a higher price than you sold it short, you lose money.
Cover the Short: The term "cover" just means buying back a short position, and closing out the position -- either at a profit or a loss.
Sophisticated investors sell short all the time. "Hedge Funds" typically are both "long" and "short" at the same time (that is why they were originally called "hedge" funds, as in "hedge your bets" against whatever the market does).
Now, back to GameStop.
The company has 62,200,000 shares outstanding. Of that, 50,650,000 are in the float (the other 12 million being owned by insiders, who are not [legally] allowed to short).
Of the 50 million in the float, 70 million are short.
This is literally IMPOSSIBLE to do LEGALLY. It is NOT POSSIBLE to short MORE than the float. It is illegal to borrow shares that DO NOT EXIST. Here, the entire 50 million shares in the float are short, PLUS an additional 20 million shares THAT DO NOT EXIST are also short.
This is a violation of SEC rules, and is referred to as "naked shorting" -- shorting stock that does not exist.
Patrick Byrne, whatever you think of him, made a big deal out of this several years ago when the same thing happened to the stock of his company, Overstock.com.
Naked shorting is illegal. SOMEBODY is hanging out on a limb, having done something illegal, and is scrambling to get out of their position. There are ONLY two ways to get "out" of a short position (whether it is a legal short or an illegal short). The way it happens 99% of the time, is you BUY BACK the stock ("cover the short"). But on rare occasion, the stock goes so low that the company files bankruptcy. If that happens, short positions are liquidated.
Now, look at what happened to GameStop stock in recent days: January 13: Up 57% in one day. January 22: Up 51% in one day. January 26: Up 93% in one day. January 27: Up 135% in one day.
The shorts want to get out, but they are only driving it higher (MUCH higher), by buying it back to cover. Plus, other longs are smelling blood and want to drive it higher. So, it has massive moves up.
There are rumors that some hedge funds are on the verge of going bust due to their short positions, including GameStop. This has NOTHING to do with "Robinhood" investors, which are so small-time that they don't even use a regular stock brokerage account. This takes MASSIVE MONEY to push the stock up like this.
Before the big move started, GME was trading several million shares per day, with a price under $20 per share. If it traded 5 million shares at $20, that would mean $100 million traded that day. Yesterday, it traded 179 million shares and closed around $148. That would be more than $26 billion traded (260 times the norm). Remember, there are only 50 million shares in the float. It traded almost 4 times the float yesterday.
So, what is the CEO/owner of the NYSE doing? Why is he allowing the illegal naked short selling? Is this going on because someone is trying to bankrupt hedge fund managers who have been running illegal naked short selling schemes?
Does it have to do with Q's posts related to game console comms?
Questions that should be asked:
(1) Who has been illegally naked shorting this and other stocks? (2) Why has Kelly Loeffler's husband been allowing the illegal naked shorting? (3) Has GameStop been used to transfer funds illegally from one party to another for nefarious purposes?
For (3) above, let's go back to Hillary Clinton's infamous cattle futures trade back when Billy was governor of Arkansas. Legend has it that she was so smart that she turned $1,000 into $100,000 by trading cattle futures. Well, that's one perspective, but there is another scenario that might have been the real story.
There is a trading technique called "past posting," which was legal back then, but illegal in the US futures market today.
Let's say a futures broker has 2 customers. Customer A is the wife of a sitting governor, and she opens a brokerage account with $1,000. Customer B is a political donor who wants some political favors, but does not want to contribute money directly to the politician, because he does not want a paper trail. Customer B opens a brokerage account with the same broker, and deposits $100,000.
The broker then combines the 2 accounts into a "master account" so he can trade both accounts (or several accounts) in one account. Much easier. That master account now has $101,000.
The broker makes trades on behalf of the customers (a "broker-managed" account). The way it is SUPPOSED to work is, if the first trade makes a profit of $100, sub-account A gets credited $1 and sub-account B gets credited $99 (approximately). In other words, both accounts go up and down, as a percentage of their contribution to the master account, when there are profits and losses from trades.
But with "past posting," those accounts can be credited and debited individually and after the trades happen. So, let's say the broker has 2 trades. The first makes a profit of $1,000, and the second has a loss of $1,000. The broker can then attribute the profit to sub-account A and the loss to sub-account B. Therefore, at the end of those 2 trades, sub-account A now has $2,000 and sub-account B now has $99,000. Do that enough times (super easy to do in futures, due to the leverage), and sub-account A might end up with $100,000, while sub-account B might end up with $1,000 (a $99,000 "loss" in lieu of a "political contribution").
