diff --git "a/reddit_finance_43_250k_1.txt" "b/reddit_finance_43_250k_1.txt" new file mode 100644--- /dev/null +++ "b/reddit_finance_43_250k_1.txt" @@ -0,0 +1,10000 @@ +Honest question. + +Where is all the money? I hear nothing but bad news about financial crisis all over the world, and it seems that there is a shortage of cash - like it is some sort of natural resource. + +People haven't stopped buying stuff. They still need food, clothing, medicine, shelter. Taxes are still collected. Fines are still levied. + +So where is all the money? I mean, labor has been produced to make things and wages paid to the laborers. The things are purchased by other laborers, who were paid for producing goods or services, etc. It's a closed loop, right? + +Can someone explain it like I'm five or something? +So often someone will ask an amazing question, something I’m really interested in getting a good answer to, or even someone’s opinion, but I always just see that message explaining that comments need to be approved. + +99.9% is an exaggeration, but not many people are going to come back to look at a post to see if any comments have been approved. +This is a throwaway account (I'm a longtime redditor under another login). /r/economics might not be the correct place to put this, but it was the best I could think of. I'm a mid-career guy in a business that does a lot of work with governmental and quasi-governmental agencies. I've never ripped anyone off personally, but I have seen and occasionally been an incidental beneficiary of quite a bit of patronage, insider dealing, nepotism, misuse of taxpayer money, and outright corruption. While I have always been honest in my own dealings on a case-by-case basis, I have refrained from many opportunities to be a "whistleblower". + +A lot of stuff on reddit misunderstands the relationships between wealth, power, and influence. For starters, all the above three are always and have always been inter-related, and probably always will be. And that might not always be a bad thing: those who have risen to high levels of wealth are often pretty smart, and surprisingly often exceptionally honest. Those who rise to high levels of influence usually have some pretty good insight and talent in their area of expertise. Those who have acquired a lot of power tend to be good at accomplishing things that lots of people want to see happen. + +None of which is purely democratic, nor even purely meritocratic, but there is a certain dose of both kind of baked into the cake: stuff like wealth or family connections only gets you so far in modern, developed, and relatively open and transparent societies such as the US. And while that can be pretty far by normal standards, at some point sunlight does shine through any crack, and outright robbery or complete incompetence is difficult to sustain indefinitely. + +But there is an awful lot of low-level waste, patronage, and corruption that happens both in the private and in the public sector. + +Without going ideological, the private sector in a free-ish market has a more immediate system of checks and balances if only because you have to actually persuade the end users to keep buying your stuff for the price you're charging: if it's no good, or if you are grossly over-charging, your customers will tend to catch on sooner or later. + +But in the public sector, the "consumer" often has little choice... so-called "market discipline" is a lot more diffuse when you have a former-schoolteacher-or-real-estate-broker-turned city councilman whose job it is to disburse a multi-million-dollar street-paving contract or whatever. And neither the schoolteacher nor the real-estate broker has any clue how to write or evaluate a road-paving contract... + +Let's say that there are three credible bidders for that street-paving contract: + +* Bidder 1 is "Paver Joe", a local guy with a driveway-paving company and three trucks who sees this as a big opportunity to expand his business and get the city to pay for five new trucks. He puts in a dirt-cheap bid that he wrote up himself with the help of his estate attorney. The cost to taxpayers is very low, but the certainty that he will complete it on schedule and as specified is a little iffy. Paver Joe plans to work overtime and bust his tail on the job, not for profits, but to grow his business. He's offering the taxpayers a great deal, but a slightly risky one. + +* Bidder 2 is "Muni Paver Inc", a company who has the experience and expertise to do the job, who knows what's involved and who has done this work before. They already have the trucks, their workers are all unionized and paid "prevailing wage", everything will be done by the book, all their EPA certifications are in place, etc... The bid is a lot more expensive than Paver Joe, but it's credible and reliable. They are offering the taxpayers a degree of certainty and confidence that Paver Joe cannot match. + +* Bidder 3 is me, "Corruptocorp". Instead of Paver Joe's 2-page contract with typos, or Muni-Paving's 20-page contract, I'm offering the city council a full package of videos, brochures, and a 40-page contract with a price just a tad higher than Paver Joe (my quoted price is meaningless, as we will see). Moreover, I'm inviting the city council to Corruptocorp-owned suites in a golf resort near my headquarters to give my presentation (all expenses paid, of course, and of course, bring your spouses). There the city council members will, after the first day of golf, dinner, dancing, and cocktails, see a slideshow and chorus-line of smiling multi-ethnic faces and working mothers talking about how much Corruptocorp's paving improved their town and their lives. I'll then stand up and tell a self-effacing joke about being one of those corporate guys trying to get their money, and then I'll wax a bit emotional about my small-town roots and how Corruptocorp was started by a man with a simple dream to make life better for everyone, and to do well by doing good in local communities, and that we actually plan to hire local contractors such as Joe's Paving to do the work, backed our economies of scale and reliability. I'll mention that paragraph 32 subsection B of our proposal mandates twice-yearly performance reviews by the city council, to of course be held at the golf resort, at Corruptocorp's expense, ("so I hope to see you all back here every February and August!"), and of course I make sure that each of them has my "personal" cell phone and home numbers in case they have any questions.... + +So needless to say I get the bid, and six months later it's time for our review at the golf resort. After dinner and cocktails I step up to the podium and announce that there is both good news and bad news: + +*"The bad news is that our subcontractor has found over 1,000 rocks in the road. And as I'm sure you know, paragraph 339 subsection D.12 specifies that any necessary rock removal will be done at prevailing wages, currently $1,500 per rock, for a total cost overrun of $1.5 million. But the good news is (and believe me, I had to fight long and hard for this with the board of directors), Corruptocorp has agreed to remove those rocks for only $1,000 apiece! So even though there have been some cost overruns, your smart decisions have saved your taxpayers **half a million dollars**! Give yourselves a round of applause!"* + +*"Now, the other situation is that there has been some 'difficult terrain' as described in subsection 238b, which I'm sure you're all familiar with. And as you know, 'difficult terrain' is not covered by the contract, which is for paving, not for turning mountains into flat roads... (wistful chuckle). Now, technically, according to the contract, we should be charging your town prevailing rates for these sections, but I've worked it so that you will be allowed to re-bid them, if you wish, since our contract doesn't specifically include terrain as described in subsection 238b."* + +Now the contract price has doubled, and Corruptocorp has completely sidestepped all of the difficult and costly work, taking profits only on the easy stuff. The city council members can either admit that they were duped and bought (political suicide), or can simply feed corruptocorp's line to the voters. Which do you think will happen? + +And it gets even worse on smaller scales: look up your local building or electrical inspector. Ten-to-one he is a relative, friend, or campaign donor to the mayor or city council. What's in it for him? Every single construction or home improvement project not only has to pay him a fee, it also has to pass his inspection. Guess which contractors are most likely to pass his inspection? His brothers, friends, family... or the cheapest guy who for some reason has a hard time finding work in this town? Guess how the local inspector feels about homeowner self-improvements: does he think they are a great way for regular people to improve their wealth with a little elbow grease, or does he see them as stealing work from his friends and family? + +The US military is by far the most wasteful customer I've ever had. I'll talk about that if this topic gets any interest. + +edit: as promised, here's the post about military spending: + +http://www.reddit.com/r/Economics/comments/c84bp/how_realworld_corruption_works/c0qrt6i +LEAVE ROBINHOOD. They dont deserve to make money off us after the millions they caused in losses. It might take a couple of days, but send Robinhood to the ground and GME to the moon. +The moderators there have made that sub private before. That’s why this sub was created. It’ll probably open back up soon. Calm down. + +Edit: It's open again. Told you guys. +EDIT: T212 ALLEGEDLY SELLING STOCKS WITHOUT USER PERMISSION [tweet](https://twitter.com/able_adam/status/1355174529665028100?s=21) [tweet](https://twitter.com/zzywest/status/1355176988122750978?s=21) + +EDIT: Mirror stocks on other EU exchanges now blocked too 1/28 + +EDIT2: Straight up BUY RESTRICTIONS! - "Mitigating Risk" no longer named a reason 1/28 + +EDIT3: [UK TRUST PILOT REVIEW](https://uk.trustpilot.com/review/trading212.com) + +EDIT4: BUY restrictions Appear removed as of 1/29 - Will update when $NYSE opens + +EDIT5: T212 Restricts new signups to App and forum. On a Thread deleting & Banning Spree of people who are complaining there + +I think you know which stocks they are. Now, say what you want about meme stocks/wsb etc does this for anyone else not shed a light on this industry as a whole? Or is there actually a case for preventing people piling into this stock? Beyond usual toc on signup which are frankly quite blasé, Ive never had any platform warn or restrict a *particular* stock, especially not under the auspice of protecting me from risk. Was 2008 not an unprecedented market environment? Was the start of covid not? + +This is an extremely worrying precedent for me and last time ill be using t212. + +Edit: I listened to reasonable arguments but this stinks. Its fine if you dont like wsb or the current meme stocks. But look at this precedent and just wait til you spend months on DD and get fucked over anyway, this will continue + +NOTE 1: As perT212 app “In the interest of mitigating risk for our clients, we have temporarily placed (meme stock) in reduce only mode as highly unusual volumes have led to an unprecedented market environment. New positions cannot be opened, existing ones can be reduced or closed” + +NOTE 2: Due to BUY restrictions placed by our intermediary and ever major execution venue worldwide, GameStop will be placed in close-only mode. New BUY positions can't be initiated, existing ones can be reduced or closed +If my underlying assumption is incorrect, please elucidate me. + +That said, I know of several family members who worked as grocers and retail workers and they were able to buy their homes in the 70s and eventually paid them off. + +I, on the other hand, have a well-paying job, a graduate degree, and I’m also married to a partner with a great job. + +Yet, had it not been for inheriting the equity from my grocer and retail worker relatives, I would never have been able to affordably buy my townhouse. + +In contrast, similarly sized 2 or 3 bedroom apartments for rent in my area are now priced at about $3,500 a month. At $15 an hour, that would equate to 67% of a couple’s pre-tax income on housing alone. +LEAVE ROBINHOOD. They dont deserve to make money off us after the millions they caused in losses. It might take a couple of days, but send Robinhood to the ground and GME to the moon. +(Bloomberg) -- Wealthsimple Inc., a commission-free Canadian online brokerage with more than 350,000 clients, is warning traders about the risks of investing in certain highly speculative stocks, but isn’t planning to halt trading in those shares. + +Wealthsimple, whose motto is “get rich slow,” doesn’t offer riskier investment choices such as options trading or margin accounts, and has sent clients emails reminding them about the dangers of speculation, Chief Executive Officer Mike Katchen said in an interview with BNN Bloomberg Television Friday. It also embedded in-app notifications for users looking at certain stocks. + +The firm doesn’t plan to restrict trading on those shares the way Robinhood Markets Inc. and other brokerages have done in recent days, Katchen said. + +“If people are taking calculated risks and want to join in on the fun, but are doing it in a responsible way with an amount of their portfolio that they can effectively lose if and when these stock prices do come down, that’s OK,” Katchen said. “But we want to make sure that people are being responsible, and we’re trying to be as proactive as we can about that messaging.” + +The recent frenzy of retail trading has spurred a surge in interest even in the tamer platform of Wealthsimple, which touts passive investing in ETFs and is building out cash, checking, insurance and mortgage products. The company, owned by Power Corp. of Canada financial conglomerate, saw sign-ups increase more than 50% from a week earlier and daily volume more than double, Katchen said. + +That surge in interest could be a good thing if handled properly, he said. + +‘Fine Line’ + +“We have to walk that fine line of using this opportunity to bring more and more people into the capital markets and into the opportunity of investing,” he said. “But let’s also remember that investment carries risks, and it does require thoughtfulness and long-term thinking.” + +Katchen would like to see investors use individual stock-picking and cryptocurrencies such as Bitcoin, which his firm does allow trading in, as part of a “play money” account on the margins of their larger, core, long-term investing strategy. He also doesn’t see options and margin accounts as inherently wrong, but said they can be dangerous when used by new investors who don’t understand them. + +“The gamification of these highly risky tools is problematic and could result in some very bad outcomes for people, and we don’t want to be a part of that,” Katchen said. + +https://www.bnnbloomberg.ca/canada-s-answer-to-robinhood-warns-traders-but-won-t-halt-stocks-1.1556216 + Hi all beginners, I was once like you, had no idea what I was doing, no idea what an option was, and had no idea how to even buy a stock. Now, you could say I'm an "experienced" trader (Whatever the f%&\* that means), and I see a decent amount of posts "totally new - what should I invest in". From all the smooth brains that have been doing this for awhile - that's really annoying and no one wants to help you for the most part. + +Instead, do you own research first - I mean, you literally have Google, it is so simple. Im really not trying to bash on anyone, but Google is amazing and if you just take the 15 minutes to read an article or watch the ENTIRE youtube video, you will be so much further ahead. people are so obsessed with the known and dont want to work. It has taken me about 3-4 years to finally understand the market, charts, DD, and more about stocks and I still lose money on trades, and if u see someone saying they never loss money its a scam and stay away. Anyways, what im trying to preface this with is stocks take time to understand do you DD. + +For those complete beginners that dont even have brokerage app installed yet, here are some good places to start: + +[https://www.investopedia.com/articles/basics/06/invest1000.asp](https://www.investopedia.com/articles/basics/06/invest1000.asp) (investopedia in general is amazing for learning) + +[https://www.thebalance.com/stock-trading-101-358115](https://www.thebalance.com/stock-trading-101-358115) + +Those are two good articles to start reading, giving you a basic understanding. I know most of you wont read that so for complete beginners here is the TL;DR: FIND A BROKEAGE LIKE ROBINHOOD,WEBULL ETC, DEPOSIT MONEY, THEN ONCE THE MONEY HITS START RESEARCHING STOCKS YOU WANT TO BUY. + +So now that you have a brokerage app installed on your phone, or you can access it via your laptop, doesnt matter, and you have some money in there, you can actually start buying the stocks. Depending on what brokerage you are using all the UIs look different so buying and selling will look different but buying and selling is the same. If you buy a stock you get shares, and when you sell the stock you lose those shares and "collect" your money, whether thats a profit or loss. + +Anyways, you have a brokerage now with some money in it, how do you find stocks to buy. There are a million difference ways you can decide. The first way I recommend you find stocks to buy is through create a "stock screener". [Finviz.com](https://finviz.com/) has a great free tool that alot of people use for this, and there are a ton of youtube videos on how to create your own screener..here are some of my favorite screeners: + +[https://www.youtube.com/watch?v=M8sNMhPJINU&t=2s](https://www.youtube.com/watch?v=M8sNMhPJINU&t=2s) + +[https://www.youtube.com/watch?v=bWpe30R2VnM](https://www.youtube.com/watch?v=bWpe30R2VnM) + +[https://www.youtube.com/watch?v=7xKOo6vNaq8](https://www.youtube.com/watch?v=7xKOo6vNaq8) + +Each morning, you can run these scans premarket and have some stock ideas on what you want to trade. But don't just base your screener off of the stocks you are going to buy, you have to make sure they are a good stock with potential because just because its in your screener doesn't mean it is a stock you want to trade. So go through technical chart analysis (will cover that further down), read up on the stock, look at the price target, with analysts think it is a good buy or if you should sell, you can look at the fundamentals, and much more. The good news is all of that can be found on Finviz as well. + +Before we get into the meat of breaking down your pre-market screener stocks, there are some other ways you can check out stocks to buy. There are way to many accounts to count on twitter that provide great advise and tweet about what stocks they are watching and buying into - this is complete free. Another great place you can go is right here - REDDIT. People are always posting stock ideas, so instead of posting "what should I buy" take that time to look through subreddits of what people are buying, what they are looking at or some of the DDs, those can be super helpful. + +Now that you have an idea on how to find the stocks, the next part is determining if you should actually buy the stock or not. The first step I like is the technical chart analysis. If this is a swing trade, a stock you plan on holding for more than a day but less than a year, technical analysis is super important in my opinion. If you are LONG on a stock and are going to hold it for more than a year or even 10+ years then it is more about the company and the direction you think they will be going which is more fundamental trading, but I focus on more of the swing trading, and sometimes day trading but I dont really do that. Here are some good videos to understand technical analysis of a stock chart: + +[https://www.youtube.com/watch?v=rlZRtQkfK04](https://www.youtube.com/watch?v=rlZRtQkfK04) + +[https://www.youtube.com/watch?v=o6hZma0bajE](https://www.youtube.com/watch?v=o6hZma0bajE) + +[https://www.youtube.com/watch?v=ItacPNRujiU](https://www.youtube.com/watch?v=ItacPNRujiU) + +Those are some great videos that should get you started and really will teach you what all the stuff on the charts mean so you can start to break down charts on your own and know if those stocks from your screener are worth buying or not. + +The next analysis that is popular is called funamental, I dont do this style but here are 2 videos that cover it in good detail: + +[https://www.youtube.com/watch?v=a63yvv4vjDE](https://www.youtube.com/watch?v=a63yvv4vjDE) + +[https://www.youtube.com/watch?v=baAzH5ZfNbs](https://www.youtube.com/watch?v=baAzH5ZfNbs) + +There you have it. Now you can sign up for a broker to get money into an account, deposit money in, start screening for stocks that you may want to buy, and then review their chart to see if you want to buy the stock. + +If it still seems confusing go back to what confuses you and re-read the article or find another video that may explain it better than the videos I found. Its all about just doing the process over and over again and you will see what works and what doesnt. That is the honest truth, like i said it took me about 3 years to find what works for me and what doesnt. And what works for me may not work for you, the biggest part of understanding a stock or the market in general is having your own way so you are confident when you invest in a stock. + +Pro-tip, when you buy your stocks, set a stop loss order for the stock. This means that if the stock doesnt go up and starts falling, once it hits a certain price it will automatically sell. This is very important for managing your risk, especially as a beginner. + +check out this video on stop losses: [https://www.youtube.com/watch?v=VW7P22B\_99A](https://www.youtube.com/watch?v=VW7P22B_99A) + +I hope you beginners learned something from this, if not no problem. drop your questions below I will try to answer, but again im now financal advisor or millionaire. +&#x200B; + +# 0. Preface + +I am not a financial advisor, and I do not provide financial advice. Many thoughts here are my opinion, and others can be speculative. + +TL;DR - **(Though I think you REALLY should consider reading because it is important to understand what is going on**): + +* The market crash of 2008 never finished. It was can-kicked and the same people who caused the crash have **still** been running rampant doing the **same** **bullshit in the derivatives market** as that market continues to be unregulated. They're profiting off of short-term gains at the risk of killing their institutions and potentially the global economy. **Only this time it is much, much worse.** +* The bankers abused smaller amounts of leverage for the 2008 bubble and have since abused much higher amounts of leverage - creating an even larger speculative bubble. Not just in the stock market and derivatives market, but also in the crypt0 market, upwards of 100x leverage. +* COVID came in and rocked the economy to the point where the Fed is now pinned between a rock and a hard place. In order to buy more time, the government triggered a flurry of protective measures, such as mortgage forbearance, expiring end of Q2 on June 30th, 2021, and SLR exemptions, which expired March 31, 2021. **The market was going to crash regardless. GME was and never will be the reason for the market crashing.** +* The rich made a fatal error in **way** overshorting stocks. There is a potential for their decades of sucking money out of taxpayers to be taken back. The derivatives market is potentially a **$1 Quadrillion market**. "Meme prices" are not meme prices. There is so much money in the world, and you are just accustomed to thinking the "meme prices" are too high to feasibly reach. +* The DTC, ICC, OCC have been passing rules and regulations (auction and wind-down plans) so that they can easily eat up competition and consolidate power once again like in 2008. The people in charge, including Gary Gensler, are not your friends. +* The DTC, ICC, OCC are also passing rules to make sure that retail will **never** be able to to do this again. **These rules are for the future market (post market crash) and they never want anyone to have a chance to take their game away from them again**. These rules are not to start the MOASS. They are indirectly regulating retail so that a short squeeze condition can never occur after GME. +* The COVID pandemic exposed a lot of banks through the Supplementary Leverage Ratio (SLR) where mass borrowing (leverage) almost made many banks default. Banks have account 'blocks' on the Fed's balance sheet which holds their treasuries and deposits. **The SLR exemption made it so that these treasuries and deposits of the banks 'accounts' on the Fed's balance sheet were not calculated into SLR, which allowed them to boost their SLR until March 31, 2021 and avoid defaulting. Now, they must extract treasuries from the Fed in reverse repo to avoid defaulting from SLR requirements. This results in the reverse repo market explosion as they are scrambling to survive due to their mass leverage.** +* This is not a "retail vs. Melvin/Point72/Citadel" issue. This is a "retail vs. **Mega Banks**" issue. The rich, and I mean **all of Wall Street,** are trying **desperately** to shut GameStop down because it has the chance to suck out trillions if not hundreds of trillions from the game they've played for decades. They've rigged this game since the 1990's when derivatives were first introduced. **Do you really think they, including the Fed, wouldn't pull all the stops now to try to get you to sell?** + +End TL;DR + +&#x200B; + +A ton of the information provided in this post is from the movie **Inside Job (2010)**. I am paraphrasing from the movie as well as taking direct quotes, so please understand that a bunch of this information is a summary of that film. + +I understand that **The Big Short (2015)** is much more popular here, due to it being a more Hollywood style movie, but it does not go into such great detail of the conditions that led to the crash - and how things haven't even changed. But in fact, got worse, and led us to where we are now. + +Seriously. **Go**. **Watch**. **Inside Job**. It is a documentary with interviews of many people, including those who were involved in the Ponzi Scheme of the derivative market bomb that led to the crash of 2008, and their continued lobbying to influence the Government to keep regulations at bay. + +&#x200B; + +[Inside Job \(2010\) Promotional](https://preview.redd.it/vvdd32qkei571.png?width=776&format=png&auto=webp&s=982445a99f17af054bd351990017e364b137cf02) + +&#x200B; + +# 1. The Market Crash Of 2008 + +# 1.1 The Casino Of The Financial World: The Derivatives Market + +It all started back in the 1990's when the **Derivative Market** was created. This was the opening of the literal Casino in the financial world. These are bets placed upon an underlying asset, index, or entity, and are **very** risky. Derivatives are contracts between two or more parties that derives its value from the performance of the underlying asset, index, or entity. + +One such derivative many are familiar with are **options** (CALLs and PUTs). Other examples of derivatives are **fowards**, **futures**, **swaps**, and variations of those such as **Collateralized Debt Obligations (CDOs)**, and **Credit Default Swaps (CDS)**. + +The potential to make money off of these trades is **insane**. Take your regular CALL option for example. You no longer take home a 1:1 return when the underlying stock rises or falls $1. Your returns can be amplified by magnitudes more. Sometimes you might make a 10:1 return on your investment, or 20:1, and so forth. + +Not only this, you can grab leverage by borrowing cash from some other entity. This allows your bets to potentially return that much more money. You can see how this gets out of hand really fast, because the amount of cash that can be gained absolutely skyrockets versus traditional investments. + +Attempts were made to regulate the derivatives market, but due to mass lobbying from Wall Street, regulations were continuously shut down. **People continued to try to pass regulations, until in 2000, the** [Commodity Futures Modernization Act](https://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000) **banned the regulation of derivatives outright**. + +And of course, once the Derivatives Market was left unchecked, it was off to the races for Wall Street to begin making tons of risky bets and surging their profits. + +The Derivative Market exploded in size once regulation was banned and de-regulation of the financial world continued. You can see as of 2000, the cumulative derivatives market was already out of control. + +[https:\/\/www.hilarispublisher.com\/open-access\/investment-banks-and-credit-institutions-the-ignored-and-unregulateddiversity-2151-6219-1000224.pdf](https://preview.redd.it/9igfmi69di571.png?width=578&format=png&auto=webp&s=27fefbf3443e8be528849221f2eadeb1a5c10833) + +The Derivatives Market is big. **Insanely big**. Look at how it compares to **Global Wealth**. + +[https:\/\/www.visualcapitalist.com\/all-of-the-worlds-money-and-markets-in-one-visualization-2020\/](https://preview.redd.it/s22atssgdi571.png?width=1029&format=png&auto=webp&s=086dcebf3e710052f78b7490150203d0f8376b89) + +At the bottom of the list are three derivatives entries, with "Market Value" and "Notional Value" called out. + +The "Market Value" is the value of the derivative at its current trading price. + +The "Notional Value" is the value of the derivative if it was at the strike price. + +E.g. A CALL option (a derivative) represents 100 shares of ABC stock with a strike of $50. Perhaps it is trading in the market at $1 per contract right now. + +* Market Value = 100 shares \* $1.00 per contract = $100 +* Notional Value = 100 shares \* $50 strike price = $5,000 + +**Visual Capitalist estimates that the cumulative Notional Value of derivatives is between $558 Trillion and $1 Quadrillion**. So yeah. **You** are not going to cause a market crash if GME sells for millions per share. The rich are already priming the market crash through the Derivatives Market. + +# 1.2 CDOs And Mortgage Backed Securities + +Decades ago, the system of paying mortgages used to be between two parties. The buyer, and the loaner. Since the movement of money was between the buyer and the loaner, the loaner was very careful to ensure that the buyer would be able to pay off their loan and not miss payments. + +But now, it's a chain. + +1. Home buyers will buy a loan from the lenders. +2. The lenders will then sell those loans to Investment Banks. +3. The Investment Banks then combine thousands of mortgages and other loans, including car loans, student loans, and credit card debt to create complex derivatives called "**Collateralized Debt Obligations (CDO's**)". +4. The Investment Banks then pay Rating Agencies to rate their CDO's. This can be on a scale of "AAA", the best possible rating, equivalent to government-backed securities, all the way down to C/D, which are junk bonds and very risky. **Many of these CDO's were given AAA ratings despite being filled with junk**. +5. The Investment Banks then take these CDO's and sell them to investors, including retirement funds, because that was the rating required for retirement funds as they would only purchase highly rated securities. +6. Now when the homeowner pays their mortgage, the money flows directly into the investors. The investors are the main ones who will be hurt if the CDO's containing the mortgages begin to fail. + +[Inside Job \(2010\) - Flow Of Money For Mortgage Payments](https://preview.redd.it/0xtaww3ydi571.png?width=1493&format=png&auto=webp&s=f448a113043b043243efd879f174493bd33423fe) + +[https:\/\/www.investopedia.com\/ask\/answers\/09\/bond-rating.asp](https://preview.redd.it/uyk9ms4fei571.png?width=756&format=png&auto=webp&s=d61e9a0754b676e64a1f6c97277ba877e946fcb6) + +# 1.3 The Bubble of Subprime Loans Packed In CDOs + +This system became a ticking timebomb due to this potential of free short-term gain cash. Lenders didn't care if a borrower could repay, so they would start handing out riskier loans. The investment banks didn't care if there were riskier loans, because the more CDO's sold to investors resulted in more profit. And the Rating Agencies didn't care because there were no regulatory constraints and there was no liability if their ratings of the CDO's proved to be wrong. + +So they went wild and pumped out more and more loans, and more and more CDOs. Between 2000 and 2003, the number of mortgage loans made each year nearly quadrupled. They didn’t care about the quality of the mortgage - they cared about maximizing the volume and getting profit out of it. + +In the early 2000s there was a huge increase in the riskiest loans - “Subprime Loans”. These are loans given to people who have low income, limited credit history, poor credit, etc. They are very at risk to not pay their mortgages. It was predatory lending, because it hunted for potential home buyers who would never be able to pay back their mortgages so that they could continue to pack these up into CDO's. + +[Inside Job \(2010\) - &#37; Of Subprime Loans](https://preview.redd.it/wsr30iorei571.png?width=1447&format=png&auto=webp&s=59cf72f6eb8209d69e0a13ccf2f0127e69a45142) + +In fact, the investment banks **preferred** subprime loans, because they carried higher interest rates and more profit for them. + +**So the Investment Banks took these subprime loans, packaged the subprime loans up into CDO's, and many of them still received AAA ratings. These can be considered "toxic CDO's" because of their high ability to default and fail despite their ratings.** + +Pretty much **anyone** could get a home now. Purchases of homes and housing prices skyrocketed. It didn't matter because everyone in the chain was making money in an unregulated market. + +# 1.4 Short Term Greed At The Risk Of Institutional And Economic Failure + +In Wall Street, annual cash bonuses started to spike. Traders and CEOs became extremely wealthy in this bubble as they continued to pump more toxic CDO's into the market. Lehman Bros. was one of the top underwriters of subprime lending and their CEO alone took home over $485 million in bonuses. + +[Inside Job \(2010\) Wall Street Bonuses](https://preview.redd.it/io87r9vxei571.png?width=1494&format=png&auto=webp&s=944300df8faf8da35d75de6f10fb951a6d230154) + +And it was all short-term gain, high risk, with no worries about the potential failure of your institution or the economy. When things collapsed, they would not need to pay back their bonuses and gains. They were literally risking the entire world economy for the sake of short-term profits. + +AND THEY EVEN TOOK IT FURTHER WITH LEVERAGE TO MAXIMIZE PROFITS. + +During the bubble from 2000 to 2007, the investment banks were borrowing heavily to buy more loans and to create more CDO's. The ratio of banks borrowed money and their own money was their leverage. The more they borrowed, the higher their leverage. They abused leverage to continue churning profits. And are still abusing massive leverage to this day. It might even be much higher leverage today than what it was back in the Housing Market Bubble. + +In 2004, Henry Paulson, the CEO of Goldman Sachs, helped lobby the SEC to relax limits on leverage, allowing the banks to sharply increase their borrowing. Basically, the SEC allowed investment banks to gamble a lot more. **Investment banks would go up to about 33-to-1 leverage at the time of the 2008 crash**. Which means if a 3% decrease occurred in their asset base, it would leave them insolvent. **Henry Paulson would later become the Secretary Of The Treasury from 2006 to 2009**. He was just one of many Wall Street executives to eventually make it into Government positions. Including the infamous Gary Gensler, the current SEC chairman, who helped block derivative market regulations. + +[Inside Job \(2010\) Leverage Abuse of 2008](https://preview.redd.it/k87x53h7fi571.png?width=1619&format=png&auto=webp&s=b12004d6bb3e70643516ef0477303f4652ccd348) + +The borrowing exploded, the profits exploded, and it was all at the risk of obliterating their institutions and possibly the global economy. Some of these banks knew that they were "too big to fail" and could push for bailouts at the expense of taxpayers. Especially when they began planting their own executives in positions of power. + +# 1.5 Credit Default Swaps (CDS) + +To add another ticking bomb to the system, AIG, the worlds largest insurance company, got into the game with another type of derivative. They began selling Credit Default Swaps (CDS). + +For investors who owned CDO's, CDS's worked like an insurance policy. An investor who purchased a CDS paid AIG a quarterly premium. If the CDO went bad, AIG promised to pay the investor for their losses. Think of it like insuring a car. You're paying premiums, but if you get into an accident, the insurance will pay up (some of the time at least). + +But unlike regular insurance, where you can only insure your car once, **speculators could also purchase CDS's from AIG in order to bet against CDO's they didn't own**. You could suddenly have a sense of rehypothecation where fifty, one hundred entities might now have insurance against a CDO. + +[Inside Job \(2010\) Payment Flow of CDS's](https://preview.redd.it/7xoupx0ffi571.png?width=1258&format=png&auto=webp&s=869beb0d99b9fbb4108cd5af692d0a6332fd52dd) + +If you've watched The Big Short (2015), you might remember the Credit Default Swaps, because those are what Michael Burry and others purchased to bet against the Subprime Mortgage CDO's. + +CDS's were unregulated, so **AIG didn’t have to set aside any money to cover potential losses**. Instead, AIG paid its employees huge cash bonuses as soon as contracts were signed in order to incentivize the sales of these derivatives. But if the CDO's later went bad, AIG would be on the hook. It paid everyone short-term gains while pushing the bill to the company itself without worrying about footing the bill if shit hit the fan. People once again were being rewarded with short-term profit to take these massive risks. + +AIG’s Financial Products division in London issued over $500B worth of CDS's during the bubble. Many of these CDS's were for CDO's backed by subprime mortgages. + +The 400 employees of AIGFP made $3.5B between 2000 and 2007. And the head of AIGFP personally made $315M. + +# 1.6 The Crash And Consumption Of Banks To Consolidate Power + +By late 2006, Goldman Sachs took it one step further. It didn’t just sell toxic CDO's, it started actively betting against them at the same time it was telling customers that they were high-quality investments. + +Goldman Sachs would purchase CDS's from AIG and bet against CDO's it didn’t own, and got paid when those CDO's failed. Goldman bought at least $22B in CDS's from AIG, and it was so much that Goldman realized AIG itself might go bankrupt (which later on it would and the Government had to bail them out). So Goldman spent $150M insuring themselves against AIG’s potential collapse. They purchased CDS's against AIG. + +[Inside Job \(2010\) Payment From AIG To Goldman Sachs If CDO's Failed](https://preview.redd.it/m54zv03yfi571.png?width=1411&format=png&auto=webp&s=f6cb605b4c9b36c22e60cd8205b80bd6ac770fac) + +Then in 2007, Goldman went even further. They started selling CDO's specifically designed so that the more money their customers lost, the more Goldman Sachs made. + +Many other banks did the same. They created shitty CDO's, sold them, while simultaneously bet that they would fail with CDS's. All of these CDO's were sold to customers as “safe” investments because of the complicit Rating Agencies. + +The three rating agencies, Moody’s, S&P and Fitch, made billions of dollars giving high ratings to these risky securities. Moody’s, the largest ratings agency, quadrupled its profits between 2000 and 2007. The more AAA's they gave out, the higher their compensation and earnings were for the quarter. AAA ratings mushroomed from a handful in 2000 to thousands by 2006. Hundreds of billions of dollars worth of CDO's were being rated AAA per year. When it all collapsed and the ratings agencies were called before Congress, the rating agencies expressed that it was “their opinion” of the rating in order to weasel their way out of blame. Despite knowing that they were toxic and did not deserve anything above 'junk' rating. + +[Inside Job \(2010\) Ratings Agencies Profits](https://preview.redd.it/tto0v644gi571.png?width=1332&format=png&auto=webp&s=f4361dcc23801691d46ec88b241c7d5fa56e2aaf) + +[Inside Job \(2010\) - Insane Increase of AAA Rated CDOs](https://preview.redd.it/91dpnu78gi571.png?width=1259&format=png&auto=webp&s=1f196573f47a757a8bcca8b9e712c537be84cbe2) + +By 2008, home foreclosures were skyrocketing. Home buyers in the subprime loans were defaulting on their payments. Lenders could no longer sell their loans to the investment banks. And as the loans went bad, dozens of lenders failed. The market for CDO's collapsed, leaving the investment banks holding hundreds of billions of dollars in loans, CDO's, and real estate they couldn’t sell. Meanwhile, those who purchased up CDS's were knocking at the door to be paid. + +In March 2008, Bear Stearns ran out of cash and was acquired for $2 a share by JPMorgan Chase. The deal was backed by $30B in emergency guarantees by the Fed Reserve. This was just one instance of a bank getting consumed by a larger entity. + +[https:\/\/www.history.com\/this-day-in-history\/bear-stearns-sold-to-j-p-morgan-chase](https://preview.redd.it/gbgc30vlhi571.png?width=873&format=png&auto=webp&s=74def34d1783c5e3195492913370e6ae65670301) + +AIG, Bear Stearns, Lehman Bros, Fannie Mae, and Freddie Mac, were all AA or above rating days before either collapsing or being bailed out. Meaning they were 'very secure', yet they failed. + +The Fed Reserve and Big Banks met together in order to discuss bailouts for different banks, and they decided to let Lehman Brothers fail as well. + +The Government also then took over AIG, and a day after the takeover, asked the Government for $700B in bailouts for big banks. At this point in time, **the person in charge of handling the financial crisis, Henry Paulson, former CEO of Goldman Sachs**, worked with the chairman of the Federal Reserve to force AIG to pay Goldman Sachs some of its bailout money at 100-cents on the dollar. Meaning there was no negotiation of lower prices. **Conflict of interest much?** + +The Fed and Henry Paulson also forced AIG to surrender their right to sue Goldman Sachs and other banks for fraud. + +**This is but a small glimpse of the consolidation of power in big banks from the 2008 crash. They let others fail and scooped up their assets in the crisis.** + +**After the crash of 2008, big banks are more powerful and more consolidated than ever before. And the DTC, ICC, OCC rules are planning on making that worse through the auction and wind-down plans where big banks can once again consume other entities that default.** + +# 1.7 The Can-Kick To Continue The Game Of Derivative Market Greed + +After the crisis, the financial industry worked harder than ever to fight reform. The financial sector, as of 2010, employed over 3000 lobbyists. More than five for each member of Congress. Between 1998 and 2008 the financial industry spent over $5B on lobbying and campaign contributions. And ever since the crisis, they’re spending even more money. + +President Barack Obama campaigned heavily on "Change" and "Reform" of Wall Street, but when in office, nothing substantial was passed. But this goes back for decades - the Government has been in the pocket of the rich for a long time, both parties, both sides, and their influence through lobbying undoubtedly prevented any actual change from occurring. + +So their game of playing the derivative market was green-lit to still run rampant following the 2008 crash and mass bailouts from the Government at the expense of taxpayers. + +There's now more consolidation of banks, more consolidation of power, more years of deregulation, and over a decade that they used to continue the game. And just like in 2008, it's happening again. We're on the brink of another market crash and potentially a global financial crisis. + +# + +&#x200B; + +# 2. The New CDO Game, And How COVID Uppercut To The System + +# 2.1 Abuse Of Commercial Mortgage Backed Securities + +It's not just /u/atobitt's "House Of Cards" where the US Treasury Market has been abused. It is abuse of many forms of collateral and securities this time around. + +It's the **same thing** as 2008, but much worse due to even higher amounts of leverage in the system on top of massive amounts of liquidity and potential inflation from stimulus money of the COVID crisis. + +Here's an excerpt from [The Bigger Short: Wall Street's Cooked Books Fueled The Financial Crisis of 2008. It's Happening Again](https://theintercept.com/2021/04/20/wall-street-cmbs-dollar-general-ladder-capital/): + +>A longtime industry analyst has uncovered creative accounting on a startling scale in the commercial real estate market, in ways similar to the “liar loans” handed out during the mid-2000s for residential real estate, according to financial records examined by the analyst and reviewed by The Intercept. A recent, large-scale academic study backs up his conclusion, **finding that banks such as Goldman Sachs and Citigroup have systematically reported erroneously inflated income data that compromises the integrity of the resulting securities.** +> +>... +> +>The analyst’s findings, first reported by ProPublica last year, are the subject of a whistleblower complaint he filed in 2019 with the Securities and Exchange Commission. Moreover, the analyst has identified complex financial machinations by one financial institution, one that both issues loans and manages a real estate trust, that may ultimately help one of its top tenants — the low-cost, low-wage store Dollar General — flourish while devastating smaller retailers. +> +>This time, the issue is not a bubble in the housing market, **but apparent widespread inflation of the value of commercial businesses, on which loans are based.** +> +>... +> +>**Now it may be happening again** — this time not with residential mortgage-backed securities, based on loans for homes, **but commercial mortgage-backed securities, or CMBS, based on loans for businesses.** And this industrywide scheme is colliding with a collapse of the commercial real estate market amid the pandemic, which has **business tenants across the country unable to make their payments.