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.
2020$5.16 B
2021$5.87 B
YoY sales up 13.89%.
What liabilities do they possess that are going to magically bankrupt them, exactly? 3/4 bil leasing obligations? Cool. So do all retailers. They have a lot of money, and are making more year over year. They have closed 1000 stores in underperforming areas and have stockpiled inventory. They are leaner than ever and are working on reducing logistical overhead costs.
While that other person didn't specify the time table very well the stock price is up from
40.69$ on 2/18/21 to
119.00$ today 1/16/22.
So, the stock price is ~300% up from 11.5 months ago.
The stock was also 4.01$ 7/31/2020.
So, the stock price is up ~3000% from 18 months ago.
You aren't very well researched so you wouldn't know this- the price is in fact not real. It didn't hit 483 then 40 then 350 then 120 then 170 then 90 then 115 because of price discovery from retail trading for a dying brick and mortar. It likely has a billion synthetic shares shorted getting rolled over through FTDs and deep ITM calls among many shenanigans keeping the price down.
Saying what the price is in relation to the gamma squeeze that was turned off artificially by brokers/MMs last year is a small and inaccurate way of looking at the price over time.
They also have a chairman who built chewy from the ground up into billions of dollars and ate into amazon market share big time.
They also have brain drained the whole fucking market for 100s of top executives, program leaders, and coders to roll out all the awesome shit they are doing right now.
I haven't even gotten started on the fact that they are going to be foundational for NFTs, the metaverse, and blockchain technology.
In April 2021 they did their first share offer and raised $551 million In June 2021 they did the second and final share offering and raised $1.13 billion. The 1.681 billion they raised put them way net positive in terms of assets to debt/liabilities ratios.
Try to at least look at the facts or do some research before writing with such confidence. Embarrassing.