I don't know if that is how it was done, but theoretically it would be very easy to do.
Is that one way to "move money" among certain people? Is that what GME has been about, possibly in addition to game console communications?
Why is Kelly Loeffler's husband allowing illegal naked short operations in the NYSE? Who is involved?
Wow! Thank you so much for that info. This would be the easiest low key way of moving the money like that without as much detection. Trump did say he had EVERYTHING!
What it sounds like is not only the illegal dealings are being called out, it’s also about to cost them billions. The last day of Trumps presidency he hit records again in the stock market. A week later the stock market goes bonkers? Actually he did and has said that yes he has it all, everything, all the evidence. That is a FACT. While people were to busy having orange man hate they must of missed those subtle admissions. There is a reason Trump added 200 something federal judges. Trump doesn’t have to take down the cabal himself, he just had to put the right people in certain positions, fill the federal courts with judges that aren’t corrupt, and kick off a few legal actions against them. The rest will follow. If you go read his accomplishments you will see he has already liberated a couple of countries from the cabal control actually! Venzuela being one. Maduro being arrested. Bet you didn’t hear about that one in the news because it would line up with our own issues of election fraud! ?
Madura arrested? Sauce please. I went to bed at 7pm Cali time up at 3:30am now.
Down at the bottom near the military accomplishments. The ones that stuck out to me was completely eradicating ISIS, and the arrest of Madura. It sounds like this happened well before our election. Which is weird because Venezuela’s election has also been hyped up along with our election.
https://trumpwhitehouse.archives.gov/trump-administration-accomplishments/
The charges took place last year. I’m not sure how it connects just yet but I feel like it does because of the election fraud they had been dealing with that spilled over to our election.
https://www.nytimes.com/2020/03/26/nyregion/venezuela-president-drug-trafficking-nicolas-maduro.html
https://www.bbc.com/news/world-latin-america-51800316
Hmm, thanks for the links. My wife is Venezuelan and she almost screamed for joy when I told her on the phone, but I had to temper her that it was another person’s comment. I looked it up on dd go, and read the algezera news site. The only thing there was an emissary of mad burro’s that had been arrested back in September on drug charges.
Yeah the news is spotty on the subject. I read an article stating Trump was the only one to recognize the change in presidents. That currently it’s an interim government until they can sort it out. I’m not sure but the news seems to have muted it some. They really don’t want us knowing that what’s happening here is push back that is happening all over the world.
Thank you, now I recall a blurb about the Trump administration officially “in-recognizing” mad-burro as the legitimate president on the 18th I believe.
You know what else I heard? 80% of the Venezuelan population stayed home from their election. That tells you mad-burro would’ve been smoked in a fair election.
It looks, swims, and smells like a fish.....after what went on w/Kelly and her stock dealings last year one must conclude that Jeffrey and Kelly are up to some real FISHY business. If so I hope the hammer comes down hard on both of em.
Especially given her not objecting to the GA electors and turning her back on our POTUS
All I know is she is corrupt and stole the nomination from Doug Collins in Georgia. She also got the senate seat from corrupt Governor Kemp. She illegally bought and sold stocks according to a private meeting on covid. If you want interesting reading...read about her and her farm family in Illinois and her husband and the companies he owns. I would love to see them get their comeuppance.
They’re all just so god damn corrupt
Yes! All of these fucks! No mercy, I want to see PAIN delivered!
Nothing would make me happier than seeing Commie Loughler & her crooked husband go down for the count!
So wealth was moved discretely through the transfer of private stocks to public stocks, and now you have the public exposing the fraud. It would seem that sub-account public is receiving a very generous donation from sub-account elites.
Could you please explain this a bit more. I almost get it and I think you got it.
The elites have been illegally manipulating the stock market to extract wealth from the public. The public just woke up on how to counter it and reverse the wealth transfer.
Did the public just randomly 'get it' or were some of the people involved in starting this idea on reddit or w/e actually plants who fully understood this in advance.
It’s for the lols
Wow! Great explanation. Thanks.
Great post. ?