** + +They've been abusing Commercial Mortgage Backed Securities (CMBS) this time around, and potentially have still been abusing other forms of collateral - they might still be hitting MBS as well as treasury bonds per /u/atobitt's DD. + +John M. Griffin and Alex Priest released a study last November. They sampled almost 40,000 CMBS loans with a market capitalization of $650 billion underwritten from the beginning of 2013 to the end of 2019. **Their findings were that large banks had 35% or more loans exhibiting 5% or greater income overstatements.** + +The below chart shows the overstatements of the biggest problem-making banks. The difference in bars is between samples taken from data between 2013-2015, and then data between 2016-2019. Almost every single bank experienced a positive move up over time of overstatements. + +>Unintentional overstatement should have occurred at random times. Or if lenders were assiduous and the overstatement was unwitting, one might expect it to diminish over time as the lenders discovered their mistakes. **Instead, with almost every lender, the overstatement** ***increased*** **as time went on**. - [Source](https://theintercept.com/2021/04/20/wall-street-cmbs-dollar-general-ladder-capital/) + +[https:\/\/theintercept.com\/2021\/04\/20\/wall-street-cmbs-dollar-general-ladder-capital\/](https://preview.redd.it/5xmcu9hwhi571.png?width=846&format=png&auto=webp&s=66f636574bd66afd3512b9587981e4caaa381cf3) + +So what does this mean? **It means they've once again been handing out subprime loans (predatory loans). But this time to businesses through Commercial Mortgage Backed Securities.** + +Just like Mortgage-Backed Securities from 2000 to 2007, the loaners will go around, hand out loans to businesses, and rake in the profits while having no concern over the potential for the subprime loans failing. + +# 2.2 COVID's Uppercut Sent Them Scrambling + +The system was propped up to fail just like from the 2000-2007 Housing Market Bubble. Now we are in a speculative bubble of the entire market along with the Commercial Market Bubble due to continued mass leverage abuse of the world. + +Hell - also in Crypt0currencies that were introduced after the 2008 crash. **Did you know that you can get over 100x leverage in crypt0 right now? Imagine how terrifying that crash could be if the other markets fail.** + +There is SO. MUCH. LEVERAGE. ABUSE. IN. THE. WORLD. All it takes is one fatal blow to bring it all down - **and it sure as hell looks like COVID was that uppercut to send everything into a death spiral.** + +When COVID hit, many people were left without jobs. Others had less pay from the jobs they kept. It rocked the financial world and it was so unexpected. Apartment residents would now become delinquent, causing the apartment complexes to become delinquent. Business owners would be hurting for cash to pay their mortgages as well due to lack of business. The subprime loans all started to become a really big issue. + +Delinquency rates of Commercial Mortgages started to **skyrocket** when the COVID crisis hit. They even surpassed 2008 levels in March of 2020. Remember what happened in 2008 when this occurred? **When delinquency rates went up on mortgages in 2008, the CDO's of those mortgages began to fail. But, this time, they can-kicked it because COVID caught them all off guard.** + +[https:\/\/theintercept.com\/2021\/04\/20\/wall-street-cmbs-dollar-general-ladder-capital\/](https://preview.redd.it/cqbceix0ii571.png?width=848&format=png&auto=webp&s=da81781094a31ae1293b019c4e24f68dfdccc634) + +# 2.3 Can-Kick Of COVID To Prevent CDO's From Defaulting Before Being Ready + +COVID sent them **Scrambling**. They could not allow these CDO's to fail just yet, because they wanted to get their rules in place to help them consume other failing entities at a whim. + +Like in 2008, they wanted to not only protect themselves when the nuke went off from these decades of derivatives abuse, they wanted to be able to scoop up the competition easily. That is when the DTC, ICC, and OCC began drafting their auction and wind-down plans. + +In order to buy time, they began tossing out emergency relief "protections" for the economy. Such as preventing mortgage defaults which would send their CDO's tumbling. **This protection ends on June 30th, 2021**. + +And guess what? **Many people are still at risk of being delinquent**. [This article](https://therealdeal.com/issues_articles/defusing-the-forbearance-time-bomb/) was posted just **yesterday**. The moment these protection plans lift, we can see a surge in foreclosures as delinquent payments have accumulated over the past year. + +When everyone, including small business owners who were attacked with predatory loans, begin to default from these emergency plans expiring, it can lead to the CDO's themselves collapsing. **Which is exactly what triggered the 2008 recession**. + +[https:\/\/www.housingwire.com\/articles\/mortgage-forbearance-drops-as-expiration-date-nears\/](https://preview.redd.it/b68fsf5aii571.png?width=945&format=png&auto=webp&s=daa8c725185480d988802023a27291ee782b5c5f) + +# 2.4 SLR Requirement Exemption - Why The Reverse Repo Is Blowing Up + +Another big issue exposed from COVID is when SLR requirements were leaned during the pandemic. They had to pass a quick measure to protect the banks from defaulting in April of 2020. + +>In a brief announcement, the Fed said it would allow a change to the **supplementary leverage ratio to expire March 31**. The initial move, announced April 1, 2020, **allowed banks to exclude Treasurys and deposits with Fed banks from the calculation of the leverage ratio**. - [Source](https://www.cnbc.com/2021/03/19/the-fed-will-not-extend-a-pandemic-crisis-rule-that-had-allowed-banks-to-relax-capital-levels.html) + +What can you take from the above? + +**SLR is based on the banks deposits with the Fed itself. It is the treasuries and deposits that the banks have on the Fed's balance sheet. Banks have an 'account block' on the Fed's balance sheet that holds treasuries and deposits. The SLR pandemic rule allowed them to neglect these treasuries and deposits from their SLR calculation, and it boosted their SLR value, allowing them to survive defaults.** + +This is a **big**, **big**, **BIG** sign that **the banks are way overleveraged by borrowing tons of money just like in 2008.** + +The SLR is the "Supplementary Leverage Ratio" and they enacted quick to allow it so banks wouldn't fail under mass leverage for failing to maintain enough equity. + +>The supplementary leverage ratio is the US implementation of the Basel III Tier 1 **leverage ratio**, with which **banks calculate the amount of common equity capital they must hold relative to their total leverage exposure**. **Large US banks must hold 3%**. **Top-tier bank holding companies must also hold an extra 2% buffer, for a total of 5%**. The SLR, which does not distinguish between assets based on risk, is conceived as a backstop to risk-weighted capital requirements. - [Source](https://www.risk.net/definition/supplementary-leverage-ratio-slr) + +[Here is an exposure of their SLR](https://www.fool.com/investing/2020/07/26/which-of-the-large-us-banks-is-most-leveraged.aspx) from earlier this year. The key is to have **high SLR, above 5%, as a top-tier bank**: + +|Bank|Supplementary Leverage Ratio (SLR)| +|:-|:-| +|JP Morgan Chase|6.8%| +|Bank Of America|7%| +|Citigroup|6.7%| +|Goldman Sachs|6.7%| +|Morgan Stanley|7.3%| +|Bank of New York Mellon|8.2%| +|State Street|8.3%| + +The SLR protection ended on March 31, 2021. Guess what started to happen just after? + +T**he reverse repo market started to explode. This is VERY unusual behavior because it is not at a quarter-end where quarter-ends have significant strain on the economy. The build-up over time implies that there is significant strain on the market AS OF ENTERING Q2 (April 1st - June 30th).** + +[https:\/\/fred.stlouisfed.org\/series\/RRPONTSYD](https://preview.redd.it/ijp4wkxdii571.png?width=1455&format=png&auto=webp&s=46f67d7efcc98ee475ba27fa41850fbf5d894064) + +**Speculation: SLR IS DEPENDENT ON THEIR DEPOSITS WITH THE FED ITSELF. THEY NEED TO EXTRACT TREASURIES OVER NIGHT TO KEEP THEM OFF THE FED'S BALANCE SHEETS TO PREVENT THEMSELVES FROM FAILING SLR REQUIREMENTS AND DEFAULTING DUE TO MASS OVERLEVERAGE. EACH BANK HAS AN ACCOUNT ON THE FED'S BALANCE SHEET, WHICH IS WHAT SLR IS CALCULATED AGAINST. THIS IS WHY IT IS EXPLODING. THEY ARE ALL STRUGGLING TO MEET SLR REQUIREMENTS.** + +# 2.5 DTC, ICC, OCC Wind-Down and Auction Plans; Preparing For More Consolidation Of Power + +We've seen some interesting rules from the DTC, ICC, and OCC. For the longest time we thought this was all surrounding GameStop. Guess what. **They aren't all about GameStop**. Some of them are, but not all of them. + +**They are furiously passing these rules because the COVID can-kick can't last forever. The Fed is dealing with the potential of runaway inflation from COVID stimulus and they can't allow the overleveraged banks to can-kick any more. They need to resolve this as soon as possible. June 30th could be the deadline because of the potential for CDO's to begin collapsing.** + +Let's revisit a few of these rules. The most important ones, in my opinion, because they shed light on the bullshit they're trying to do once again: Scoop up competitors at the cheap, and protect themselves from defaulting as well. + +* **DTC-004:** Wind-down and auction plan. - [Link](https://www.sec.gov/rules/sro/dtc/2021/34-91429.pdf) +* **ICC-005:** Wind-down and auction plan. - [Link](https://www.sec.gov/rules/sro/icc/2021/34-91806.pdf) +* **OCC-004:** Auction plan. Allows third parties to join in. - [Link](https://www.sec.gov/rules/sro/occ/2021/34-91935.pdf) +* **OCC-003**: Shielding plan. Protects the OCC. - [Link](https://www.sec.gov/rules/sro/occ/2021/34-92038.pdf) + +Each of these plans, in brief summary, allows each branch of the market to protect themselves in the event of major defaults of members. They also **allow members to scoop up assets of defaulting members**. + +What was that? Scooping up assets? **In other words it is more concentration of power**. **Less competition**. + +I would not be surprised if many small and large Banks, Hedge Funds, and Financial Institutions evaporate and get consumed after this crash and we're left with just a select few massive entities. That is, after all, exactly what they're planning for. + +They could not allow the COVID crash to pop their massive speculative derivative bubble so soon. It came too sudden for them to not all collapse instead of just a few of them. It would have obliterated the entire economy even more so than it will once this bomb is finally let off. They needed more time to prepare so that they could feast when it all comes crashing down. + +# 2.6 Signs Of Collapse Coming - ICC-014 - Incentives For Credit Default Swaps + +A comment on this subreddit made me revisit a rule passed by the ICC. It flew under the radar and is another sign for a crash coming. + +This is [ICC-014](https://www.sec.gov/rules/sro/icc/2021/34-91922.pdf). Passed and effective as of June 1st, 2021. + +Seems boring at first. Right? That's why it flew under the radar? + +But now that you know the causes of the 2008 market crash and how toxic CDO's were packaged together, and then CDS's were used to bet against those CDO's, check out what ICC-014 is doing **as of June 1st**. + +[ICC-014 Proposed Discounts On Credit Default Index Swaptions](https://preview.redd.it/phrxcouvii571.png?width=731&format=png&auto=webp&s=469560cf06458b51b1b5439d84062e9f6e04bda4) + +**They are providing incentive programs to purchase Credit Default Swap Indexes. These are like standard CDS's, but packaged together like an index. Think of it like an index fund.** + +**This is allowing them to bet against a wide range of CDO's or other entities at a cheaper rate. Buyers can now bet against a wide range of failures in the market. They are allowing upwards of 25% discounts.** + +There's many more indicators that are pointing to a market collapse. But I will leave that to you to investigate more. Here is quite a scary compilation of charts relating the current market trends to the crashes of Black Monday, The Internet Bubble, The 2008 Housing Market Crash, and Today. + +[Summary of Recent Warnings Re Intermediate Trend In Equities](https://preview.redd.it/y4reiv86hi571.jpg?width=550&format=pjpg&auto=webp&s=8845b7b90adf28409772483c6eeeef1763bbaaaf) + +&#x200B; + +&#x200B; + +&#x200B; + +# 3. The Failure Of The 1% - How GameStop Can Deal A Fatal Blow To Wealth Inequality + +# 3.1 GameStop Was Never Going To Cause The Market Crash + +GameStop was meant to die off. The rich bet against it many folds over, and it was on the brink of Bankruptcy before many conditions led it to where it is today. + +It was never going to cause the market crash. And it never will cause the crash. The short squeeze is a result of high abuse of the derivatives market over the past decade, where Wall Street's abuse of this market has primed the economy for another market crash on their own. + +We can see this because when COVID hit, GameStop was a non-issue in the market. The CDO market around CMBS was about to collapse on its own because of the instantaneous recession which left mortgage owners delinquent. + +If anyone, be it the media, the US Government, or others, try to blame this crash on GameStop or anything **other than the Banks and Wall Street**, **they are WRONG.** + +# 3.2 The Rich Are Trying To Kill GameStop. They Are Terrified + +In January, the SI% was reported to be 140%. But it is very likely that it was **underreported at that time**. Maybe it was 200% back then. 400%. 800%. Who knows. From the above you can hopefully gather that Wall Street **takes on massive risks all the time, they do not care as long as it churns them short-term profits**. There is loads of evidence pointing to shorts never covering by hiding their SI% through malicious options practices, and manipulating the price every step of the way. + +The conditions that led GameStop to where it is today is a miracle in itself, and the support of retail traders has led to expose a fatal mistake of the rich. **Because a short position has infinite loss potential**. There is SO much money in the world, especially in the derivatives market. + +This should scream to you that any price target that **you** think is low, could very well be extremely low in **YOUR** perspective. You might just be accustomed to thinking "$X price floor is too much money. There's no way it can hit that". I used to think that too, until I dove deep into this bullshit. + +The market crashing no longer was a matter of simply scooping up defaulters, their assets, and consolidating power. The rich now have to worry about the potential of **infinite** losses from GameStop and possibly other meme stocks with high price floor targets some retail have. + +It's not a fight against Melvin / Citadel / Point72. **It's a battle against the entire financial world**. There is even speculation from multiple people that the Fed is even being complicit right now in helping suppress GameStop. **Their whole game is at risk here.** + +**Don't you think they'd fight tooth-and-nail to suppress this and try to get everyone to sell?** + +**That they'd pull every trick in the book to make you think that they've covered?** + +The amount of money they could lose is unfathomable. + +With the collapsing SI%, it is mathematically impossible for the squeeze to have happened - its mathematically impossible for them to have covered. /u/atobitt also discusses this in [House of Cards Part 2](https://www.reddit.com/r/Superstonk/comments/nlwaxv/house_of_cards_part_2/). + +[https:\/\/www.thebharatexpressnews.com\/short-squeeze-could-save-gamestop-investors-a-third-time\/](https://preview.redd.it/6hge0pxfhi571.png?width=871&format=png&auto=webp&s=aab736cc279cc727524d2cf96384ea3e33109250) + +And in regards to all the other rules that look good for the MOASS - I see them in a negative light. + +They are passing NSCC-002/801, DTC-005, and others, in order to prevent a GameStop situation from **ever** occurring again. + +They realized how much power retail could have from piling into a short squeeze play. These new rules will snap new emerging short squeezes instantly if the conditions of a short squeeze ever occur again. There will **never** be a GameStop situation after this. + +It's their game after all. They've been abusing the derivative market game for decades and GameStop is a huge threat. It was supposed to be, "crash the economy and run with the money". Not "crash the economy and pay up to retail". But GameStop was a flaw exposed by their greed, the COVID crash, and the quick turn-around of the company to take it away from the brink of bankruptcy. + +The rich are now at risk of losing that money and insane amounts of cash that they've accumulated over the years from causing the Internet Bubble Crash of 2000, and the Housing Market Crash of 2008. + +So, yeah, I'm going to be fucking greedy. +I don't have any GME/AMC, I'm not riding this hype train, but I find it ridiculous that a broker is basically prohibiting people to invest in whatever they want. It's their money, not yours, T212. + +Great thing I abandoned them! + +https://i.imgur.com/h6HMchO.png +**TL;DR- The DTC has been taken over by big money. They transitioned from a manual to a computerized ledger system in the 80s, and it played a significant role in the 1987 market crash. In 2003, several issuers with the DTC wanted to remove their securities from the DTC's deposit account because the DTC's participants were naked short selling their securities. Turns out, they were right. The DTC and it's participants have created a market-sized naked short selling scheme. All of this is made possible by the DTC's enrollee- Cede & Co.** + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +[**Andrew MoMoney - Live Coverage**](https://youtu.be/zKzRDpBBFLQ) + +**I hit the image limit in this DD. Given this, and the fact that there's already SO MUCH info in this DD, I've decided to break it into AT LEAST 2 posts. So stay tuned.** + +**Previous DD** + +[1. Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) + +[2. BlackRock Bagholders, INC.](https://www.reddit.com/r/GME/comments/m7o7iy/blackrock_bagholders_inc/) + +[3. The EVERYTHING Short](https://www.reddit.com/r/GME/comments/mgucv2/the_everything_short/) + +[4. Walkin' like a duck. Talkin' like a duck](https://www.reddit.com/r/Superstonk/comments/ml48ov/walkin_like_a_duck_talkin_like_a_duck/) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +*Holy SH\*T!* + +The events we are living through *RIGHT NOW* are the 50-year ripple effects of stock market evolution. From the birth of the DTC to the cesspool we currently find ourselves in, this DD will illustrate just how fragile the *House of Cards* has become. + +We've been warned so many times... We've made the same mistakes *so. many. times.* + +**And we never seem to learn from them..** + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +In case you've been living under a rock for the past few months, the DTCC has been proposing a boat load of rule changes to help better-monitor their participants' exposure. If you don't already know, the DTCC stands for Depository Trust & Clearing Corporation and is broken into the following (primary) subsidiaries: + +1. **Depository Trust Company (DTC)** \- *centralized clearing agency that makes sure grandma gets her stonks and the broker receives grandma's tendies* +2. **National Securities Clearing Corporation (NSCC)** \- *provides clearing, settlement, risk management, and central counterparty (CCP) services to its members for broker-to-broker trades* +3. **Fixed Income Clearing Corporation (FICC)** \- *provides central counterparty (CCP) services to members that participate in the US government and mortgage-backed securities markets* + +*Brief* *history* *lesson: I promise it's relevant (this* [*link*](https://www.dtcc.com/annuals/museum/index.html) *provides all the info that follows).* + +The DTC was created in 1973. It stemmed from the need for a centralized clearing company. Trading during the 60s went through the roof and resulted in many brokers having to quit before the day was finished so they could manually record their mountain of transactions. All of this was done on paper and each share certificate was physically delivered. This obviously resulted in many failures to deliver (FTD) due to the risk of human error in record keeping. In 1974, the Continuous Net Settlement system was launched to clear and settle trades using a rudimentary internet platform. + +In 1982, the DTC started using a [Book-Entry Only](https://www.investopedia.com/terms/b/bookentrysecurities.asp) (BEO) system to underwrite bonds. For the first time, there were no physical certificates that actually traded hands. Everything was now performed virtually through computers. Although this was advantageous for many reasons, it made it MUCH easier to commit a certain type of securities fraud- naked shorting. + +One year later they adopted [NYSE Rule 387](https://www.finra.org/rules-guidance/rulebooks/retired-rules/rule-387) which meant most securities transactions had to be completed using this new BEO computer system. Needless to say, explosive growth took place for the next 5 years. Pretty soon, other securities started utilizing the BEO system. It paved the way for growth in mutual funds and government securities, and even allowed for same-day settlement. At the time, the BEO system was a tremendous achievement. However, we were destined to hit a brick wall after that much growth in such a short time.. By October 1987, that's exactly what happened. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +[*"A number of explanations have been offered as to the cause of the crash... Among these are computer trading, derivative securities, illiquidity, trade and budget deficits, and overvaluation.."*](https://historynewsnetwork.org/article/895)*.* + +If you're wondering where the birthplace of High Frequency Trading (HFT) came from, look no further. The same machines that automated the exhaustively manual reconciliation process were also to blame for amplifying the fire sale of 1987. + +[https:\/\/historynewsnetwork.org\/article\/895](https://preview.redd.it/3l08f1ud6bu61.png?width=810&format=png&auto=webp&s=2331f409fb4f60b3d62e475c58cf44211b4122a3) + +The last sentence indicates a much more pervasive issue was at play, here. The fact that we still have trouble explaining the calculus is even more alarming. The effects were so pervasive that it was dubbed the [1st global financial crisis](https://www.federalreservehistory.org/essays/stock-market-crash-of-1987) + +Here's another great summary published by the [NY Times](https://www.nytimes.com/2012/10/19/business/a-computer-lesson-from-1987-still-unlearned-by-wall-street.html): \*"..\****to be fair to the computers.. \[they were\].. programmed by fallible people and trusted by people who did not understand the computer programs' limitations. As computers came in, human judgement went out."*** Damned if that didn't give me goosiebumps... \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +Here's an EXTREMELY relevant [explanation](https://historynewsnetwork.org/article/895) from [Bruce Bartlett](https://www.creators.com/author/bruce-bartlett) on the role of derivatives: + +https://preview.redd.it/tu88v96vqau61.png?width=805&format=png&auto=webp&s=6e69760997379cb404163cfc6a11b411adbaa344 + +Notice the last sentence? A major factor behind the crash was a disconnect between the price of stock and their corresponding derivatives. The value of any given stock should determine the derivative value of that stock. It shouldn't be the other way around. **This is an important concept to remember as it will be referenced throughout the post.** + +In the off chance that the market DID tank, they hoped they could contain their losses with [portfolio insurance](https://www.investopedia.com/terms/p/portfolioinsurance.asp#:~:text=Portfolio%20insurance%20is%20a%20hedging,also%20refer%20to%20brokerage%20insurance)*.* Another [article from the NY times](https://www.nytimes.com/2012/10/19/business/a-computer-lesson-from-1987-still-unlearned-by-wall-street.html) explains this in better detail. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +https://preview.redd.it/rf6ocoe9abu61.png?width=629&format=png&auto=webp&s=e638c4479aceac77a003ae86fa1cfdd23f5406b8 + +https://preview.redd.it/8igwi6mflbu61.png?width=612&format=png&auto=webp&s=853945852aea5a355266bf52b6f1fa573db1e29a + +https://preview.redd.it/fe78gr1qlbu61.png?width=608&format=png&auto=webp&s=4ec59987333e04cef07541229161b3ff30881444 + +A major disconnect occurred when these futures contracts were used to intentionally tank the value of the underlying stock. In a perfect world, organic growth would lead to an increase in value of the company (underlying stock). They could do this by selling more products, creating new technologies, breaking into new markets, etc. This would trigger an organic change in the derivative's value because investors would be (hopefully) more optimistic about the longevity of the company. It could go either way, but the point is still the same. This is the type of investing that most of us are familiar with: investing for a better future. + +I don't want to spend too much time on the crash of 1987. I just want to identify the factors that contributed to the crash and the role of the DTC as they transitioned from a manual to an automatic ledger system. **The connection I really want to focus on is the ENORMOUS risk appetite these investors had. Think of how overconfident and greedy they must have been to put that much faith in a computer script.. either way, same problems still exist today.** + +Finally, the comment by Bruce Bartlett regarding the mismatched investment strategies between stocks and options is crucial in painting the picture of today's market. + +Now, let's do a super brief walkthrough of the main parties within the DTC before opening this **can of worms.** + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +I'm going to talk about three groups within the DTC- **issuers, participants, and Cede & Co.** + +Issuers are companies that issue securities (stocks), while participants are the clearing houses, brokers, and other financial institutions that can utilize those securities. Cede & Co. is a subsidiary of the DTC which holds the share certificates. + +Participants have MUCH more control over the securities that are deposited from the issuer. Even though the issuer created those shares, participants are in control when those shares hit the DTC's doorstep. The DTC transfers those shares to a holding account *(Cede & Co.)* and the participant just has to ask "*May I haff some pwetty pwease wiff sugar on top?"* \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +**Now, where's that can of worms?** + +Everything was relatively calm after the crash of 1987.... until we hit 2003.. + +*\*deep breath\** + +The DTC started receiving several requests from issuers to pull their securities from the DTC's depository. I don't think the DTC was prepared for this because they didn't have a written policy to address it, let alone an official rule. Here's the half-assed response from the DTC: + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm \(section II\)](https://preview.redd.it/1ctpj263zdu61.png?width=788&format=png&auto=webp&s=6ff2e2d543f53a6ece6d95c334ed995fe67f9c8d) + +Realizing this situation was heating up, the DTC proposed [SR-DTC-2003-02](https://www.sec.gov/rules/sro/34-47978.htm#P19_6635).. + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P19\_6635](https://preview.redd.it/io22id3n7eu61.png?width=774&format=png&auto=webp&s=424ef5b6a70d073c62a47f6a1b82cd739b527b88) + +Honestly, they were better of WITHOUT the new proposal. + +It became an even BIGGER deal when word got about the proposed rule change. Naturally, it triggered a TSUNAMI of comment letters against the DTC's proposal. There was obviously something going on to cause that level of concern. Why did *SO MANY* issuers want their deposits back? + +**...you ready for this sh\*t?** + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +As outlined in the DTC's opening remarks: + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P19\_6635](https://preview.redd.it/eq9q8mcubeu61.png?width=1028&format=png&auto=webp&s=eee6231336e398b0d53299a2a7639fdfd333af8c) + +*OK... see footnote 4.....* + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P19\_6635](https://preview.redd.it/v884rfqwbeu61.png?width=1053&format=png&auto=webp&s=6fe5db76c9c6fd5e596bbe3c3c64bc6feb64fd97) + +**UHHHHHHH WHAT!??!** Yeah! I'd be pretty pissed, too! Have my shares deposited in a clearing company to take advantage of their computerized trades just to get kicked to the curb with NO WAY of getting my securities back... AND THEN find out that the big-d\*ck "participants" at your fancy DTC party are literally short selling my shares without me knowing....?! + +....This sound familiar, anyone??? IDK about y'all, but this "trust us with your shares" BS is starting to sound like a major con. + +The DTC asked for feedback from all issuers and participants to gather a consensus before making a decision. All together, the DTC received 89 comment letters (a pretty big response). 47 of those letters opposed the rule change, while 35 were in favor. + +*To save space, I'm going to use smaller screenshots. Here are just a few of the opposition comments..* + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/srdtc200302-89.pdf](https://preview.redd.it/ds068omndeu61.png?width=894&format=png&auto=webp&s=7958cbf3fde10e1bbb81c6adeb87f2bfc5dc8fde) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +**And another:** + +&#x200B; + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/rsrondeau052003.txt](https://preview.redd.it/953v7l47feu61.png?width=884&format=png&auto=webp&s=83c2d1998b3c111da7cb31b183b83c62abbe353b) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +**AAAAAAAAAAND another:** + +&#x200B; + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/msondow040403.txt](https://preview.redd.it/pkifz41sqeu61.png?width=804&format=png&auto=webp&s=733a219050239012a2b6b29c1985bdbd1df60303) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +***Here are a few in favor***\*..\* + +*All of the comments I checked were participants and classified as market makers and other major financial institutions... go f\*cking figure.* + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/srdtc200302-82.pdf](https://preview.redd.it/myk7675zseu61.png?width=617&format=png&auto=webp&s=94c622511fc3392bacca6f1c34375920612bc9bb) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +**Two** + +&#x200B; + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/srdtc200302-81.pdf](https://preview.redd.it/ouwx18qmteu61.png?width=692&format=png&auto=webp&s=39dcaabcc228e60ba5e472353285aa330c13ea0a) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +**Three** + +&#x200B; + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/rbcdain042303.pdf](https://preview.redd.it/xpzt606pueu61.png?width=600&format=png&auto=webp&s=79685c694f661b9c7d03093a8908eebe6cad421e) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +Here's the [full list](https://www.sec.gov/rules/sro/dtc200302.shtml) if you wanna dig on your own. + +...I realize there are advantages to "paperless" securities transfers... However... It is EXACTLY what Michael Sondow said in his comment letter above.. ***We simply cannot trust the DTC to protect our interests when we don't have physical control of our assets***\*\*.\*\* + +Several other participants, including **Edward Jones, Ameritrade, Citibank,** and **Prudential** overwhelmingly favored this proposal.. How can someone NOT acknowledge that the absence of physical shares only makes it easier for these people to manipulate the market....? + +This rule change would allow these 'participants' to continue doing this because it's extremely profitable to sell shares that don't exist, or have not been collateralized. Furthermore, it's a win-win for them because it forces issuers to keep their deposits in the holding account of the DTC... + +Ever heard of the [fractional reserve banking system](https://www.investopedia.com/terms/f/fractionalreservebanking.asp#:~:text=Fractional%20reserve%20banking%20is%20a,by%20freeing%20capital%20for%20lending)?? Sounds A LOT like what the stock market has just become. + +Want proof of market manipulation? Let's fact-check the claims from the opposition letters above. *I'm only reporting a few for the time period we discussed (2003ish). This is just to validate their claims that some sketchy sh\*t is going on.* + +1. [**UBS Securities**](https://files.brokercheck.finra.org/firm/firm_7654.pdf) **(formerly UBS Warburg):** + 1. pg 559; SHORT SALE VIOLATION; 3/30/1999 + 2. pg 535; OVER REPORTING OF SHORT INTEREST POSITIONS; 5/1/1999 - 12/31/1999 + 3. PG 533; FAILURE TO REPORT SHORT SALE INDICATORS;INCORRECTLY REPORTING LONG SALE TRANSACTIONS AS SHORT SALES; 7/2/2002 +2. [**Merrill Lynch**](https://files.brokercheck.finra.org/firm/firm_16139.pdf) **(Professional Clearing Corp.):** + 1. pg 158; VIOLATION OF SHORT INTEREST REPORTING; 12/17/2001 +3. [**RBC**](https://files.brokercheck.finra.org/firm/firm_31194.pdf) **(Royal Bank of Canada):** + 1. pg 550; FAILURE TO REPORT SHORT SALE TRANSACTIONS WITH INDICATOR; 9/28/1999 + 2. pg 507; SHORT SALE VIOLATION; 11/21/1999 + 3. pg 426; FAILURE TO REPORT SHORT SALE MODIFIER; 1/21/2003 + +Ironically, I picked these 3 because they were the first going down the line.. I'm not sure how to be any more objective about this.. Their entire FINRA report is littered with short sale violations. Before anyone asks "how do you know they aren't ALL like that?" The answer is- I checked. If you get caught for a short sale violation, chances are you will ALWAYS get caught for short sale violations. Why? Because it's more profitable to do it and get caught, than it is to fix the problem. + +Wanna know the 2nd worst part? + +Several comment letters asked the DTC to investigate the claims of naked shorting **BEFORE** coming to a decision on the proposal.. I never saw a document where they followed up on those requests..... + +NOW, wanna know the WORST part? + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P99\_35478](https://preview.redd.it/q6jk7as8rfu61.png?width=1057&format=png&auto=webp&s=c66aac021818993e6c23bb7fe96382de8cc9fe7e) + +The DTC passed that rule change.... + +They not only prevented the issuers from removing their deposits, they also turned a 'blind-eye' to their participants manipulative short selling, even when there's public evidence of them doing so... + +....Those companies were being attacked with shares THEY put in the DTC, by institutions they can't even identify... + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +..Let's take a quick breath and recap: + +The DTC started using a computerized ledger and was very successful through the 80's. This evolved into trading systems that were also computerized, but not as sophisticated as they hoped.. They played a major part in the 1987 crash, along with severely desynchronized derivatives trading. + +In 2003, the DTC denied issuers the right to withdraw their deposits because those securities were in the control of participants, instead. When issuer A deposits stock into the DTC and participant B shorts those shares into the market, that's a form of [rehypothecation](https://www.investopedia.com/terms/r/rehypothecation.asp#:~:text=Rehypothecation%20is%20a%20practice%20whereby,or%20a%20rebate%20on%20fees). This is what so many issuers were trying to express in their comment letters. In addition, it hurts their company by driving down it's value. They felt robbed because the DTC was blatantly allowing it's participants to do this, and refused to give them back their shares.. + +It was critically important for me to paint that background. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +..now then.... + +Remember when I mentioned the DTC's enrollee- Cede & Co.? + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P19\_6635 \(section II\)](https://preview.redd.it/97z3b2k9pju61.png?width=283&format=png&auto=webp&s=67ad209f338a0ccebfaee09cd43944730ac35279) + +I'll admit it: I didn't think they were that relevant. I focused so much on the DTC that I didn't think to check into their enrollee... + +..Wish I did.... + +[https:\/\/www.americanbanker.com\/news\/you-dont-really-own-your-securities-can-blockchains-fix-that](https://preview.redd.it/oqpj59jypju61.png?width=830&format=png&auto=webp&s=a7de5c100699c85132b531b501b79a8bafcdfa18) + +That's right.... Cede & Co. hold a "master certificate" in their vault, which **NEVER** leaves. Instead, they issue an *IOU* for that master certificate.. + +&#x200B; + +Didn't we JUST finish talking about why this is such a major flaw in our system..? And that was almost 20 years ago... + +**Here comes the mind f\*ck** + +[https:\/\/smithonstocks.com\/part-8-illegal-naked-shorting-series-who-or-what-is-cede-and-what-role-does-cede-play-in-the-trading-of-stocks\/](https://preview.redd.it/o4xemx63rju61.png?width=1117&format=png&auto=webp&s=26f60bceb160cefcd95b0d55d2b375f4058981e2) + +[https:\/\/smithonstocks.com\/part-8-illegal-naked-shorting-series-who-or-what-is-cede-and-what-role-does-cede-play-in-the-trading-of-stocks\/](https://preview.redd.it/1yfr9x0arju61.png?width=1109&format=png&auto=webp&s=066cac93b0c8fb05e617c81e9fc63eeacb847d4f) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +Now..... + +You wanna know the BEST part??? + +*I found a list of all the DTC* [*participants*](https://www.dtcc.com/-/media/Files/Downloads/client-center/DTC/alpha.pdf) *that are responsible for this mess..* + +**I've got your name, number, and I'm coming for you-** ***ALL OF YOU*** + +&#x200B; + +&#x200B; + +***to be continued.*** + +**DIAMOND.F\*CKING.HANDS** +### "The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2018 was divided equally between William D. Nordhaus "for integrating climate change into long-run macroeconomic analysis" and Paul M. Romer "for integrating technological innovations into long-run macroeconomic analysis."" + + + +Nobel Prize Committee + +* [Summary](https://www.nobelprize.org/prizes/economics/2018/summary/) +* [Popular Science Background: "Integrating nature and knowledge into economics"](https://www.nobelprize.org/uploads/2018/10/popular-economicsciencesprize2018.pdf) +* [Scientific Background: "Economic Growth, Technological Change, And Climate Change"](https://www.nobelprize.org/uploads/2018/10/advanced-economicsciencesprize2018.pdf) +* [Press Release](https://www.nobelprize.org/uploads/2018/10/press-economicsciences2018.pdf) + +#### News Coverage + +* [NYT: "2018 Nobel in Economics Is Awarded to William Nordhaus and Paul Romer"](https://www.nytimes.com/2018/10/08/business/economic-science-nobel-prize.html) +* [Guardian: "Nobel prize in economics won by Nordhaus and Romer for work on climate change and growth"](https://www.theguardian.com/business/live/2018/oct/08/nobel-prize-2018-sveriges-riksbank-in-economic-sciences-awarded-live-updates) +* [Washington Post: "William Nordhaus and Paul Romer win Nobel Prize in economics"](https://www.washingtonpost.com/business/2018/10/08/two-americans-win-nobel-prize-economics/?noredirect=on&utm_term=.7d9b0c9f12be) +* [FT: "Economics Nobel recognises work on climate change and innovation"](https://www.ft.com/content/b08807de-cae0-11e8-9fe5-24ad351828ab) +* [BBC: "Economists win Nobel for work on climate and growth"](https://www.bbc.com/news/business-45785222) +* [WSJ: "Two Top U.S. Economists Win Nobel for Work on Growth and Climate"](https://www.wsj.com/articles/nobel-in-economics-goes-to-american-pair-1538992672) +* [PBS: "William Nordhaus and Paul Romer win economics Nobel for climate change, technological innovation models"](https://www.pbs.org/newshour/economy/making-sense/william-nordhaus-and-paul-romer-win-economics-nobel-for-climate-change-technological-innovation-models) + +This page will be expanded with additional news coverage and commentary as the day progresses. Please direct all Nobel discussion here. + ***Prerequisite DD:*** + +1. [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) +2. [The EVERYTHING Short](https://www.reddit.com/r/GME/comments/mgucv2/the_everything_short/) +3. [The House of Cards – Part 1](https://www.reddit.com/r/Superstonk/comments/mvk5dv/a_house_of_cards_part_1/) +4. [The House of Cards - Part 2](https://www.reddit.com/r/Superstonk/comments/nlwaxv/house_of_cards_part_2/) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +**TL;DR-** **No freaking way I can do that.** + +**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** + +**Continuing from HOC Part II...** + +**4.** **Slimy…** + +If you watched the [AMA with Wes Christian](https://www.youtube.com/watch?v=2rJujnpKiqM), he talks about the number of occurrences where the actual short interest is severely understated based on the data his firm obtained for legal proceedings. According to his numbers, in most cases the short interest is 50% - 150% **MORE** than what is reported by the SEC *(starting at 14:30).* + +The objective isn’t to address the issue: it’s to keep the issue hidden. Firms that underreport their short interest are gaming the system by taking advantage of how the short interest calculation is done. When the SEC relies on reports that broker-dealers provide, and FINRA takes YEARS to reveal the lies within those reports, the broker-dealer can lie without immediately facing the consequences. It allows these firms to operate in a high-risk environment without exposing just HOW big their risk-appetite is. + +Another example that Wes mentioned was [Merrill Lynch](https://www.sec.gov/news/pressrelease/2016-128.html). Merrill was fined [$415,000,000](https://files.brokercheck.finra.org/firm/firm_16139.pdf) *(violation 3)* in 2016 for using securities held in their customer’s accounts to cover their own trades. Check out this screenshot I took from that case: + +https://preview.redd.it/v9625j8wek171.jpg?width=1115&format=pjpg&auto=webp&s=85d43bc351fbda75e347bd33a1a550b67dda970e + +Remember when we mentioned [SEA 15c3-3](https://www.finra.org/sites/default/files/SEA.Rule_.15c3-3.pdf) in the case with Apex? They were asking customers to book short positions to either a cash account or a short margin account. [SEA 15c3-3](https://www.finra.org/sites/default/files/SEA.Rule_.15c3-3.pdf) protects those customers from allowing brokers to lend out the securities within their cash accounts… + +Well Merrill Lynch knocked that one right out of the f\*cking park… + +&#x200B; + +https://preview.redd.it/s3zok5wyek171.jpg?width=1129&format=pjpg&auto=webp&s=815e5344912234ceba846dc0d45c8b8b488b82c4 + +Merrill made it seem like the required deposit in their customer reserve account was much lower than it truly was. They wouldn’t have been able to use that cash if it reduced the amount below the minimum capital requirement, so they found a way to fudge the numbers. In doing so, they managed to prevent a CODE RED while reaping the benefits of a high-risk ‘opportunity’. Should Merrill have filed bankruptcy during that time, those customers would have been completely blindsided. + +In the case of short selling, the *true* exposure of short interest is unknown… and I’m not just talking about the short sale indicator. When a firm fails to deliver securities that were sold short, there’s a pretty good indication that they’ve exposed themselves to a bit of a problem.. Now imagine a case where the FTDs start piling up and they STILL continue to short sell that same security.. think I’m joking? + +Check out the [Royal Bank of Canada](https://files.brokercheck.finra.org/firm/firm_31194.pdf): + +https://preview.redd.it/u6yl6tj2fk171.png?width=812&format=png&auto=webp&s=1e44cc507247db1e28c00a213f90054b9abdaa6a + +Again… I was pretty shocked at that one. However, nothing rang-the-bell quite like this one from [Goldman Sachs](https://files.brokercheck.finra.org/firm/firm_361.pdf): + +https://preview.redd.it/5f408er6fk171.png?width=1031&format=png&auto=webp&s=38b9ad83d2a07360af5b5cd99d834a8771b66c93 + +Goldman had 68 occasions in 4 months where they didn’t close a failure-to-deliver… In 45 occasions, they CONTINUED to accept customer short sale orders in securities which it had an active failure-to-deliver… + +When a firm is really starting to sweat, they pull certain tricks out of their ass to quell the situation. Again, this is nothing but smoke and mirrors because that’s all they can really do. Just as Merrill Lynch artificially lowered their customer reserve deposit, other firms make it look like they cover their short positions. + +One of the ways they do this is by short selling a SH\*T load of shares right before a buy-in… Since we’re talking about Goldman Sachs, this seems like a great time to showcase their experience with this.. + +https://preview.redd.it/zhf1hr1afk171.png?width=1049&format=png&auto=webp&s=f704c3722ae287480057ce3e01c561a28b77cf4c + +I promise… It really is as dumb as it sounds… + +So the perception here is when Goldman’s client has a FTD and they find out a buy-in is coming, the required buy-in would obviously be too extreme for the client to handle.. So they begin to buy those shares while simultaneously shorting AT LEAST the same amount they were required to purchase… + +Have you ever failed to repay a loan so you went to another bank and got a loan to cover the first one? Well that’s exactly what this is… I know what you’re probably thinking… “didn’t that just kick the can down the road?”. The answer is YES: it didn’t actually solve anything.. + +There’s still one more citation that Goldman received which truly represents the pinnacle of *no-sh\*ts-given.