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.
If you can't summarize, then you do not know the topic.
And you don't seem to be able to summarize, so ...
You want me to spend unknown hours reading about something that I don't give a shit about ... but you cannot be bothered to spend a couple minutes to sumarize why you think you are right about GME.
And yet, you CAN spend more time than that writing gibberish posts that EVADE my questions and challenges to you and others.
Yeah ...
You clearly give a shit about it. Look how fervent you are in attacking something that you REFUSE to read into. You seriously expect complex things can be neatly summarized, coming from a Q board of all places?
HOW FUCKING HILARIOUS
Glow harder for us, faggot.
I wouldn't go as far as call him a glowie, lol. I admittedly don't think GME is going to pop off because it's been so long and it already soared and fell, never recovering.
But I don't know enough about it and have a few shares on the side (3 that I bought in at mid 200's and it's only gone to shit since) decided to throw another $500 through computer share but that'll take days to settle with bank transfer.
I was up immensely on AMC but heard the same story and now and down quote a bit and I bought in pretty early on before it popped off and crashed again.
I also feel the crypto crashes were the hedgedunds selling off to cover there shorts and that's how we went from steadily rising up to 60k usd for btc to how low it is now.
That being said, I'm not all that read in, but I often wonder how long a short squeeze is supposed to go on for? I also bought a bunch of silver during the silver squeeze (a bit after the initial pop off last January when prices settled) and got several hundred ounces in. But the bullion banks have many tricks with paper silver and stocks/derivatives.