There was a thread yesterday about Jim Cramer and Gamestop (GME) stock.
Although I disagreed with just about everyone in that thread, it did cause me to do a little digging.
I found this lecture by Patrick Byrne. He explains how Goldman Sachs creates FAKE shares of stock that do not exist, and this is how their company is so profitable.
The problem is, it has caused massive leverage in the system, and could be one of the reasons for a stock market crash (the money printing by the Federal Reserve is the other reason).
Goldman Sachs and the other prime brokers are THE SOURCE of ALL fake shares in the marketplace (and basically, all the fuckery in the marketplace).
The part where he explains HOW they create the fake shares is about 10 minutes of the presentation, and starts at about 3:00 (then, he goes on to talk about how to solve the problem with blockchain):
https://www.youtube.com/watch?v=COQvMsbb-Cw
- Almost 100% of the profits of Goldman Sachs comes from their "Securities Lending" operation
- That operation is focused mostly on "hard to borrow shares"
- They identify stocks that people want to short, then they lend those shares out
- They do NOT have to actually own the stock when they lend it out
- This allows GS to lend out shares that do not exist
- Since they are also a prime broker, most of this lending is necessarily to hedge funds, which are the investors who are shorting stock that does not exist
Goldman Sachs and the other 5 prime brokers are the SOURCE of all the fake shares out there.
This is EXACTLY the same as the "money changers" from centuries ago, when they created more money certificates than were actually backed by gold on deposit. Same exact scam, just with stock instead of gold.
It is always good to know the names of the criminals to prosecute. Now, it's just a matter of finding the prosecutors and getting them into office.
Good luck.
Based on GME's financials, you will need it.
Didn't buy or short.
But I can READ financials.
Apparently, you can't.
Provide a quote or data to back this claim?
YoY sales are on fire, company has $0 debt, and stock price is still 400%+ from last year.
Lets see some of this READing you've done
I just made a post about it in this thread.
LIE. The YoY sales are DOWN, and they have been DOWN each of the past 3 years. See my post.
LIE. The company has current liabilities that it will not be able to pay. Someone can claim that it is not "debt" but the important point is that they have money to pay out THIS YEAR that cannot be paid with the (a) liquid assets (cash) they have now, minus (b) the LOSSES they will incur at the rate they are going.
They will be OUT OF MONEY soon, if they do not either turn the company around or get a cash infusion.
Depends on what day you are talking about. It spiked last January to $483.
It is currently at $115. That is a LOSS of 80%, not a gain of 400%.
So ... you DO have time to post this gibberish ... but you do NOT have time to post a basic summary.
We ALL know why that is.
But let's see if you can follow along.
Cash on hand: $1.4 billion
Current liabilities: $1.5 billion
The only other significant asset they have is their inventories, which is mostly smoke and mirrors. In a liquidation, they will get 10 cents on the dollar. They might be able to borrow a little bit against them, but it looks like they might have already done that. Don't know without more time and research. Do YOU know? I doubt it.
Burn Rate: $420 million at the current rate.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1326380/000132638021000129/gme-20211030.htm
That means they must pay out $100 million MORE in CURRENT liabilities over the next year, than they have cash in the bank ... WHILE ... they are LOSING $400 million a year.
See a problem?
If not, then you are that guy at the poker table who can't figure out who the mark is.