* After I cover this, I don’t know how anyone could argue the systematic risks that exist within the securities lending business.. Check it out: + +https://preview.redd.it/0md200bdfk171.png?width=940&format=png&auto=webp&s=cf5e8310fbcbd73699e3593b2ab5dab418055ab0 + +For 5 years, Goldman relied on a team of 10-12 individuals to locate shares to be used by its clients for short selling. This group was known as the “demand team”. Naturally, as the number of requests coming in the door started to increase, it became difficult for the team to properly document all of them. The volume peaked at 20,000 requests PER DAY, but the number of individuals that handled this job stayed the same. + +Obviously, this became too much for them to handle so they opted out of the manual process and found another solution- the F3 key…. + +Yes- the F3 key… This button activated an autofill system which completed **98% of Goldman’s orders to locate shares** + +https://preview.redd.it/exqzge3gfk171.png?width=964&format=png&auto=webp&s=ed9c8b740974dad01db69460332c56df81a8d768 + +The problem with Goldman’s autofill system was that it used the number of shares available to borrow at the beginning of that day, which had already been accounted for. After using the auto-locate feature, the demand team didn’t even verify the accuracy of the autofill feature or document which method was used to locate the shares for each order… and this happened for 5 years.. + +Just goes to show how dedicated firms like Goldman Sachs truly are to the smallest of details, you know? Great f\*cking work, guys. + +By the way, I have to show one of Goldman’s short sale indicator violations… It’s too good to pass up. + +https://preview.redd.it/5iuhlkcjfk171.png?width=1082&format=png&auto=webp&s=f4e2fa1f106e78b9d282b60c3cee9944e919ea82 + +At some point, you just have to laugh at these ass clowns… I mean seriously… one violation for a 4 year period involving over 380,000,000 short interest positions… they have plenty of other short interest violations, I just laughed at how the magnitude of this one was summarized by FINRA with 10 lines and roughly 4 minutes... whoever wrote that one must have been late for lunch.. + +The last thing I’d like to note here is the way in which short sellers use options to “cover” their positions. Wes gave a great overview of this in the AMA *(starting at 6:25)*. Basically, one group will buy puts and another group buys calls. This creates a synthetic share that is only provided if the option is activated. Regardless, short sellers will use that synthetic share to cover their short position and the regulators actually accept it… + +However, as Wes points out, most of those options expire without being activated which means the share is never delivered. This expiration can be set months down the road and allows the short seller to keep kicking the can. + +I doubt I need to say this, but we all remember the wild options activity that was happening shortly after GameStop spiked in January. u/HeyItsPixel was one of the first to point this out. While a lot of that activity was on the retail front, I suspect a lot of it was done by short sellers to cover those positions. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +**5.** **Hedgies are f\*cked…** + +I’m officially +20 pages deep and there’s still so much I’d like to say. It’s best saved for another time and another post, I suppose. So I guess I’ll wrap all of this up with some of the best news I can possibly provide… + +It all started with a [73 page PDF](https://www.sec.gov/comments/s7-08-08/s70808-318.pdf) that was published in 2005 by a silverback named John D. Finnerty. + +John was a Professor of Finance at Fordham University when he published *“short selling, death spiral convertibles, and the profitability of stock manipulation”*. The document is loaded with sh\*t that’s incredibly relevant today, especially when it comes to naked short selling. He dives into the exact formula that short sellers use, which is far beyond what my wrinkled brain can interpret, alone… + +..However, when firms are naked shorting a company with the goal of bankrupting them, they leave footprints which are only explained by this event. The proof is in the pudding, so to speak.. + +https://preview.redd.it/ax7u0r4wfk171.jpg?width=1072&format=pjpg&auto=webp&s=1828755bfe49c47ca178d960f91dfd21d8b0d680 + +Any of this sound familiar?? + +*“The manipulator can not drive the share price close to zero unless he can naked short an extraordinary number of shares…* *this form of manipulation would result in… unusually heavy trading volume, and unusually large and persistent fails to deliver at the NSCC”.* + +Anyone else remember the volume in GME during the run-up in January? The total volume traded between **1/31/2021 and 2/5/2021 was 1,508,793,439** **shares**, or an average daily trade volume of **88,752,555 shares.** On 1/22/2021, the volume reached 197,157,946… that’s roughly 3x the number of shares that exist.. + +if this doesn’t sound like unusual volume then I’m not sure what is. Furthermore, the FTD report on GameStop was through the roof during this time: + +&#x200B; + +https://preview.redd.it/brz98nbzfk171.jpg?width=1625&format=pjpg&auto=webp&s=83ae877853acd2ec65fa73f57216f00b708a7eab + +&#x200B; + +https://preview.redd.it/zlla3ak0gk171.jpg?width=1038&format=pjpg&auto=webp&s=c5d4a1331f8c9d97b5338cc55a37310a95c9559b + + + +Notice the statement where the manipulator will be relieved of its obligation to cover **IF** the firm’s shares are cancelled in bankruptcy? Did you happen to see footnotes 65 & 66 in the first screenshot of his PDF? It references a company that he used for his analysis… + +https://preview.redd.it/zdp3at43gk171.jpg?width=997&format=pjpg&auto=webp&s=8508c9d0c869544f0ccd3a15477abfd64d38897c + +Charter Communications had a whopping **241.8% short float in 2005**… **The ONLY way the manipulator could have escaped this was by bankrupting the company and relieving the obligation to repurchase those shares…** + +Guess what happened to Charter? They filed for [bankruptcy](https://abcnews.go.com/Business/story?id=7189668&page=1) in 2009… + +However, unlike John’s example where naked short sellers were driving down the price without opposition, GameStop had extremely high demand from retail investors to counter this activity. As I have discussed with Dr. T and Carl Hagberg, the run-up in volume during January and February was largely conducted by naked short sellers in an attempt to suppress the share price. As I have shown in the example with Goldman Sachs, firms will short sell during a buy-in for the same exact reason. To stabilize the price, you must stabilize supply and demand. + +…You know what Charter didn’t have? + +AN ARMY OF APES TO HODL THE STONK + +&#x200B; + +DIAMOND. F\*CKING. HANDS +Ask for women only. + +I initially had my ad open for everyone because I didn't want to narrow the window too much. As long as you're a professional around my age and aren't a sleazeball, I didn't mind. + +It only took about two days for the messages from thirsty men asking if I would be open to living with them rent free in exchange for sex. Which was always phrased as "help around the house/cleaning" or "companionship". I ignored most, but one guy called me directly. + +Now someone did ask me if "a blowjob a week was really that bad in exchange for free rent". From a pragmatic standpoint, no. From a "personal morals, safety, and mental health" standpoint, YES. + +Don't EVER feel like under the table prostitution is your only option. Do NOT let someone coerce you into doing it no matter how much you need the money. If sex work is something you want to do, that's perfectly fine. Just...don't start through these guys. + +And even if it started out as a BJ a week, these guys will never stop asking for more. And no one needs their life controlled by the sexual whims of some dickhead who thinks he's entitled to your body in exchange for a roof over your head. + +I'm sorry it got a bit ranty towards the end there, but that was a disgusting couple of days and I'm now working on getting a part time job instead of a roommate. Would rather have some extra expenses than have to deal with so many creeps. +Asda has announced all of its own in-store cafe’s will be offering over 60’s a roll, hot soup and hot drinks through November and December for £1 to help with the cost of living crisis. + +This isn’t strictly personal finance related but I’m sure there’s plenty of people over this age or with family over this age that may see this post and benefit from it, so I though it’d be worth posting for awareness. +**TL;DR- The DTC has been taken over by big money. They transitioned from a manual to a computerized ledger system in the 80s, and it played a significant role in the 1987 market crash. In 2003, several issuers with the DTC wanted to remove their securities from the DTC's deposit account because the DTC's participants were naked short selling their securities. Turns out, they were right. The DTC and it's participants have created a market-sized naked short selling scheme. All of this is made possible by the DTC's enrollee- Cede & Co.** + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +[**Andrew MoMoney - Live Coverage**](https://youtu.be/zKzRDpBBFLQ) + +**I hit the image limit in this DD. Given this, and the fact that there's already SO MUCH info in this DD, I've decided to break it into AT LEAST 2 posts. So stay tuned.** + +**Previous DD** + +[1. Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) + +[2. BlackRock Bagholders, INC.](https://www.reddit.com/r/GME/comments/m7o7iy/blackrock_bagholders_inc/) + +[3. The EVERYTHING Short](https://www.reddit.com/r/GME/comments/mgucv2/the_everything_short/) + +[4. Walkin' like a duck. Talkin' like a duck](https://www.reddit.com/r/Superstonk/comments/ml48ov/walkin_like_a_duck_talkin_like_a_duck/) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +*Holy SH\*T!* + +The events we are living through *RIGHT NOW* are the 50-year ripple effects of stock market evolution. From the birth of the DTC to the cesspool we currently find ourselves in, this DD will illustrate just how fragile the *House of Cards* has become. + +We've been warned so many times... We've made the same mistakes *so. many. times.* + +**And we never seem to learn from them..** + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +In case you've been living under a rock for the past few months, the DTCC has been proposing a boat load of rule changes to help better-monitor their participants' exposure. If you don't already know, the DTCC stands for Depository Trust & Clearing Corporation and is broken into the following (primary) subsidiaries: + +1. **Depository Trust Company (DTC)** \- *centralized clearing agency that makes sure grandma gets her stonks and the broker receives grandma's tendies* +2. **National Securities Clearing Corporation (NSCC)** \- *provides clearing, settlement, risk management, and central counterparty (CCP) services to its members for broker-to-broker trades* +3. **Fixed Income Clearing Corporation (FICC)** \- *provides central counterparty (CCP) services to members that participate in the US government and mortgage-backed securities markets* + +*Brief* *history* *lesson: I promise it's relevant (this* [*link*](https://www.dtcc.com/annuals/museum/index.html) *provides all the info that follows).* + +The DTC was created in 1973. It stemmed from the need for a centralized clearing company. Trading during the 60s went through the roof and resulted in many brokers having to quit before the day was finished so they could manually record their mountain of transactions. All of this was done on paper and each share certificate was physically delivered. This obviously resulted in many failures to deliver (FTD) due to the risk of human error in record keeping. In 1974, the Continuous Net Settlement system was launched to clear and settle trades using a rudimentary internet platform. + +In 1982, the DTC started using a [Book-Entry Only](https://www.investopedia.com/terms/b/bookentrysecurities.asp) (BEO) system to underwrite bonds. For the first time, there were no physical certificates that actually traded hands. Everything was now performed virtually through computers. Although this was advantageous for many reasons, it made it MUCH easier to commit a certain type of securities fraud- naked shorting. + +One year later they adopted [NYSE Rule 387](https://www.finra.org/rules-guidance/rulebooks/retired-rules/rule-387) which meant most securities transactions had to be completed using this new BEO computer system. Needless to say, explosive growth took place for the next 5 years. Pretty soon, other securities started utilizing the BEO system. It paved the way for growth in mutual funds and government securities, and even allowed for same-day settlement. At the time, the BEO system was a tremendous achievement. However, we were destined to hit a brick wall after that much growth in such a short time.. By October 1987, that's exactly what happened. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +[*"A number of explanations have been offered as to the cause of the crash... Among these are computer trading, derivative securities, illiquidity, trade and budget deficits, and overvaluation.."*](https://historynewsnetwork.org/article/895)*.* + +If you're wondering where the birthplace of High Frequency Trading (HFT) came from, look no further. The same machines that automated the exhaustively manual reconciliation process were also to blame for amplifying the fire sale of 1987. + +[https:\/\/historynewsnetwork.org\/article\/895](https://preview.redd.it/3l08f1ud6bu61.png?width=810&format=png&auto=webp&s=2331f409fb4f60b3d62e475c58cf44211b4122a3) + +The last sentence indicates a much more pervasive issue was at play, here. The fact that we still have trouble explaining the calculus is even more alarming. The effects were so pervasive that it was dubbed the [1st global financial crisis](https://www.federalreservehistory.org/essays/stock-market-crash-of-1987) + +Here's another great summary published by the [NY Times](https://www.nytimes.com/2012/10/19/business/a-computer-lesson-from-1987-still-unlearned-by-wall-street.html): \*"..\****to be fair to the computers.. \[they were\].. programmed by fallible people and trusted by people who did not understand the computer programs' limitations. As computers came in, human judgement went out."*** Damned if that didn't give me goosiebumps... \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +Here's an EXTREMELY relevant [explanation](https://historynewsnetwork.org/article/895) from [Bruce Bartlett](https://www.creators.com/author/bruce-bartlett) on the role of derivatives: + +https://preview.redd.it/tu88v96vqau61.png?width=805&format=png&auto=webp&s=6e69760997379cb404163cfc6a11b411adbaa344 + +Notice the last sentence? A major factor behind the crash was a disconnect between the price of stock and their corresponding derivatives. The value of any given stock should determine the derivative value of that stock. It shouldn't be the other way around. **This is an important concept to remember as it will be referenced throughout the post.** + +In the off chance that the market DID tank, they hoped they could contain their losses with [portfolio insurance](https://www.investopedia.com/terms/p/portfolioinsurance.asp#:~:text=Portfolio%20insurance%20is%20a%20hedging,also%20refer%20to%20brokerage%20insurance)*.* Another [article from the NY times](https://www.nytimes.com/2012/10/19/business/a-computer-lesson-from-1987-still-unlearned-by-wall-street.html) explains this in better detail. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +https://preview.redd.it/rf6ocoe9abu61.png?width=629&format=png&auto=webp&s=e638c4479aceac77a003ae86fa1cfdd23f5406b8 + +https://preview.redd.it/8igwi6mflbu61.png?width=612&format=png&auto=webp&s=853945852aea5a355266bf52b6f1fa573db1e29a + +https://preview.redd.it/fe78gr1qlbu61.png?width=608&format=png&auto=webp&s=4ec59987333e04cef07541229161b3ff30881444 + +A major disconnect occurred when these futures contracts were used to intentionally tank the value of the underlying stock. In a perfect world, organic growth would lead to an increase in value of the company (underlying stock). They could do this by selling more products, creating new technologies, breaking into new markets, etc. This would trigger an organic change in the derivative's value because investors would be (hopefully) more optimistic about the longevity of the company. It could go either way, but the point is still the same. This is the type of investing that most of us are familiar with: investing for a better future. + +I don't want to spend too much time on the crash of 1987. I just want to identify the factors that contributed to the crash and the role of the DTC as they transitioned from a manual to an automatic ledger system. **The connection I really want to focus on is the ENORMOUS risk appetite these investors had. Think of how overconfident and greedy they must have been to put that much faith in a computer script.. either way, same problems still exist today.** + +Finally, the comment by Bruce Bartlett regarding the mismatched investment strategies between stocks and options is crucial in painting the picture of today's market. + +Now, let's do a super brief walkthrough of the main parties within the DTC before opening this **can of worms.** + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +I'm going to talk about three groups within the DTC- **issuers, participants, and Cede & Co.** + +Issuers are companies that issue securities (stocks), while participants are the clearing houses, brokers, and other financial institutions that can utilize those securities. Cede & Co. is a subsidiary of the DTC which holds the share certificates. + +Participants have MUCH more control over the securities that are deposited from the issuer. Even though the issuer created those shares, participants are in control when those shares hit the DTC's doorstep. The DTC transfers those shares to a holding account *(Cede & Co.)* and the participant just has to ask "*May I haff some pwetty pwease wiff sugar on top?"* \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +**Now, where's that can of worms?** + +Everything was relatively calm after the crash of 1987.... until we hit 2003.. + +*\*deep breath\** + +The DTC started receiving several requests from issuers to pull their securities from the DTC's depository. I don't think the DTC was prepared for this because they didn't have a written policy to address it, let alone an official rule. Here's the half-assed response from the DTC: + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm \(section II\)](https://preview.redd.it/1ctpj263zdu61.png?width=788&format=png&auto=webp&s=6ff2e2d543f53a6ece6d95c334ed995fe67f9c8d) + +Realizing this situation was heating up, the DTC proposed [SR-DTC-2003-02](https://www.sec.gov/rules/sro/34-47978.htm#P19_6635).. + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P19\_6635](https://preview.redd.it/io22id3n7eu61.png?width=774&format=png&auto=webp&s=424ef5b6a70d073c62a47f6a1b82cd739b527b88) + +Honestly, they were better of WITHOUT the new proposal. + +It became an even BIGGER deal when word got about the proposed rule change. Naturally, it triggered a TSUNAMI of comment letters against the DTC's proposal. There was obviously something going on to cause that level of concern. Why did *SO MANY* issuers want their deposits back? + +**...you ready for this sh\*t?** + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +As outlined in the DTC's opening remarks: + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P19\_6635](https://preview.redd.it/eq9q8mcubeu61.png?width=1028&format=png&auto=webp&s=eee6231336e398b0d53299a2a7639fdfd333af8c) + +*OK... see footnote 4.....* + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P19\_6635](https://preview.redd.it/v884rfqwbeu61.png?width=1053&format=png&auto=webp&s=6fe5db76c9c6fd5e596bbe3c3c64bc6feb64fd97) + +**UHHHHHHH WHAT!??!** Yeah! I'd be pretty pissed, too! Have my shares deposited in a clearing company to take advantage of their computerized trades just to get kicked to the curb with NO WAY of getting my securities back... AND THEN find out that the big-d\*ck "participants" at your fancy DTC party are literally short selling my shares without me knowing....?! + +....This sound familiar, anyone??? IDK about y'all, but this "trust us with your shares" BS is starting to sound like a major con. + +The DTC asked for feedback from all issuers and participants to gather a consensus before making a decision. All together, the DTC received 89 comment letters (a pretty big response). 47 of those letters opposed the rule change, while 35 were in favor. + +*To save space, I'm going to use smaller screenshots. Here are just a few of the opposition comments..* + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/srdtc200302-89.pdf](https://preview.redd.it/ds068omndeu61.png?width=894&format=png&auto=webp&s=7958cbf3fde10e1bbb81c6adeb87f2bfc5dc8fde) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +**And another:** + +&#x200B; + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/rsrondeau052003.txt](https://preview.redd.it/953v7l47feu61.png?width=884&format=png&auto=webp&s=83c2d1998b3c111da7cb31b183b83c62abbe353b) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +**AAAAAAAAAAND another:** + +&#x200B; + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/msondow040403.txt](https://preview.redd.it/pkifz41sqeu61.png?width=804&format=png&auto=webp&s=733a219050239012a2b6b29c1985bdbd1df60303) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +***Here are a few in favor***\*..\* + +*All of the comments I checked were participants and classified as market makers and other major financial institutions... go f\*cking figure.* + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/srdtc200302-82.pdf](https://preview.redd.it/myk7675zseu61.png?width=617&format=png&auto=webp&s=94c622511fc3392bacca6f1c34375920612bc9bb) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +**Two** + +&#x200B; + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/srdtc200302-81.pdf](https://preview.redd.it/ouwx18qmteu61.png?width=692&format=png&auto=webp&s=39dcaabcc228e60ba5e472353285aa330c13ea0a) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +**Three** + +&#x200B; + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/rbcdain042303.pdf](https://preview.redd.it/xpzt606pueu61.png?width=600&format=png&auto=webp&s=79685c694f661b9c7d03093a8908eebe6cad421e) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +Here's the [full list](https://www.sec.gov/rules/sro/dtc200302.shtml) if you wanna dig on your own. + +...I realize there are advantages to "paperless" securities transfers... However... It is EXACTLY what Michael Sondow said in his comment letter above.. ***We simply cannot trust the DTC to protect our interests when we don't have physical control of our assets***\*\*.\*\* + +Several other participants, including **Edward Jones, Ameritrade, Citibank,** and **Prudential** overwhelmingly favored this proposal.. How can someone NOT acknowledge that the absence of physical shares only makes it easier for these people to manipulate the market....? + +This rule change would allow these 'participants' to continue doing this because it's extremely profitable to sell shares that don't exist, or have not been collateralized. Furthermore, it's a win-win for them because it forces issuers to keep their deposits in the holding account of the DTC... + +Ever heard of the [fractional reserve banking system](https://www.investopedia.com/terms/f/fractionalreservebanking.asp#:~:text=Fractional%20reserve%20banking%20is%20a,by%20freeing%20capital%20for%20lending)?? Sounds A LOT like what the stock market has just become. + +Want proof of market manipulation? Let's fact-check the claims from the opposition letters above. *I'm only reporting a few for the time period we discussed (2003ish). This is just to validate their claims that some sketchy sh\*t is going on.* + +1. [**UBS Securities**](https://files.brokercheck.finra.org/firm/firm_7654.pdf) **(formerly UBS Warburg):** + 1. pg 559; SHORT SALE VIOLATION; 3/30/1999 + 2. pg 535; OVER REPORTING OF SHORT INTEREST POSITIONS; 5/1/1999 - 12/31/1999 + 3. PG 533; FAILURE TO REPORT SHORT SALE INDICATORS;INCORRECTLY REPORTING LONG SALE TRANSACTIONS AS SHORT SALES; 7/2/2002 +2. [**Merrill Lynch**](https://files.brokercheck.finra.org/firm/firm_16139.pdf) **(Professional Clearing Corp.):** + 1. pg 158; VIOLATION OF SHORT INTEREST REPORTING; 12/17/2001 +3. [**RBC**](https://files.brokercheck.finra.org/firm/firm_31194.pdf) **(Royal Bank of Canada):** + 1. pg 550; FAILURE TO REPORT SHORT SALE TRANSACTIONS WITH INDICATOR; 9/28/1999 + 2. pg 507; SHORT SALE VIOLATION; 11/21/1999 + 3. pg 426; FAILURE TO REPORT SHORT SALE MODIFIER; 1/21/2003 + +Ironically, I picked these 3 because they were the first going down the line.. I'm not sure how to be any more objective about this.. Their entire FINRA report is littered with short sale violations. Before anyone asks "how do you know they aren't ALL like that?" The answer is- I checked. If you get caught for a short sale violation, chances are you will ALWAYS get caught for short sale violations. Why? Because it's more profitable to do it and get caught, than it is to fix the problem. + +Wanna know the 2nd worst part? + +Several comment letters asked the DTC to investigate the claims of naked shorting **BEFORE** coming to a decision on the proposal.. I never saw a document where they followed up on those requests..... + +NOW, wanna know the WORST part? + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P99\_35478](https://preview.redd.it/q6jk7as8rfu61.png?width=1057&format=png&auto=webp&s=c66aac021818993e6c23bb7fe96382de8cc9fe7e) + +The DTC passed that rule change.... + +They not only prevented the issuers from removing their deposits, they also turned a 'blind-eye' to their participants manipulative short selling, even when there's public evidence of them doing so... + +....Those companies were being attacked with shares THEY put in the DTC, by institutions they can't even identify... + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +..Let's take a quick breath and recap: + +The DTC started using a computerized ledger and was very successful through the 80's. This evolved into trading systems that were also computerized, but not as sophisticated as they hoped.. They played a major part in the 1987 crash, along with severely desynchronized derivatives trading. + +In 2003, the DTC denied issuers the right to withdraw their deposits because those securities were in the control of participants, instead. When issuer A deposits stock into the DTC and participant B shorts those shares into the market, that's a form of [rehypothecation](https://www.investopedia.com/terms/r/rehypothecation.asp#:~:text=Rehypothecation%20is%20a%20practice%20whereby,or%20a%20rebate%20on%20fees). This is what so many issuers were trying to express in their comment letters. In addition, it hurts their company by driving down it's value. They felt robbed because the DTC was blatantly allowing it's participants to do this, and refused to give them back their shares.. + +It was critically important for me to paint that background. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +..now then.... + +Remember when I mentioned the DTC's enrollee- Cede & Co.? + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P19\_6635 \(section II\)](https://preview.redd.it/97z3b2k9pju61.png?width=283&format=png&auto=webp&s=67ad209f338a0ccebfaee09cd43944730ac35279) + +I'll admit it: I didn't think they were that relevant. I focused so much on the DTC that I didn't think to check into their enrollee... + +..Wish I did.... + +[https:\/\/www.americanbanker.com\/news\/you-dont-really-own-your-securities-can-blockchains-fix-that](https://preview.redd.it/oqpj59jypju61.png?width=830&format=png&auto=webp&s=a7de5c100699c85132b531b501b79a8bafcdfa18) + +That's right.... Cede & Co. hold a "master certificate" in their vault, which **NEVER** leaves. Instead, they issue an *IOU* for that master certificate.. + +&#x200B; + +Didn't we JUST finish talking about why this is such a major flaw in our system..? And that was almost 20 years ago... + +**Here comes the mind f\*ck** + +[https:\/\/smithonstocks.com\/part-8-illegal-naked-shorting-series-who-or-what-is-cede-and-what-role-does-cede-play-in-the-trading-of-stocks\/](https://preview.redd.it/o4xemx63rju61.png?width=1117&format=png&auto=webp&s=26f60bceb160cefcd95b0d55d2b375f4058981e2) + +[https:\/\/smithonstocks.com\/part-8-illegal-naked-shorting-series-who-or-what-is-cede-and-what-role-does-cede-play-in-the-trading-of-stocks\/](https://preview.redd.it/1yfr9x0arju61.png?width=1109&format=png&auto=webp&s=066cac93b0c8fb05e617c81e9fc63eeacb847d4f) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +Now..... + +You wanna know the BEST part??? + +*I found a list of all the DTC* [*participants*](https://www.dtcc.com/-/media/Files/Downloads/client-center/DTC/alpha.pdf) *that are responsible for this mess..* + +**I've got your name, number, and I'm coming for you-** ***ALL OF YOU*** + +&#x200B; + +&#x200B; + +***to be continued.*** + +**DIAMOND.F\*CKING.HANDS** + + +https://i.redd.it/5yrn4p51xdn11.png + +We are excited to announce the launch of [deltarelay.com](https://deltarelay.com/), a 0x based relayer with an emphasis on community governance. Specifically, Delta Relay will focus on providing + +1. **A free, autonomous token listing process driven by community voting** +2. **Technology specifically designed to support potentially millions of tokens one day** +3. **A market without middleman cost. 0% trading fee — forever** + +See more on [https://medium.com/@deltarelay/introducing-delta-relay-2cacaa6e6fbb](https://medium.com/@deltarelay/introducing-delta-relay-2cacaa6e6fbb) + +**Delta Relay is the decentralized exchange of the community, by the community, for community.** + +Join our community and be one of us! + +Website：[https://deltarelay.com](https://deltarelay.com/) + +Twitter：[https://twitter.com/RelayDelta](https://twitter.com/RelayDelta) + +Reddit：[https://www.reddit.com/r/DeltaRelay](https://www.reddit.com/r/DeltaRelay) +The moderators there have made that sub private before. That’s why this sub was created. It’ll probably open back up soon. Calm down. + +Edit: It's open again. Told you guys. +LEAVE ROBINHOOD. They dont deserve to make money off us after the millions they caused in losses. It might take a couple of days, but send Robinhood to the ground and GME to the moon. +Welcome to the **/r/EthTrader** Daily Discussion thread. + +*** + +The thread guidelines are as follows: + +- All sub rules apply here. Please review our **[rules page](https://www.reddit.com/r/ethtrader/about/rules)** to become familiar with them. The rules page is also linked in the announcement bar above. +- General discussion topics include, but are not limited to, events of the day, technical analysis, alternative Ethereum projects, or minor questions. +- Breaking news or other important content should be submitted as a separate post. +- In-depth altcoin discussions should be referred to the /r/CryptoCurrency discussion thread. To view the thread, [follow this link](https://www.reddit.com/r/CryptoCurrency/search?q=%5BMonthly+General+Discussion%5D&restrict_sr=on&sort=new&t=all) and choose the latest entry on the search page. +- Pumping, venting, trolling, or any other similar behavior should be redirected to the /r/CryptoMarkets trollbox thread. To view the thread, [follow this link](https://www.reddit.com/r/CryptoMarkets/search?q=Trollbox+Thread&sort=new&restrict_sr=on&t=all) and choose the latest entry on the search page. + +*** + +**[EXPERIMENTAL]** - To view live streaming comments for this thread, [click here](https://reddit-stream.com/comments/auto). Account permissions are required to post comments through Reddit-Stream.com. + +*** + +Thank you in advance for your participation. Enjoy! + +I recently posted something saying that Canadian inflation was likely closer to 8–10% rather than the number they gave of 4.8% and I just got downvoted like crazy. + +I tried to explain they don’t report many increases, and referenced used cars and I think I had one person agreeing and 20 downvoting me and sending me every stupid ctv news article saying it was only 4.8%. + +I tried to use basic logic also, like how is it possibly that US is 7.5% and ours is only 4.8%. And eventually they removed my post for misinformation. +EDIT: I've spoken with u/Blanderson_Snooper and we've had a good conversation. I believe their post about me was authentic, though flawed, and they've edited it significantly to remove the inaccuracies, which I appreciate. I still believe that there is some group working on various "hit" pieces, and which is clearly trolling my comments and automatically downvoting them. But I respect Blanderson for being intellectually honest when I cleared up various misconceptions and misunderstandings, and I'd much rather just move on from all of this and continue to focus on market structure reforms. I've unblocked them and will continue to engage constructively to answer any questions. + +Hi - over the past few months there has been an organized smear campaign being run against me. While there have always been people questioning my motives (despite a decade of actions to the contrary), since forming We The Investors, this movement has become more organized. I noticed a significant uptick following my meeting with the SEC Chair. I'm happy to answer any questions from this sub - I'm as transparent as I possibly can be. I haven't responded to the ridiculous and absurd allegations though because I do not believe that this smear campaign cares about the truth - it has one goal, and that goal is make you question my motives and actions. I invite you to judge everything for yourself - my track record is perfectly clear and consistent. + +This is flowing through a user I had blocked a couple of months ago for their repeated trolling of me, and accusations that had no basis in truth. The so-called "DD into Urvin LLC"  which is nothing but a stream of random google search results strung together to paint a narrative. This is confirmation bias at its best - look for a series of dots, and connect them in such a way to strengthen whatever argument it was that you wanted to make. For example - there are not 2 CEOs of Urvin. There are actually 3 Urvin entities, and Urvin LLC has absolutely nothing to do with Urvin Finance Inc.! This is the kind of thing that is very easy to clear up when someone is interested in the truth, but ignored or dismissed when they have a different motive. I've never scrubbed my social media, and never disguised or hidden the truth of the entities I'm involved with. It's all been on LinkedIn this entire time! + +The very idea that I would be in any way associated with Citadel at any time since I left in 2009 is so absurd that I don't even know how to respond. It's been a constant accusation against me, including in the halls of Congress in 2012, and on this sub repeatedly since I began engaging. If I were motivated by money, I can assure you I would have never left HFT, let alone chosen the path that I did. But all of these claims are from people who have clearly no idea what they're talking about, and clearly have never even read a privacy policy before. They call me out for things that are in both GME's and Computershare's privacy policies (in fact ours is much stronger than theirs), and are standard in any privacy policy you can find on the internet. They said that a relationship with S3 or Apex is not in question - but there are absolutely no relationships whatsoever with either of those companies. They are mis-reading, misunderstanding, or most likely purposefully misrepresenting innocuous connections or statements. There are so many instances of this in the so-called DD, that it's impossible to address them all. Nearly everything in that post is factually incorrect. + +Once again, it is not surprising that this smear campaign has accelerated since our meetings with the SEC. I am happy to answer any question in this thread in terms of my business practices - I'm an open book, and there is absolutely no data or benefit flowing to any other company, and especially not to Citadel, S3, Apex or anyone else. But I'm only interested in engaging in good faith - not with those who are simply out to smear me - because there is no amount of truth or fact that will change their minds. If there was, they would have answered their questions with some simple google searches and been on their way. There's nothing hidden or insidious happening here at all. +So my grandparents gave me 20 lakhs FD and told me to do what I want with it. I know most kids would just spend it, but my thought was to invest like in Reliance, Infosys or something. + +Can anyone tell me should I go all stocks or some mutual funds as well. + +I am 18 if you are wondering. + +I have a Zerodha account. + +Edit : Thanks for your opinions. + +Hear me out. The airline industry has asked for $50bn in support to avoid bankrupty. Meanwhile these same companies have spend 80-98% of their free cash buying back their own company stock over the last 10 years. American Airlines alone has spent $12.5bn to buy back stocks. This of course is done to reduce overall divident costs and increase the share price. + +On top of that, under the new US corporate tax code all of these companies have lowered their tax bills by billions of dollars. The idea of the tax bill was that this money would be used for investment in technology/R&D and go to employees. Again a lot of this money ended up being used to buy back stocks. + +Individuals are expected to save up 3-6 months of emergency funds but yet these giant corporations can’t whether any storm. Let them fold and in a free market the void left in supply will be filled by somebody else. + Hi all beginners, I was once like you, had no idea what I was doing, no idea what an option was, and had no idea how to even buy a stock. Now, you could say I'm an "experienced" trader (Whatever the f%&\* that means), and I see a decent amount of posts "totally new - what should I invest in". From all the smooth brains that have been doing this for awhile - that's really annoying and no one wants to help you for the most part. + +Instead, do you own research first - I mean, you literally have Google, it is so simple. Im really not trying to bash on anyone, but Google is amazing and if you just take the 15 minutes to read an article or watch the ENTIRE youtube video, you will be so much further ahead. people are so obsessed with the known and dont want to work. It has taken me about 3-4 years to finally understand the market, charts, DD, and more about stocks and I still lose money on trades, and if u see someone saying they never loss money its a scam and stay away. Anyways, what im trying to preface this with is stocks take time to understand do you DD. + +For those complete beginners that dont even have brokerage app installed yet, here are some good places to start: + +[https://www.investopedia.com/articles/basics/06/invest1000.asp](https://www.investopedia.com/articles/basics/06/invest1000.asp) (investopedia in general is amazing for learning) + +[https://www.thebalance.com/stock-trading-101-358115](https://www.thebalance.com/stock-trading-101-358115) + +Those are two good articles to start reading, giving you a basic understanding. I know most of you wont read that so for complete beginners here is the TL;DR: FIND A BROKEAGE LIKE ROBINHOOD,WEBULL ETC, DEPOSIT MONEY, THEN ONCE THE MONEY HITS START RESEARCHING STOCKS YOU WANT TO BUY. + +So now that you have a brokerage app installed on your phone, or you can access it via your laptop, doesnt matter, and you have some money in there, you can actually start buying the stocks. Depending on what brokerage you are using all the UIs look different so buying and selling will look different but buying and selling is the same. If you buy a stock you get shares, and when you sell the stock you lose those shares and "collect" your money, whether thats a profit or loss. + +Anyways, you have a brokerage now with some money in it, how do you find stocks to buy. There are a million difference ways you can decide. The first way I recommend you find stocks to buy is through create a "stock screener". [Finviz.com](https://finviz.com/) has a great free tool that alot of people use for this, and there are a ton of youtube videos on how to create your own screener..here are some of my favorite screeners: + +[https://www.youtube.com/watch?v=M8sNMhPJINU&t=2s](https://www.youtube.com/watch?v=M8sNMhPJINU&t=2s) + +[https://www.youtube.com/watch?v=bWpe30R2VnM](https://www.youtube.com/watch?v=bWpe30R2VnM) + +[https://www.youtube.com/watch?v=7xKOo6vNaq8](https://www.youtube.com/watch?v=7xKOo6vNaq8) + +Each morning, you can run these scans premarket and have some stock ideas on what you want to trade. But don't just base your screener off of the stocks you are going to buy, you have to make sure they are a good stock with potential because just because its in your screener doesn't mean it is a stock you want to trade. So go through technical chart analysis (will cover that further down), read up on the stock, look at the price target, with analysts think it is a good buy or if you should sell, you can look at the fundamentals, and much more. The good news is all of that can be found on Finviz as well. + +Before we get into the meat of breaking down your pre-market screener stocks, there are some other ways you can check out stocks to buy. There are way to many accounts to count on twitter that provide great advise and tweet about what stocks they are watching and buying into - this is complete free. Another great place you can go is right here - REDDIT. People are always posting stock ideas, so instead of posting "what should I buy" take that time to look through subreddits of what people are buying, what they are looking at or some of the DDs, those can be super helpful. + +Now that you have an idea on how to find the stocks, the next part is determining if you should actually buy the stock or not. The first step I like is the technical chart analysis. If this is a swing trade, a stock you plan on holding for more than a day but less than a year, technical analysis is super important in my opinion. If you are LONG on a stock and are going to hold it for more than a year or even 10+ years then it is more about the company and the direction you think they will be going which is more fundamental trading, but I focus on more of the swing trading, and sometimes day trading but I dont really do that. Here are some good videos to understand technical analysis of a stock chart: + +[https://www.youtube.com/watch?v=rlZRtQkfK04](https://www.youtube.com/watch?v=rlZRtQkfK04) + +[https://www.youtube.com/watch?v=o6hZma0bajE](https://www.youtube.com/watch?v=o6hZma0bajE) + +[https://www.youtube.com/watch?v=ItacPNRujiU](https://www.youtube.com/watch?v=ItacPNRujiU) + +Those are some great videos that should get you started and really will teach you what all the stuff on the charts mean so you can start to break down charts on your own and know if those stocks from your screener are worth buying or not. + +The next analysis that is popular is called funamental, I dont do this style but here are 2 videos that cover it in good detail: + +[https://www.youtube.com/watch?v=a63yvv4vjDE](https://www.youtube.com/watch?v=a63yvv4vjDE) + +[https://www.youtube.com/watch?v=baAzH5ZfNbs](https://www.youtube.com/watch?v=baAzH5ZfNbs) + +There you have it. Now you can sign up for a broker to get money into an account, deposit money in, start screening for stocks that you may want to buy, and then review their chart to see if you want to buy the stock. + +If it still seems confusing go back to what confuses you and re-read the article or find another video that may explain it better than the videos I found. Its all about just doing the process over and over again and you will see what works and what doesnt. That is the honest truth, like i said it took me about 3 years to find what works for me and what doesnt. And what works for me may not work for you, the biggest part of understanding a stock or the market in general is having your own way so you are confident when you invest in a stock. + +Pro-tip, when you buy your stocks, set a stop loss order for the stock. This means that if the stock doesnt go up and starts falling, once it hits a certain price it will automatically sell. This is very important for managing your risk, especially as a beginner. + +check out this video on stop losses: [https://www.youtube.com/watch?v=VW7P22B\_99A](https://www.youtube.com/watch?v=VW7P22B_99A) + +I hope you beginners learned something from this, if not no problem. drop your questions below I will try to answer, but again im now financal advisor or millionaire. +Welcome to the **/r/EthTrader** Daily Discussion thread. + +*** + +The thread guidelines are as follows: + +- All sub rules apply here. Please review our **[rules page](https://www.reddit.com/r/ethtrader/about/rules)** to become familiar with them. The rules page is also linked in the announcement bar above. +- General discussion topics include, but are not limited to, events of the day, technical analysis, alternative Ethereum projects, or minor questions. +- Breaking news or other important content should be submitted as a separate post. +- In-depth altcoin discussions should be referred to the /r/CryptoCurrency discussion thread. To view the thread, [follow this link](https://www.reddit.com/r/CryptoCurrency/search?q=%5BMonthly+General+Discussion%5D&restrict_sr=on&sort=new&t=all) and choose the latest entry on the search page. +- Pumping, venting, trolling, or any other similar behavior should be redirected to the /r/CryptoMarkets trollbox thread. To view the thread, [follow this link](https://www.reddit.com/r/CryptoMarkets/search?q=Trollbox+Thread&sort=new&restrict_sr=on&t=all) and choose the latest entry on the search page. + +*** + +**[EXPERIMENTAL]** - To view live streaming comments for this thread, [click here](https://reddit-stream.com/comments/auto). Account permissions are required to post comments through Reddit-Stream.com. + +*** + +Thank you in advance for your participation. Enjoy! + +Hey is anyone in here a millionaire or ever made a million dollars? What’s your advice on how to make a million dollars? Obviously I could just save my money for a long time and have a million in like 25 years or longer but what’s advice on how to make a million dollars in like 10 years? I’m 25 years old and am 6 months in to electrician apprentice +It “has always struck me as like having a house that you like, and you’re living in, and, you know, it’s worth $100,000 and you tell your broker, ‘You know, if anybody ever comes along and offers $90 \[thousand\], you want to sell it,’” Buffett joked to the audience at the 1994 meeting. “It doesn’t make any sense to me.” +“Big Short” fame investor Michael Burry said U.S. House Of Representatives Speaker **Nancy Pelosi** “made a bundle” on semiconductor stocks she recently purchased because she knew a key bill would make it through the Senate. + +https://preview.redd.it/d5eockv91yc91.png?width=658&format=png&auto=webp&s=6f00a037cd1ebf54a6bd6f8e250a4bdda685479a + +What Happened: Burry made his comments on Twitter on Wednesday. He said tagging the Democrat politician, “So Speaker Pelosi made a bundle on semiconductor stocks bought recently. Should be illegal.” + +Burry also shared a news report on the Senate passing a bipartisan bill, which would subsidize domestic semiconductor production with a $52 billion support. + +Source: [https://www.benzinga.com/news/22/07/28145000/big-short-fame-investor-michael-burry-says-nancy-pelosis-semiconductor-stock-buy-shouldnt-be-legal](https://www.benzinga.com/news/22/07/28145000/big-short-fame-investor-michael-burry-says-nancy-pelosis-semiconductor-stock-buy-shouldnt-be-legal) + +The Big Short’s Michael Burry says members of congress should be banned from trading single stocks. He quoted the recent purchase of 20,000 NVIDIA (NVDA) shares by Paul Pelosi before Nancy Pelosi supported the CHIPS Plus bill, a $52 billion semiconductor bill. + +Do you agree? +Hello beautiful apes! + +I have 2 points to show you. First is that Yahoo is showing completely different values depending on your IP. Try using a VPN with a different country and you'll see. + +Second is that I stumbled upon the ***ENTIRE FUCKING GAME PLAN*** of the naked shorting scheme. I guess an insider spilled the beans anonymously on some forum in 2004. + +What is going on with GME over the last 9 months is a game plan called "Cellar Boxing". + +**The link is at the end of this post. If you don't give a FUCK about the Yahoo data, then just skip to the end and read that. Seriously EVERYONE NEEDS TO READ THAT POST. It is like the holy grail. I got emotional reading it as it confirmed all of our combined DD about naked shorting, rule exemptions, dividends, zombies, even talks about shills.....EVERYTHING... in one fell swoop.