This was excellent for me. Thanks
Thanks for explaining it the way you did
i'm not a finance guy so excuse my simplicity
let's say, a us senator or state governor is trading money with foreign companies belonging to ccp or ukraine, for nefarious reasons like selling influence
loeffler's husband was involved iirc in a highly suspect stock action that seemed like he benefited from secret intel from a closed door meeting concerning the ccp virus outbreak, before the public was told
can GME and other similar stocks be used to hide these transactions? also, is it possible to influence other stocks at the same time, like from that movie jack reacher, where several people were sniped to hide the fact that only 1 of them was the important target, so that GME or another company would not stick out?
how much money would be needed to push other companies to rise like GME, say at least 2 or 3 more so that GME doesn't stick out as an anomaly?
I don't know the answer to all those questions. I will say this:
(1) It is illegal to buy or sell stock based on information from A COMPANY INSIDER (officer or director) if that information is NOT also available to the general public. This is called "insider trading." Martha Stewart went to prison for this, although she didn't actually do it, and was merely railroaded by corrupt prosecutor and FBI "expert."
(2) When members of Congress discuss passing legislation (e.g. payments to certain companies for coronavirus testing, purchase of ventilators, etc.), the insider trading laws DO NOT APPLY to those discussions. If Mrs. Senator got some intel that upcoming legislation would push the price of stock X up due to government contracts, and if Mrs. Senator discussed with her husband, Mr. Bigshot, what she heard (you know, just "pillow talk"), then that is also a situation where insider trading laws DO NOT APPLY. So, it is open season on the $$$$$$.
(3) When industry "leaders" and government "leaders" have "unofficial meetings" such as Bohemian Grove, Davos Conference in Switzerland, Bilderberg meetings, etc. each year (and on an on-going calendar of events throughout the year under different names and in various locations), who is to say what types conversations they might engage in? Who's to say that 2 people might get together and compare notes of what they "learned" from other participants? What if those particular conversations are not officially corporate insiders, but are otherwise in a position to know? What if those conversations occur outside the jurisdiction of the US?
(4) Also, laws and regulations that prohibit past posting, insider trading, and similar techniques do not apply to non-US persons operating outside of the United States.
Things to ponder.
You can’t profit from insider knowledge in the Army if you know a certain company is going to win an Army contract ahead of time and then buy that stock.
Damn, you are so smart! You give great explanations.
Thanks for the write up, some good info I didn't know. You gotta wonder about the naked short selling along with the timing of this.
Thank you for that very concise explanation. I had seen the relationship between blackrock /GME but applied the info differently. (My butchered post from this am). Nicely done.
Well written and informative. Thank you.
That depends.
(1) If Average Joe wants to short stock, then yes, he opens an account with a brokerage (it has to be a "margin account" in the US) and he can short stock. HOWEVER, he can ONLY short stock that is AVAILABLE to short. That means the stock (a) has to exist (naked shorting is illegal) and (b) the stock has to be registered to a broker and not in "street name" meaning in the name of the ultimate owner. Assuming those conditions are met, then he can short IF THE STOCK IS AVAILABLE TO SHORT. Not all stocks are.
(2) Hedge Funds do not use retail broker accounts. They use "prime broker" accounts, which are Wall Street investment bankers (Goldman Sachs, JP Morgan, etc.). The rules against naked shorting apply to hedge funds, as well -- if they get "caught."
(3) However, that does not apply to Wall Street investment bankers. Wall Street investment banks (JP Morgan, Brown Brothers Harriman -- with Bush and Rockefeller connections) can use 10:1 leverage to short stocks. It has been said (I don't know if true) that they can claim to be shorting for a "client" whether or not that client in fact exists.
(4) Following the financial meltdown of 2008, Goldman Sachs became not only an investment banker, but also a full-fledged bank. Banks have yet a different set of rules. They can leverage 40:1, which was one of the main causes of the financial meltdown. I don't know if they can utilize all that leverage for individual stocks, but then again, who is/was running the SEC? RR's wife?
(5) Non-US persons can employ techniques to get around all of this. The US brokers and investment bankers are supposed to keep a lid on naked short selling, and the SEC is supposed to regulate it.
(6) On top of all of that, there is absolutely no reason at all why the NYSE itself would not be aware of this and do something about it. But obviously, they are doing nothing but blaming Average Joe, who is in no position to do it at all.
