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.
No amount of summarization will do that library justice. There are 1000’s of hours of research and writing there. You are going to have to do some legwork yourself. People tried to summarize it for you, and you just shit everything they said down. Go to the source and learn for yourself.
The shortest summary I can give you is that when Covid first started, all The hedge funds shorted the entire brick and mortar sector by shorting the etfs that contained them. What they didn’t know was that one firm in particular had already naked shorted GME into the ground over the course of several years and it just so happened that at the time, the etfs they shorted were heavily weighted towards GME. The result was an unclosable short position that will destroy the whole market that they have been fighting tooth and nail to manage to this day. They couldn’t have closed it, there wasn’t enough money in the world to accomplish that. The self reported data you keep pointing to means nothing.
Cop out. And the only reason you would cop out on it is because you don't really know what you are talking about.
Just a little reminder: I don't give a FUCK about GME, one way or the other.
I happened to see the Jim Cramer thread, and I responded about what a doofus he is. I also said the rest of the OP sounded like bullshit.
That's when you guys all attacked.
But it was a weird attack because ... most of you don't really seem to know what the fuck you are talking about.
You can't summarize. ONE person in the other thread did. Only ONE.
The rest of you are just pretending to "know sumthin'."
Well, at least you all got me to dig just a little, and that led me to this Patrick Byrne presentation. This is the first time I have seen someone explain EXACTLY how all these fake shares are made.
It's good info.
But none of you cheerleaders have addressed the BIG QUESTION that I have been asking and NONE of you have answered:
Since GME is a dog shit company, losing money, and burning cash at a rate that will put it into bankruptcy within a year, UNLESS they get a big whale to bail them out (like they did last time) ... what is the GME LONG story?
Other than your wet dream of a massive short squeeze (which was attempted a year ago, but FAILED), how is this company going to become anything that investors would want to own?
If it does not get a cash bailout, then within a year, it WILL BE BANKRUPT -- naked short sellers or no naked short sellers.
NONE of you want to even talk about that.
Gee, I wonder why ...
Hey, I've been a bag holder on stocks before. I've been burned before. I've held on to hope for no good reason before.
I see it in SPADES with you guys.
This is experience talking.
I am wondering WHY anyone would want to bail out a company that is losing money, its business model is failing, its customer is already online anyway and does not NEED to go to a retail store, its customer is not rich and will not be looking to spend as much money in an economic crash like they did when they were getting free gubmint gibs ... and this is ALL reflected in the financials.
2018 Revenue -- $9 million, and profitable
2019 Revenue -- $8 million, but less profitable
2020 Revenue -- $6 million, but now losing money
2021 Revenue -- $5 million, and losing money at a faster and faster clip as each quarter goes by
https://finance.yahoo.com/quote/GME/financials?p=GME
Their liquid assets are less than their current liabilities. This ain't good, in case you didn't know -- especially for a company that is losing money.
WHY would anybody bail this company out? Because that is the ONLY hope the longs have.
The short sellers and their buddies are not going to help. They want the company to go bust.
So, who will step up to the plate and piss their money down a rat hole that is GME?
WHO?
WHY?
How richly ironic that you claim that it is a “cop out” to explain how something is too complex to neatly summarize, immediately after YOU copped out of doing your own research by demanding everything to be summarized else it’s a waste of your time.
HUURR DDUUURR IVE KNOWN ABOUT SHORTS FOR YEARS BUT I DONT GIVE A SHIT TO READ ABOUT SOMETHING SO MANY PEOPLE ARE SAYING IS SUPER IMPORTANT AND RELEVANT CAUSE ITS TOO HARD TO READ
You’re so afraid.
Can't respond about the shitty financials of GME, huh?
Yeah, didn't think so.
gmedd.com
https://fliphtml5.com/bookcase/kosyg
Do your own research
You are asking people to write you a book that you won’t read anyway because others before now have already done all you ask, you just refuse to read it. I gave you the quick summary which you ignored, that’s your choice. There is “good info” like what Patrick Byrnes was talking about, you just don’t have any interest in reading it. That doesn’t make it not true. You choose to be ignorant and call everyone who has put in the time to read the research ignorant? Ok