** + +I wrote all this Yahoo stuff before I found that link and I just had to stop and stare at the wall for a bit.. This was going to be a much longer post, but I decided to just stick to the facts without speculative walls of text so you're not overwhelmed. + +Because trust me, reading that post from 2004 is going to blow your fucking mind. It blew mine and everyone I showed it to. + +Okay so first point: + +Here's the Yahoo data from my IP in the USA + +&#x200B; + +&#x200B; + +https://preview.redd.it/0v9ody3ujxm71.png?width=546&format=png&auto=webp&s=99ce6f08beff4e7d7ad75923efb9e0dbc1f29c92 + +&#x200B; + +Here's the data from a European VPN + +&#x200B; + +https://preview.redd.it/z4qg2kkwjxm71.png?width=831&format=png&auto=webp&s=93ca4f7615b0ced4f26f2eae9ce1d20f6c4eb209 + +First thing that stands out to me is Enterprise Value. + +According to + +[https://www.investopedia.com/ask/answers/111414/whats-difference-between-enterprise-value-and-market-capitalization.asp](https://www.investopedia.com/ask/answers/111414/whats-difference-between-enterprise-value-and-market-capitalization.asp) + +Market capitalization is the sum total of all the outstanding shares of a company. **Enterprise value takes into account** the debt that the company has taken on. Enterprise value, therefore, can identify strengths or weaknesses that market cap cannot. + +And [https://www.arborinvestmentplanner.com/enterprise-value-ev-calculating-enterprise-value-ratios/](https://www.arborinvestmentplanner.com/enterprise-value-ev-calculating-enterprise-value-ratios/) + +**A company with more debt than cash will have** an enterprise value greater than its market capitalization. Companies with identical market capitalizations can have radically different enterprise values. + +\----------------------------------------------- + +I had thought perhaps they're doing some kind of fuckery with convertible preferred shares, or convertible bonds. Which they very well may be, but I can't prove that right this second. So I leave this idea in speculation land. + +But let's hand it off to u/semerien for the actual reason for this discrepancy: + +**Total cash per share is 5.64** + +**Cash at 1.72 billion** + +**Which means Yahoo thinks there is just over 300 million shares** + +**Enterprise value is using that share count at current price** + +**57 billion for ev using 304 million shares at 190 price, cash at 1.7B and debt at 0.7 billion** + +***I may have rounded every single number cuz I'm lazy but what's a few 100 million in rounding errors*** + +\---------------------------------------------------Okay ok gimme my mic back lmao + +So.. No speculation. Mathematical Fact: Yahoo's calculating on 300M\~ shares for outside USA when factoring Enterprise Value. + +Where does Yahoo get this data? + +[https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en\_US](https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en_US) + +* Financial statements, valuation ratios, market cap and shares outstanding data provided by Morningstar. + +Okay so Yahoo gets this specific data from Morningstar. + +Who does Morningstar get it's data from? + +[https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178\_28k.htm](https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178_28k.htm) + +\--------------------------------------------------- + +*We collect most of our data from original source documents that are publicly available, such as regulatory filings and fund company documents. This is the main source of operations data for securities in our open-end, closed-end, exchange-traded fund, and variable annuity databases, as well as for financial statement data in our equity database. This information is available at no cost.* + +***For performance-related information (including total returns, net asset values, dividends, and capital gains), we receive daily electronic updates from individual fund companies, transfer agents, and custodians.*** *We don’t need to pay any fees to obtain this performance data. In some markets we supplement this information with a standard market feed such as Nasdaq for daily net asset values, which we use for quality assurance and filling in any gaps in fund-specific performance data. We also receive most of the details on underlying portfolio holdings for mutual funds, closed-end funds, exchange-traded funds, and variable annuities electronically from fund companies, custodians, and transfer agents.* + +\--------------------------------------------------- + +So that answers the question as to why the float changed from **126M to 248M** in the same day. + +This is not a glitch. + +One way or the other, the data got pushed "***from individual fund companies, transfer agents, and custodians"*** *to Morningstar, to Yahoo.* Intraday. + +Why Morningstar shows different than Yahoo? I won't speculate. But it can't be a glitch. Just based on the source and how it's updated. Speculate on why or how they're censoring it, not on it being a glitch. + +These different values I believe are important because they paint a picture of intent to hide the true data. It's bits of the real data slipping through the cracks. + +Let's look at the numbers: + +\--------------------------------------------------- + +**Enterprise Value in USA = 14.22B** + +**Forward P/E in USA = 36.67** + +**--** + +**Enterprise Value in other countries = 57.07B** + +**Forward P/E in other countries = $6,347.00** + +\--------------------------------------------------- + +EV is calculated on 300 ish million shares. People say "Yahoo's data is always screwy". I don't think that's true. I think it's the opposite. The market is always being FUCKED with. As you'll see in the post I'm going to link to. And Yahoo just has a hard time cleaning it up and censoring it. Because of SO MUCH FUCKERY. And sometimes shit slips through unintentionally. + +Forward P/E.. What the fuck is forward P/E some of you might be wondering? + +*(Side note: Yahoo gets this data from a data analytics company called Refinitiv.)* + +\--------------------------------------------------- + +[*https://www.investopedia.com/terms/f/forwardpe.asp*](https://www.investopedia.com/terms/f/forwardpe.asp) + +*Forward price-to-earnings (forward P/E) is a version of the ratio of* *price-to-earnings* *(P/E) that uses forecasted earnings for the P/E calculation.* + +[*https://www.investopedia.com/ask/answers/050515/what-does-forward-pe-indicate-about-company.asp*](https://www.investopedia.com/ask/answers/050515/what-does-forward-pe-indicate-about-company.asp) + +*A company with a higher forward P/E ratio than the industry or market average indicates* ***an expectation the company is likely to experience a significant amount of growth***\*. ... Ultimately, the P/E ratio is a metric that allows investors to determine how valuable a stock is, more so than the market price alone.\* + +\--------------------------------------------------- + +Here's an example for Tesla: + +[https://finbox.com/NASDAQGS:TSLA/explorer/pe\_ltm](https://finbox.com/NASDAQGS:TSLA/explorer/pe_ltm) + +*"Tesla's p/e ratio for fiscal years ending December 2016 to 2020 averaged 211.2x. Tesla's operated at median p/e ratio of -37.2x from fiscal years ending December 2016 to 2020. Looking back at the last five years, Tesla's p/e ratio peaked in December 2020 at 1,255.0x."* + +So we all know what happened with Tesla. The P/E ratio seems to be pretty good at calculating the growth. The higher the number, the bigger the growth. A number in the thousands is basically **"Oh shit we got a winner".** + +Thing is, you get the number by calculating the share price divided by the estimated future earnings per share. + +*"For example, assume that a company has a current share price of $50 and this year’s earnings per share are $5. Analysts estimate that the company's earnings will grow by 10% over the next fiscal year. The company has a current P/E ratio of $50 / 5 = 10x. "* + +Well Gamestop's at 190, let's say for what ever crazy fucking reason we're expecting future earnings per share to be at 5 dollars per share. We're currently expecting around 1 dollar in January but for sake of argument let's pretend it's $5. + +$190 / 5 = 38. + +Okay interesting so far that makes sense for the USA calculation roughly. + +But HOW THE FUCK DO WE GET **$6,347?** + +It's impossible. Unless.. wait a sec.. + +$31,735 / 5 = **$6,347** + +Could it be the true value of GME is actually $31,735 right now? + +I mean even if we use the 1 dollar per share earning thing from January, that's still assuming CURRENT VALUE = **$6,347 per share....** + +It is my belief that based on these two numbers, the fact that they **change** depending on **your IP** \+ the float being at **248M**, as well as **THE MIND BLOWING INFORMATION** contained within the post I'm about to link to in a second... + +That the Yahoo thing isn't a glitch. + +It's a hole in the fuckery veil they're trying to place upon our eyes. + +It's to hide the fact that the float is shorted at LEAST 3x verifiably. + +*(I believe it to be 50x by now)* + +And also to stop us from deducing the actual share price in what ever dark pool of death the shorts are hiding in using these numbers. They're hiding the company's fucking growth from us. + +In comparison for shits and giggles, I checked movie stock in the VPN and Yahoo's changing that data too. + +But not to hide the shorts or hide growth. Instead to hide a decline. + +Movie Stock's Forward P/E is N/A for USA but for other countries it's **-68.71** + +\--------------------------------------------------- + +[https://www.investopedia.com/ask/answers/05/negativeeps.asp](https://www.investopedia.com/ask/answers/05/negativeeps.asp) + +*"A negative P/E ratio means* ***the company has negative earnings or is losing money***\*. ... Investors buying stock in a company with a negative P/E should be aware that they are buying shares of an unprofitable company and be mindful of the associated risks."\* + +\--------------------------------------------------- + +If I'm right about this whole thing, then this by itself is proof that GME is the MOASS and whoever's doing it, either Yahoo, or Morningstar, whoever doesn't want us to know that movie stock is obviously not the MOASS. + +Now........ + +Whether you agree with me or not, you MUST read this post: + +Archived in case it gets deleted + +[https://archive.is/KSS6m](https://archive.is/KSS6m) + +&#x200B; + +You know what, just in case you're too lazy to click it, I'll copy and paste the whole thing. You can click the link to verify. It's that important to read. + +\--------------------------------------------------- + +Sunday, 03/07/04 07:56:25 PM + +"Cellar Boxing" + +There’s a form of the securities fraud known as naked short selling that is becoming very popular and lucrative to the market makers that practice it. It is known as “CELLAR BOXING” and it has to do with the fact that the NASD and the SEC had to arbitrarily set a minimum level at which a stock can trade. This level was set at $.0001 or one-one hundredth of a penny. + +This level is appropriately referred to as “the CELLAR”. This $.0001 level can be used as a "backstop" for all kinds of market maker and naked short selling manipulations. + +“CELLAR BOXING” has been one of the security frauds du jour since 1999 when the market went to a “decimalization” basis. In the pre-decimalization days the minimum market spread for most stocks was set at 1/8th of a dollar and the market makers were guaranteed a healthy “spread”. + +Since decimalization came into effect, those one-eighth of a dollar spreads now are often only a penny as you can see in Microsoft’s quote throughout the day. Where did the unscrupulous MMs go to make up for all of this lost income? + +They headed "south" to the OTCBB and Pink Sheets where the protective effects from naked short selling like Rule 10-a, and NASD Rules 3350, 3360, and 3370 are nonexistent. + +The unique aspect of needing an arbitrary “CELLAR” level is that the lowest possible incremental gain above this CELLAR level represents a 100% spread available to MMs making a market in these securities. + +When compared to the typical spread in Microsoft of perhaps four-tenths of 1%, this is pretty tempting territory. In fact, when the market is no bid to $.0001 offer there is theoretically an infinite spread. + +In order to participate in “CELLAR BOXING”, the MMs first need to pummel the **price** per share down to these levels. The lower they can force the share price, the larger are the percentage spreads to feed off of. + +This is easily done via garden variety naked short selling. In fact if the MM is large enough and has enough visibility of buy and sell orders as well as order flow, he can simultaneously be acting as the conduit for the sale of nonexistent shares through Canadian co-conspiring broker/dealers and their associates with his right hand at the same time that his left hand is naked short selling into every buy order that appears through its own proprietary accounts. + +The key here is to be a dominant enough of a MM to have visibility of these buy orders. This is referred to as "broker/dealer internalization" or naked short selling via "desking" which refers to the market makers trading desk. + +While the right hand is busy flooding the victim company's market with "counterfeit" shares that can be sold at any instant in time the left hand is nullifying any upward pressure in share price by neutralizing the demand for the securities. The net effect becomes no demonstrable demand for shares and a huge oversupply of shares which induces a downward spiral in share price. + +In fact, until the "beefed up" version of Rule 3370 (Affirmative determination in writing of "borrowability" by settlement date) becomes effective, U.S. MMs have been "legally" processing naked short sale orders out of Canada and other offshore locations even though they and the clearing firms involved knew by history that these shares were in no way going to be delivered. + +The question that then begs to be asked is how "the system" can allow these obviously bogus sell orders to clear and settle. + +To find the answer to this one need look no further than to Addendum "C" to the Rules and Regulations of the NSCC subdivision of the DTCC. This gaping loophole allows the DTCC, which is basically the 11,000 b/ds and banks that we refer to as "Wall Street”, to borrow shares from those investors naive enough to hold these shares in "street name" at their brokerage firm. + +This amounts to about 95% of us. Theoretically, this “borrow” was designed to allow trades to clear and settle that involved LEGITIMATE 1 OR 2 DAY delays in delivery. + +This "borrow" is done unbeknownst to the investor that purchased the shares in question and amounts to probably the largest "conflict of interest" known to mankind. The question becomes would these investors knowingly loan, without compensation, their shares to those whose intent is to bankrupt their investment if they knew that the loan process was the key mechanism needed for the naked short sellers to effect their goal? + +Another question that arises is should the investor's b/d who just earned a commission and therefore owes its client a fiduciary duty of care, be acting as the intermediary in this loan process keeping in mind that this b/d is being paid the cash value of the shares being loaned as a means of collateralizing the loan, all unbeknownst to his client the purchaser. + +An interesting phenomenon occurs at these "CELLAR" levels. Since NASD Rule 3370 allows MMs to legally naked short sell into markets characterized by a plethora of buy orders at a time when few sell orders are in existence, a MM can theoretically "legally" sit at the $.0001 level and sell nonexistent shares all day long because at no bid and $.0001 ask there is obviously a huge disparity between buy orders and sell orders. + +What tends to happen is that every time the share price tries to get off of the CELLAR floor and onto the first step of the stairway at $.0001 there is somebody there to step on the hands of the victim corporation's market. + +Once a given micro cap corporation is “boxed in the CELLAR” it doesn’t have a whole lot of options to climb its way out of the CELLAR. One obvious option would be for it to reverse split its way out of the CELLAR but history has shown that these are counter-productive as the market capitalization typically gets hammered and the post split share price level starts heading back to its original pre-split level. + +Another option would be to organize a sustained buying effort and muscle your way out of the CELLAR but typically there will, as if by magic, be a naked short sell order there to meet each and every buy order. Sometimes the shareholder base can muster up enough buying pressure to put the market at $.0001 bid and $.0002 offer for a limited amount of time. + +Later the market makers will typically pound the $.0001 bids with a blitzkrieg of selling to wipe out all of the bids and the market goes back to no bid and $.0001 offer. When the weak-kneed shareholders see this a few times they usually make up their mind to sell their shares the next time that a $.0001 bid appears and to get the heck out of Dodge. + +This phenomenon is referred to as “shaking the tree” for weak-kneed investors and it is very effective. + +At times the market will go to $.0001 bid and $.0003 offer. This sets up a juicy 200% spread for the MMs and tends to dissuade any buyers from reaching up to the "lofty" level of $.0003. If a $.0002 bid should appear from a MM not "playing ball" with the unscrupulous MMs, it will be hit so quickly that Level 2 will never reveal the existence of the bid. + +The $.0001 bid at $.0003 offer market sets up a "stalemate" wherein market makers can leisurely enjoy the huge spreads while the victim company slowly dilutes itself to death by paying the monthly bills with "real" shares sold at incredibly low levels. Since all of these development-stage corporations have to pay their monthly bills, time becomes on the side of the naked short sellers. + +At times it almost seems that the unscrupulous market makers are not actively trying to kill the victim corporation but instead want to milk the situation for as long of a period of time as possible and let the corporation die a slow death by dilution. + +The reality is that it is extremely easy to strip away 99% of a victim company’s share price or market cap and to keep the victim corporation “boxed“ in the CELLAR, but it really is difficult to kill a corporation especially after management and the shareholder base have figured out the game that is being played at their expense. + +As the weeks and months go by the market makers make a fortune with these huge percentage spreads but the net aggregate naked short positions become astronomical from all of this activity. This leads to some apprehension amongst the co-conspiring MMs. + +The predicament they find themselves in is that they can’t even stop naked short selling into every buy order that appears because if they do the share price will gap and this will put tremendous pressures on net capital reserves for the MMs and margin maintenance requirements for the co-conspiring hedge funds and others operating out of the more than 13,000 naked short selling margin accounts set up in Canada. + +And of course covering the naked short position is out of the question since they can’t even stop the day-to-day naked short selling in the first place and you can't be covering at the same time you continue to naked short sell. + +What typically happens in these situations is that the victim company has to massively dilute its share structure from the constant paying of the monthly burn rate with money received from the selling of “real” shares at artificially low levels. + +Then the goal of the naked short sellers is to point out to the investors, usually via paid “Internet bashers”, that with the, let’s say, 50 billion shares currently issued and outstanding, that this lousy company is not worth the $5 million market cap it is trading at, especially if it is just a shell company whose primary business plan was wiped out by the naked short sellers’ tortuous interference earlier on. + +The truth of the matter is that the single biggest asset of these victim companies often becomes the astronomically large aggregate naked short position that has accumulated throughout the initial “bear raid” and also during the “CELLAR BOXING” phase. + +The goal of the victim company now becomes to avoid the 3 main goals of the naked short sellers, namely: bankruptcy, a reverse split, or the forced signing of a death spiral convertible debenture out of desperation. + +As long as the victim company can continue to pay the monthly burn rate, then the game plan becomes to make some of the strategic moves that hundreds of victim companies have been forced into doing which includes name changes, CUSIP # changes, cancel/reissue procedures, dividend distributions, amending of by-laws and Articles of Corporation, etc. + +Nevada domiciled companies usually cancel all of their shares in the system, both real and fake, and force shareholders and their b/ds to PROVE the ownership of the old “real” shares before they get a new “real” share. Many also file their civil suits at this time also. + +This indirect forcing of hundreds of U.S. micro cap corporations to go through all of these extraneous hoops and hurdles as a means to survive, whether it be due to regulatory apathy or lack of resources, is probably one of the biggest black eyes the U.S. financial systems have ever sustained. + +In a perfect world it would be the regulators that periodically audit the “C” and “D” sub-accounts at the DTCC, the proprietary accounts of the MMs, clearing firms, and Canadian b/ds, and force the buy-in of counterfeit shares, many of which are hiding behind altered CUSIP #s, that are detected above the Rule 11830 guidelines for allowable “failed deliveries” of one half of 1% of the shares issued. U.S. micro cap corporations should not have to periodically “purge” their share structure of counterfeit electronic book entries but if the regulators will not do it then management has a fiduciary duty to do it. + +A lot of management teams become overwhelmed with grief and guilt in regards to the huge increase in the number of shares issued and outstanding that have accumulated during their “watch”. The truth however is that as long as management made the proper corporate governance moves throughout this ordeal then a huge number of resultant shares issued and outstanding is unavoidable and often indicative of an astronomically high naked short position and is nothing to be ashamed of. + +These massive naked short positions need to be looked upon as huge assets that need to be developed. Hopefully the regulators will come to grips with the reality of naked short selling and tactics like "CELLAR BOXING" and quickly address this fraud that has decimated thousands of U.S. micro cap corporations and the tens of millions of U.S. investors therein. + +\--------------------------------------------------- + +HO....LEEEEEE......FUQ + +Bruh.. + +This was written in 2004. + +I really don't have anything more to say. + +(Last minute about to finish this post and u/Hopeless_Dreams713 showed me a patent found by u/Toxsic99 + +[https://patents.google.com/patent/US7904377B2/en](https://patents.google.com/patent/US7904377B2/en) which I THINK is a fucking patent for ladder attacks but I have no more brain power to spend after reading/writing this. So I include it as a bonus for any wrinkles with extra brain power to decipher.) + +&#x200B; + +**TL;DR Yahoo changes data depending on the IP. Seems like only USA gets censored data. Based on the forward P/E of the uncensored data, it's possible GME is anywhere between 6k to 31k per share on some dark side of the fence. And "Cellar Boxing" is the game plan shorts use to destroy America.** + +Edit 2: + +https://preview.redd.it/yrs92ane7zm71.png?width=1124&format=png&auto=webp&s=fc09b8bdce8e0539f483100a1f07412e0a0dc96a + +Edit 3: + +Smart ape found reply in the post basically confirming that us requesting the share certificates is fucking them up the bum bum + +[https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hciatum/](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hciatum/) + +&#x200B; + +Edit 4: + +&#x200B; + +https://preview.redd.it/doc7rcishzm71.png?width=1188&format=png&auto=webp&s=32154766400b459f78986ec66cf8660e8c9971cc + +[https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hcifuez?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hcifuez?utm_source=share&utm_medium=web2x&context=3) + +&#x200B; + +Edit 5: + +&#x200B; + +[Can't just be a Yahoo glitch. Impossible.](https://preview.redd.it/d64gr6lzizm71.png?width=1068&format=png&auto=webp&s=80a85ab0b5f590a1f81d4a577168adb0e1dc0920) + +&#x200B; + +[https://www.nasdaq.com/market-activity/stocks/gme](https://www.nasdaq.com/market-activity/stocks/gme) + +Edit 6: + +Bruh, we literally got onto the top 15 of Popular of all of Reddit with this. We're breaking the simulation. LFGOOOOOO. And also if you're new here from the rest of the Reddit and don't know about Superstonk, we love you and this post is undeniable that the stock market is rigged and GME about to blow. + +And I'm so happy that this information has a chance to be seen by more people. These hedgefunds have been destroying America for decades. Stunting our growth as a species. What kind of medical advances could we have made by now? Science? Technology? All shorted to hell because of some greedy hedge fund pricks. + +Please share this with everyone you know so that more people can be aware of their tactics. It is important that they know they lost. And when we are in the financial position of power, we must be better human beings. And invest into technology and medicine and help the world become what it could have been. + +This is our one chance at changing the world for the better. + +&#x200B; + +Edit 7: + +&#x200B; + +https://preview.redd.it/c91hnnptg0n71.png?width=1166&format=png&auto=webp&s=93967bedc4274d5555fe12028a4bbdd267700b7b + +[https://www.youtube.com/watch?v=IL1QznrSwWw](https://www.youtube.com/watch?v=IL1QznrSwWw) + +&#x200B; + +Edit 8: + +WE MADE TOP 5 of r/all holy shit. \*insert another emotional speech\* + +Also: + +&#x200B; + +https://preview.redd.it/37w6299bq0n71.png?width=1194&format=png&auto=webp&s=eca37cf73123bd9ee10656eebb60ba625d1eda4e + +[https://www.dtcc.com/about/leadership/board/david-goone](https://www.dtcc.com/about/leadership/board/david-goone) + +&#x200B; + +Edit 9: + +Letter to the SEC from 2008 mentioning all this. + +[https://www.sec.gov/comments/s7-08-08/s70808-144.htm](https://www.sec.gov/comments/s7-08-08/s70808-144.htm) + +&#x200B; + +Edit 10: + +SUPER SMOOTH BRAIN EXPLANATION for those who have NO idea what is going on: + +**When you buy a stock, you're betting that it's going up.** + +**But if you feel it's going to go down, then there's a bet for that.** + +**It's called a short bet. It's pretty simple.** + +**Imagine your friend has a watch priced at $100. And you think tomorrow it's going to be worth $50. You say to your friend "Hey lemme borrow dat real quick" and you go and pawn it at a pawn shop for $100.** + +**What happened? So far you have a contract to buy back the watch to give back to your friend, but you also have $100.** + +**Tomorrow comes, and the price is $50. You go and buy the watch back for $50. You keep the $50 left over. Give the friend back is watch + like 5% interest and everyone's happy.** + +**But what if that watch increased in price instead of decreased?** + +**You go to buy the watch back, and it's $200?? Uh oh.. You now have a contract to buy the watch, and you'll have to pay $100 out of pocket to buy it back. So you lost money.** + +**You wait and figure it'll go back down. To your surprise, the watch price just keeps increasing. $300, $500, $1,000 to $10,000 to $100,000 to $10,000,000** + +**You owe your friend that watch at any price. No matter what. But you can keep waiting by simply paying him a fee every day to borrow. It's called a borrow fee, oddly enough.** + +**Unfortunately you only have limited assets. So sooner or later you won't have enough money to pay the borrow fee. And then you're forced to go bankrupt and sell all your assets and your house, and your car, and your boat, and your planes to pay for the watch.** + +**So that's what's going on with GME. But instead of 1 watch, it's billions and billions of shares. And they're making fake copies of shares that they don't even have.** + +**Sooner or later, they must buy back the shares. And at any cost. And they will be forced to sell everything they own to do it.** + +**Up until now we've only reverse engineered the idea and processes behind "HOW" they're doing it. This post from 2004 detailed every step of the way. And it is very emotional to us because we were right. And they tried gaslighting us for 9 months that we were wrong.** + +&#x200B; + +Edit 11: + +This question gets popped up alot. So if you're wondering about how it affects movie stock, look at this comment chain: + +[https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hcjjw5o?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hcjjw5o?utm_source=share&utm_medium=web2x&context=3) + +&#x200B; + +Edit 12: + +Some people are saying Cellar Boxing doesn't apply to GME because it's not at sub penny levels. + +BUT YOU GUYS ARE MISSING THE FACT THAT GME WAS AT 3 DOLLARS A SHARE. + +In order to CELLAR BOX the stock, they would have to first NAKED SHORT IT TO HELL. + +They short it from 3 dollars hoping for it to go to below a dollar and then get it into that cellar range. BUT THEY FAILED. That's what those people saying it's not relevant to GME are missing. + +It IS relevant to GME. Because CELLAR BOXING was the GAME PLAN. Imagine you have a playbook with strategies on how to play a game. THATS CELLAR BOXING. Naked shorting is a PART OF the CELLAR BOXING PLAYBOOK. + +The funny thing is ppl who are saying to "stop talking about Cellar boxing" are also talking about movie stock. So ..... + +&#x200B; + +Edit 13: + +Bruh.. SEC deleted the letter from Edit 9 of this post. + +Here's the archived of the file they deleted after this post blew up: + +[https://web.archive.org/web/20210912094334/https://www.sec.gov/comments/s7-08-08/s70808-144.htm](https://web.archive.org/web/20210912094334/https://www.sec.gov/comments/s7-08-08/s70808-144.htm) + +&#x200B; + +Edit 14: + +Reached 40k character limit. Number 5 explanation: + +[https://www.reddit.com/r/Superstonk/comments/pn0b30/one\_clarification\_to\_uthabats\_post\_634700\_forward/hcnkbh4?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pn0b30/one_clarification_to_uthabats_post_634700_forward/hcnkbh4?utm_source=share&utm_medium=web2x&context=3) + +&#x200B; + +Edit 15: + +https://preview.redd.it/kiipketnh7n71.png?width=1467&format=png&auto=webp&s=babb84b5efaf58e9d1dc6a02e7d1e40b11014c2a + +&#x200B; + +Edit 1: Promised link at end of the post, even though the whole post is contained within this msg lol [https://archive.is/KSS6m](https://archive.is/KSS6m) +#Disclaimer + +The following post contains strictly public information that I have gathered from my own independent research. This information concerns the operations of S3 Consortiums, who I call "Next Investors", and the publicly listed companies they operate with. All further analysis built on top of this is my own, meaning both my subjective opinion and independent calculations, and is prone to error. I am not a financial adviser, and this is not financial advice. I strongly condemn any brigading that results from this post, all information regarding individuals has been sourced from publicly available profiles on the web. + +#Intro + +Alright cunts, I'm back from my self-imposed exile after falling flat on my face putting a number on the returns from the Next Investor emails. This post again is focused on the Next Investors, but taking a different angle. Over the past few days, I've had some messages from individuals asking about my analysis, and the possibility of predicting when they appear. Based on my independent analysis, I believe this is possible, but I won't be discussing that today. Today I will be discussing something that came up in those conversations, which I believe to be a bigger story about who and what the Next Investors really are. Everything below is based on my independent research, with a few helping hands. + + +#Who and what Next Investors claim to be. + +Next Investors claim to be an "investment group" that does research on companies looking for buying opportunities. When they find such an opportunity, they send out an email to their readers. This has a [Well Documented](https://imgur.com/a/i95GieK) pumping effect on the price when the email is sent, which you can read about further in depth [here](https://old.reddit.com/user/Mutated_Cunt/comments/moqm5e/the_next_pump_a_comprehensive_analysis_of_the/). + +They do claim that they do not engage in any trading activities for a given stock within 72 hours either side of sending an email which I am inclined to believe. I don't think even ASIC would let something that blatant past them. + +One thing a lot of people have noticed is that Next Investors have a real lack of transparency about who they are. No email they have ever sent has had an author attached. If you go to their [website](https://www.nextinvestors.com/) nothing immediate is available. On the front page, you get a standard spiel about how they look for small cap opportunities they are dying to share with their readers. Their explicitly stated business model is the following: + +[**What is our business model: We only make money when our portfolio increases in value. We don’t charge subscription fees or management fees - everything here is free.**](https://imgur.com/a/NurrTuK) + +But this tells us nothing about who they are. If we go to their [about page](https://www.nextinvestors.com/lp/about-us/), we get more of a standard spiel about how expert and incredibly helpful they are. Absolutely nothing about the people behind this group, and proof of their expertise. The only proof they show is their claimed returns on their portfolio. + +Way down the bottom of the page, hiding in the [smallest fucking text on a grey background](https://imgur.com/a/Frvxhls), they disclose something about S3 Consortium Pty Ltd. This is their parent, and the next breadcrumb of the trail. + + + +#S3 Consortium Pty Ltd (Stocks Digital), the Bigger picture + + +A lot of you already know this, but Next Investors is one of three "promotion groups", the other two being [Catalyst Hunter](https://catalysthunter.com/) and [Wise Owl](https://wise-owl.com/), that fall under the umbrella of Stocks Digital. This is something that [confused me at first](https://old.reddit.com/r/ASX_Bets/comments/mlx7qd/premarket_thread_for_general_trading_and_plans/gtqwncq/?context=3), but makes a little sense according to their "philosophy". Catalyst hunter is for their short term, Next Investors for mid term, and Wise Owl for long term plays. All three of these have email lists you can sign up for, that have a notable pumping effect on the stock when sent. + +From here, I was able to find the first person with a face I could connect, the twitter page of **their founder [Damian Hajda](https://twitter.com/dhajda).** I have no idea why, but I could not find his name mentioned anywhere on any website run by Stocks Digital. Maybe he prefers anonymity. Personally, I believe it is unethical to hide who you are if you are actively promoting public companies. I had to stalk the people Next Investors follows on twitter to find him. In my dig, I didn't find too much about his background. He started Next Investors around late 2018 / early 2019. He is also the founder of another startup [Socialsuite](https://www.smartcompany.com.au/startupsmart/news/socialsuite-wins-128000-prize-money-at-salesforce-pitch-comp/#.Wp89iLjcdxI.linkedin) which aims to help charities be more effective through data analysis, which appears to be doing [quite nicely](https://www.theaustralian.com.au/business/technology/twitter-again-targets-trump/news-story/bdc98d20179d568e45d9826e980668c5) in more recent times. Their website is [here](https://socialsuitehq.com/). + +Digging through articles posted on Next Investors website, I was only able to find two names attached to articles, [Jonathan Jackson](https://www.nexttechstock.com/immediate-upside-whk-reveals-future-revenue-growth/) and [Meagan Evans](https://www.nexttechstock.com/whk-secures-a21m-us-government-contract-extension/). Remember the first one. + +According to Stocks Digital, the following is their Investment process, which is found directly on their homepage. + +#Our Investment Process +- Our network introduces us to pre screened investment opportunities. + +- Our trusted advisors and sector experts help us assess the investment. + +- We conduct regular meetings with management to build trust and a relationship. + +- Our inhouse team of analysts conduct due diligence and analysis + +- The investment committee makes the final investment decision. + +- We announce the investment to our followers and update them as the company progresses + +- We aim to increase position as the company delivers over time. + +- We aim for free carry within 24 months of investing. + +Now I will focus on that very first step, on what "Our network introduces us to pre screened investment opportunities" really means. + +#How Next Investors Really Make Money + +They are reasonably transparent about the basics of this process on their Stocks Digital website, but not the specifics. Next Investors do not "find" their stocks by doing their own research digging deep, they get approached by the companies. If Next Investors like what they see, they work out an arrangement, and "purchase" the shares in the company and begin "promoting" it under one of their three groups. Lets have a look at this process in detail with an example, their recent pickup of ONE. + +#ONE Case Study, The Devil is in the Details. + +On the 12th of March 2021, ONE released a price sensitive announcement stating that they had [entered an agreement](https://imgur.com/a/T6XxLPk) with Stocks Digital. The previous day, the price closed at $0.08. [Here are the details of this agreement](https://imgur.com/a/VDxEcHP). Translated to English, this means the following: + +- After some haggling, ONE has agreed to pay Next Investors 6.25 million shares instead of a $375,000 cash sum, which is the equivalent of $500,000 in stock, for the **"Services"** of Next Investors. + +- In addition to this, Next Investors agrees to pay $1m in cash for 16,666,666 shares, at an average price of $0.06. + +However, if you look at the net effect of this, according to this agreement Next Investors have acquired (16,666,666+6,250,000)\*0.08 = **$1.83 MILLION** worth of **ONE** shares according to the previous market close, for only **$1 MILLION DOLLARS.** + +- This means that Next Investors paid an effective **$0.044 per share**, representing a **45%** discount to the previous closing price. + +So why are ONE practically donating their shares away for only $1m? The key here is the "services" they are acquiring. Immediately after this announcement was made at 10:23am, the Next Investor email was sent at 10:25 am. This [caused the price](https://ibb.co/2PsTJqz) to **open at $0.14**, a **75% increase** on the closing price of the previous day, to a **maximum of $0.20**, and finally a **closing price of $0.16.** Unfortunately, my free intraday data isn't working for this date, so I cannot show you the instant price movements. Clearly, we can see the backing of Next Investors has a powerful effect, especially since this was their very first email announcing their partnership with ONE, claiming it as their [2021 Tech Pick of the Year](https://www.nexttechstock.com/our-new-2021-tech-pick-year/). + +What am I trying to say with all this? In my opinion, they appear to be an advertising company that masquerades as the retail investor's best friend. I bet that my returns would be pretty fucking great if I could "buy" at a 45% discount. When Next Investors talk about their next "great opportunity", they're already well in the money. They paid $1m for $1.83m of stock, an instant $830k return. At the close of the day, their net assets doubled in value, to $3.66m. **In the space of a day, they "earned" $2.66m on paper.** That's a fucking solid racket if I've ever seen one. + +Another dishonest aspect behind this purchase is that they advertise their [entry price](https://imgur.com/a/sYiSKkO) as $0.08 proudly on their home page. This is highly misleading, and has also been [picked up by another journalist](https://arichlife.com.au/s3-consortium-publishing-misleading-returns-about-oneview-asxone/) who apparently gets paid to do this shit unlike yours truly. + +However, I think this journalist ended his story too soon, because he didn't mention another tidbit hiding inside that announcement which really shines the spotlight on how their "services" work, and I am sure is of great interest to retail investors. From the announcement, they state their intent to ["further increase awareness"](https://imgur.com/a/Pb3iJJ9) of the company ONE through their digital publisher network amplicat.com. + +Okay I lied a little there for the narrative, the first time I became aware of Amplicat was thanks to the legend /u/Darebottle, who discovered that Next Investor's website accesses an API hosted on the Amplicat.com domain. Weaponised autism is powerful. He wanted to know if there was a link because what was on there was very confusing. The ONE announcement confirms that Amplicat and Next Investors are indeed one and the same company operating under different personas. + +From my understanding, Next Investors is the **face they present to retail**, and Amplicat is the **face they present to companies they wish to do business with.