“Shall we play a GAME?
Nothing can STOP what is coming.”
Coincidence?
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The DTC is basically a title company for stocks. Buyers deposit cash, sellers deposit securities, and the DTC facilities the exchange.
When a hedgefund does a naked short, and the stock increases in price, the hedgefund is supposed to buy at the new market price to cover their loss. But if the price goes up too much such that they don't have enough money to buy, they "fail to deliver" the shares they sold In the naked short transaction, the buyer deposited money and their broker told them they have their shares, but really it's an IOU. The hedgefund gets more time to deposit the shares to DTC (I think it's 90 days).
If the hedgefund goes bankrupt, they won't be depositing those shares, because they have no money to buy them.
Are you really telling me that the DTC is now on the hook to buy these shares? I doubt it, but I could be wrong. I doubt it because it was the hedgefund who broke the rules in the first place with the naked short. Why would the DTC, the title company, be liable?
In any case, I think this is all hypothetical. Most people don't have the willpower to diamond hand. People are panicky and most will sell when prices fluctuate.
Because that is what the DTC's job is.
It is a private corporation - like most of wall street. DTC (and its two parts, the DTCC and NSCC), OCC, NYSE are all private corporations.
What do you think a title companies job is? Like in a real estate transaction, the title company is there to ENSURE and ultimately INSURE the transfer of title.
These companies do not need to exist. We could hypothetically walk into the company and buy a share certificate - none of these other companies would get their cut.
You have doubled down on your negative nancy bullshit - but have also proved that it may just be because you do not understand the circumstance. It's all about the line of succession of debt and the market has FIRST claim to that money.
If you don't think people have the "willpower" I think you are in the wrong fucking forum. I think there will be plenty who refuse to sell just to watch the clown world house of cards burn.
The margin call is coming. Enough people need to be educated. There will be no "fluctuations" on that rocket.
Hey friend, I hope you're right. Good luck to you ?
Here man. It really does bother me that there are so many paid actors talking shit nowadays.
And I really am frustrated that people want SOOOO badly to apply logic to clown world - because logic was out the door a long fucking time ago - it's really time to start thinking about what "could be" instead of "what is."
I just want to leave you with: 1. What is the difference between a Bitcoin and a GME share? 2. What if we find that hedgefunds have sold shares that do not exist? What if we find that they sold 2-3x as many shares as exist? That is a regular occurrence on wall street (the masses just don't know it - yet).
Here is a video from Patrick Byrne talking about shortselling, timestamped for you at ~4:38. https://youtu.be/BdBe5_8z53A?t=278