Who IS in position to do it? Why does Kelly Loeffler's husband allow it? Why doe the SEC head allow it?
That was a hell of a read OP.
On a side note, if gamestop shut its doors, i would chuckle. Fuck gamestop.
As I understand it, in order to trigger the squeeze (aka force the institution to buy shares and remain neutral), the stock must reach X amount above the short position. The institution then has X amount of days to come current.
For Gamestop, the amount was $30-$40 share price and then the amount of days to come current is 5 days.
Gamestop share price jumped to that $39.91 mark on 1/14/21. So the squeeze would occur 5 days after that. 1/19/21 or 1/20/21.
I'm sorry, I'm just an ignorant retard attempting to share what I learned from the less-ignorant retards at wsb.
I'm going to go out on a limb and say this is no coincidence.
Excellent comprehensive overview of the GameStop situation! Thank you for posting this.
Can I get a eli5 version? I read most of it, but I'm not understanding the depth of it
You have the false assumption that naked short selling is illegal: it's not. (It used to be illegal here; it is illegal in many other countries; it is not sound business.) I worked in securities compliance for a few years. As a client, you're allowed to do it if your broker has given you a margin account. In layman's terms, you're allowed to gamble if you have good credit with your broker. The broker is responsible for establishing "reasonable" credit measurements, which means that they can be (but usually aren't) held responsible for giving credit to people that don't deserve it, or allowing bets without measuring the risk accurately. What this means is that if the gambler can't cover their bets, then the brokerage has to pay up, with limits. Naked short selling is gambling, but it's legal, and has special laws.
This is a great case which will almost certainly result in new laws to prevent it from happening again, if the stock market survives the awakening. The vampire squids are running scared. It's a good thing. I agree with OP that, even if the gamers are winning, there's other big money egging them on. Normally this would just be some billionaires robbing other billionaires. This ones awesome, beautiful, poetic and noble because they went public in the right community to let normal gamers in on the squeeze, which was a true Robin Hood move.
I get the impression that your are conflating two different concepts.
There is the concept of naked short selling, as it related to shorting something such as a stock option without also being short the underlying stock. That is legal, but often considered risky.
Then, there is the concept of naked short selling a stock, where there are NO SHARES AVAILABLE to short. If you want to short, your broker is supposed to LOCATE the shares to short. If he can't, then he is not supposed to allow the trade to take place.
This explains it:
https://www.investopedia.com/terms/n/nakedshorting.asp
There is only ONE way that naked short selling of an individual stock can happen: one or more brokerages and/or investment bankers are allowing short positions to be put on, without FIRST locating and identifying specific stocks to be borrowed for the short position. It is illegal.
This is the same basic principle as the goldsmith who has a certain amount of gold in the vault, but issues more than that amount as "money certificates of gold." The gold does not exist, which makes it fraudulent.
Here, the shares of stock do not exist, which makes it fraudulent, and was made illegal in 2008.
The BIG question is: Why does Kelly Loeffler's husband allow this illegal activity to take place on the NYSE?
Thanks. Perhaps it's legal for the client, but not for the broker. I was thinking of it from the client perspective. No question that this situation should be impossible and therefore illegal. Somewhere somebody has pledged the asset multiple times, or somebody faked it. Either way it's the Wall St version of fraud. How and who will wait for later.
Doesn't surprise me that the words "illegal" and "naked" keep showing up when learning about these "people".
Fabulous post, BTW. REALLY helped explain it to me.
Everyone knows hedge funds are scams. That's why I don't invest in 401k. I don't want to let these crooks manage my money.
Wow!! Going to have to reread this tomorrow when my brain is functioning!! Great post
wait until the autists start going after the naked shorts suppressing silver and gold prices, as well as other companies. Major banks could face liquidity crises, at which point they either get bailed out or mom and pop's retirement gets fucked.
It could get really ugly.
Someone's going to get it in the shorts.
Follow the wives! Sounds like Jerry Sprecher is McFucked
Brilliant writeup brother, you should be a teacher!
Thank you for the terrific post—great way to explain what is going on.
DFV is something else, right? Good for him, and j pray that he will be safe and alright.
Damn, your post made me read really, really slow to understand all this! I'm in the "market" and have some small understanding, but your info just blows my mind!! This is fantastic information and well written out for most of us to understand. Kudos to you...bet you are a stockbroker. LOL