** This connection is the headshot, and the most egregious, disgusting part of this post that motivated me to write. + + +#Amplicat, what the fuck is that? + +Amplicat is yet **ANOTHER** component of the behemoth that is Stocks Digital, and as far as I have searched, is advertised fucking **NOWHERE**. In not a SINGLE PLACE is this website named in ANY of Next Investors websites that I can find. I challenge you to prove me wrong. If I do a google search for news of their name, I get [**9 results**](https://imgur.com/a/xeUfSWW) in a fucking foreign language with no relation. + + These guys are off the map. Lets take a dive into [their website](https://www.amplicat.com/) and see why they're keeping such a low profile to retail. Remember, this website is run and OWNED by Stocks Digital. I have taken screenshots of everything, because I suspect that once retail discovers this page, it will be vanished quickly. + +If I had to guess, I believe Amplicat is a concatenation of "Amplify Catalyst", which is a very generous wording. + +Amplicat is what I consider the **TRUE PRODUCT** of Next Investors. When companies trade their shares at enormous discounts to Next Investors, they are buying the services of Amplicat. Their home page advertises themselves as a provider of [GUARANTEED MEDIA COVERAGE](https://imgur.com/a/gJ6rsjT). The business model is simple, you provide shares of your company to Next Investors at a discount, and they will provide a sophisticated, coordinated online marketing campaign for your company. They are mercenaries for hire. + +[Here is a very helpful explainer](https://imgur.com/a/wZLlLRd) from their home page on how it works. For a suitable payment, Next Investors will publish articles/send emails within their own network, and create sponsored content for you. Like a smorgasbord, you get to choose what online publications you want these guys to publish "positive news" about your company in. You can get good news about your company straight onto [Yahoo finance]( +https://au.finance.yahoo.com/news/pursuit-minerals-pursues-european-nickel-targets-to-meet-growing-battery-metal-demand-062832688.html), [bloomberg financial](https://sponsored.bloomberg.com/news/sponsors/features/the-next-oil-rush/88energy/?adv=25442&prx_t=FnYFAwbU-At_sQA) or [news.com.au](https://www.news.com.au/sponsored/wWGLmt5IPjDyNhO0XhLC/the-untapped-potential-of-alaskan-energy/) if you please. This is powerful. + +Lets have a look at the way they describe these articles. One thing I noticed in my original Next Investor analysis was that an awful lot of emails that they sent coincided with a major company announcement. This is no coincidence, it is an [explicitly stated TIMING strategy](https://imgur.com/a/br49hy3) that they employ. They love a good excuse to "promote", and know this is an effective strategy. + +[Here are some companies](https://imgur.com/a/tIgZaoM) that they advertise as having used their services. You may recognize some names (cough cough **RAC** cough cough). + +Now we are up to the **shameful** section, where by my interpretation Next Investors appear to "**boast**" about their ability to increase a share price. On their website, they have a section of [case studies](https://www.amplicat.com/case-studies.html), where they "brag" about their past performance as "promoters" to attract future clients. + +#CASE STUDY 1: Pursuit Minerals' (PUR) Norwegian Nickel Exploration FEBRUARY 2020 + +In this example, Next Investors take credit for ["drawing investor attention to their Norwegian nickel project to improve liquidity in ahead of a capital raising."](https://imgur.com/a/CH8Bax9) TRANSLATION: THEY P****** THE STOCK UP SO PUR COULD GET $$$$ FROM A CR. [Here is the image](https://imgur.com/a/rYEKsP9) from their website showing how over the month of February 2020, their shilling media campaign TRIPLED the stock price from $0.004 to a high of $0.012, a **~~300%~~ 200% INCREASE**(fuck I'm bad at math). One thing awfully dodgy about this is where their chart cuts off, its awfully convenient. It does coincide with about the time a certain virus you may have heard of made its presence known. + + +[HERE IS THE FULL PRICE CHART](https://imgur.com/a/2ApQjW6) for PUR including the months after the purported media campaign. Following their "Successful Cap Raise" the price has PLUMMETED down to $0.002! To be fair, they got fucked pretty hard by external factors, Mar-2020 was a scary time for the entire economy. + +Allow me to do my best to construct the timeline of PUR's Activities straight from their announcements. I might fuck this up because I have absolutely zero qualifications, but feel free to fact check me by reading the announcements on PUR's page. + +#PUR NICKEL VIKING SAGA TIMELINE + +- **Oct 2019** (Share price ~$0.009) : PUR is primarily a [Vanadium exploration company in Scandinavia](https://imgur.com/a/cs27KBl) with 5 projects in Finland, 8 projects in Sweden, and 3 projects in Queensland. [They undergo a Capital Raise of ~$1.2m.](https://imgur.com/a/IZrkfDg) + +- **Jan 2020:** [Progress continues](https://imgur.com/a/KldThQw) on these projects, share price hits an [absolute low of $0.0037!](https://imgur.com/a/lwuvBLB) + +- **Start of Feb 2020:** By my understanding of what Amplicat has put on their website, this is when [Next Investors claims to have started contact with PUR](https://imgur.com/a/rYEKsP9) about "promoting" them at the same time PUR wants to perform a Capital Raise to fund a new Norwegian Nickel exploration project. This time period was not highlighted by me, this was highlighted by them and publicly advertised on their [Amplicat website](https://www.amplicat.com/case-studies.html). The Norwegian project is not yet public information. + +- **Feb 11th 2020:** No public announcement has been made. Next Investors has not published any articles that I can find or sent any emails. The price of PUR has increased to a high of 0.0085. At 12:16pm, their [trading is halted](https://imgur.com/a/q8QmCOa) pending an announcement. + +- **Feb 13th 2020:** PUR undergoes a ["voluntary suspension"](https://imgur.com/a/oIWOkhd) because they love ASIC so much and can't wait to explain why their stock price has doubled under no news prior to this trading halt. + +- **Feb 17th 2020:** PUR is reinstated, and announces their new plans to enter an Option/Purchase agreement for [three Nickel Exploration Projects in Norway.](https://imgur.com/a/kqZxl0U). The next day, they announce another [Capital Raise](https://imgur.com/a/Z3OQ5Ch) of ~23m shares at $0.0073 = $170k to fund this. + +- **Feb 20-21 2020:** Next Investors post a [series of 5 articles](https://imgur.com/a/EWTM4PB), two articles on their own websites, three articles that are sponsored content published to financial sites such as Yahoo Finance. This pushes the price to an intra day high of $0.0125. A certain virus is starting to make itself known. + +- **Mar 24 2020:** PUR admits defeat to the [Wuhan flu](https://imgur.com/a/cUVy9HS), and ceases all exploration activities in Scandinavia. Their share price reaches a low of $0.002. + +- **Skip a few months** they start pursuing exploration activities in other regions, [a gold mine in Arizona](https://www.nextminingboom.com/pursuit-1moz-gold-high-grade-usa-alluvial-project/), and eventually land an exploration license in the [infamous Julimar region](https://www.nextminingboom.com/1600-gain-sparks-julimar-explorer-race-we-just-found-cheapest/), where every new prospector is trying to copy the astronomical rise of Chalice Mines (CHN). + +- Jan 20th 2021: The Viking saga ends, PUR effectively [sells all 18 of their Scandinavian assets for a total of $3m](https://imgur.com/a/ojKvpx2), or $60k per project. The market however is liking their new direction with their company, the share price is $0.032. + + +What we can learn from this case study? If you had followed Next Investors and held, you would be making money but for what I believe to be the wrong reason. The Next Investor promotion was explicitly focused on the Scandinavian projects to support a Cap Raise, and they were paid by PUR to do this. If you had bought shares of PUR believing in the success of the Nickel project, you most likely would have sold at a great loss following the White Swan event of COVID-19 closing their exploration. **Obviously, I don't blame Next Investors for this crash**, but I find it very disingenuous that the stated purpose of their promotional campaign was to support an upcoming Capital Raise, and is touted as a success. + +#CASE STUDY 2: The Golden Child VUL, Feb 2020 + + +In this example, Next Investors take credit for ["a significant rise in liquidity and share price movement immediately after Amplicat promotion."](https://imgur.com/a/QhiXCF2). Again, they pull the same trick of cutting off the COVID crash following their ["promotion"](https://imgur.com/a/NUaPzP7). They claim credit for [20 articles posted](https://imgur.com/a/opMnrrb) in the month of February, two of them to their own websites, and EIGHTEEN sponsored articles. + +The share price rose from a [low of $0.185, to a peak of $0.38](https://imgur.com/a/o896VAp), before again it hit the same problem as PUR where they got fucked by COVID back down to a low of $0.15. + + + + +Again, VUL follows an awfully familiar pattern. Next Investor's chart highlights the beginning of Feb-2020 as the start of their "arrangement". On Feb 11th, they go into trading halt. On Feb 15th, they announce their Positive Pre-feasibility study. On Feb 20th, they say "trust us bro" when ASX asks them about the suspicious price movements before that announcement. + +From Feb 21st to Feb 24th, Next Investors start "promoting" VUL throughout their network. This coincides with the official announcement on the 21st of February for the Positive Scoping study of their project. The share price reaches an intra-day high of $0.38 on the 24th of Feb. + +Again, March 2020 arrives and tanks the share price down to $0.15, along with the rest of the market. + +Ultimately, what can we learn from this case study? The current share of VUL is $7.430 as of my typing this. This was a scenario where everybody won. If you bought at the peak price of this "promotion", your return is ~1700%. Short term, investors may have gotten fucked by covid, but long term this is a winner. Congratulations Next Investors. + + +#CASE STUDY 3: An Awfully Familiar Story + +Along with SGC/XST, one of the most spectacular loss porn events of this year was with 88E, which plummeted from a peak of $0.097 to its current price of ~$0.022, following their failed drilling results. + +Here are some articles about the lead up to this story. + +[Exhibit A](https://www.nextoilrush.com/88-energy-edge-closer-spud-date-one-biggest-oil-wells-2020/#_ga=2.60745130.600602532.1585875991-103860279.1584488176) + + +[Exhibit B](https://sponsored.bloomberg.com/news/sponsors/features/the-next-oil-rush/88energy/?adv=25442&prx_t=FnYFAwbU-At_sQA) + + +[Exhibit C](https://www.news.com.au/sponsored/wWGLmt5IPjDyNhO0XhLC/the-untapped-potential-of-alaskan-energy/) + + +[Exhibit D](https://www.sharecafe.com.au/2019/11/19/88-energys-north-slope-well-could-be-one-of-the-biggest-in-2020/) + +Wait, is there an error? Those articles say "88 Energy’s North Slope Well Could Be One Of The Biggest In 2020"? + +Nope you're reading it right, this is something they pulled not once, but TWICE, and **IN MY COMPLETELY SUBJECTIVE OPINION** they are [BRAGGING ABOUT IT](https://ibb.co/kyT0kXp). + +"88 Energy (ASX: 88E | AIM: 88E) engaged Amplicat(Next Investors) to generate investor interest in the company ahead of its upcoming drilling program scheduled that was anticipated to commence in months’ time." + +This happened in 2020, and it happened again in 2021, WITH NEXT INVESTORS ACTIVELY PROMOTING BOTH TIMES! + +From Nov-2019 to Jan-2020, [Next Investors take credit](https://ibb.co/CHn5Th5) for "Amplifying" the price of 88E from $0.014 to $0.026 in the lead up for their drill campaign. They achieved this [with 22 articles](https://ibb.co/0CDnCZV), 6 of them posted on their own website, and 16 sponsored articles. + +Here is a [pastebin of 10 of these articles](https://pastebin.com/BhQxBMyr) for your viewing displeasure. + +Here is an [article from earlier this year](https://www.nextoilrush.com/oil-strikes-back-88e-leveraged-exploration-success-coming-weeks/) by Next Investors that makes ZERO MENTION of this previous failure, and ZERO MENTION of their previous involvement "promoting" this dog of a company. + +How can Next Investors claim to have a team of sophisticated investors with an eager eye for early opportunities when they pull something like this? + +#The Next Investors Media Network. + +Now I will do a mini summary behind the mechanisms of how Next Investors spread their news today, but you may have already picked up on this. + +[This is what I imagine I look like by now](https://i.imgflip.com/55r9e7.jpg) + +They have three primary methods of distribution + +- **News Articles posted on their own websites [Next Investors](https://www.nextinvestors.com/latest-articles/), [Wise Owl](https://wise-owl.com/commentaries/) [Catalyst Hunter](https://catalysthunter.com/), and most importantly [FinFeed](https://finfeed.com/)** + +You cannot find a direct link to FinFeed from the Next Investor website, but you can find direct links to Next Investors from Finfeed, so its not as "hidden" as they make Amplicat. Finfeed is the primary website where they post articles about companies they are involved with. For articles of all three email producers, Catalyst Hunter, Wise Owl, and Next Investors, corresponding articles are congregated here. + +From Finfeed, we can actually dig into who the fuck is writing these articles. There is no direct page for you to view their authors, but again thanks to the magic of the legendary /u/darebottle , I can give you a [pastebin of all 80 unique authors](https://pastebin.com/rne8z2WD). + +The majority of these authors have only posted 1 or 2 articles, so it is misleading to say they are all affiliated closely with Next Investors. However, I would like to bring attention to two authors. This is all public information, + +[Trevor Hoey](https://finfeed.com/author/trevor-hoey) + +[Jonathan Jackson](https://finfeed.com/author/jonathan-jackson) + +These two authors are responsible for the majority of articles written on Finfeed. Jonathan Jackson is the "Managing Editor at Stocks Digital", which I would creatively describe as "Leader of the Ministry of Propaganda" for Next Investors. Trevor Hoey is a former senior writer for AFR who now works for Next Investors. + +As a sample, today I clicked on the front page of Finfeed, and 7/9 featured articles were written by these two individuals. This holds all the way back to 2019. It is my imperfect suspicion that I cannot prove that the majority of content produced by Next Investors is written by these two people. This is all public information which I simply want to make transparent, as Next Investors provides virtually zero information on their main websites about who is producing their content. + +Another writer that appeared often historically was [Meagan Evans](https://finfeed.com/author/meagan-evans), ~~but as of late she has not posted anything since [Oct 16, 2020](https://finfeed.com/small-caps/technology/retail-isnt-all-dead-which-corner-of-the-market-is-booming/). I believe it is safe to say she is no longer involved prominently with Next Investors.~~ EDIT: Based on more research, I have found [this article](https://catalysthunter.com/technology/fgl/tiny-retail-analytics-stock-fgl-signs-deal-34bn-wholesale-giant-metcash/) posted to Catalyst hunters on the 10th of March 2021. It is now safe to say she is still in the game. + +- **Sponsored Articles posted on Prominent websites** + +In the case studies, I've provided examples of these Sponsored articles. Next Investors gets their writers to copy paste the "promotions" from their own website onto financial news websites online, for a price. In every sponsored content article I have linked in those case studies, the author was one of the three individuals I have mentioned. If you are reading news about a Next Investor company, look for the author name to discover if you are being shilled. + +- **Emails sent directly to Retail Investors** + +This is the obvious one everyone knows about, people sign up to the newsletter, they send the email, the price shoots up. This is a modern development, in the early days of their case studies Next Investors did not send emails, only posted articles. I believe that they have discovered the email method of distribution to be much more powerful in pumping prices up than articles. We can see instant ~20% increases from the minute the email is sent on a candlestick chart. I believe the emails are written by the same people writing the articles, as you can easily correlate the emails sent with named articles written and posted by the individuals on finfeed. + +#A Fourth Frontier? Astroturfing Social Media + +This section is pure speculation, but I believe the next stage in Next Investor's promotional evolution will be astroturfing social media websites like our very own shitposting haven. They are well aware that we exist, and [exploit us to promote their companies](https://ibb.co/3Cf8GzM), and have hired individuals in our demographic to work for them [making memes](https://ibb.co/mD4cXgL) referencing us. What a fucking time to be alive. Because of the effectiveness of their promotional emails/articles, the rising stock prices naturally creates people posting about the Next Investor stocks going up. However, we need to be on red alert for astroturfing shills, remember **POSITIONS OR BAN**. + +#Conclusion + +I believe the business model of Next Investors is highly predatory on retail investors. Companies approach them, and I believe there is evidence to suggest that they make Next Investors aware of non-public information about upcoming announcements for the company. They do this so that Next Investors can co-ordinate emails/articles that are specifically co-ordinated with their announcements. This "timing feature" is an explicitly stated service that Next Investors provide under the name Amplicat. + +In their dealings, they acquire shares in companies at a huge discount to the fair market price, and begin to "actively promote" them across a vast media network. Short term, this causes a significant price increase, and for mining explorers it is for the purpose of justifying Capital Raises at elevated prices. + +This creates unhealthy market cycles, where prices for their stocks surge violently upwards. When you combine this with their media propaganda empire, this causes retail investors (the retards on here) to FOMO into peak prices, and short term become left holding the bag. + +There are cases such as VUL where everybody wins, and I do not believe a company being associated with Next Investors makes it inherently bad. However, their relationship with 88E disgusts me on a personal level. If you are going to promote a company that has failed previously under your promotion, I believe you have the moral obligation to be transparent about this history. I will not tell another person to buy PEN without letting them know about some of the problems they're having with their In Situ chemistry. + +Ultimately, the long term price of these companies makes no difference substantial difference, because they have already been paid for their promotional services. Remember the Silicon Valley maxim, if you are getting something for free, you are not a customer, **YOU ARE THE PRODUCT**. + + +#Open Letter to Next Investors + +Finally, I leave a series of questions that I would like Next Investors to answer, even if this a longshot. I think leaving these questions unanswered speaks louder anyway. Here goes + +#1. Who are the so called "experts" behind your "investment decisions" and what are their credentials? + +There is zero transparency offered on any of your affiliated websites about the "team" involved. There have been clear winners like VUL, but also complete dogs like 88E that you have shilled not once, but twice, leaving retail investors holding the bag. + +At most, I have been able to link five people to your group, but that is all. Why should we not assume you are a marketing company that helps public companies make money by selling shares, not selling a product? + +#2. Why is the entry price on your [website](https://www.nextinvestors.com/portfolio/) misleading for PUR, and are there any other listed entry prices that are similarly misleading? + +From my previously calculation, we know that you effectively purchased 22,916,666 shares of ONE at an average price of $0.044, yet your website states your entry price as $0.08. In this scenario, why have you chosen to use the market price of the closing day prior to your investment as your entry price instead of the actual effective price you paid? +Also the fact that you highlight the "Highest Return" in green on your website is pretty fucking cringe + + +#3. Why are the Entry Dates on your website misleading with regards to your relationships with these companies? + +From the Case Studies page of Amplicat, we know you have been affiliated/doing business with PUR since at least Feb-2020, and 88E since at least Nov-2019, yet you list your "entry date" for these companies as Dec-2020 and Jun-2020 respectively. I believe the first time, they may have only paid you cash instead of shares, but I still find this to be an incredibly dishonest way to operate. + +#4. Why is it so hard to find Amplicat? + +The services offered by your other website "Amplicat" are not advertised anywhere on any of the "retail investor webpages". On this website, you boast about your ability to "improve liquidity in ahead of a capital raising" and create "significant share price movement". Is this conflict of interest not something the retail investors you advertise towards should be aware of? + +#5. How is it possible to "time" emails regarding price sensitive announcements using only public information? + +Your Amplicat website advertises your ability for "Swift & synchronised publication to coincide with material news announcements and macro-economic events". + +I have identified [five separate occasions](https://ibb.co/WHwvXSL) where the email you sent was less than 60 minutes after the announcement was officially made on the ASX. Are you simply that amazing and awesome at processing announcement information and churning it into an email in record speeds, or are you aware of certain things the public is not? + +#6. Do you think your behaviour under Amplicat is befitting of someone holding an Australian Financial Services License? + +I'm no lawyer, but I think there's something to be said about a "conflict of interest" that is hidden away inside the Amplicat division that you do not advertise on your main websites. + +and finally, the one question I really hope they answer + +#7. Why is the [official Twitter account of Amplicat](https://twitter.com/amplicat) suspended for violating Twitter's policies? + +I followed the link to your social media on your website, and as of writing this, [the linked Amplicat twitter account is banned.](https://ibb.co/98qZYbP) Does Jack Dorsey have stricter standards than ASIC? 🤡 🤡 🤡 🤡 (**UPDATE** Amplicat's twitter account is now unbanned) + + +Congrats if you made it all the way through this post in one go. Love you all, lets keep this place special. + +#Update + +I don't know why, but google has decided to show me an actual news article instead of foreign languages when I search for Amplicat now. [Here are the details of their agreement to promote EMN](https://www.globenewswire.com/news-release/2020/08/25/2083606/0/en/Euro-Manganese-Inc-Appoints-Digital-Investor-Relations-Firm.html) +Welcome to the **/r/EthTrader** Daily Discussion thread. + +*** + +The thread guidelines are as follows: + +- All sub rules apply here. Please review our **[rules page](https://www.reddit.com/r/ethtrader/about/rules)** to become familiar with them. The rules page is also linked in the announcement bar above. +- General discussion topics include, but are not limited to, events of the day, technical analysis, alternative Ethereum projects, or minor questions. +- Breaking news or other important content should be submitted as a separate post. +- In-depth altcoin discussions should be referred to the /r/CryptoCurrency discussion thread. To view the thread, [follow this link](https://www.reddit.com/r/CryptoCurrency/search?q=%5BMonthly+General+Discussion%5D&restrict_sr=on&sort=new&t=all) and choose the latest entry on the search page. +- Pumping, venting, trolling, or any other similar behavior should be redirected to the /r/CryptoMarkets trollbox thread. To view the thread, [follow this link](https://www.reddit.com/r/CryptoMarkets/search?q=Trollbox+Thread&sort=new&restrict_sr=on&t=all) and choose the latest entry on the search page. + +*** + +**[EXPERIMENTAL]** - To view live streaming comments for this thread, [click here](https://reddit-stream.com/comments/auto). Account permissions are required to post comments through Reddit-Stream.com. + +*** + +Thank you in advance for your participation. Enjoy! + +My life changed because of one silly post that I came across on reddit. It was a pic of someone holding up their paper wallet from a bitcoin atm showing both public and private keys. The picture made me wonder if there were any nearby bitcoin atms, so I did a quick google search and found an atm 10 minutes away from me. I went to the atm and put in $20 just to say that I had some bitcoin. I signed up for /r/bitcoinbeginners and learned about Coinbase. After signing up with Coinbase, I started researching the "other" crypto being offered and learned about /r/ethtrader. I started buying eth at $11 and eventually invested 10% of my net worth in crypto. + +I stuck with eth when it rose above $400 and when it recently dipped below $200. This month I decided that I wanted to set a baseline on what I would get with my crypto investment. I sold enough eth and bitcoin to pay off the mortgage to my house and compensate for taxes. Today I went to the bank and turned in my final house payment. No matter what happens to crypto from here on out, I have a house. Paying off the house was never a goal for 2017. Hell, it wasn't even a goal for the next decade. + +Do I think eth will hit above $400 again? Yes, and it might happen tomorrow or next week. I've never doubted the technology. However, getting rid of my mortgage takes an immediate, priceless weight off my shoulders. I work in an industry where layoffs always seem to be on the horizon, and it's hard to get a job when everyone is out of a job. Now I don't have to worry about keeping a roof over my family's head. The relief is euphoric. + +I'm not completely off the crypto ride. I still have a good amount of eth left. I'm going to invest a small amount per month back into eth and bitcoin to slowly build my stockpile back up, but I'm not in any rush. I'd like to thank this sub as well as many others for all the knowledge, advice, and entertainment. Posting this on a throwaway account so I can continue to post questions on this sub (I probably made two posts here). + +tl;dr - Paid off my house with cryptocurrency gains. Financial freedom is awesome. + +Edited to add: + +I've been getting a lot of private messages asking for advice on how to get started with investing in crypto. The advice I give to all my friends is to start how I did and just buy $20 worth of bitcoin or ether. Think of $20 as payment for an intro lesson to crypto. I suggest Coinbase only because that's what I started with after the atm, and I thought it was pretty simple to understand. Once you have a small amount of crypto, download a wallet app and practice transferring the crypto from Coinbase to your wallet and back to Coinbase. Then just hold (hodl) the crypto and watch how it gains/loses value and check your risk tolerance, and don't invest more than you're willing to lose completely. Subscribe to the subs that you have your crypto in. + +TLDR: Left some ETH in poloniex when they suspended service in my state. When they didnt un-suspend service when laws changed, I asked for my coins back. They balked at helping me. Its been 1 month, not sure if they ever plan on answering and I'm out 270 ETH (+ other alts). +------------------------------------------------------------------------------------------------------- + +EDIT: As another user as suggested, I'd really appreciate the upvotes for visibility. I hope that this benefits the greater crypto community by educating on the dangers of keeping your funds in an exchange. I also hope this serves as a huge red flag for poloniex users and prospective users. This is how much they care about you (not even enough to have a real person answer your multiple tickets and emails). +------------------------------------------------------------------------------------------------------- + +DOUBLE EDIT: Last night I received a message from poloniex that my ETH withdraw has been initated! Finally got my eth back, thanks to everyone who upvoted, I know that this thread is the only reason I got my funds back. Unfortunately, the Monero and Bitcoin that I had in poloniex were not withdrawn (despite having specified the deposit addresses and balance with “decimal precision”). I’m hoping that these withdraws are also processed, but I’m just thankful that my ETH was returned. Although I was planning to, I have not contacted the SEC or any other regulatory body. From responses on this thread, I realize how many other people are in a similar boat. I hope that poloniex finds a way to increase its capacity to meet customer demand. +------------------------------------------------------------------------------------------------------- + + +I am writing this to make people aware of just how bad customer service has gotten on Poloniex. I have been a customer and user of poloniex since 2015. Most of my eth that I now own was traded for on their exchange. I live in New Hampshire, USA which means back in ~October 2016 my account was "temporarily suspended" due to local laws (which have long since been overruled). + +Poloniex announced a couple weeks in advance that they were going to be shutting down service to NH, so I prepared by withdrawing as much of my funds as possible. I was able to get most off without a problem but there was still a handful (~270) of ETH that I was unable to withdraw before the window closed. At the time I wasnt worried. The note from poloniex stated: + +>You will receive an email with instructions. In brief, you will have until October 6, 2016 (two weeks from the date of this notice) to close any open orders and withdraw your funds. If you aren't able to locate this email, please contact Support for assistance. +>Although your account will be suspended, your data will remain on file. If you attempt to log in, you will be restricted to areas only for viewing and exporting historical data. When we resume operations in New Hampshire, you will be able to log back into your account with all of your historical data and any remaining balances intact. +>Our legal team is working closely with the State of New Hampshire Banking Department and other regulatory agencies to verify that changes in their statutes apply to the services offered by Poloniex and to seek licenses where necessary. This is a nascent industry; as the regulations around it mature, these types of service disruptions may not be entirely avoidable, but we have been and will continue to be proactive in educating regulators and monitoring both existing laws and upcoming changes to these laws so that we can limit interruptions wherever possible. + + +I assumed that as soon as the laws changed (which they did in January), poloniex would re-enable service to NH and I would be able to access and continue to trade my coins at that time. + +Fast forward to May 23 (one month ago)...Despite the NH law changes, poloniex still had not re-enabled my account. The 270 eth that were worth ~$3,200 USD in October are now worth ~$89,100. I decided enough was enough, I needed to take my eth out of poloniex once and for all. As instructed, I contacted support by opening a ticket explaining my situation. I waited over a week and recieved no human response from poloniex. I submitted a new ticket 8 days after I submitted the first, this time I used a different label on the ticket. On submitting this ticket I recieved this automated email: + +>Before closing your Poloniex account you have a chance to provide proof of residency outside of the suspended Country/Estate. +>If you would like to submit proof of residency outside of the suspended Country/Estate please reply to this message and ask for an agent to begin the process of updating your Poloniex profile, do not send any document via email or ticket, the support agent will guide you through uploading the necessary files to your Poloniex profile. +>If you really is a resident of the suspended Country/Estate or prefer to close the account, please login to your Poloniex account and reply to this message providing the exact amount you have on balance of each currency, with decimal precision, and an address for the final withdrawal to be processed for each. +>Please provide an address for each of the currencies, Poloniex may not trade in your behalf. + + +I provided all the information they needed that same day, waited another week, still no human response. + +On June 6th, I submitted another ticket stating that I really needed to withdraw these funds and that I had still not recieved any human response despite fulfilling all automated requests. + + +I waited 5 more days before I finally got message from what appears to have been a human: + +>I do sincerely apologize for the late reply, due to regulations we are unable to process the withdrawal of the whole balance at once unless you submit your full SSN number, i have cleared just cleared the SSN field on your profile, please let me know If/when you upload it and i will send it to verification immediately + >If you prefer not to complete the profile page, your account will be re opened in a limited manner so you can withdrawal the coins yourself at a rate of less than $2000 United States Dollar equivalent per day. +>Best regards, +>Christopher Bologna +>Poloniex Support + +That same day, I logged in, updated my SSN field and replied to the ticket letting them know I had done so. I recieved this response from the same agent: + +>Thank you for entering your SSN, we can now proceed with your full withdrawal,Please log into your Poloniex account and let me know exactly how much you have on balance of each currency, with decimal precision, and address to send the coins to. + +Despite having already provided this info in a previous ticket, I provided it all again. The email response I got (June 10): + +>I will now forwarding you ticket to a agent that will assist in withdrawing your coins and i am afraid there is no time frame for re allowing NH customers,if you need quick access to the coins you wont be able to access them so it is strongly recommended that you send the coins to a wallet you control + +And that was the last I heard from them on this ticket, no one has touched it. + +Two days ago (June 20), I created yet another ticket letting them know that I had recieved no help on my previous tickets and that I really needed my funds from them. I also told them I planned on creating a new ticket each day that I did not recieve a response (which I have). + +Anyhow I'm starting to get a little dejected. I am not sure I'll ever see my ETH again. I'm wondering if I should start seeking legal counsel? Would it be worth the money and effort just to extract 270 ETH that was mine in the first place? If anyone has any ideas I'm happy to hear them. I just want this to be yet another warning to you all, get your coins off exchanges, especially ones like poloniex who seem to get shadier each day. +EDIT: T212 ALLEGEDLY SELLING STOCKS WITHOUT USER PERMISSION [tweet](https://twitter.com/able_adam/status/1355174529665028100?s=21) [tweet](https://twitter.com/zzywest/status/1355176988122750978?s=21) + +EDIT: Mirror stocks on other EU exchanges now blocked too 1/28 + +EDIT2: Straight up BUY RESTRICTIONS! - "Mitigating Risk" no longer named a reason 1/28 + +EDIT3: [UK TRUST PILOT REVIEW](https://uk.trustpilot.com/review/trading212.com) + +EDIT4: BUY restrictions Appear removed as of 1/29 - Will update when $NYSE opens + +EDIT5: T212 Restricts new signups to App and forum. On a Thread deleting & Banning Spree of people who are complaining there + +I think you know which stocks they are. Now, say what you want about meme stocks/wsb etc does this for anyone else not shed a light on this industry as a whole? Or is there actually a case for preventing people piling into this stock? Beyond usual toc on signup which are frankly quite blasé, Ive never had any platform warn or restrict a *particular* stock, especially not under the auspice of protecting me from risk. Was 2008 not an unprecedented market environment? Was the start of covid not? + +This is an extremely worrying precedent for me and last time ill be using t212. + +Edit: I listened to reasonable arguments but this stinks. Its fine if you dont like wsb or the current meme stocks. But look at this precedent and just wait til you spend months on DD and get fucked over anyway, this will continue + +NOTE 1: As perT212 app “In the interest of mitigating risk for our clients, we have temporarily placed (meme stock) in reduce only mode as highly unusual volumes have led to an unprecedented market environment. New positions cannot be opened, existing ones can be reduced or closed” + +NOTE 2: Due to BUY restrictions placed by our intermediary and ever major execution venue worldwide, GameStop will be placed in close-only mode. New BUY positions can't be initiated, existing ones can be reduced or closed +My wife and I just offered 30% OVER asking on a house and got turned down because we didn't waive our right to an inspection. We just can't seem to make a house happen, and we're pretty well off in a low demand area. This society saddens me in ways I can't express. Our governance has failed us. I wouldn't participate, but I won't even be that sad or surprised when the pitchforks come out. I know people desperate enough to be talking about it. It's just sad. Rant done. + +Edit: We also got turned down because I'm a disabled veteran wanting to use my VA loan instead of a conventional loan. Our real estate agent has been hammering us with the message that we need to switch to conventional and I just refuse to let go of a benefit I've earned. + +Edit 2: my reply to the comment that this is just a free market in action. "If you think governance, lobbying and private equity law has nothing to do with what's happening in the housing market right now, you need to do more research. Shelter is an essential human need, and families looking for shelter have to compete with massive corporations and PE firms (domestic and international) who buy up massive inventory and drive up rents to make a profit on the investment. Well governed Capitalism is a good system. Poorly governed capitalism is a nightmare for people like us. What about a law limiting the purchase of certain single family residences to single families who are going to live in them so disabled American veterans and other hard working Americans aren't priced out by Wall Street and Chinese investors? + +Edit 3: My reply to further comments that I'm against a free market: I'm for a well governed free market. Yes. The constitution sought to secure "THE BLESSINGS of liberty", not the blessings and evils. +**Official freestyle = online!** 🏄 + +**Flyysoulja and KodiyakRedd just released a freestyle, we viral my dawgs** + +We need all dem island boys to share this around, we having a tropical winter full of gains this year 🏄‍♂️ + +[https://www.tiktok.com/foryou?is\_copy\_url=1&is\_from\_webapp=v1&item\_id=7025992072108854534&lang=en#/@flyysouljah/video/7025992072108854534](https://www.tiktok.com/foryou?is_copy_url=1&is_from_webapp=v1&item_id=7025992072108854534&lang=en#/@flyysouljah/video/7025992072108854534) + + +📡**Website**: https://islanddoges.io +\_\_\_\_\_\_ +🏝🐕 **ISLAND DOGES**🏝🐕 + +ayy islain dogges to the moooon... to the moon.. to the moon.. + +**ABOUT ISLAND DOGES** + +$ISLAND is an ERC20 Token with absolute meme potential. While other projects rushing things to grab money in a fast way without delivering much, ISLAND DOGES comes around with a fresh-as-fuck-website, strong and smart marketing and the plan to develop the $ISLAND ecosystem by doing an absolute sick NFT drop. + +$ISLAND is backed by tha Islaaaaand Boyyyys (shout out to our boys - Flyysoulja and Kodiyakredd) and is planning to become one of the strongest communities of any meme coin out there. + +🏝 No fucking "dev tokens" (miss me with that bullshiiit) +🏝 No "whitelist" where friend and family can join before you can +🏝 No presale (and no fucking dumps on your head my dawg) +🏝 **100% fair launch** + +>**Ticker**: $ISLAND (ETH) +**Tax**: +3% Marketing +3% Development +1% Redistribution + +[Website](https://islanddoges.io) **|** [Telegram](https://t.me/IslandDoges) | [Twitter](https://twitter.com/islanddoges) |[Chart](https://www.dextools.io/app/ether/pair-explorer/0x89af5a68cfa436693b1797cc2a41715f4530fa61) +🦄 **Buy on UniSwap**: https://app.uniswap.org/#/swap?outputCurrency=0xa0dc5132c91ea4d94fcf1727c32cc5a303b34cfc +&#x200B; + +[https:\/\/betterdwelling.com\/canada-has-the-biggest-gap-between-real-estate-prices-and-incomes-in-the-g7\/](https://preview.redd.it/67n7a099ffd81.png?width=944&format=png&auto=webp&s=bde520a377012e4190ed554d07f33f2c4d203b08) + +Since 2005, *house price-to-income* ratios across Canada rose by over 67%. Ontario and BC obviously have it even worse. + +Among the G7 countries, the comparison is outstanding. The second country that worsens its housing affordability is Germany, with a 28% surge from the 2005 baseline. + +According to any economic metrics, something really dangerous is going on in Canada. And yet, many Canadians believe this is totally normal. Time will tell, I suppose. +Hello beautiful apes! + +I have 2 points to show you. First is that Yahoo is showing completely different values depending on your IP. Try using a VPN with a different country and you'll see. + +Second is that I stumbled upon the ***ENTIRE FUCKING GAME PLAN*** of the naked shorting scheme. I guess an insider spilled the beans anonymously on some forum in 2004. + +What is going on with GME over the last 9 months is a game plan called "Cellar Boxing". + +**The link is at the end of this post. If you don't give a FUCK about the Yahoo data, then just skip to the end and read that. Seriously EVERYONE NEEDS TO READ THAT POST. It is like the holy grail. I got emotional reading it as it confirmed all of our combined DD about naked shorting, rule exemptions, dividends, zombies, even talks about shills.....EVERYTHING... in one fell swoop.** + +I wrote all this Yahoo stuff before I found that link and I just had to stop and stare at the wall for a bit.. This was going to be a much longer post, but I decided to just stick to the facts without speculative walls of text so you're not overwhelmed. + +Because trust me, reading that post from 2004 is going to blow your fucking mind. It blew mine and everyone I showed it to. + +Okay so first point: + +Here's the Yahoo data from my IP in the USA + +&#x200B; + +&#x200B; + +https://preview.redd.it/0v9ody3ujxm71.png?width=546&format=png&auto=webp&s=99ce6f08beff4e7d7ad75923efb9e0dbc1f29c92 + +&#x200B; + +Here's the data from a European VPN + +&#x200B; + +https://preview.redd.it/z4qg2kkwjxm71.png?width=831&format=png&auto=webp&s=93ca4f7615b0ced4f26f2eae9ce1d20f6c4eb209 + +First thing that stands out to me is Enterprise Value. + +According to + +[https://www.investopedia.com/ask/answers/111414/whats-difference-between-enterprise-value-and-market-capitalization.asp](https://www.investopedia.com/ask/answers/111414/whats-difference-between-enterprise-value-and-market-capitalization.asp) + +Market capitalization is the sum total of all the outstanding shares of a company. **Enterprise value takes into account** the debt that the company has taken on. Enterprise value, therefore, can identify strengths or weaknesses that market cap cannot. + +And [https://www.arborinvestmentplanner.com/enterprise-value-ev-calculating-enterprise-value-ratios/](https://www.arborinvestmentplanner.com/enterprise-value-ev-calculating-enterprise-value-ratios/) + +**A company with more debt than cash will have** an enterprise value greater than its market capitalization. Companies with identical market capitalizations can have radically different enterprise values. + +\----------------------------------------------- + +I had thought perhaps they're doing some kind of fuckery with convertible preferred shares, or convertible bonds. Which they very well may be, but I can't prove that right this second. So I leave this idea in speculation land. + +But let's hand it off to u/semerien for the actual reason for this discrepancy: + +**Total cash per share is 5.64** + +**Cash at 1.72 billion** + +**Which means Yahoo thinks there is just over 300 million shares** + +**Enterprise value is using that share count at current price** + +**57 billion for ev using 304 million shares at 190 price, cash at 1.7B and debt at 0.7 billion** + +***I may have rounded every single number cuz I'm lazy but what's a few 100 million in rounding errors*** + +\---------------------------------------------------Okay ok gimme my mic back lmao + +So.. No speculation. Mathematical Fact: Yahoo's calculating on 300M\~ shares for outside USA when factoring Enterprise Value. + +Where does Yahoo get this data? + +[https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en\_US](https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en_US) + +* Financial statements, valuation ratios, market cap and shares outstanding data provided by Morningstar. + +Okay so Yahoo gets this specific data from Morningstar. + +Who does Morningstar get it's data from? + +[https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178\_28k.htm](https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178_28k.htm) + +\--------------------------------------------------- + +*We collect most of our data from original source documents that are publicly available, such as regulatory filings and fund company documents. This is the main source of operations data for securities in our open-end, closed-end, exchange-traded fund, and variable annuity databases, as well as for financial statement data in our equity database. This information is available at no cost.* + +***For performance-related information (including total returns, net asset values, dividends, and capital gains), we receive daily electronic updates from individual fund companies, transfer agents, and custodians.*** *We don’t need to pay any fees to obtain this performance data. In some markets we supplement this information with a standard market feed such as Nasdaq for daily net asset values, which we use for quality assurance and filling in any gaps in fund-specific performance data. We also receive most of the details on underlying portfolio holdings for mutual funds, closed-end funds, exchange-traded funds, and variable annuities electronically from fund companies, custodians, and transfer agents.* + +\--------------------------------------------------- + +So that answers the question as to why the float changed from **126M to 248M** in the same day. + +This is not a glitch. + +One way or the other, the data got pushed "***from individual fund companies, transfer agents, and custodians"*** *to Morningstar, to Yahoo.* Intraday. + +Why Morningstar shows different than Yahoo? I won't speculate. But it can't be a glitch. Just based on the source and how it's updated. Speculate on why or how they're censoring it, not on it being a glitch. + +These different values I believe are important because they paint a picture of intent to hide the true data. It's bits of the real data slipping through the cracks. + +Let's look at the numbers: + +\--------------------------------------------------- + +**Enterprise Value in USA = 14.22B** + +**Forward P/E in USA = 36.67** + +**--** + +**Enterprise Value in other countries = 57.07B** + +**Forward P/E in other countries = $6,347.00** + +\--------------------------------------------------- + +EV is calculated on 300 ish million shares. People say "Yahoo's data is always screwy". I don't think that's true. I think it's the opposite. The market is always being FUCKED with. As you'll see in the post I'm going to link to. And Yahoo just has a hard time cleaning it up and censoring it. Because of SO MUCH FUCKERY. And sometimes shit slips through unintentionally. + +Forward P/E.. What the fuck is forward P/E some of you might be wondering? + +*(Side note: Yahoo gets this data from a data analytics company called Refinitiv.)* + +\--------------------------------------------------- + +[*https://www.investopedia.com/terms/f/forwardpe.asp*](https://www.investopedia.com/terms/f/forwardpe.asp) + +*Forward price-to-earnings (forward P/E) is a version of the ratio of* *price-to-earnings* *(P/E) that uses forecasted earnings for the P/E calculation.