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.
No stock exists when you buy and sell through brokers. When you buy directly through computershare or directly register the stock in your name it is removed from the DTCC and placed under your ownership.
That’s what this entire GME saga is about. The market makers/banks have manipulated the market for years by creating synthetic shares in the name of liquidity. Once the entire float of GME is DRS’d it will be interesting to see what happens to the millions of billions of synthetics they have created in order to drive the price down.
I’m afraid it will take retail ages to lock up the GME float with DRS. Only at 5million as of last quarter. Need BIG $$$ if we want to do that. And sadly it seems so far that BIG $$$ is concentrated to the greedy evil fucks known as the 0.1% class and they want don’t the game to end because it has and continues to enrich them.
I have more faith in a nuclear option from GameStop such as an NFT Dividend. It’s non-fungible and cannot be tied to anything else such as a currency match for a payout (like what happened when Overstock did a dividend to blow up the naked shorts). Tbh when I got in GME a year ago I really didn’t expect it to take this long… but here we are!
I know, but many overseas apes have been DRSing now. We can assume all of RCs and other insider shares are locked up away from the DTCC. We are making progress.
An NFT dividend would be great, but somehow I doubt GME wants to go this route due to the MSM how they would spin the market crash that would follow. All speculation, but an unassisted squeeze that outed the cabal for the evil they are would be much better for all of us.
Here’s to hoping. Tomorrow’s the day, right? 🙂