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.
This thread is about Goldman Sachs, not GME.
You brought up GME.
I gave specifics in other posts in this thread, and in the thread on Jim Cramer yesterday.
You seem to be missing the point: I do not believe that YOU have actually DONE any real work. I think you, and most others here, are PRETENDERS. I don't think you really know what the fuck you are talking about when it comes to GME.
I don't care about GME. You do. I don't.
I DO care about all the fake shares in the market -- the naked shorts that existed in GME (last year) and in XRT and other funds/stocks. That's WHY I created this thread.
Patrick Byrne has given a great, short presentation about this topic.
I will tell you EXACTLY what happened yesterday. I saw the post about Jim Cramer interrupting Shark Tank. That is unusual. VERY unusual.
I commented that Cramer is a doofus, but that I thought the rest of the OP's post was bullshit.
THAT is when a bunch of pretenders jumped all over me in that thread.
So, I thought ... hmm ... I haven't really paid any attention to GME since all the buzz last year. How does it look now?
And then ... I laughed hysterically at what a dog shit company it is. Stock down 80% from its high. EIGHTY FUCKING PERCENT!
And the financials are BRUTAL. Losing revenue and bleeding red ink.
Company is headed for DISASTER.
So, then I thought ... hmm ... why do all these guys love it so much? And then I realized the "naked short" story was the reason.
Well, I remember last year talking about it. I remeber it was 120% or 130% short of the float, which means there were naked shorts. I CREATED A FUCKING THREAD ON THE SUBJECT (pretty sure it was THIS website).
But TODAY (not LAST YEAR, but today) ... the short interest is only 13%. Guess what that means? Naked shorts COVERED long ago.
So then, I see some of you talking about how the naked shorts are really there, but they are "hiding" behind XRT and other funds.
Well, there is no real way to know if XRT naked shorts (which do exist) are because of GME or not. I think it is laughable to think it is ALL because of GME.
MUCH more likely that funds are hedging by finding any shorts they can, and doing it "low profile" even if illegal, because they are worried about a market crash in general.
There are no hedge funds "worried" about GME going down. The shorts want it to go down, and everybody else wants to stay away because ... it is a DOG SHIT company.
You guys are wearing your rose colored glasses.
Been there, done that, with other stocks.
Learned my lesson.
GME will be your lesson.
Just sit back and watch.
Its cool dude, i destroyed him elsewhere in this.
LOL.
Daydreaming is not good for you.
We both know it is because you CANNOT ANSWER my questions.
We both know it. Everyone else here does, too.
Have a nice day.
No, it is time for YOU to start answering MY questions ... for a change.