* + +[*https://www.investopedia.com/ask/answers/050515/what-does-forward-pe-indicate-about-company.asp*](https://www.investopedia.com/ask/answers/050515/what-does-forward-pe-indicate-about-company.asp) + +*A company with a higher forward P/E ratio than the industry or market average indicates* ***an expectation the company is likely to experience a significant amount of growth***\*. ... Ultimately, the P/E ratio is a metric that allows investors to determine how valuable a stock is, more so than the market price alone.\* + +\--------------------------------------------------- + +Here's an example for Tesla: + +[https://finbox.com/NASDAQGS:TSLA/explorer/pe\_ltm](https://finbox.com/NASDAQGS:TSLA/explorer/pe_ltm) + +*"Tesla's p/e ratio for fiscal years ending December 2016 to 2020 averaged 211.2x. Tesla's operated at median p/e ratio of -37.2x from fiscal years ending December 2016 to 2020. Looking back at the last five years, Tesla's p/e ratio peaked in December 2020 at 1,255.0x."* + +So we all know what happened with Tesla. The P/E ratio seems to be pretty good at calculating the growth. The higher the number, the bigger the growth. A number in the thousands is basically **"Oh shit we got a winner".** + +Thing is, you get the number by calculating the share price divided by the estimated future earnings per share. + +*"For example, assume that a company has a current share price of $50 and this year’s earnings per share are $5. Analysts estimate that the company's earnings will grow by 10% over the next fiscal year. The company has a current P/E ratio of $50 / 5 = 10x. "* + +Well Gamestop's at 190, let's say for what ever crazy fucking reason we're expecting future earnings per share to be at 5 dollars per share. We're currently expecting around 1 dollar in January but for sake of argument let's pretend it's $5. + +$190 / 5 = 38. + +Okay interesting so far that makes sense for the USA calculation roughly. + +But HOW THE FUCK DO WE GET **$6,347?** + +It's impossible. Unless.. wait a sec.. + +$31,735 / 5 = **$6,347** + +Could it be the true value of GME is actually $31,735 right now? + +I mean even if we use the 1 dollar per share earning thing from January, that's still assuming CURRENT VALUE = **$6,347 per share....** + +It is my belief that based on these two numbers, the fact that they **change** depending on **your IP** \+ the float being at **248M**, as well as **THE MIND BLOWING INFORMATION** contained within the post I'm about to link to in a second... + +That the Yahoo thing isn't a glitch. + +It's a hole in the fuckery veil they're trying to place upon our eyes. + +It's to hide the fact that the float is shorted at LEAST 3x verifiably. + +*(I believe it to be 50x by now)* + +And also to stop us from deducing the actual share price in what ever dark pool of death the shorts are hiding in using these numbers. They're hiding the company's fucking growth from us. + +In comparison for shits and giggles, I checked movie stock in the VPN and Yahoo's changing that data too. + +But not to hide the shorts or hide growth. Instead to hide a decline. + +Movie Stock's Forward P/E is N/A for USA but for other countries it's **-68.71** + +\--------------------------------------------------- + +[https://www.investopedia.com/ask/answers/05/negativeeps.asp](https://www.investopedia.com/ask/answers/05/negativeeps.asp) + +*"A negative P/E ratio means* ***the company has negative earnings or is losing money***\*. ... Investors buying stock in a company with a negative P/E should be aware that they are buying shares of an unprofitable company and be mindful of the associated risks."\* + +\--------------------------------------------------- + +If I'm right about this whole thing, then this by itself is proof that GME is the MOASS and whoever's doing it, either Yahoo, or Morningstar, whoever doesn't want us to know that movie stock is obviously not the MOASS. + +Now........ + +Whether you agree with me or not, you MUST read this post: + +Archived in case it gets deleted + +[https://archive.is/KSS6m](https://archive.is/KSS6m) + +&#x200B; + +You know what, just in case you're too lazy to click it, I'll copy and paste the whole thing. You can click the link to verify. It's that important to read. + +\--------------------------------------------------- + +Sunday, 03/07/04 07:56:25 PM + +"Cellar Boxing" + +There’s a form of the securities fraud known as naked short selling that is becoming very popular and lucrative to the market makers that practice it. It is known as “CELLAR BOXING” and it has to do with the fact that the NASD and the SEC had to arbitrarily set a minimum level at which a stock can trade. This level was set at $.0001 or one-one hundredth of a penny. + +This level is appropriately referred to as “the CELLAR”. This $.0001 level can be used as a "backstop" for all kinds of market maker and naked short selling manipulations. + +“CELLAR BOXING” has been one of the security frauds du jour since 1999 when the market went to a “decimalization” basis. In the pre-decimalization days the minimum market spread for most stocks was set at 1/8th of a dollar and the market makers were guaranteed a healthy “spread”. + +Since decimalization came into effect, those one-eighth of a dollar spreads now are often only a penny as you can see in Microsoft’s quote throughout the day. Where did the unscrupulous MMs go to make up for all of this lost income? + +They headed "south" to the OTCBB and Pink Sheets where the protective effects from naked short selling like Rule 10-a, and NASD Rules 3350, 3360, and 3370 are nonexistent. + +The unique aspect of needing an arbitrary “CELLAR” level is that the lowest possible incremental gain above this CELLAR level represents a 100% spread available to MMs making a market in these securities. + +When compared to the typical spread in Microsoft of perhaps four-tenths of 1%, this is pretty tempting territory. In fact, when the market is no bid to $.0001 offer there is theoretically an infinite spread. + +In order to participate in “CELLAR BOXING”, the MMs first need to pummel the **price** per share down to these levels. The lower they can force the share price, the larger are the percentage spreads to feed off of. + +This is easily done via garden variety naked short selling. In fact if the MM is large enough and has enough visibility of buy and sell orders as well as order flow, he can simultaneously be acting as the conduit for the sale of nonexistent shares through Canadian co-conspiring broker/dealers and their associates with his right hand at the same time that his left hand is naked short selling into every buy order that appears through its own proprietary accounts. + +The key here is to be a dominant enough of a MM to have visibility of these buy orders. This is referred to as "broker/dealer internalization" or naked short selling via "desking" which refers to the market makers trading desk. + +While the right hand is busy flooding the victim company's market with "counterfeit" shares that can be sold at any instant in time the left hand is nullifying any upward pressure in share price by neutralizing the demand for the securities. The net effect becomes no demonstrable demand for shares and a huge oversupply of shares which induces a downward spiral in share price. + +In fact, until the "beefed up" version of Rule 3370 (Affirmative determination in writing of "borrowability" by settlement date) becomes effective, U.S. MMs have been "legally" processing naked short sale orders out of Canada and other offshore locations even though they and the clearing firms involved knew by history that these shares were in no way going to be delivered. + +The question that then begs to be asked is how "the system" can allow these obviously bogus sell orders to clear and settle. + +To find the answer to this one need look no further than to Addendum "C" to the Rules and Regulations of the NSCC subdivision of the DTCC. This gaping loophole allows the DTCC, which is basically the 11,000 b/ds and banks that we refer to as "Wall Street”, to borrow shares from those investors naive enough to hold these shares in "street name" at their brokerage firm. + +This amounts to about 95% of us. Theoretically, this “borrow” was designed to allow trades to clear and settle that involved LEGITIMATE 1 OR 2 DAY delays in delivery. + +This "borrow" is done unbeknownst to the investor that purchased the shares in question and amounts to probably the largest "conflict of interest" known to mankind. The question becomes would these investors knowingly loan, without compensation, their shares to those whose intent is to bankrupt their investment if they knew that the loan process was the key mechanism needed for the naked short sellers to effect their goal? + +Another question that arises is should the investor's b/d who just earned a commission and therefore owes its client a fiduciary duty of care, be acting as the intermediary in this loan process keeping in mind that this b/d is being paid the cash value of the shares being loaned as a means of collateralizing the loan, all unbeknownst to his client the purchaser. + +An interesting phenomenon occurs at these "CELLAR" levels. Since NASD Rule 3370 allows MMs to legally naked short sell into markets characterized by a plethora of buy orders at a time when few sell orders are in existence, a MM can theoretically "legally" sit at the $.0001 level and sell nonexistent shares all day long because at no bid and $.0001 ask there is obviously a huge disparity between buy orders and sell orders. + +What tends to happen is that every time the share price tries to get off of the CELLAR floor and onto the first step of the stairway at $.0001 there is somebody there to step on the hands of the victim corporation's market. + +Once a given micro cap corporation is “boxed in the CELLAR” it doesn’t have a whole lot of options to climb its way out of the CELLAR. One obvious option would be for it to reverse split its way out of the CELLAR but history has shown that these are counter-productive as the market capitalization typically gets hammered and the post split share price level starts heading back to its original pre-split level. + +Another option would be to organize a sustained buying effort and muscle your way out of the CELLAR but typically there will, as if by magic, be a naked short sell order there to meet each and every buy order. Sometimes the shareholder base can muster up enough buying pressure to put the market at $.0001 bid and $.0002 offer for a limited amount of time. + +Later the market makers will typically pound the $.0001 bids with a blitzkrieg of selling to wipe out all of the bids and the market goes back to no bid and $.0001 offer. When the weak-kneed shareholders see this a few times they usually make up their mind to sell their shares the next time that a $.0001 bid appears and to get the heck out of Dodge. + +This phenomenon is referred to as “shaking the tree” for weak-kneed investors and it is very effective. + +At times the market will go to $.0001 bid and $.0003 offer. This sets up a juicy 200% spread for the MMs and tends to dissuade any buyers from reaching up to the "lofty" level of $.0003. If a $.0002 bid should appear from a MM not "playing ball" with the unscrupulous MMs, it will be hit so quickly that Level 2 will never reveal the existence of the bid. + +The $.0001 bid at $.0003 offer market sets up a "stalemate" wherein market makers can leisurely enjoy the huge spreads while the victim company slowly dilutes itself to death by paying the monthly bills with "real" shares sold at incredibly low levels. Since all of these development-stage corporations have to pay their monthly bills, time becomes on the side of the naked short sellers. + +At times it almost seems that the unscrupulous market makers are not actively trying to kill the victim corporation but instead want to milk the situation for as long of a period of time as possible and let the corporation die a slow death by dilution. + +The reality is that it is extremely easy to strip away 99% of a victim company’s share price or market cap and to keep the victim corporation “boxed“ in the CELLAR, but it really is difficult to kill a corporation especially after management and the shareholder base have figured out the game that is being played at their expense. + +As the weeks and months go by the market makers make a fortune with these huge percentage spreads but the net aggregate naked short positions become astronomical from all of this activity. This leads to some apprehension amongst the co-conspiring MMs. + +The predicament they find themselves in is that they can’t even stop naked short selling into every buy order that appears because if they do the share price will gap and this will put tremendous pressures on net capital reserves for the MMs and margin maintenance requirements for the co-conspiring hedge funds and others operating out of the more than 13,000 naked short selling margin accounts set up in Canada. + +And of course covering the naked short position is out of the question since they can’t even stop the day-to-day naked short selling in the first place and you can't be covering at the same time you continue to naked short sell. + +What typically happens in these situations is that the victim company has to massively dilute its share structure from the constant paying of the monthly burn rate with money received from the selling of “real” shares at artificially low levels. + +Then the goal of the naked short sellers is to point out to the investors, usually via paid “Internet bashers”, that with the, let’s say, 50 billion shares currently issued and outstanding, that this lousy company is not worth the $5 million market cap it is trading at, especially if it is just a shell company whose primary business plan was wiped out by the naked short sellers’ tortuous interference earlier on. + +The truth of the matter is that the single biggest asset of these victim companies often becomes the astronomically large aggregate naked short position that has accumulated throughout the initial “bear raid” and also during the “CELLAR BOXING” phase. + +The goal of the victim company now becomes to avoid the 3 main goals of the naked short sellers, namely: bankruptcy, a reverse split, or the forced signing of a death spiral convertible debenture out of desperation. + +As long as the victim company can continue to pay the monthly burn rate, then the game plan becomes to make some of the strategic moves that hundreds of victim companies have been forced into doing which includes name changes, CUSIP # changes, cancel/reissue procedures, dividend distributions, amending of by-laws and Articles of Corporation, etc. + +Nevada domiciled companies usually cancel all of their shares in the system, both real and fake, and force shareholders and their b/ds to PROVE the ownership of the old “real” shares before they get a new “real” share. Many also file their civil suits at this time also. + +This indirect forcing of hundreds of U.S. micro cap corporations to go through all of these extraneous hoops and hurdles as a means to survive, whether it be due to regulatory apathy or lack of resources, is probably one of the biggest black eyes the U.S. financial systems have ever sustained. + +In a perfect world it would be the regulators that periodically audit the “C” and “D” sub-accounts at the DTCC, the proprietary accounts of the MMs, clearing firms, and Canadian b/ds, and force the buy-in of counterfeit shares, many of which are hiding behind altered CUSIP #s, that are detected above the Rule 11830 guidelines for allowable “failed deliveries” of one half of 1% of the shares issued. U.S. micro cap corporations should not have to periodically “purge” their share structure of counterfeit electronic book entries but if the regulators will not do it then management has a fiduciary duty to do it. + +A lot of management teams become overwhelmed with grief and guilt in regards to the huge increase in the number of shares issued and outstanding that have accumulated during their “watch”. The truth however is that as long as management made the proper corporate governance moves throughout this ordeal then a huge number of resultant shares issued and outstanding is unavoidable and often indicative of an astronomically high naked short position and is nothing to be ashamed of. + +These massive naked short positions need to be looked upon as huge assets that need to be developed. Hopefully the regulators will come to grips with the reality of naked short selling and tactics like "CELLAR BOXING" and quickly address this fraud that has decimated thousands of U.S. micro cap corporations and the tens of millions of U.S. investors therein. + +\--------------------------------------------------- + +HO....LEEEEEE......FUQ + +Bruh.. + +This was written in 2004. + +I really don't have anything more to say. + +(Last minute about to finish this post and u/Hopeless_Dreams713 showed me a patent found by u/Toxsic99 + +[https://patents.google.com/patent/US7904377B2/en](https://patents.google.com/patent/US7904377B2/en) which I THINK is a fucking patent for ladder attacks but I have no more brain power to spend after reading/writing this. So I include it as a bonus for any wrinkles with extra brain power to decipher.) + +&#x200B; + +**TL;DR Yahoo changes data depending on the IP. Seems like only USA gets censored data. Based on the forward P/E of the uncensored data, it's possible GME is anywhere between 6k to 31k per share on some dark side of the fence. And "Cellar Boxing" is the game plan shorts use to destroy America.** + +Edit 2: + +https://preview.redd.it/yrs92ane7zm71.png?width=1124&format=png&auto=webp&s=fc09b8bdce8e0539f483100a1f07412e0a0dc96a + +Edit 3: + +Smart ape found reply in the post basically confirming that us requesting the share certificates is fucking them up the bum bum + +[https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hciatum/](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hciatum/) + +&#x200B; + +Edit 4: + +&#x200B; + +https://preview.redd.it/doc7rcishzm71.png?width=1188&format=png&auto=webp&s=32154766400b459f78986ec66cf8660e8c9971cc + +[https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hcifuez?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hcifuez?utm_source=share&utm_medium=web2x&context=3) + +&#x200B; + +Edit 5: + +&#x200B; + +[Can't just be a Yahoo glitch. Impossible.](https://preview.redd.it/d64gr6lzizm71.png?width=1068&format=png&auto=webp&s=80a85ab0b5f590a1f81d4a577168adb0e1dc0920) + +&#x200B; + +[https://www.nasdaq.com/market-activity/stocks/gme](https://www.nasdaq.com/market-activity/stocks/gme) + +Edit 6: + +Bruh, we literally got onto the top 15 of Popular of all of Reddit with this. We're breaking the simulation. LFGOOOOOO. And also if you're new here from the rest of the Reddit and don't know about Superstonk, we love you and this post is undeniable that the stock market is rigged and GME about to blow. + +And I'm so happy that this information has a chance to be seen by more people. These hedgefunds have been destroying America for decades. Stunting our growth as a species. What kind of medical advances could we have made by now? Science? Technology? All shorted to hell because of some greedy hedge fund pricks. + +Please share this with everyone you know so that more people can be aware of their tactics. It is important that they know they lost. And when we are in the financial position of power, we must be better human beings. And invest into technology and medicine and help the world become what it could have been. + +This is our one chance at changing the world for the better. + +&#x200B; + +Edit 7: + +&#x200B; + +https://preview.redd.it/c91hnnptg0n71.png?width=1166&format=png&auto=webp&s=93967bedc4274d5555fe12028a4bbdd267700b7b + +[https://www.youtube.com/watch?v=IL1QznrSwWw](https://www.youtube.com/watch?v=IL1QznrSwWw) + +&#x200B; + +Edit 8: + +WE MADE TOP 5 of r/all holy shit. \*insert another emotional speech\* + +Also: + +&#x200B; + +https://preview.redd.it/37w6299bq0n71.png?width=1194&format=png&auto=webp&s=eca37cf73123bd9ee10656eebb60ba625d1eda4e + +[https://www.dtcc.com/about/leadership/board/david-goone](https://www.dtcc.com/about/leadership/board/david-goone) + +&#x200B; + +Edit 9: + +Letter to the SEC from 2008 mentioning all this. + +[https://www.sec.gov/comments/s7-08-08/s70808-144.htm](https://www.sec.gov/comments/s7-08-08/s70808-144.htm) + +&#x200B; + +Edit 10: + +SUPER SMOOTH BRAIN EXPLANATION for those who have NO idea what is going on: + +**When you buy a stock, you're betting that it's going up.** + +**But if you feel it's going to go down, then there's a bet for that.** + +**It's called a short bet. It's pretty simple.** + +**Imagine your friend has a watch priced at $100. And you think tomorrow it's going to be worth $50. You say to your friend "Hey lemme borrow dat real quick" and you go and pawn it at a pawn shop for $100.** + +**What happened? So far you have a contract to buy back the watch to give back to your friend, but you also have $100.** + +**Tomorrow comes, and the price is $50. You go and buy the watch back for $50. You keep the $50 left over. Give the friend back is watch + like 5% interest and everyone's happy.** + +**But what if that watch increased in price instead of decreased?** + +**You go to buy the watch back, and it's $200?? Uh oh.. You now have a contract to buy the watch, and you'll have to pay $100 out of pocket to buy it back. So you lost money.** + +**You wait and figure it'll go back down. To your surprise, the watch price just keeps increasing. $300, $500, $1,000 to $10,000 to $100,000 to $10,000,000** + +**You owe your friend that watch at any price. No matter what. But you can keep waiting by simply paying him a fee every day to borrow. It's called a borrow fee, oddly enough.** + +**Unfortunately you only have limited assets. So sooner or later you won't have enough money to pay the borrow fee. And then you're forced to go bankrupt and sell all your assets and your house, and your car, and your boat, and your planes to pay for the watch.** + +**So that's what's going on with GME. But instead of 1 watch, it's billions and billions of shares. And they're making fake copies of shares that they don't even have.** + +**Sooner or later, they must buy back the shares. And at any cost. And they will be forced to sell everything they own to do it.** + +**Up until now we've only reverse engineered the idea and processes behind "HOW" they're doing it. This post from 2004 detailed every step of the way. And it is very emotional to us because we were right. And they tried gaslighting us for 9 months that we were wrong.** + +&#x200B; + +Edit 11: + +This question gets popped up alot. So if you're wondering about how it affects movie stock, look at this comment chain: + +[https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hcjjw5o?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hcjjw5o?utm_source=share&utm_medium=web2x&context=3) + +&#x200B; + +Edit 12: + +Some people are saying Cellar Boxing doesn't apply to GME because it's not at sub penny levels. + +BUT YOU GUYS ARE MISSING THE FACT THAT GME WAS AT 3 DOLLARS A SHARE. + +In order to CELLAR BOX the stock, they would have to first NAKED SHORT IT TO HELL. + +They short it from 3 dollars hoping for it to go to below a dollar and then get it into that cellar range. BUT THEY FAILED. That's what those people saying it's not relevant to GME are missing. + +It IS relevant to GME. Because CELLAR BOXING was the GAME PLAN. Imagine you have a playbook with strategies on how to play a game. THATS CELLAR BOXING. Naked shorting is a PART OF the CELLAR BOXING PLAYBOOK. + +The funny thing is ppl who are saying to "stop talking about Cellar boxing" are also talking about movie stock. So ..... + +&#x200B; + +Edit 13: + +Bruh.. SEC deleted the letter from Edit 9 of this post. + +Here's the archived of the file they deleted after this post blew up: + +[https://web.archive.org/web/20210912094334/https://www.sec.gov/comments/s7-08-08/s70808-144.htm](https://web.archive.org/web/20210912094334/https://www.sec.gov/comments/s7-08-08/s70808-144.htm) + +&#x200B; + +Edit 14: + +Reached 40k character limit. Number 5 explanation: + +[https://www.reddit.com/r/Superstonk/comments/pn0b30/one\_clarification\_to\_uthabats\_post\_634700\_forward/hcnkbh4?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pn0b30/one_clarification_to_uthabats_post_634700_forward/hcnkbh4?utm_source=share&utm_medium=web2x&context=3) + +&#x200B; + +Edit 15: + +https://preview.redd.it/kiipketnh7n71.png?width=1467&format=png&auto=webp&s=babb84b5efaf58e9d1dc6a02e7d1e40b11014c2a + +&#x200B; + +Edit 1: Promised link at end of the post, even though the whole post is contained within this msg lol [https://archive.is/KSS6m](https://archive.is/KSS6m) +It has come to the attention of the Moderators of [/r/ASX\_Bets](https://www.reddit.com/r/ASX_Bets) and [/r/Ausfinance](https://www.reddit.com/r/Ausfinance), the FB "ASX Stock tips" and other members of the Australia Investor community that there has been discussion within the Coalition government of Australia (contrary to the advice of the apparently non corrupt regulators) of permanent changes in the legal structures of Australian public company disclosure laws. [These laws, hereafter referred to as "The let financial criminals avoid punishment" laws, or "Director Crims paradise", have the objective of reducing the requirement and liability of company directors in event that meaningful disclosure of news does not occur in a timely manner to the investing public.](https://www.abc.net.au/news/2021-02-18/continuous-disclosure-laws-watered-down-permanently/13163854) Effectively turning what is already extremely weak enforcement against financial criminals to become almost impossible to enforce. + +&#x200B; + +&#x200B; + +While some relaxation of laws during the COVID-19 pandemic were reasonable on practicality reasons, the "Director crims paradise" laws appears to exclusively be oriented around allowing and encouraging criminal behaviour, which is not acceptable from a government enforcing law and order. Insider trading is already seen as a chronic issue within Australian securities by many people, including the retail investor community (Mums, Dads and 22 yr old idiots alike). Creating an inside and an outside, often sorted by existing wealth, not investor ability. [The inside are able to obtain information prior to it being made publicly available. This is either by personal and business contacts, or by the corrupt practice of providing early knowledge to larger investors, on the basis that this will provide outside returns to these individuals.](https://www.anu.edu.au/news/all-news/study-exposes-insider-trading-on-australian-stock-market) + +&#x200B; + +&#x200B; + +If none of the above practices are present, then why are the laws being relaxed? Even the /r/ASX_bets autist can work out that one of the easiest ways to make prosecuting the guilty harder is to take away the already flimsy laws that require them to act in a slightly less dodgy manner. If permitting more corruption is not the aimed objective of the Government, then why is liability being reduced? Why pass the "Director crims paradise" to allow criminals that steal money from citizens of Australia and be held non accountable? It is not ideal that we are currently dependent on the private sector as the main enforcers of fraud protection, but given the extremely suspicious reduction in funding for ASIC over the last decade (i.e the "Defund the police of the rich" concept) that is all that is left. + +&#x200B; + +&#x200B; + +The major function of company directors is to provide guidance to the company on behalf of it's owners, the shareholders. Described by the Australian Financial Review as " Handsomely paid directors, stewarding vast amounts of capital ", the directors also have a responsibly to provide information to the shareholders they represent, their bosses. Directors are well paid individuals, in exchange they are held to a significant legal liability in order to ensure that they act in a sound manner and to ensure that those under their direction act in a sound manner. While there are exceptional circumstances in which these individuals, who hold themselves as highly skilled professional may make errors, they should be held to account when it moves outside of a true error into "conveniant error" which is expected to happen in future. If they leak, provide information or quietly sit on disclosure so "those in the know" have the ability to exit or enter their positions, they should be held accountable. The burden to prove that delays were not malicious should be made harder, not softer. Otherwise the rot in the capital markets will continue and the respect of the markets will weaken. Some say this is due to rising director insurance costs. We ask if an increase in the price of fire insurance would lead to a ban on firefighting, or if it might be better to ban making houses out of cardboard and gunpowder. [Similar moves to reduce the insurance burden on those who hurt others have ended in disaster.](https://www.dmagazine.com/publications/d-magazine/2016/november/christopher-duntsch-dr-death/) + +&#x200B; + +&#x200B; + +It is suggested that members of [/r/ASX\_bets](https://www.reddit.com/r/ASX_bets) , [/r/Ausfinance](https://www.reddit.com/r/Ausfinance) and our investing compatriots together begin to make it clear that allowing and encouraging criminals should not be policy of a government in this country. Make this an issue on your non reddit Social media. Contact your Federal member of Parliament (it does work, just ask a boomer with 4 investment properties) and your senators. Do it by phone, by letter and by email. If corruption is not the goal, then don't make rules stopping corruption weaker. If you are a member of the Liberal Party, ask your local branch why crooks are being allowed to fleece party members with the allowance of your leadership, behaviour that will surely cost them votes. Don't pretend this is something about one side of politics or the other, this is bad policy that excessively helps the guilty, nothing more. + +&#x200B; + +&#x200B; + +This isn't a political group, we'd rather spend our time looking at good Stonks, too bad that will be harder with these changes. This group is focused on the market and wants to know that others have as much information as us. We don't understand why the government started this. + +&#x200B; + +&#x200B; + +TLDR. Your rockets are at risk. It might be time to fight. +This will be long....Sorry in advance. I decided I'd like to research Michael Burry since I've seen so many people talking about him on here and this is just what I've discovered about him and his methods. + +**Quick Facts:** + +* Founder of hedge fund Scion Capital 2000-2008. Closed to focus on personal investments +* Best known for seeing the subprime mortgage crisis (2007-2010) and profiting from it +* Investment style is built upon Benjamin Graham and David Dodd’s 1934 book Security Analysis: "All my stock picking is 100% based on the concept of a margin of safety." + +**Strategy:** + +* Michael Burry's strategy as he states is not very complex. He tries to buy shares of unpopular companies when the look like roadkill, and sell them when they've been cleaned up a bit. Lets take a look at his Q2 2020 Positions, top buys, and top sells. There are a few that are not big surprises but check it out. + +|Stock|Shares|Market Value|% of Portfolio| +|:-|:-|:-|:-| +|GOOG / Alphabet Inc Class C (CALL)|80,000 | $113,089,000 | 35.87 | +| FB / Facebook Inc (CALL) | 93,200 | $21,163,000 | 6.71 | +| BKNG / Booking Holdings Inc (CALL) | 11,600 | $18,471,000 | 5.86 | +| GS / Goldman Sachs Group (CALL) | 73,600 | $14,545,000 | 4.61 | +| GME / Gamestop Corp | 2,750,000 | $11,935,000 | 3.79 | +| WDC / Western Digital Inc (CALL) | 270,000 | $11,921,000 | 3.78 | +| BBBY / Bed Bath & Beyond Inc | 1,000,000 | $10,600,000 | 3.36 | +| DISCA / Discovery Inc | 500,000 | $10,550,000 | 3.35 | +| TCOM / Trip.com Inc | 325,000 | $8,424,000 | 2.67 | +| QRVO / Qorvo Inc | 75,000 | $8,290,000 | 2.63 | + +* **Top Buys** + * GOOG / Alphabet Inc Class C (CALL) + * FB / Facebook Inc (CALL) + * BKNG / Booking Holdings Inc (CALL) + * GS / Goldman Sachs Group (CALL) + * WDC / Western Digital Inc (CALL) +* **Top Sells** + * Jack / Jack In The Box Inc + * FB / Facebook Inc + * BA / Boeing Inc + * MAXR / Maxar Technologies Ltd + * QRVO / Qorvo Inc + +Mr. Burry's weapon of choice is his **research** and that it's critical for him to understand a company's value before laying down a dime and that 100% of his stock picking is based on the concept of margin of safety introduced in the book "Security Analysis" which I am reading through right now and dang is it huge lol. He also states that he has his own version of their technique, but that the net is that he wants to protect his downside to prevent permanent loss of capital. Specific, known catalyst are not necessary. Sheer, outrageous value is enough. + +He cares little about the level of the general market and puts few restrictions on potential investments. They can be large-cap stocks, small cap, mid cap, micro cap, tech or non-tech and finds out-of-favor industries a particularly fertile ground for best-of-breed shares at **steep discounts**. + +**How does he determine the discount?** + +* Focuses on free cash flow and enterprise value (Market capitalization less cash plus debt) +* Screen companies by look at enterprise value/EBITDA ratio. Accepted ratio varies with the industry and it position in the economic cycle +* If stock passes loose screen, looks harder to determine specific price and value of a company + * Takes into account off-balance sheet items and true free cash flow + * Ignores price-earning ratios + * Return of equity is deceptive and dangerous + * Prefers minimal debt + * Adjust book value to a realistic number +* Invest in rare birds - asset plays, and to a lesser extent, arbitrage opportunities and companies selling at less than two-thirds of net value +* Will mix in with companies favored by Warren Buffet **IF** they become available at good prices. Deserving of longer holding periods. + +**How many Stocks does he hold?** + +* Likes to hold 12 to 18 stocks diversified among various depressed industries, and tends to be fully invested. Provides enough room for his best ideas and helps with volatility. +* Feels volatility is no relation to risk. + +**Tax Implications** + +* Not concerned much about tax. Know his portfolio turnover will generally exceed 50% annually, and at 20% the long-term tax benefits of low-turnover pretty much disappear. + +**When he buys** + +* He mixes barebones technical analysis into his strategy. +* Prefers to buy within 10% to 15% of a 52-week low that has shown itself to offer some price support. If a stock other than a rare bird breaks a new low, in most cases he cuts the loss. + * Balances the fact that he is turning his back on potentially greater value with the fact that since implementing this rule he hasn't had a single misfortunate blow up his entire portfolio + +&#x200B; + +>In the end, investing is neither a science nor an art - it is a scientific art. + +&#x200B; + +**Works Cited** + +[https://acquirersmultiple.com/2020/08/michael-burrys-top-10-holdings-q2-2020-plus-top-buys-sells/](https://acquirersmultiple.com/2020/08/michael-burrys-top-10-holdings-q2-2020-plus-top-buys-sells/) + +[https://acquirersmultiple.com/2017/11/michael-burry-search-for-unpopular-companies-that-look-like-road-kill/](https://acquirersmultiple.com/2017/11/michael-burry-search-for-unpopular-companies-that-look-like-road-kill/) + +[https://en.wikipedia.org/wiki/Michael\_Burry](https://en.wikipedia.org/wiki/Michael_Burry) +**Also worth noting:** Model T parts were engineered well, and many model Ts that have been maintained well are still operable with the original parts. How many modern cars will last as long? +I see more and more people that “swear” by this guy and his advice. Did you know he filed for bankruptcy? If everyone could pay for everything with cash, the whole world would be millionaires. Rather than listen to this clown’s basic advice you should have gotten in elementary school, go read “The Richest Man in Babylon” + +https://www.reddit.com/r/personalfinance/comments/19wsz5/how_do_you_guys_feel_about_dave_ramsey/?utm_source=share&utm_medium=ios_app&utm_name=iossmf +All the DD I do (DD I do, haha) always leads me back to Vanguard - lowest cost, higher dividends, and have proven the test of time. Why even bother having 10 etfs in one fund? Seems time consuming - +WHY WERE WE HALTED? WHY WERE PEOPLE GETTING ALERTS OVER $500? WHAT HAPPENED THIS MORNING?WHY WERE WE HALTED? WHY WERE PEOPLE GETTING ALERTS OVER $500? WHAT HAPPENED THIS MORNING?WHY WERE WE HALTED? WHY WERE PEOPLE GETTING ALERTS OVER $500? WHAT HAPPENED THIS MORNING?WHY WERE WE HALTED? WHY WERE PEOPLE GETTING ALERTS OVER $500? WHAT HAPPENED THIS MORNING? +Hello beautiful apes! + +I have 2 points to show you. First is that Yahoo is showing completely different values depending on your IP. Try using a VPN with a different country and you'll see. + +Second is that I stumbled upon the ***ENTIRE FUCKING GAME PLAN*** of the naked shorting scheme. I guess an insider spilled the beans anonymously on some forum in 2004. + +What is going on with GME over the last 9 months is a game plan called "Cellar Boxing". + +**The link is at the end of this post. If you don't give a FUCK about the Yahoo data, then just skip to the end and read that. Seriously EVERYONE NEEDS TO READ THAT POST. It is like the holy grail. I got emotional reading it as it confirmed all of our combined DD about naked shorting, rule exemptions, dividends, zombies, even talks about shills.....EVERYTHING... in one fell swoop.** + +I wrote all this Yahoo stuff before I found that link and I just had to stop and stare at the wall for a bit.. This was going to be a much longer post, but I decided to just stick to the facts without speculative walls of text so you're not overwhelmed. + +Because trust me, reading that post from 2004 is going to blow your fucking mind. It blew mine and everyone I showed it to. + +Okay so first point: + +Here's the Yahoo data from my IP in the USA + +&#x200B; + +&#x200B; + +https://preview.redd.it/0v9ody3ujxm71.png?width=546&format=png&auto=webp&s=99ce6f08beff4e7d7ad75923efb9e0dbc1f29c92 + +&#x200B; + +Here's the data from a European VPN + +&#x200B; + +https://preview.redd.it/z4qg2kkwjxm71.png?width=831&format=png&auto=webp&s=93ca4f7615b0ced4f26f2eae9ce1d20f6c4eb209 + +First thing that stands out to me is Enterprise Value. + +According to + +[https://www.investopedia.com/ask/answers/111414/whats-difference-between-enterprise-value-and-market-capitalization.asp](https://www.investopedia.com/ask/answers/111414/whats-difference-between-enterprise-value-and-market-capitalization.asp) + +Market capitalization is the sum total of all the outstanding shares of a company. **Enterprise value takes into account** the debt that the company has taken on. Enterprise value, therefore, can identify strengths or weaknesses that market cap cannot. + +And [https://www.arborinvestmentplanner.com/enterprise-value-ev-calculating-enterprise-value-ratios/](https://www.arborinvestmentplanner.com/enterprise-value-ev-calculating-enterprise-value-ratios/) + +**A company with more debt than cash will have** an enterprise value greater than its market capitalization. Companies with identical market capitalizations can have radically different enterprise values. + +\----------------------------------------------- + +I had thought perhaps they're doing some kind of fuckery with convertible preferred shares, or convertible bonds. Which they very well may be, but I can't prove that right this second. So I leave this idea in speculation land. + +But let's hand it off to u/semerien for the actual reason for this discrepancy: + +**Total cash per share is 5.64** + +**Cash at 1.72 billion** + +**Which means Yahoo thinks there is just over 300 million shares** + +**Enterprise value is using that share count at current price** + +**57 billion for ev using 304 million shares at 190 price, cash at 1.7B and debt at 0.7 billion** + +***I may have rounded every single number cuz I'm lazy but what's a few 100 million in rounding errors*** + +\---------------------------------------------------Okay ok gimme my mic back lmao + +So.. No speculation. Mathematical Fact: Yahoo's calculating on 300M\~ shares for outside USA when factoring Enterprise Value. + +Where does Yahoo get this data? + +[https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en\_US](https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en_US) + +* Financial statements, valuation ratios, market cap and shares outstanding data provided by Morningstar. + +Okay so Yahoo gets this specific data from Morningstar. + +Who does Morningstar get it's data from? + +[https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178\_28k.htm](https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178_28k.htm) + +\--------------------------------------------------- + +*We collect most of our data from original source documents that are publicly available, such as regulatory filings and fund company documents. This is the main source of operations data for securities in our open-end, closed-end, exchange-traded fund, and variable annuity databases, as well as for financial statement data in our equity database. This information is available at no cost.* + +***For performance-related information (including total returns, net asset values, dividends, and capital gains), we receive daily electronic updates from individual fund companies, transfer agents, and custodians.*** *We don’t need to pay any fees to obtain this performance data. In some markets we supplement this information with a standard market feed such as Nasdaq for daily net asset values, which we use for quality assurance and filling in any gaps in fund-specific performance data. We also receive most of the details on underlying portfolio holdings for mutual funds, closed-end funds, exchange-traded funds, and variable annuities electronically from fund companies, custodians, and transfer agents.* + +\--------------------------------------------------- + +So that answers the question as to why the float changed from **126M to 248M** in the same day. + +This is not a glitch. + +One way or the other, the data got pushed "***from individual fund companies, transfer agents, and custodians"*** *to Morningstar, to Yahoo.* Intraday. + +Why Morningstar shows different than Yahoo? I won't speculate. But it can't be a glitch. Just based on the source and how it's updated. Speculate on why or how they're censoring it, not on it being a glitch. + +These different values I believe are important because they paint a picture of intent to hide the true data. It's bits of the real data slipping through the cracks. + +Let's look at the numbers: + +\--------------------------------------------------- + +**Enterprise Value in USA = 14.22B** + +**Forward P/E in USA = 36.67** + +**--** + +**Enterprise Value in other countries = 57.07B** + +**Forward P/E in other countries = $6,347.00** + +\--------------------------------------------------- + +EV is calculated on 300 ish million shares. People say "Yahoo's data is always screwy". I don't think that's true. I think it's the opposite. The market is always being FUCKED with. As you'll see in the post I'm going to link to. And Yahoo just has a hard time cleaning it up and censoring it. Because of SO MUCH FUCKERY. And sometimes shit slips through unintentionally. + +Forward P/E.. What the fuck is forward P/E some of you might be wondering? + +*(Side note: Yahoo gets this data from a data analytics company called Refinitiv.)* + +\--------------------------------------------------- + +[*https://www.investopedia.com/terms/f/forwardpe.asp*](https://www.investopedia.com/terms/f/forwardpe.asp) + +*Forward price-to-earnings (forward P/E) is a version of the ratio of* *price-to-earnings* *(P/E) that uses forecasted earnings for the P/E calculation.* + +[*https://www.investopedia.com/ask/answers/050515/what-does-forward-pe-indicate-about-company.asp*](https://www.investopedia.com/ask/answers/050515/what-does-forward-pe-indicate-about-company.asp) + +*A company with a higher forward P/E ratio than the industry or market average indicates* ***an expectation the company is likely to experience a significant amount of growth***\*. ... Ultimately, the P/E ratio is a metric that allows investors to determine how valuable a stock is, more so than the market price alone.\* + +\--------------------------------------------------- + +Here's an example for Tesla: + +[https://finbox.com/NASDAQGS:TSLA/explorer/pe\_ltm](https://finbox.com/NASDAQGS:TSLA/explorer/pe_ltm) + +*"Tesla's p/e ratio for fiscal years ending December 2016 to 2020 averaged 211.2x. Tesla's operated at median p/e ratio of -37.2x from fiscal years ending December 2016 to 2020. Looking back at the last five years, Tesla's p/e ratio peaked in December 2020 at 1,255.0x."* + +So we all know what happened with Tesla. The P/E ratio seems to be pretty good at calculating the growth. The higher the number, the bigger the growth. A number in the thousands is basically **"Oh shit we got a winner".** + +Thing is, you get the number by calculating the share price divided by the estimated future earnings per share. + +*"For example, assume that a company has a current share price of $50 and this year’s earnings per share are $5. Analysts estimate that the company's earnings will grow by 10% over the next fiscal year. The company has a current P/E ratio of $50 / 5 = 10x. "* + +Well Gamestop's at 190, let's say for what ever crazy fucking reason we're expecting future earnings per share to be at 5 dollars per share. We're currently expecting around 1 dollar in January but for sake of argument let's pretend it's $5. + +$190 / 5 = 38. + +Okay interesting so far that makes sense for the USA calculation roughly. + +But HOW THE FUCK DO WE GET **$6,347?** + +It's impossible. Unless.. wait a sec.. + +$31,735 / 5 = **$6,347** + +Could it be the true value of GME is actually $31,735 right now? + +I mean even if we use the 1 dollar per share earning thing from January, that's still assuming CURRENT VALUE = **$6,347 per share....