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.
I don't short pump and dumps, which is what GME was a year ago. Too risky.
I occasionally buy them and see if I can make a little cheese. But see what that does to your blood pressure when you do that and then the exchange halts trading in the stock, and you don't know if it's going to re-open flat, up 10% or down 30%.
I saw GME last year and realized what a tricky situation it was. Back then, at least the story made some sense, based on financials and the massive short interest.
But that story has CHANGED. Financials are now dog shit, and the shorts have covered -- unless you want to believe a bullshit story about hiding the shorts in ETF naked shorts.
Again: WHY would anyone want to bail out GME (the BUSINESS, not the stock)?
You can't answer that because ... there is no answer.
You are the last to know, it seems.
The news just happens to pile on GME every chance it gets. If what you are saying was true, GME would be blockbuster video by now. There would be no mention of it as it would be irrelevant. Just look at all the negative GME articles still being pumped out every week.
You say shorts covered. They covered their margin requirements but never closed the position. Hedgies are praying we all sell but it ain’t happening. They are fucked and using every illegal trick just to survive another day.
Believe what you want, but if you use common sense you will see the same MSM that lies about everything political is lying about GME.