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.
It’s hilarious that you were so angry about GME yesterday, and here you are on the trail to the truth you so fervently denied…
I have known about naked shorts for years.
I created threads about it on this and other sites.
I have never seen a clean presentation of this until now.
Even Patrick Byrne did not have this info until he spent $30 million to get it.
If you are so brilliant, tell us all about it.
But you won't, because you are a pretender, right?
Summarize.
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.