** + +It is my belief that based on these two numbers, the fact that they **change** depending on **your IP** \+ the float being at **248M**, as well as **THE MIND BLOWING INFORMATION** contained within the post I'm about to link to in a second... + +That the Yahoo thing isn't a glitch. + +It's a hole in the fuckery veil they're trying to place upon our eyes. + +It's to hide the fact that the float is shorted at LEAST 3x verifiably. + +*(I believe it to be 50x by now)* + +And also to stop us from deducing the actual share price in what ever dark pool of death the shorts are hiding in using these numbers. They're hiding the company's fucking growth from us. + +In comparison for shits and giggles, I checked movie stock in the VPN and Yahoo's changing that data too. + +But not to hide the shorts or hide growth. Instead to hide a decline. + +Movie Stock's Forward P/E is N/A for USA but for other countries it's **-68.71** + +\--------------------------------------------------- + +[https://www.investopedia.com/ask/answers/05/negativeeps.asp](https://www.investopedia.com/ask/answers/05/negativeeps.asp) + +*"A negative P/E ratio means* ***the company has negative earnings or is losing money***\*. ... Investors buying stock in a company with a negative P/E should be aware that they are buying shares of an unprofitable company and be mindful of the associated risks."\* + +\--------------------------------------------------- + +If I'm right about this whole thing, then this by itself is proof that GME is the MOASS and whoever's doing it, either Yahoo, or Morningstar, whoever doesn't want us to know that movie stock is obviously not the MOASS. + +Now........ + +Whether you agree with me or not, you MUST read this post: + +Archived in case it gets deleted + +[https://archive.is/KSS6m](https://archive.is/KSS6m) + +&#x200B; + +You know what, just in case you're too lazy to click it, I'll copy and paste the whole thing. You can click the link to verify. It's that important to read. + +\--------------------------------------------------- + +Sunday, 03/07/04 07:56:25 PM + +"Cellar Boxing" + +There’s a form of the securities fraud known as naked short selling that is becoming very popular and lucrative to the market makers that practice it. It is known as “CELLAR BOXING” and it has to do with the fact that the NASD and the SEC had to arbitrarily set a minimum level at which a stock can trade. This level was set at $.0001 or one-one hundredth of a penny. + +This level is appropriately referred to as “the CELLAR”. This $.0001 level can be used as a "backstop" for all kinds of market maker and naked short selling manipulations. + +“CELLAR BOXING” has been one of the security frauds du jour since 1999 when the market went to a “decimalization” basis. In the pre-decimalization days the minimum market spread for most stocks was set at 1/8th of a dollar and the market makers were guaranteed a healthy “spread”. + +Since decimalization came into effect, those one-eighth of a dollar spreads now are often only a penny as you can see in Microsoft’s quote throughout the day. Where did the unscrupulous MMs go to make up for all of this lost income? + +They headed "south" to the OTCBB and Pink Sheets where the protective effects from naked short selling like Rule 10-a, and NASD Rules 3350, 3360, and 3370 are nonexistent. + +The unique aspect of needing an arbitrary “CELLAR” level is that the lowest possible incremental gain above this CELLAR level represents a 100% spread available to MMs making a market in these securities. + +When compared to the typical spread in Microsoft of perhaps four-tenths of 1%, this is pretty tempting territory. In fact, when the market is no bid to $.0001 offer there is theoretically an infinite spread. + +In order to participate in “CELLAR BOXING”, the MMs first need to pummel the **price** per share down to these levels. The lower they can force the share price, the larger are the percentage spreads to feed off of. + +This is easily done via garden variety naked short selling. In fact if the MM is large enough and has enough visibility of buy and sell orders as well as order flow, he can simultaneously be acting as the conduit for the sale of nonexistent shares through Canadian co-conspiring broker/dealers and their associates with his right hand at the same time that his left hand is naked short selling into every buy order that appears through its own proprietary accounts. + +The key here is to be a dominant enough of a MM to have visibility of these buy orders. This is referred to as "broker/dealer internalization" or naked short selling via "desking" which refers to the market makers trading desk. + +While the right hand is busy flooding the victim company's market with "counterfeit" shares that can be sold at any instant in time the left hand is nullifying any upward pressure in share price by neutralizing the demand for the securities. The net effect becomes no demonstrable demand for shares and a huge oversupply of shares which induces a downward spiral in share price. + +In fact, until the "beefed up" version of Rule 3370 (Affirmative determination in writing of "borrowability" by settlement date) becomes effective, U.S. MMs have been "legally" processing naked short sale orders out of Canada and other offshore locations even though they and the clearing firms involved knew by history that these shares were in no way going to be delivered. + +The question that then begs to be asked is how "the system" can allow these obviously bogus sell orders to clear and settle. + +To find the answer to this one need look no further than to Addendum "C" to the Rules and Regulations of the NSCC subdivision of the DTCC. This gaping loophole allows the DTCC, which is basically the 11,000 b/ds and banks that we refer to as "Wall Street”, to borrow shares from those investors naive enough to hold these shares in "street name" at their brokerage firm. + +This amounts to about 95% of us. Theoretically, this “borrow” was designed to allow trades to clear and settle that involved LEGITIMATE 1 OR 2 DAY delays in delivery. + +This "borrow" is done unbeknownst to the investor that purchased the shares in question and amounts to probably the largest "conflict of interest" known to mankind. The question becomes would these investors knowingly loan, without compensation, their shares to those whose intent is to bankrupt their investment if they knew that the loan process was the key mechanism needed for the naked short sellers to effect their goal? + +Another question that arises is should the investor's b/d who just earned a commission and therefore owes its client a fiduciary duty of care, be acting as the intermediary in this loan process keeping in mind that this b/d is being paid the cash value of the shares being loaned as a means of collateralizing the loan, all unbeknownst to his client the purchaser. + +An interesting phenomenon occurs at these "CELLAR" levels. Since NASD Rule 3370 allows MMs to legally naked short sell into markets characterized by a plethora of buy orders at a time when few sell orders are in existence, a MM can theoretically "legally" sit at the $.0001 level and sell nonexistent shares all day long because at no bid and $.0001 ask there is obviously a huge disparity between buy orders and sell orders. + +What tends to happen is that every time the share price tries to get off of the CELLAR floor and onto the first step of the stairway at $.0001 there is somebody there to step on the hands of the victim corporation's market. + +Once a given micro cap corporation is “boxed in the CELLAR” it doesn’t have a whole lot of options to climb its way out of the CELLAR. One obvious option would be for it to reverse split its way out of the CELLAR but history has shown that these are counter-productive as the market capitalization typically gets hammered and the post split share price level starts heading back to its original pre-split level. + +Another option would be to organize a sustained buying effort and muscle your way out of the CELLAR but typically there will, as if by magic, be a naked short sell order there to meet each and every buy order. Sometimes the shareholder base can muster up enough buying pressure to put the market at $.0001 bid and $.0002 offer for a limited amount of time. + +Later the market makers will typically pound the $.0001 bids with a blitzkrieg of selling to wipe out all of the bids and the market goes back to no bid and $.0001 offer. When the weak-kneed shareholders see this a few times they usually make up their mind to sell their shares the next time that a $.0001 bid appears and to get the heck out of Dodge. + +This phenomenon is referred to as “shaking the tree” for weak-kneed investors and it is very effective. + +At times the market will go to $.0001 bid and $.0003 offer. This sets up a juicy 200% spread for the MMs and tends to dissuade any buyers from reaching up to the "lofty" level of $.0003. If a $.0002 bid should appear from a MM not "playing ball" with the unscrupulous MMs, it will be hit so quickly that Level 2 will never reveal the existence of the bid. + +The $.0001 bid at $.0003 offer market sets up a "stalemate" wherein market makers can leisurely enjoy the huge spreads while the victim company slowly dilutes itself to death by paying the monthly bills with "real" shares sold at incredibly low levels. Since all of these development-stage corporations have to pay their monthly bills, time becomes on the side of the naked short sellers. + +At times it almost seems that the unscrupulous market makers are not actively trying to kill the victim corporation but instead want to milk the situation for as long of a period of time as possible and let the corporation die a slow death by dilution. + +The reality is that it is extremely easy to strip away 99% of a victim company’s share price or market cap and to keep the victim corporation “boxed“ in the CELLAR, but it really is difficult to kill a corporation especially after management and the shareholder base have figured out the game that is being played at their expense. + +As the weeks and months go by the market makers make a fortune with these huge percentage spreads but the net aggregate naked short positions become astronomical from all of this activity. This leads to some apprehension amongst the co-conspiring MMs. + +The predicament they find themselves in is that they can’t even stop naked short selling into every buy order that appears because if they do the share price will gap and this will put tremendous pressures on net capital reserves for the MMs and margin maintenance requirements for the co-conspiring hedge funds and others operating out of the more than 13,000 naked short selling margin accounts set up in Canada. + +And of course covering the naked short position is out of the question since they can’t even stop the day-to-day naked short selling in the first place and you can't be covering at the same time you continue to naked short sell. + +What typically happens in these situations is that the victim company has to massively dilute its share structure from the constant paying of the monthly burn rate with money received from the selling of “real” shares at artificially low levels. + +Then the goal of the naked short sellers is to point out to the investors, usually via paid “Internet bashers”, that with the, let’s say, 50 billion shares currently issued and outstanding, that this lousy company is not worth the $5 million market cap it is trading at, especially if it is just a shell company whose primary business plan was wiped out by the naked short sellers’ tortuous interference earlier on. + +The truth of the matter is that the single biggest asset of these victim companies often becomes the astronomically large aggregate naked short position that has accumulated throughout the initial “bear raid” and also during the “CELLAR BOXING” phase. + +The goal of the victim company now becomes to avoid the 3 main goals of the naked short sellers, namely: bankruptcy, a reverse split, or the forced signing of a death spiral convertible debenture out of desperation. + +As long as the victim company can continue to pay the monthly burn rate, then the game plan becomes to make some of the strategic moves that hundreds of victim companies have been forced into doing which includes name changes, CUSIP # changes, cancel/reissue procedures, dividend distributions, amending of by-laws and Articles of Corporation, etc. + +Nevada domiciled companies usually cancel all of their shares in the system, both real and fake, and force shareholders and their b/ds to PROVE the ownership of the old “real” shares before they get a new “real” share. Many also file their civil suits at this time also. + +This indirect forcing of hundreds of U.S. micro cap corporations to go through all of these extraneous hoops and hurdles as a means to survive, whether it be due to regulatory apathy or lack of resources, is probably one of the biggest black eyes the U.S. financial systems have ever sustained. + +In a perfect world it would be the regulators that periodically audit the “C” and “D” sub-accounts at the DTCC, the proprietary accounts of the MMs, clearing firms, and Canadian b/ds, and force the buy-in of counterfeit shares, many of which are hiding behind altered CUSIP #s, that are detected above the Rule 11830 guidelines for allowable “failed deliveries” of one half of 1% of the shares issued. U.S. micro cap corporations should not have to periodically “purge” their share structure of counterfeit electronic book entries but if the regulators will not do it then management has a fiduciary duty to do it. + +A lot of management teams become overwhelmed with grief and guilt in regards to the huge increase in the number of shares issued and outstanding that have accumulated during their “watch”. The truth however is that as long as management made the proper corporate governance moves throughout this ordeal then a huge number of resultant shares issued and outstanding is unavoidable and often indicative of an astronomically high naked short position and is nothing to be ashamed of. + +These massive naked short positions need to be looked upon as huge assets that need to be developed. Hopefully the regulators will come to grips with the reality of naked short selling and tactics like "CELLAR BOXING" and quickly address this fraud that has decimated thousands of U.S. micro cap corporations and the tens of millions of U.S. investors therein. + +\--------------------------------------------------- + +HO....LEEEEEE......FUQ + +Bruh.. + +This was written in 2004. + +I really don't have anything more to say. + +(Last minute about to finish this post and u/Hopeless_Dreams713 showed me a patent found by u/Toxsic99 + +[https://patents.google.com/patent/US7904377B2/en](https://patents.google.com/patent/US7904377B2/en) which I THINK is a fucking patent for ladder attacks but I have no more brain power to spend after reading/writing this. So I include it as a bonus for any wrinkles with extra brain power to decipher.) + +&#x200B; + +**TL;DR Yahoo changes data depending on the IP. Seems like only USA gets censored data. Based on the forward P/E of the uncensored data, it's possible GME is anywhere between 6k to 31k per share on some dark side of the fence. And "Cellar Boxing" is the game plan shorts use to destroy America.** + +Edit 2: + +https://preview.redd.it/yrs92ane7zm71.png?width=1124&format=png&auto=webp&s=fc09b8bdce8e0539f483100a1f07412e0a0dc96a + +Edit 3: + +Smart ape found reply in the post basically confirming that us requesting the share certificates is fucking them up the bum bum + +[https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hciatum/](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hciatum/) + +&#x200B; + +Edit 4: + +&#x200B; + +https://preview.redd.it/doc7rcishzm71.png?width=1188&format=png&auto=webp&s=32154766400b459f78986ec66cf8660e8c9971cc + +[https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hcifuez?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hcifuez?utm_source=share&utm_medium=web2x&context=3) + +&#x200B; + +Edit 5: + +&#x200B; + +[Can't just be a Yahoo glitch. Impossible.](https://preview.redd.it/d64gr6lzizm71.png?width=1068&format=png&auto=webp&s=80a85ab0b5f590a1f81d4a577168adb0e1dc0920) + +&#x200B; + +[https://www.nasdaq.com/market-activity/stocks/gme](https://www.nasdaq.com/market-activity/stocks/gme) + +Edit 6: + +Bruh, we literally got onto the top 15 of Popular of all of Reddit with this. We're breaking the simulation. LFGOOOOOO. And also if you're new here from the rest of the Reddit and don't know about Superstonk, we love you and this post is undeniable that the stock market is rigged and GME about to blow. + +And I'm so happy that this information has a chance to be seen by more people. These hedgefunds have been destroying America for decades. Stunting our growth as a species. What kind of medical advances could we have made by now? Science? Technology? All shorted to hell because of some greedy hedge fund pricks. + +Please share this with everyone you know so that more people can be aware of their tactics. It is important that they know they lost. And when we are in the financial position of power, we must be better human beings. And invest into technology and medicine and help the world become what it could have been. + +This is our one chance at changing the world for the better. + +&#x200B; + +Edit 7: + +&#x200B; + +https://preview.redd.it/c91hnnptg0n71.png?width=1166&format=png&auto=webp&s=93967bedc4274d5555fe12028a4bbdd267700b7b + +[https://www.youtube.com/watch?v=IL1QznrSwWw](https://www.youtube.com/watch?v=IL1QznrSwWw) + +&#x200B; + +Edit 8: + +WE MADE TOP 5 of r/all holy shit. \*insert another emotional speech\* + +Also: + +&#x200B; + +https://preview.redd.it/37w6299bq0n71.png?width=1194&format=png&auto=webp&s=eca37cf73123bd9ee10656eebb60ba625d1eda4e + +[https://www.dtcc.com/about/leadership/board/david-goone](https://www.dtcc.com/about/leadership/board/david-goone) + +&#x200B; + +Edit 9: + +Letter to the SEC from 2008 mentioning all this. + +[https://www.sec.gov/comments/s7-08-08/s70808-144.htm](https://www.sec.gov/comments/s7-08-08/s70808-144.htm) + +&#x200B; + +Edit 10: + +SUPER SMOOTH BRAIN EXPLANATION for those who have NO idea what is going on: + +**When you buy a stock, you're betting that it's going up.** + +**But if you feel it's going to go down, then there's a bet for that.** + +**It's called a short bet. It's pretty simple.** + +**Imagine your friend has a watch priced at $100. And you think tomorrow it's going to be worth $50. You say to your friend "Hey lemme borrow dat real quick" and you go and pawn it at a pawn shop for $100.** + +**What happened? So far you have a contract to buy back the watch to give back to your friend, but you also have $100.** + +**Tomorrow comes, and the price is $50. You go and buy the watch back for $50. You keep the $50 left over. Give the friend back is watch + like 5% interest and everyone's happy.** + +**But what if that watch increased in price instead of decreased?** + +**You go to buy the watch back, and it's $200?? Uh oh.. You now have a contract to buy the watch, and you'll have to pay $100 out of pocket to buy it back. So you lost money.** + +**You wait and figure it'll go back down. To your surprise, the watch price just keeps increasing. $300, $500, $1,000 to $10,000 to $100,000 to $10,000,000** + +**You owe your friend that watch at any price. No matter what. But you can keep waiting by simply paying him a fee every day to borrow. It's called a borrow fee, oddly enough.** + +**Unfortunately you only have limited assets. So sooner or later you won't have enough money to pay the borrow fee. And then you're forced to go bankrupt and sell all your assets and your house, and your car, and your boat, and your planes to pay for the watch.** + +**So that's what's going on with GME. But instead of 1 watch, it's billions and billions of shares. And they're making fake copies of shares that they don't even have.** + +**Sooner or later, they must buy back the shares. And at any cost. And they will be forced to sell everything they own to do it.** + +**Up until now we've only reverse engineered the idea and processes behind "HOW" they're doing it. This post from 2004 detailed every step of the way. And it is very emotional to us because we were right. And they tried gaslighting us for 9 months that we were wrong.** + +&#x200B; + +Edit 11: + +This question gets popped up alot. So if you're wondering about how it affects movie stock, look at this comment chain: + +[https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hcjjw5o?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hcjjw5o?utm_source=share&utm_medium=web2x&context=3) + +&#x200B; + +Edit 12: + +Some people are saying Cellar Boxing doesn't apply to GME because it's not at sub penny levels. + +BUT YOU GUYS ARE MISSING THE FACT THAT GME WAS AT 3 DOLLARS A SHARE. + +In order to CELLAR BOX the stock, they would have to first NAKED SHORT IT TO HELL. + +They short it from 3 dollars hoping for it to go to below a dollar and then get it into that cellar range. BUT THEY FAILED. That's what those people saying it's not relevant to GME are missing. + +It IS relevant to GME. Because CELLAR BOXING was the GAME PLAN. Imagine you have a playbook with strategies on how to play a game. THATS CELLAR BOXING. Naked shorting is a PART OF the CELLAR BOXING PLAYBOOK. + +The funny thing is ppl who are saying to "stop talking about Cellar boxing" are also talking about movie stock. So ..... + +&#x200B; + +Edit 13: + +Bruh.. SEC deleted the letter from Edit 9 of this post. + +Here's the archived of the file they deleted after this post blew up: + +[https://web.archive.org/web/20210912094334/https://www.sec.gov/comments/s7-08-08/s70808-144.htm](https://web.archive.org/web/20210912094334/https://www.sec.gov/comments/s7-08-08/s70808-144.htm) + +&#x200B; + +Edit 14: + +Reached 40k character limit. Number 5 explanation: + +[https://www.reddit.com/r/Superstonk/comments/pn0b30/one\_clarification\_to\_uthabats\_post\_634700\_forward/hcnkbh4?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pn0b30/one_clarification_to_uthabats_post_634700_forward/hcnkbh4?utm_source=share&utm_medium=web2x&context=3) + +&#x200B; + +Edit 15: + +https://preview.redd.it/kiipketnh7n71.png?width=1467&format=png&auto=webp&s=babb84b5efaf58e9d1dc6a02e7d1e40b11014c2a + +&#x200B; + +Edit 1: Promised link at end of the post, even though the whole post is contained within this msg lol [https://archive.is/KSS6m](https://archive.is/KSS6m) +They'll come on here, talk about some dividend stocks, and then say "but I can get better total return with X stock" + +(X stock pays almost no dividend, or doesn't pay at all. It's a growth stock.) + +Dividend investing is a DEFENSIVE strategy. If you think the current bull market is going to last forever. If you foresee uninterrupted growth into the infinite future, there is absolutely zero reason to focus on dividend investing. You'll get better returns just buying high multiple growth stocks. They will completely own the dividend payers. + +Dividend investing is for people looking at the market with a skeptical eye, as well as for those closer to retirement, who aren't willing to bet all their money on a stock that might tank and stay down for years or decades. Dividend investing is for people who see a bear or flat market ahead after a historic bull run. + +If you're in your 20s or early 30s with decades of investing ahead of you. You really ought not to worry about dividends. Just go 100% growth equities and DCA for the next 20 years. You'll do great. Just don't buy crypto, unless you're into momentum trading and are good at it. LOL + +Maybe next time I'll talk about the shortsightedness of "Dividend Growth" investing versus just buying stocks that pay solid and safe yields. +I see more and more people that “swear” by this guy and his advice. Did you know he filed for bankruptcy? If everyone could pay for everything with cash, the whole world would be millionaires. Rather than listen to this clown’s basic advice you should have gotten in elementary school, go read “The Richest Man in Babylon” + +https://www.reddit.com/r/personalfinance/comments/19wsz5/how_do_you_guys_feel_about_dave_ramsey/?utm_source=share&utm_medium=ios_app&utm_name=iossmf +Not sure about the other trading apps but Trading212 prevents people now from buying shares. Quote: + +- Warning! In the interest of mitigating risk for our clients, we have temporarily placed GameStop and AMC Entertainment in reduce-only mode as highly unusual volumes have led to an unprecedented market environment. New positions cannot be opened, existing ones can be reduced or closed. - + +Not sure if they are really concerned about their customers, or they've been lobbied by hedge funds to prevent ordinary people from destroying them. I don't care about GME and AMC, I have no position, but now I am angry for this decision. They always go against the poor individuals and let the billionaires save their asses. No one saves us when we go bankrupt by them. + +Let that sink in + +Edit: thank you for all the rewards and comments! What a great community we are! +I am a 33 years old female. Unfortunately, lost my father in 2010 and my mother in Sept this year. Both died unexpectedly.  + +While the focus in general when someone dies is on "emotional grieving", I cannot explain how much "financial grieving" we have had to go through to just get the claims processed. + + +My father was 58, was working as a senior manager in a Govt organization. Unfortunately, all the assets were in single name, no nominee. We had just got a house on loan (that had no insurance, in single name). My mother's name in Pension nominee was not correct. Our accounts were frozen, plus pension amounts were not released till a year. I can describe in detail how much running around we had to do, but long story short, we could got everything sorted only after 1-2 years and after going through Hiership process. + + +My mother and I learnt from the mistakes, and ensured everything had a nominee or was in joint account. After my mother passed away, I was like - "it will be better than what we faced during my father's time". But, no - I was wrong.  + +Even though things have moved online, so many of the processes remain same.  + +One would not believe, but my mother's favourite bank (India nationalized bank ofcourse), has not processed the claim since last 2 months despite me being the nominee for the accounts. Their response is - "The bank account has more than 2 lakhs, so you need to get indemity, affidavit, my brother (legal heirs' pan and aadhar). And what they have done is to freeze all the accounts (including the ones that are joint). So, I cannot even get the money from the joint accounts.  + + +I can go on and on for each bank, insurance company, mutual fund, pension office, demat and trading account but I hope you all are getting the point.  + + +Why am I writing this? + +1. My parents were both scientists, and I am an MBA+Engineer by profession. We have had fairly decent understanding of finance, but we still suffered. After going through the same churn twice, I realized I would not be alone. There should be so many others going through the same cycle without questioning the hardships or the processes. + + +2. I feel I am lucky enough to be in the "net positive" zone that I do not really need the money immediately. What about others who would be needing the money but they would be in so much distress? Especially after Covid. + + +3. All these fancy new apps like - Groww, Scripbox etc, just focus on the account opening and getting the money. And there is no concept of Nominee (or at least I could not find it out there on the app). There would be so many people (like me) who have invested, but when they pass away, their relatives would be in distress. And I am not even talking about cryptocurrency here. + + +What I think should be done? + +1. Death Claim processes should be easier, faster and online. Point blank. This should be across banks, Insurance corporations, Property, mutual funds, demat and trading accounts etc. + + +We can get food in 30 min in India, but a death claim takes more than a month typically. And in my case, it has taken 1-2 years for my father's assets to get sorted. + + +2. There needs to be a directive from RBI to make sure banks follow a common and simple procedure (and not harass people). RBI should mention the list of documents in case of nominee, no nominee cases. It should not be bank/financial institution dependent. While I saw a RBI directive, it was a 2005 directive - and I do not see it being actioned well. Reserve Bank of India - Notifications (rbi.org.in) + + +3. Nominee should be made compulsory across banks, Insurance corporations, Property, mutual funds, demat and trading accounts etc. Just like PAN to Aadhar linkage :) + + +4. The whole process for hiership certificate and 6-8 months long period should be shortened. + + +5. Financial planning should also involve education about death claim process. + + +Suggestions are most welcome on how can we solve this. Beyond doubt, I cannot do this alone, and I am looking for help for the broader community.   + + +Lastly, for youngsters and for oldies who are reading this - I want to make sure that my grief helps you in some way. Please get your finances fixed. It is okay for the money to grow at 4%, but not okay if your family cannot access it after you are gone.   + +This is a 4 am rant so if you do not find it useful, please ignore. + +thanks +3 people have more money than the bottom 50% of Americans. 3 investment firms control virtually everything: Blackstone, Vanguard, State Street. Most Congress, House, Senators, and even the president are bribed and paid off by big corporations to do their bidding, which usually means fucking over the middle/lower classes in every way including gaming the system so they don’t have to pay any taxes while the middle class carries most of the tax burden. + +Student loan companies are spending hundreds of millions bribing politicians, hiring lobbyists, flooding mass media with anti-loan forgiveness leaning news articles, to keep student loans high and extremely difficult to pay off so we stay debt slaves for the rest of our life while they live a decadent life of luxury + +The only way things will change is when all the working poor unite, take over the military from within, and guillotine the top 0.01% multi-billionaires pulling the strings of politicians in their pockets just like the French Revolution in the 1700s +After first 2-3 millions, a paid off home and a good car, there is no difference In qualify of life between you and Jeff Bezos. Both of you have limited amount of time on earth - you have twice if not more than Jeff, so you are richer than him. A cheese burger is a cheese burger whether a billionaire eats or you do. + +Money is nothing but a piece of paper or a number in your app. Real life is outdoors. + +Become financially independent that’s usually 2-3 M. Have good food. Enjoy the relations. Workout and enjoy sex. Sleep well. Call your parents. That’s all there is to life. Greed has no end. + +Repeat after me. Time is the currency of life. Money is not. + +Sooner you figure this out, happier you will be. + +Agree/Disagree ? + +Edit - CEO of Twitch confirming this mindset. https://youtu.be/yzSeZFa2NF0 +Hello all, + +We are opening this thread so it can be dedicated to talks about the current GME situation. + +Feel free to discuss. Other newly created GME posts will be removed. + +Disclaimer: The title was sorely written by me and does not represent the views of Reddit or the /r/stocks subreddit. + +**Short Interest Update** + +[Short interest still very high](https://www.reddit.com/r/wallstreetbets/comments/l642ms/updated_jan_27th_short_interest_data_posted_by_s3/) , confirming that Melvin having covered is a lie. +I'm been in tech for 20+ years. I've picked good companies to work for, and shitty ones. I've made decent money and gone years where hours worked took me away from my friends, family and my sanity. + +Recently I've come to the conclusion I'm too old to put up with any more BS from execs, staff and VCs. Everyone expects slave hours (i guess its because they buy your time and brain). Tech is really a young persons game and I am out of gas. I can't keep up anymore with 12-15 hour days, 6 days a week. + +Over thr past year I've been manually backtesting and aa well dabbling in daytrading with live cash (upwards of $35k per trade). I've made a bit, lost a bit but I'm up overall. I really love it to be honest. + +I'm not looking to jump right in as my day job but I'm curious to hear your stories on how you segued into making day trading your career. + +Info on me: mid-40s, spouse is professional, 2 school aged kids. Me (Eng leader at tech startup) living in Canada. Have $80k in cash available. On TD Direct Investing trading only on CDN exchanges for now. +I started trading at the end of the bull run Jan-Fab, had a great run as beginner, +I had a initial investment of 37k took that up to 52k roughly, when we had that pullback in late Feb things started go sideways with me, took a major loss then my emotions got the best of me, I traded with oversize "weak risk management I'd say" very weak. I went heavy in trades and most of them ended up with a big L, tried to make up for my previous losses one after another till my account is now at 2.6k CRAZY. I can't express how I really feel it's beyond me, now I spend all my day thinking about wtf I did, depressed and feel heavy pressure that I don't know how to get back up, zero confidence. I took this fuck up to the next level of failures. This is really gotten to me mentally and I'm 22yo I feel beaten down and hiding my pain from everyone. I just want your advice how to get through this mentally. Please don't rub it in I'm already down bad. :( +EDIT: T212 ALLEGEDLY SELLING STOCKS WITHOUT USER PERMISSION [tweet](https://twitter.com/able_adam/status/1355174529665028100?s=21) [tweet](https://twitter.com/zzywest/status/1355176988122750978?s=21) + +EDIT: Mirror stocks on other EU exchanges now blocked too 1/28 + +EDIT2: Straight up BUY RESTRICTIONS! - "Mitigating Risk" no longer named a reason 1/28 + +EDIT3: [UK TRUST PILOT REVIEW](https://uk.trustpilot.com/review/trading212.com) + +EDIT4: BUY restrictions Appear removed as of 1/29 - Will update when $NYSE opens + +EDIT5: T212 Restricts new signups to App and forum. On a Thread deleting & Banning Spree of people who are complaining there + +I think you know which stocks they are. Now, say what you want about meme stocks/wsb etc does this for anyone else not shed a light on this industry as a whole? Or is there actually a case for preventing people piling into this stock? Beyond usual toc on signup which are frankly quite blasé, Ive never had any platform warn or restrict a *particular* stock, especially not under the auspice of protecting me from risk. Was 2008 not an unprecedented market environment? Was the start of covid not? + +This is an extremely worrying precedent for me and last time ill be using t212. + +Edit: I listened to reasonable arguments but this stinks. Its fine if you dont like wsb or the current meme stocks. But look at this precedent and just wait til you spend months on DD and get fucked over anyway, this will continue + +NOTE 1: As perT212 app “In the interest of mitigating risk for our clients, we have temporarily placed (meme stock) in reduce only mode as highly unusual volumes have led to an unprecedented market environment. New positions cannot be opened, existing ones can be reduced or closed” + +NOTE 2: Due to BUY restrictions placed by our intermediary and ever major execution venue worldwide, GameStop will be placed in close-only mode. New BUY positions can't be initiated, existing ones can be reduced or closed +Jumped on the $GME bandwagon on Friday, 4 @ \~316. My 36 hours of day trading has already taught me that no matter how this plays out, I will never YOLO on a bubble ever again. + +The principle seemed straightforward: hedge funds got lazy/greedy, over-shorted their positions, bet against a company that wasn't actually going under, and some astute monkies on reddit caught them and triggered a short squeeze. Even as someone who knows almost nothing about the stock market, the basic premise makes sense. But the devil's in the details, and hype is blinding. + +First red flag was when I realized [/u/DeepFuckingValue](https://www.reddit.com/u/DeepFuckingValue/) did not bet on the short squeeze, he bet on undervalued stock price *over a year ago*. He has also trimmed his position such that no matter what happens in the squeeze, he walks away with 8 figures. So the people screaming "if he's still in, I'm still in!" and "look at those brass balls, if he can lose $5MM in a day then I can hold" are really living up to the dumb ape meme. He didn't lose $5MM yesterday, he lost $5MM in \*unrealized gains\*, there is a \*huge\* difference. + +Second red flag was a common sense idea that hedge funds won't go down without a fight, and they have literally billions of dollars and decades of experience. You don't get that without learning how to game the system in complex, subtle ways. So even if they are still heavily shorted (which they might not even be anymore), and even if somehow [r/WSB](https://www.reddit.com/r/WSB/) is holding some kind of meaningful leverage over them, that doesn't rule out the very real possibility they have a dozen ways out of this that people like me have no idea about. + +But even in the off chance that somehow this turns around, and $GME does go "to the moon," that doesn't change the fact that it's bad long-term strategy to bet on bubbles and jump on bandwagons. They almost certainly fail, and if they don't, they only serve to inflate egos that will fall even harder on the next gamble. I'm still holding my shares but I don't expect to see my \~$1200 ever again. In the off chance I break even or see a profit here, I will count it as dumb luck and use it as seed money to learn how to invest in real long term gains. + +**Edit:** holy shit RIP my inbox. No way I can read all that. + +Want to clarify a few things. Not financial advice. + +**My position:** I knew I was late to the party. I *wanted* to gamble. I knew what I was doing, and (mostly) why I did it. Hindsight showed me it was more based on emotion than I wanted to admit, but still, I'm not surprised by the outcome so far, and I'm totally OK with taking the L and calling it a lesson learned. I don't blame DFV, WSB, or anyone for my choices. I own them, even proudly, because I wanted to step out and take a calculated risk vs. sit on the sidelines out of fear of loss. I'm holding because I already bought my tickets to this ride, want to see this thing play out, and I'm fine with gambling the final $300 on the outside chance things turn around. + +**Your positions:** brothers, sisters, nonbinary siblings: **you are not your portfolio**. whether up or down, your value is not based on how big or small an imaginary number is. you are a human being on the bleeding edge of 3.5 BILLION years of evolution, you have more actual success in your past and potential success in your future than you'll ever know. 12 years ago I was a penniless alcoholic literally stealing change from my grandpa to get loaded on 211 Steel Reserve. I hit my bottom, joined AA, and now I'm a network engineer, wife, kids, the whole lot. Anything is possible if you don't give up on yourself. But I know it's not that easy, we all need borrowed self-esteem before we can see the real value inside. So if this $GME gamble hit you hard, please reach out to someone. don't give up. Hell, this bubble isn't even over, it might even turn around! But either way, don't give up. + +**Edit2:** + +wow, never expected this to go this far. wrote it on my way out the door as a way to cope with the situation. read a ton of replies, probably missed most of them. thanks for all the love and hate and everything inbetween! A few more points: + +* Agreed that RH deserves to be held accountable. No question they manipulated this. +* Agreed it's not over yet. the squeeze could happen. but if it does, **my** main personal takeaway from this experience will stand: I won't speculate on bubbles anymore. This is my position if I lose everything or make $100k. +* if you posted gains, that's awesome! so glad for you, I wish you the best! + +**Edit3 2/3/21:** + +Full disclosure, I closed my position this morning at a \~$900 realized loss. + +My gut says the squeeze happened, short interest isn't what I thought it was on Friday, and the stock will return to actual value soon. + +**Edit4 2/25/21:** + +**I stand by my decisions, both to buy and to sell. I don't speculate on bubbles. Period. But you can do whatever the fuck you want with your money and you'll never find me shaming you about it.** +&#x200B; + +# 0. Preface + +I am not a financial advisor, and I do not provide financial advice. Many thoughts here are my opinion, and others can be speculative. + +TL;DR - **(Though I think you REALLY should consider reading because it is important to understand what is going on**): + +* The market crash of 2008 never finished. It was can-kicked and the same people who caused the crash have **still** been running rampant doing the **same** **bullshit in the derivatives market** as that market continues to be unregulated. They're profiting off of short-term gains at the risk of killing their institutions and potentially the global economy. **Only this time it is much, much worse.** +* The bankers abused smaller amounts of leverage for the 2008 bubble and have since abused much higher amounts of leverage - creating an even larger speculative bubble. Not just in the stock market and derivatives market, but also in the crypt0 market, upwards of 100x leverage. +* COVID came in and rocked the economy to the point where the Fed is now pinned between a rock and a hard place. In order to buy more time, the government triggered a flurry of protective measures, such as mortgage forbearance, expiring end of Q2 on June 30th, 2021, and SLR exemptions, which expired March 31, 2021. **The market was going to crash regardless. GME was and never will be the reason for the market crashing.** +* The rich made a fatal error in **way** overshorting stocks. There is a potential for their decades of sucking money out of taxpayers to be taken back. The derivatives market is potentially a **$1 Quadrillion market**. "Meme prices" are not meme prices. There is so much money in the world, and you are just accustomed to thinking the "meme prices" are too high to feasibly reach. +* The DTC, ICC, OCC have been passing rules and regulations (auction and wind-down plans) so that they can easily eat up competition and consolidate power once again like in 2008. The people in charge, including Gary Gensler, are not your friends. +* The DTC, ICC, OCC are also passing rules to make sure that retail will **never** be able to to do this again. **These rules are for the future market (post market crash) and they never want anyone to have a chance to take their game away from them again**. These rules are not to start the MOASS. They are indirectly regulating retail so that a short squeeze condition can never occur after GME. +* The COVID pandemic exposed a lot of banks through the Supplementary Leverage Ratio (SLR) where mass borrowing (leverage) almost made many banks default. Banks have account 'blocks' on the Fed's balance sheet which holds their treasuries and deposits. **The SLR exemption made it so that these treasuries and deposits of the banks 'accounts' on the Fed's balance sheet were not calculated into SLR, which allowed them to boost their SLR until March 31, 2021 and avoid defaulting. Now, they must extract treasuries from the Fed in reverse repo to avoid defaulting from SLR requirements. This results in the reverse repo market explosion as they are scrambling to survive due to their mass leverage.** +* This is not a "retail vs. Melvin/Point72/Citadel" issue. This is a "retail vs. **Mega Banks**" issue. The rich, and I mean **all of Wall Street,** are trying **desperately** to shut GameStop down because it has the chance to suck out trillions if not hundreds of trillions from the game they've played for decades. They've rigged this game since the 1990's when derivatives were first introduced. **Do you really think they, including the Fed, wouldn't pull all the stops now to try to get you to sell?