One issue with trying to beat the shorts if you think a company is being 'looted' is that exactly what you saw play out with AMC and Gamestop can happen: they can create more shares and thus dilute the value of each share and increase the liquidity for short sellers who are trapped to get out.
Also, there's no shot that you are allowed 100x leverage by any institutions when playing with stocks, that's closer to forex. Imagine that in practicality: if the stock went up 1% on you when shorting, you'd be smoked. Banks might be crooked, but they also don't want to hemorrhage money for no reason.
I don't know exactly what the derivatives numbers included, but a massive chunk of the derivatives market is options, which are dynamically hedged by banks, meaning that they have very little exposure to the movement of the stock. Basically, you'd have to give an actual breakdown of what those derivatives are and how much (or little) collateral is posted for those numbers to mean anything.
On a final point, if you believe them, which I'm ambivalent about, the SEC released a report going over how the hedge funds actually got out fairly early in the GME squeeze and that it was mostly a gamma hype movement. There's some logic to this, as his last point about how much money they'd lose if they held it from $2 to $60 is accurate, which is why banks or brokerages they were working with would want to force them to close it out, because otherwise they could get saddled with that massive debt.
All in all, there's some elements here that make sense, but this overall thesis that GME will collapse the global financial system smells a whole lot like an attempt to get people to yolo in and/or a rationalization to cling to a trade that has been slowly dying for years.
I'm somewhat of a boomer on this website, don't know how to separate it into paragraphs, so anything lengthy ends up looking pretty shit. https://www.sec.gov/newsroom/press-releases/2021-212 Edit: additionally, if all the claims are too much for you to bother going into, how about just one: how can people wanting to short squeeze hedge funds manage to succeed in doing so over a period of years if the company is willing to sell more shares?
One issue with trying to beat the shorts if you think a company is being 'looted' is that exactly what you saw play out with AMC and Gamestop can happen: they can create more shares and thus dilute the value of each share and increase the liquidity for short sellers who are trapped to get out. Also, there's no shot that you are allowed 100x leverage by any institutions when playing with stocks, that's closer to forex. Imagine that in practicality: if the stock went up 1% on you when shorting, you'd be smoked. Banks might be crooked, but they also don't want to hemorrhage money for no reason. I don't know exactly what the derivatives numbers included, but a massive chunk of the derivatives market is options, which are dynamically hedged by banks, meaning that they have very little exposure to the movement of the stock. Basically, you'd have to give an actual breakdown of what those derivatives are and how much (or little) collateral is posted for those numbers to mean anything. On a final point, if you believe them, which I'm ambivalent about, the SEC released a report going over how the hedge funds actually got out fairly early in the GME squeeze and that it was mostly a gamma hype movement. There's some logic to this, as his last point about how much money they'd lose if they held it from $2 to $60 is accurate, which is why banks or brokerages they were working with would want to force them to close it out, because otherwise they could get saddled with that massive debt. All in all, there's some elements here that make sense, but this overall thesis that GME will collapse the global financial system smells a whole lot like an attempt to get people to yolo in and/or a rationalization to cling to a trade that has been slowly dying for years.
tldr for this retarded comment:
Just repeating all the tired old MSM/Kramer GME talking points....presented in a wall of text format.
SEC never released any such report. Complete bullshit.
I'm somewhat of a boomer on this website, don't know how to separate it into paragraphs, so anything lengthy ends up looking pretty shit. https://www.sec.gov/newsroom/press-releases/2021-212 Edit: additionally, if all the claims are too much for you to bother going into, how about just one: how can people wanting to short squeeze hedge funds manage to succeed in doing so over a period of years if the company is willing to sell more shares?
You still think Ryan Cohen is a grifter running a pump n dump Which makes it painfully obvious that you are parroting MSM fake news sources like Kramer.
If you would like some actual analysis on that 3 year old SEC document then here is some reading for you:
https://www.reddit.com/r/Superstonk/comments/qb423e/unpacking_the_secs_gamestop_report_and_how_it/
https://www.reddit.com/r/Superstonk/comments/qax0tj/sec_gme_report_shorts_didnt_cover_dtccnscc_are/
https://www.reddit.com/r/Superstonk/comments/tb92al/the_smoking_gun/
Youve been on this website for 3 years, but still havent spent 5 minutes researching how to use paragraphs?
Double enter, enters the chat.
Text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text, text,
Text, text, Enter,
Enter. Simples.
HAHAHAHAHA, I LOVE THE ENDING. SOOOOOOO GOOD!!!!!!!
https://nitter.poast.org/ThrillaRilla369/status/1832087919378759985