** + +End TL;DR + +&#x200B; + +A ton of the information provided in this post is from the movie **Inside Job (2010)**. I am paraphrasing from the movie as well as taking direct quotes, so please understand that a bunch of this information is a summary of that film. + +I understand that **The Big Short (2015)** is much more popular here, due to it being a more Hollywood style movie, but it does not go into such great detail of the conditions that led to the crash - and how things haven't even changed. But in fact, got worse, and led us to where we are now. + +Seriously. **Go**. **Watch**. **Inside Job**. It is a documentary with interviews of many people, including those who were involved in the Ponzi Scheme of the derivative market bomb that led to the crash of 2008, and their continued lobbying to influence the Government to keep regulations at bay. + +&#x200B; + +[Inside Job \(2010\) Promotional](https://preview.redd.it/vvdd32qkei571.png?width=776&format=png&auto=webp&s=982445a99f17af054bd351990017e364b137cf02) + +&#x200B; + +# 1. The Market Crash Of 2008 + +# 1.1 The Casino Of The Financial World: The Derivatives Market + +It all started back in the 1990's when the **Derivative Market** was created. This was the opening of the literal Casino in the financial world. These are bets placed upon an underlying asset, index, or entity, and are **very** risky. Derivatives are contracts between two or more parties that derives its value from the performance of the underlying asset, index, or entity. + +One such derivative many are familiar with are **options** (CALLs and PUTs). Other examples of derivatives are **fowards**, **futures**, **swaps**, and variations of those such as **Collateralized Debt Obligations (CDOs)**, and **Credit Default Swaps (CDS)**. + +The potential to make money off of these trades is **insane**. Take your regular CALL option for example. You no longer take home a 1:1 return when the underlying stock rises or falls $1. Your returns can be amplified by magnitudes more. Sometimes you might make a 10:1 return on your investment, or 20:1, and so forth. + +Not only this, you can grab leverage by borrowing cash from some other entity. This allows your bets to potentially return that much more money. You can see how this gets out of hand really fast, because the amount of cash that can be gained absolutely skyrockets versus traditional investments. + +Attempts were made to regulate the derivatives market, but due to mass lobbying from Wall Street, regulations were continuously shut down. **People continued to try to pass regulations, until in 2000, the** [Commodity Futures Modernization Act](https://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000) **banned the regulation of derivatives outright**. + +And of course, once the Derivatives Market was left unchecked, it was off to the races for Wall Street to begin making tons of risky bets and surging their profits. + +The Derivative Market exploded in size once regulation was banned and de-regulation of the financial world continued. You can see as of 2000, the cumulative derivatives market was already out of control. + +[https:\/\/www.hilarispublisher.com\/open-access\/investment-banks-and-credit-institutions-the-ignored-and-unregulateddiversity-2151-6219-1000224.pdf](https://preview.redd.it/9igfmi69di571.png?width=578&format=png&auto=webp&s=27fefbf3443e8be528849221f2eadeb1a5c10833) + +The Derivatives Market is big. **Insanely big**. Look at how it compares to **Global Wealth**. + +[https:\/\/www.visualcapitalist.com\/all-of-the-worlds-money-and-markets-in-one-visualization-2020\/](https://preview.redd.it/s22atssgdi571.png?width=1029&format=png&auto=webp&s=086dcebf3e710052f78b7490150203d0f8376b89) + +At the bottom of the list are three derivatives entries, with "Market Value" and "Notional Value" called out. + +The "Market Value" is the value of the derivative at its current trading price. + +The "Notional Value" is the value of the derivative if it was at the strike price. + +E.g. A CALL option (a derivative) represents 100 shares of ABC stock with a strike of $50. Perhaps it is trading in the market at $1 per contract right now. + +* Market Value = 100 shares \* $1.00 per contract = $100 +* Notional Value = 100 shares \* $50 strike price = $5,000 + +**Visual Capitalist estimates that the cumulative Notional Value of derivatives is between $558 Trillion and $1 Quadrillion**. So yeah. **You** are not going to cause a market crash if GME sells for millions per share. The rich are already priming the market crash through the Derivatives Market. + +# 1.2 CDOs And Mortgage Backed Securities + +Decades ago, the system of paying mortgages used to be between two parties. The buyer, and the loaner. Since the movement of money was between the buyer and the loaner, the loaner was very careful to ensure that the buyer would be able to pay off their loan and not miss payments. + +But now, it's a chain. + +1. Home buyers will buy a loan from the lenders. +2. The lenders will then sell those loans to Investment Banks. +3. The Investment Banks then combine thousands of mortgages and other loans, including car loans, student loans, and credit card debt to create complex derivatives called "**Collateralized Debt Obligations (CDO's**)". +4. The Investment Banks then pay Rating Agencies to rate their CDO's. This can be on a scale of "AAA", the best possible rating, equivalent to government-backed securities, all the way down to C/D, which are junk bonds and very risky. **Many of these CDO's were given AAA ratings despite being filled with junk**. +5. The Investment Banks then take these CDO's and sell them to investors, including retirement funds, because that was the rating required for retirement funds as they would only purchase highly rated securities. +6. Now when the homeowner pays their mortgage, the money flows directly into the investors. The investors are the main ones who will be hurt if the CDO's containing the mortgages begin to fail. + +[Inside Job \(2010\) - Flow Of Money For Mortgage Payments](https://preview.redd.it/0xtaww3ydi571.png?width=1493&format=png&auto=webp&s=f448a113043b043243efd879f174493bd33423fe) + +[https:\/\/www.investopedia.com\/ask\/answers\/09\/bond-rating.asp](https://preview.redd.it/uyk9ms4fei571.png?width=756&format=png&auto=webp&s=d61e9a0754b676e64a1f6c97277ba877e946fcb6) + +# 1.3 The Bubble of Subprime Loans Packed In CDOs + +This system became a ticking timebomb due to this potential of free short-term gain cash. Lenders didn't care if a borrower could repay, so they would start handing out riskier loans. The investment banks didn't care if there were riskier loans, because the more CDO's sold to investors resulted in more profit. And the Rating Agencies didn't care because there were no regulatory constraints and there was no liability if their ratings of the CDO's proved to be wrong. + +So they went wild and pumped out more and more loans, and more and more CDOs. Between 2000 and 2003, the number of mortgage loans made each year nearly quadrupled. They didn’t care about the quality of the mortgage - they cared about maximizing the volume and getting profit out of it. + +In the early 2000s there was a huge increase in the riskiest loans - “Subprime Loans”. These are loans given to people who have low income, limited credit history, poor credit, etc. They are very at risk to not pay their mortgages. It was predatory lending, because it hunted for potential home buyers who would never be able to pay back their mortgages so that they could continue to pack these up into CDO's. + +[Inside Job \(2010\) - &#37; Of Subprime Loans](https://preview.redd.it/wsr30iorei571.png?width=1447&format=png&auto=webp&s=59cf72f6eb8209d69e0a13ccf2f0127e69a45142) + +In fact, the investment banks **preferred** subprime loans, because they carried higher interest rates and more profit for them. + +**So the Investment Banks took these subprime loans, packaged the subprime loans up into CDO's, and many of them still received AAA ratings. These can be considered "toxic CDO's" because of their high ability to default and fail despite their ratings.** + +Pretty much **anyone** could get a home now. Purchases of homes and housing prices skyrocketed. It didn't matter because everyone in the chain was making money in an unregulated market. + +# 1.4 Short Term Greed At The Risk Of Institutional And Economic Failure + +In Wall Street, annual cash bonuses started to spike. Traders and CEOs became extremely wealthy in this bubble as they continued to pump more toxic CDO's into the market. Lehman Bros. was one of the top underwriters of subprime lending and their CEO alone took home over $485 million in bonuses. + +[Inside Job \(2010\) Wall Street Bonuses](https://preview.redd.it/io87r9vxei571.png?width=1494&format=png&auto=webp&s=944300df8faf8da35d75de6f10fb951a6d230154) + +And it was all short-term gain, high risk, with no worries about the potential failure of your institution or the economy. When things collapsed, they would not need to pay back their bonuses and gains. They were literally risking the entire world economy for the sake of short-term profits. + +AND THEY EVEN TOOK IT FURTHER WITH LEVERAGE TO MAXIMIZE PROFITS. + +During the bubble from 2000 to 2007, the investment banks were borrowing heavily to buy more loans and to create more CDO's. The ratio of banks borrowed money and their own money was their leverage. The more they borrowed, the higher their leverage. They abused leverage to continue churning profits. And are still abusing massive leverage to this day. It might even be much higher leverage today than what it was back in the Housing Market Bubble. + +In 2004, Henry Paulson, the CEO of Goldman Sachs, helped lobby the SEC to relax limits on leverage, allowing the banks to sharply increase their borrowing. Basically, the SEC allowed investment banks to gamble a lot more. **Investment banks would go up to about 33-to-1 leverage at the time of the 2008 crash**. Which means if a 3% decrease occurred in their asset base, it would leave them insolvent. **Henry Paulson would later become the Secretary Of The Treasury from 2006 to 2009**. He was just one of many Wall Street executives to eventually make it into Government positions. Including the infamous Gary Gensler, the current SEC chairman, who helped block derivative market regulations. + +[Inside Job \(2010\) Leverage Abuse of 2008](https://preview.redd.it/k87x53h7fi571.png?width=1619&format=png&auto=webp&s=b12004d6bb3e70643516ef0477303f4652ccd348) + +The borrowing exploded, the profits exploded, and it was all at the risk of obliterating their institutions and possibly the global economy. Some of these banks knew that they were "too big to fail" and could push for bailouts at the expense of taxpayers. Especially when they began planting their own executives in positions of power. + +# 1.5 Credit Default Swaps (CDS) + +To add another ticking bomb to the system, AIG, the worlds largest insurance company, got into the game with another type of derivative. They began selling Credit Default Swaps (CDS). + +For investors who owned CDO's, CDS's worked like an insurance policy. An investor who purchased a CDS paid AIG a quarterly premium. If the CDO went bad, AIG promised to pay the investor for their losses. Think of it like insuring a car. You're paying premiums, but if you get into an accident, the insurance will pay up (some of the time at least). + +But unlike regular insurance, where you can only insure your car once, **speculators could also purchase CDS's from AIG in order to bet against CDO's they didn't own**. You could suddenly have a sense of rehypothecation where fifty, one hundred entities might now have insurance against a CDO. + +[Inside Job \(2010\) Payment Flow of CDS's](https://preview.redd.it/7xoupx0ffi571.png?width=1258&format=png&auto=webp&s=869beb0d99b9fbb4108cd5af692d0a6332fd52dd) + +If you've watched The Big Short (2015), you might remember the Credit Default Swaps, because those are what Michael Burry and others purchased to bet against the Subprime Mortgage CDO's. + +CDS's were unregulated, so **AIG didn’t have to set aside any money to cover potential losses**. Instead, AIG paid its employees huge cash bonuses as soon as contracts were signed in order to incentivize the sales of these derivatives. But if the CDO's later went bad, AIG would be on the hook. It paid everyone short-term gains while pushing the bill to the company itself without worrying about footing the bill if shit hit the fan. People once again were being rewarded with short-term profit to take these massive risks. + +AIG’s Financial Products division in London issued over $500B worth of CDS's during the bubble. Many of these CDS's were for CDO's backed by subprime mortgages. + +The 400 employees of AIGFP made $3.5B between 2000 and 2007. And the head of AIGFP personally made $315M. + +# 1.6 The Crash And Consumption Of Banks To Consolidate Power + +By late 2006, Goldman Sachs took it one step further. It didn’t just sell toxic CDO's, it started actively betting against them at the same time it was telling customers that they were high-quality investments. + +Goldman Sachs would purchase CDS's from AIG and bet against CDO's it didn’t own, and got paid when those CDO's failed. Goldman bought at least $22B in CDS's from AIG, and it was so much that Goldman realized AIG itself might go bankrupt (which later on it would and the Government had to bail them out). So Goldman spent $150M insuring themselves against AIG’s potential collapse. They purchased CDS's against AIG. + +[Inside Job \(2010\) Payment From AIG To Goldman Sachs If CDO's Failed](https://preview.redd.it/m54zv03yfi571.png?width=1411&format=png&auto=webp&s=f6cb605b4c9b36c22e60cd8205b80bd6ac770fac) + +Then in 2007, Goldman went even further. They started selling CDO's specifically designed so that the more money their customers lost, the more Goldman Sachs made. + +Many other banks did the same. They created shitty CDO's, sold them, while simultaneously bet that they would fail with CDS's. All of these CDO's were sold to customers as “safe” investments because of the complicit Rating Agencies. + +The three rating agencies, Moody’s, S&P and Fitch, made billions of dollars giving high ratings to these risky securities. Moody’s, the largest ratings agency, quadrupled its profits between 2000 and 2007. The more AAA's they gave out, the higher their compensation and earnings were for the quarter. AAA ratings mushroomed from a handful in 2000 to thousands by 2006. Hundreds of billions of dollars worth of CDO's were being rated AAA per year. When it all collapsed and the ratings agencies were called before Congress, the rating agencies expressed that it was “their opinion” of the rating in order to weasel their way out of blame. Despite knowing that they were toxic and did not deserve anything above 'junk' rating. + +[Inside Job \(2010\) Ratings Agencies Profits](https://preview.redd.it/tto0v644gi571.png?width=1332&format=png&auto=webp&s=f4361dcc23801691d46ec88b241c7d5fa56e2aaf) + +[Inside Job \(2010\) - Insane Increase of AAA Rated CDOs](https://preview.redd.it/91dpnu78gi571.png?width=1259&format=png&auto=webp&s=1f196573f47a757a8bcca8b9e712c537be84cbe2) + +By 2008, home foreclosures were skyrocketing. Home buyers in the subprime loans were defaulting on their payments. Lenders could no longer sell their loans to the investment banks. And as the loans went bad, dozens of lenders failed. The market for CDO's collapsed, leaving the investment banks holding hundreds of billions of dollars in loans, CDO's, and real estate they couldn’t sell. Meanwhile, those who purchased up CDS's were knocking at the door to be paid. + +In March 2008, Bear Stearns ran out of cash and was acquired for $2 a share by JPMorgan Chase. The deal was backed by $30B in emergency guarantees by the Fed Reserve. This was just one instance of a bank getting consumed by a larger entity. + +[https:\/\/www.history.com\/this-day-in-history\/bear-stearns-sold-to-j-p-morgan-chase](https://preview.redd.it/gbgc30vlhi571.png?width=873&format=png&auto=webp&s=74def34d1783c5e3195492913370e6ae65670301) + +AIG, Bear Stearns, Lehman Bros, Fannie Mae, and Freddie Mac, were all AA or above rating days before either collapsing or being bailed out. Meaning they were 'very secure', yet they failed. + +The Fed Reserve and Big Banks met together in order to discuss bailouts for different banks, and they decided to let Lehman Brothers fail as well. + +The Government also then took over AIG, and a day after the takeover, asked the Government for $700B in bailouts for big banks. At this point in time, **the person in charge of handling the financial crisis, Henry Paulson, former CEO of Goldman Sachs**, worked with the chairman of the Federal Reserve to force AIG to pay Goldman Sachs some of its bailout money at 100-cents on the dollar. Meaning there was no negotiation of lower prices. **Conflict of interest much?** + +The Fed and Henry Paulson also forced AIG to surrender their right to sue Goldman Sachs and other banks for fraud. + +**This is but a small glimpse of the consolidation of power in big banks from the 2008 crash. They let others fail and scooped up their assets in the crisis.** + +**After the crash of 2008, big banks are more powerful and more consolidated than ever before. And the DTC, ICC, OCC rules are planning on making that worse through the auction and wind-down plans where big banks can once again consume other entities that default.** + +# 1.7 The Can-Kick To Continue The Game Of Derivative Market Greed + +After the crisis, the financial industry worked harder than ever to fight reform. The financial sector, as of 2010, employed over 3000 lobbyists. More than five for each member of Congress. Between 1998 and 2008 the financial industry spent over $5B on lobbying and campaign contributions. And ever since the crisis, they’re spending even more money. + +President Barack Obama campaigned heavily on "Change" and "Reform" of Wall Street, but when in office, nothing substantial was passed. But this goes back for decades - the Government has been in the pocket of the rich for a long time, both parties, both sides, and their influence through lobbying undoubtedly prevented any actual change from occurring. + +So their game of playing the derivative market was green-lit to still run rampant following the 2008 crash and mass bailouts from the Government at the expense of taxpayers. + +There's now more consolidation of banks, more consolidation of power, more years of deregulation, and over a decade that they used to continue the game. And just like in 2008, it's happening again. We're on the brink of another market crash and potentially a global financial crisis. + +# + +&#x200B; + +# 2. The New CDO Game, And How COVID Uppercut To The System + +# 2.1 Abuse Of Commercial Mortgage Backed Securities + +It's not just /u/atobitt's "House Of Cards" where the US Treasury Market has been abused. It is abuse of many forms of collateral and securities this time around. + +It's the **same thing** as 2008, but much worse due to even higher amounts of leverage in the system on top of massive amounts of liquidity and potential inflation from stimulus money of the COVID crisis. + +Here's an excerpt from [The Bigger Short: Wall Street's Cooked Books Fueled The Financial Crisis of 2008. It's Happening Again](https://theintercept.com/2021/04/20/wall-street-cmbs-dollar-general-ladder-capital/): + +>A longtime industry analyst has uncovered creative accounting on a startling scale in the commercial real estate market, in ways similar to the “liar loans” handed out during the mid-2000s for residential real estate, according to financial records examined by the analyst and reviewed by The Intercept. A recent, large-scale academic study backs up his conclusion, **finding that banks such as Goldman Sachs and Citigroup have systematically reported erroneously inflated income data that compromises the integrity of the resulting securities.** +> +>... +> +>The analyst’s findings, first reported by ProPublica last year, are the subject of a whistleblower complaint he filed in 2019 with the Securities and Exchange Commission. Moreover, the analyst has identified complex financial machinations by one financial institution, one that both issues loans and manages a real estate trust, that may ultimately help one of its top tenants — the low-cost, low-wage store Dollar General — flourish while devastating smaller retailers. +> +>This time, the issue is not a bubble in the housing market, **but apparent widespread inflation of the value of commercial businesses, on which loans are based.** +> +>... +> +>**Now it may be happening again** — this time not with residential mortgage-backed securities, based on loans for homes, **but commercial mortgage-backed securities, or CMBS, based on loans for businesses.** And this industrywide scheme is colliding with a collapse of the commercial real estate market amid the pandemic, which has **business tenants across the country unable to make their payments.** + +They've been abusing Commercial Mortgage Backed Securities (CMBS) this time around, and potentially have still been abusing other forms of collateral - they might still be hitting MBS as well as treasury bonds per /u/atobitt's DD. + +John M. Griffin and Alex Priest released a study last November. They sampled almost 40,000 CMBS loans with a market capitalization of $650 billion underwritten from the beginning of 2013 to the end of 2019. **Their findings were that large banks had 35% or more loans exhibiting 5% or greater income overstatements.** + +The below chart shows the overstatements of the biggest problem-making banks. The difference in bars is between samples taken from data between 2013-2015, and then data between 2016-2019. Almost every single bank experienced a positive move up over time of overstatements. + +>Unintentional overstatement should have occurred at random times. Or if lenders were assiduous and the overstatement was unwitting, one might expect it to diminish over time as the lenders discovered their mistakes. **Instead, with almost every lender, the overstatement** ***increased*** **as time went on**. - [Source](https://theintercept.com/2021/04/20/wall-street-cmbs-dollar-general-ladder-capital/) + +[https:\/\/theintercept.com\/2021\/04\/20\/wall-street-cmbs-dollar-general-ladder-capital\/](https://preview.redd.it/5xmcu9hwhi571.png?width=846&format=png&auto=webp&s=66f636574bd66afd3512b9587981e4caaa381cf3) + +So what does this mean? **It means they've once again been handing out subprime loans (predatory loans). But this time to businesses through Commercial Mortgage Backed Securities.** + +Just like Mortgage-Backed Securities from 2000 to 2007, the loaners will go around, hand out loans to businesses, and rake in the profits while having no concern over the potential for the subprime loans failing. + +# 2.2 COVID's Uppercut Sent Them Scrambling + +The system was propped up to fail just like from the 2000-2007 Housing Market Bubble. Now we are in a speculative bubble of the entire market along with the Commercial Market Bubble due to continued mass leverage abuse of the world. + +Hell - also in Crypt0currencies that were introduced after the 2008 crash. **Did you know that you can get over 100x leverage in crypt0 right now? Imagine how terrifying that crash could be if the other markets fail.** + +There is SO. MUCH. LEVERAGE. ABUSE. IN. THE. WORLD. All it takes is one fatal blow to bring it all down - **and it sure as hell looks like COVID was that uppercut to send everything into a death spiral.** + +When COVID hit, many people were left without jobs. Others had less pay from the jobs they kept. It rocked the financial world and it was so unexpected. Apartment residents would now become delinquent, causing the apartment complexes to become delinquent. Business owners would be hurting for cash to pay their mortgages as well due to lack of business. The subprime loans all started to become a really big issue. + +Delinquency rates of Commercial Mortgages started to **skyrocket** when the COVID crisis hit. They even surpassed 2008 levels in March of 2020. Remember what happened in 2008 when this occurred? **When delinquency rates went up on mortgages in 2008, the CDO's of those mortgages began to fail. But, this time, they can-kicked it because COVID caught them all off guard.** + +[https:\/\/theintercept.com\/2021\/04\/20\/wall-street-cmbs-dollar-general-ladder-capital\/](https://preview.redd.it/cqbceix0ii571.png?width=848&format=png&auto=webp&s=da81781094a31ae1293b019c4e24f68dfdccc634) + +# 2.3 Can-Kick Of COVID To Prevent CDO's From Defaulting Before Being Ready + +COVID sent them **Scrambling**. They could not allow these CDO's to fail just yet, because they wanted to get their rules in place to help them consume other failing entities at a whim. + +Like in 2008, they wanted to not only protect themselves when the nuke went off from these decades of derivatives abuse, they wanted to be able to scoop up the competition easily. That is when the DTC, ICC, and OCC began drafting their auction and wind-down plans. + +In order to buy time, they began tossing out emergency relief "protections" for the economy. Such as preventing mortgage defaults which would send their CDO's tumbling. **This protection ends on June 30th, 2021**. + +And guess what? **Many people are still at risk of being delinquent**. [This article](https://therealdeal.com/issues_articles/defusing-the-forbearance-time-bomb/) was posted just **yesterday**. The moment these protection plans lift, we can see a surge in foreclosures as delinquent payments have accumulated over the past year. + +When everyone, including small business owners who were attacked with predatory loans, begin to default from these emergency plans expiring, it can lead to the CDO's themselves collapsing. **Which is exactly what triggered the 2008 recession**. + +[https:\/\/www.housingwire.com\/articles\/mortgage-forbearance-drops-as-expiration-date-nears\/](https://preview.redd.it/b68fsf5aii571.png?width=945&format=png&auto=webp&s=daa8c725185480d988802023a27291ee782b5c5f) + +# 2.4 SLR Requirement Exemption - Why The Reverse Repo Is Blowing Up + +Another big issue exposed from COVID is when SLR requirements were leaned during the pandemic. They had to pass a quick measure to protect the banks from defaulting in April of 2020. + +>In a brief announcement, the Fed said it would allow a change to the **supplementary leverage ratio to expire March 31**. The initial move, announced April 1, 2020, **allowed banks to exclude Treasurys and deposits with Fed banks from the calculation of the leverage ratio**. - [Source](https://www.cnbc.com/2021/03/19/the-fed-will-not-extend-a-pandemic-crisis-rule-that-had-allowed-banks-to-relax-capital-levels.html) + +What can you take from the above? + +**SLR is based on the banks deposits with the Fed itself. It is the treasuries and deposits that the banks have on the Fed's balance sheet. Banks have an 'account block' on the Fed's balance sheet that holds treasuries and deposits. The SLR pandemic rule allowed them to neglect these treasuries and deposits from their SLR calculation, and it boosted their SLR value, allowing them to survive defaults.** + +This is a **big**, **big**, **BIG** sign that **the banks are way overleveraged by borrowing tons of money just like in 2008.** + +The SLR is the "Supplementary Leverage Ratio" and they enacted quick to allow it so banks wouldn't fail under mass leverage for failing to maintain enough equity. + +>The supplementary leverage ratio is the US implementation of the Basel III Tier 1 **leverage ratio**, with which **banks calculate the amount of common equity capital they must hold relative to their total leverage exposure**. **Large US banks must hold 3%**. **Top-tier bank holding companies must also hold an extra 2% buffer, for a total of 5%**. The SLR, which does not distinguish between assets based on risk, is conceived as a backstop to risk-weighted capital requirements. - [Source](https://www.risk.net/definition/supplementary-leverage-ratio-slr) + +[Here is an exposure of their SLR](https://www.fool.com/investing/2020/07/26/which-of-the-large-us-banks-is-most-leveraged.aspx) from earlier this year. The key is to have **high SLR, above 5%, as a top-tier bank**: + +|Bank|Supplementary Leverage Ratio (SLR)| +|:-|:-| +|JP Morgan Chase|6.8%| +|Bank Of America|7%| +|Citigroup|6.7%| +|Goldman Sachs|6.7%| +|Morgan Stanley|7.3%| +|Bank of New York Mellon|8.2%| +|State Street|8.3%| + +The SLR protection ended on March 31, 2021. Guess what started to happen just after? + +T**he reverse repo market started to explode. This is VERY unusual behavior because it is not at a quarter-end where quarter-ends have significant strain on the economy. The build-up over time implies that there is significant strain on the market AS OF ENTERING Q2 (April 1st - June 30th).** + +[https:\/\/fred.stlouisfed.org\/series\/RRPONTSYD](https://preview.redd.it/ijp4wkxdii571.png?width=1455&format=png&auto=webp&s=46f67d7efcc98ee475ba27fa41850fbf5d894064) + +**Speculation: SLR IS DEPENDENT ON THEIR DEPOSITS WITH THE FED ITSELF. THEY NEED TO EXTRACT TREASURIES OVER NIGHT TO KEEP THEM OFF THE FED'S BALANCE SHEETS TO PREVENT THEMSELVES FROM FAILING SLR REQUIREMENTS AND DEFAULTING DUE TO MASS OVERLEVERAGE. EACH BANK HAS AN ACCOUNT ON THE FED'S BALANCE SHEET, WHICH IS WHAT SLR IS CALCULATED AGAINST. THIS IS WHY IT IS EXPLODING. THEY ARE ALL STRUGGLING TO MEET SLR REQUIREMENTS.** + +# 2.5 DTC, ICC, OCC Wind-Down and Auction Plans; Preparing For More Consolidation Of Power + +We've seen some interesting rules from the DTC, ICC, and OCC. For the longest time we thought this was all surrounding GameStop. Guess what. **They aren't all about GameStop**. Some of them are, but not all of them. + +**They are furiously passing these rules because the COVID can-kick can't last forever. The Fed is dealing with the potential of runaway inflation from COVID stimulus and they can't allow the overleveraged banks to can-kick any more. They need to resolve this as soon as possible. June 30th could be the deadline because of the potential for CDO's to begin collapsing.** + +Let's revisit a few of these rules. The most important ones, in my opinion, because they shed light on the bullshit they're trying to do once again: Scoop up competitors at the cheap, and protect themselves from defaulting as well. + +* **DTC-004:** Wind-down and auction plan. - [Link](https://www.sec.gov/rules/sro/dtc/2021/34-91429.pdf) +* **ICC-005:** Wind-down and auction plan. - [Link](https://www.sec.gov/rules/sro/icc/2021/34-91806.pdf) +* **OCC-004:** Auction plan. Allows third parties to join in. - [Link](https://www.sec.gov/rules/sro/occ/2021/34-91935.pdf) +* **OCC-003**: Shielding plan. Protects the OCC. - [Link](https://www.sec.gov/rules/sro/occ/2021/34-92038.pdf) + +Each of these plans, in brief summary, allows each branch of the market to protect themselves in the event of major defaults of members. They also **allow members to scoop up assets of defaulting members**. + +What was that? Scooping up assets? **In other words it is more concentration of power**. **Less competition**. + +I would not be surprised if many small and large Banks, Hedge Funds, and Financial Institutions evaporate and get consumed after this crash and we're left with just a select few massive entities. That is, after all, exactly what they're planning for. + +They could not allow the COVID crash to pop their massive speculative derivative bubble so soon. It came too sudden for them to not all collapse instead of just a few of them. It would have obliterated the entire economy even more so than it will once this bomb is finally let off. They needed more time to prepare so that they could feast when it all comes crashing down. + +# 2.6 Signs Of Collapse Coming - ICC-014 - Incentives For Credit Default Swaps + +A comment on this subreddit made me revisit a rule passed by the ICC. It flew under the radar and is another sign for a crash coming. + +This is [ICC-014](https://www.sec.gov/rules/sro/icc/2021/34-91922.pdf). Passed and effective as of June 1st, 2021. + +Seems boring at first. Right? That's why it flew under the radar? + +But now that you know the causes of the 2008 market crash and how toxic CDO's were packaged together, and then CDS's were used to bet against those CDO's, check out what ICC-014 is doing **as of June 1st**. + +[ICC-014 Proposed Discounts On Credit Default Index Swaptions](https://preview.redd.it/phrxcouvii571.png?width=731&format=png&auto=webp&s=469560cf06458b51b1b5439d84062e9f6e04bda4) + +**They are providing incentive programs to purchase Credit Default Swap Indexes. These are like standard CDS's, but packaged together like an index. Think of it like an index fund.** + +**This is allowing them to bet against a wide range of CDO's or other entities at a cheaper rate. Buyers can now bet against a wide range of failures in the market. They are allowing upwards of 25% discounts.** + +There's many more indicators that are pointing to a market collapse. But I will leave that to you to investigate more. Here is quite a scary compilation of charts relating the current market trends to the crashes of Black Monday, The Internet Bubble, The 2008 Housing Market Crash, and Today. + +[Summary of Recent Warnings Re Intermediate Trend In Equities](https://preview.redd.it/y4reiv86hi571.jpg?width=550&format=pjpg&auto=webp&s=8845b7b90adf28409772483c6eeeef1763bbaaaf) + +&#x200B; + +&#x200B; + +&#x200B; + +# 3. The Failure Of The 1% - How GameStop Can Deal A Fatal Blow To Wealth Inequality + +# 3.1 GameStop Was Never Going To Cause The Market Crash + +GameStop was meant to die off. The rich bet against it many folds over, and it was on the brink of Bankruptcy before many conditions led it to where it is today. + +It was never going to cause the market crash. And it never will cause the crash. The short squeeze is a result of high abuse of the derivatives market over the past decade, where Wall Street's abuse of this market has primed the economy for another market crash on their own. + +We can see this because when COVID hit, GameStop was a non-issue in the market. The CDO market around CMBS was about to collapse on its own because of the instantaneous recession which left mortgage owners delinquent. + +If anyone, be it the media, the US Government, or others, try to blame this crash on GameStop or anything **other than the Banks and Wall Street**, **they are WRONG.** + +# 3.2 The Rich Are Trying To Kill GameStop. They Are Terrified + +In January, the SI% was reported to be 140%. But it is very likely that it was **underreported at that time**. Maybe it was 200% back then. 400%. 800%. Who knows. From the above you can hopefully gather that Wall Street **takes on massive risks all the time, they do not care as long as it churns them short-term profits**. There is loads of evidence pointing to shorts never covering by hiding their SI% through malicious options practices, and manipulating the price every step of the way. + +The conditions that led GameStop to where it is today is a miracle in itself, and the support of retail traders has led to expose a fatal mistake of the rich. **Because a short position has infinite loss potential**. There is SO much money in the world, especially in the derivatives market. + +This should scream to you that any price target that **you** think is low, could very well be extremely low in **YOUR** perspective. You might just be accustomed to thinking "$X price floor is too much money. There's no way it can hit that". I used to think that too, until I dove deep into this bullshit. + +The market crashing no longer was a matter of simply scooping up defaulters, their assets, and consolidating power. The rich now have to worry about the potential of **infinite** losses from GameStop and possibly other meme stocks with high price floor targets some retail have. + +It's not a fight against Melvin / Citadel / Point72. **It's a battle against the entire financial world**. There is even speculation from multiple people that the Fed is even being complicit right now in helping suppress GameStop. **Their whole game is at risk here.** + +**Don't you think they'd fight tooth-and-nail to suppress this and try to get everyone to sell?** + +**That they'd pull every trick in the book to make you think that they've covered?** + +The amount of money they could lose is unfathomable. + +With the collapsing SI%, it is mathematically impossible for the squeeze to have happened - its mathematically impossible for them to have covered. /u/atobitt also discusses this in [House of Cards Part 2](https://www.reddit.com/r/Superstonk/comments/nlwaxv/house_of_cards_part_2/). + +[https:\/\/www.thebharatexpressnews.com\/short-squeeze-could-save-gamestop-investors-a-third-time\/](https://preview.redd.it/6hge0pxfhi571.png?width=871&format=png&auto=webp&s=aab736cc279cc727524d2cf96384ea3e33109250) + +And in regards to all the other rules that look good for the MOASS - I see them in a negative light. + +They are passing NSCC-002/801, DTC-005, and others, in order to prevent a GameStop situation from **ever** occurring again. + +They realized how much power retail could have from piling into a short squeeze play. These new rules will snap new emerging short squeezes instantly if the conditions of a short squeeze ever occur again. There will **never** be a GameStop situation after this. + +It's their game after all. They've been abusing the derivative market game for decades and GameStop is a huge threat. It was supposed to be, "crash the economy and run with the money". Not "crash the economy and pay up to retail". But GameStop was a flaw exposed by their greed, the COVID crash, and the quick turn-around of the company to take it away from the brink of bankruptcy. + +The rich are now at risk of losing that money and insane amounts of cash that they've accumulated over the years from causing the Internet Bubble Crash of 2000, and the Housing Market Crash of 2008. + +So, yeah, I'm going to be fucking greedy. +The new car is on avg. $40,000, and the homes people buy are usually way above their pay grade. I see people making minimum wage buying a PS5 and fast food and unlimited data, etc. I make alright money and am frugal, no debt, and still I'm struggling to plan for kids, a home, and retirement. Is everyone just in massive debt? Is this sustainable or will it cause another crash? + +As the title states.... + +&#x200B; + +I've been a long time lurker and just crunched the numbers tonight and wanted to share. I am so happy. I did it. Brings tears to my eyes. + +&#x200B; + +I'm 32, African American and a single mom of 1 teenager. I was born and raised in a true "hood", long ago, before gentrification came along. My parents were a part of the 80s crack epidemic that wiped out many families, especially African American families. I ended up in foster care and remained there my entire childhood until being emancipated and left to fend for myself in the streets of NYC at 15 years old in the early 2000s. I was a homeless and pregnant teen and immediately became a single mom. + +&#x200B; + +Through this turmoil and the crippling depression and feeling of hopelessness that came along with the "humble beginnings" of my life, I was able to graduate school early, find a job, saved just enough money to go to a trade school (it was $700 back then and every single dime that I had.) Through HARD work and insane grit and perseverance, I obtained all of my certifications and began my career at age 19. I've never looked back. + +&#x200B; + +I discovered the FIRE and personal finance community nearly 3 years ago and its been a God send. I am rewriting my families wealth tree and I couldn't be prouder. + +&#x200B; + +I am navigating the world solo (no biological family besides my son) yet I've found the will to succeed, despite all of the trials, tribulations and abandonments. + +&#x200B; + +At 12:15am on 7/16/19, 32 years of age, 13 years into my career, 1 teen son, and a LOT OF PRAYERS along the way....later.. my NET WORTH is $103,408! + +&#x200B; + +A MIXTURE of 457, 457 Roth, 401K, 529, smaller investment portfolio and pension. + +I will be retiring at age 45 with a full pension and God willing a MILLION DOLLAR portfolio. + +&#x200B; + +This is the most I'm willing to share. Please don't nit-pick, pry more or be passive aggressive. Just wanted to inspire someone somewhere who may not have as many or ANY resources to succeed. + +&#x200B; + +Long Story Short: No one thought I'd make it out from under the shitty hand I was dealt. I did and just surpassed a $100K Net Worth! + +&#x200B; + +EDIT #1: Some of you are super triggered. LOL. I don't see this type of responses on other more "traditional" postings. Y'all do know I have thick skin and come from a place where nightmares are made of...right?! I also have worked in a very AGGRESSIVE fast pace career interacting with strangers during their absolute worst moments for 13 yrs +.... read: they are with the shxts and so am I.... LOL....you do know your typed "insults" don't hurt...right?! + +&#x200B; + +EDIT #2: If I did not a THING else I would STILL be retiring with a FULL PENSION of nearly 50K + health insurance. Yes, at age 45. 25 years of service and that's it. Not 25 years of service + age requirement. + +&#x200B; + +EDIT #3: Yes, a 1 million dollar portfolio is lofty for some and not lofty for others. For me, it's just an idealistic number...really... + +&#x200B; + +EDIT #4: 20-30K + investments I'll continue to have yearly for the next 14 years. I am currently at 26K invested this year and we are only in July. I am nearly 3 years in to saving this aggressively at 50%+ (had it at nearly 70% for months and just lowered my percentages. It's not a race.) + +&#x200B; + +EDIT #4: I am a Paramedic. I also clean apartments as a side gig. My current career has no overtime cap. I have coworkers making 100% OVER their salary. + + +EDIT #5: I live on 30K in NYC (by choice: frugal minimalist). I invest ALL OF THE REST. I do NOT have to invest this aggressively. God covered me and I made a great choice in trade/career and the medical field knows no recession especially in NYC. I am BLACK AND PROUD of what I am doing, no plans to stop. Thank you for ALL the comments. Positive, neutral and negative. I learned a long time ago that SUCCESS can't be denied. I will surely be back with updates. + +EDIT #6: WAKANDA FOREVER‼️ + +EDIT #7: I can’t give clues on this post about my social media (sorry for the rule violation!) Im replying to everyone who’s inboxed me. Im STILL doing my best to reply back to those who were kind enough to write me. Wow so many of you! I’m so appreciative. You all are awesome! Thank you so much! +Elon is an egotistical asshole who is worshiped by a horde of lunatics who obey his every utterance. I hope he spends time pumping and dumping other crap and not focus on ETH as the ravings of a power mad billionaire are hardly a strong foundation for long term success. + +One of the attractions of crypto was that it was supposedly going to empower the weak and instead it’s turned into another plaything for the rich and super rich. +I hold an RBL Bank Credit Card along with a couple of others. + + +Today, I got a call from a mobile number 6391504865. The person was speaking fluent English and claimed to be from the RBL Bank. He asked me - at the time of getting the card whether I was told if this card is lifetime free or there will be a joining fee. Then he asked if I was actually given the credit limit which I was told. Till this point, I answered the questions. + +Then he told me that the bank is offering me a credit limit increase of 1 lakh if I want. And then asked - "Please confirm if the PAN number I am telling is correct." Then he told me my correct PAN number. He further proceeded saying that he was sending an OTP which should be shared with him for authorisation of this limit increase. Here comes the scary part. I received an OTP from the legit RBL messaging service (VK-RBLBNK) from which I usually receive the transaction messages. The content of this SMS was as following: + +“234567 is OTP (one time password) for updating your RBL Bank Credit Card settings.” + +Just to ensure that this is indeed a fraud, I asked him to tell me my existing card limit before I share the OTP. He couldn't answer it well and started beating around the bush. I told him unless the SMS mentions that this OTP is for credit card limit increase, I will not share the OTP. I asked him to send me an email from his RBL email id about this. He said yes and hung up the phone. +*** +From my personal experience of credit cards in the past, whenever there is credit limit increase offer, the banks usually let you know this by + +1) SMS - Then they ask us to send YES/NO in some format to a specified number to accept/reject the offer. + +2) The net banking/mobile banking account displays the alert about the offer. Then you yourself accept or reject the offer. + +3) If you yourself call the customer support helpline for some issue and you get to know that there is an offer for credit limit increase. Even on the phone if they have never asked for an OTP. + +Till date, I have never needed to share an OTP for a credit card limit increase. + +To further confirm that it was a fraud, I called the RBL Customer Support and connected with the fraud department. They told me that there is no offer on your card and the call which I received was definitely a fraud call. + +So this caller was a sophisticated caller/hacker who had access to my RBL Bank Credit Card data by which he was able to tell me the correct PAN and able to generate the OTP -possibly for a fraudulent withdrawal transaction from my card. Truecaller showed the number’s location as Uttar Pradesh. + +On extensive googling around this, I was able to locate this article which elaborates the exact same fraud which I experienced. The victim was also an RBL card holder. + +[Chandigarh cyber cell arrests 2 hackers for stealing credit card details](https://nationnews.in/chandigarh-cyber-cell-arrests-2-hackers-from-delhi-ncr-for-stealing-credit-card-details-credit-card-and-payment-gateway-recovered-from-their-possession/) +*** +Please beware of the calls you receive from people claiming from banks. Reverse check with the caller by asking them if they know your additional details. If they are unable to answer it, then it’s definitely a fraud. + +The best safety is to never share any kind of OTP with anyone. + +P.S. + +1) There is a series called [Jamtara](https://www.youtube.com/watch?v=GoXd_sESBBI) on Netflix which explored such scamming and phishing which takes place in India. + +Jamtara is a city from Jharhand. It is nicknamed the phishing capital of India. It got this title because there were numerous incidents of phishing across country whose centre point was this small town. + +2) **Just to ensure full safety and peace of mind, when I was talking to the fraud department of the customer support, with their help, I immediately blocked the credit card and requested a replacement.** +I spend around $300 per month on various medications. Based my income and my other costs of living, I have essentially been breaking even for the past 6 years. + +I just signed up for Cost Plus Drugs and had my prescriptions moved over. It's going to cost me around $30 to get all my prescriptions shipped to me via this site. That means that I just went from breaking even to saving almost $300 per month. + +LOL retirement here I come!!! +We don't make cars, or high tech electronics, or pharmaceuticals, or vaccines, or anything advanced at all. + +The highest market cap stocks are all banks. + +Our biggest economic sectors are... commodities. Like a third world country or something. Imagine if we weren't adjacent to the USA. Our economy would like Portugal or something. +I’d like to invest in something that would generate $30000 a year. Would like to entertain as many options as possible. How about some ideas. Thank you +Mark was early, too early. Meta should have remained an internal project + + +Instead, he took a risk and took the company in the new direction with the greatest deal of publicity. Changing their ticker, name, mission. All on display for the world to see, as if to say, look at me, look at us, place your eyes on our newfound identity. + + +It's very fitting, for the de facto social media industry leader to take this approach. Very fitting, for a once young and innovative Mark Zuckerberg to want to matter again, after years of declining market share and increased competition. + + +The issue is one that is shared among the modern investing world. One driven by jargon and VC capital endlessly pouring into the "next big thing". One where appearance matters much more than actual substance. You might even say this is reflective of society at large, perhaps even one where Zuckerberg helped mold. The issue lies in the fact that we live in a world where simply changing your name to include a buzzy new catchword such as crypto, NFT, or Metaverse can increase your company's valuation multiple times without changing much else. + + +But for how long? Eventually when the music stops and the madness of discretionless investing is over, when the cost of capital has tripled, quadrupled, will your firm truly stand the test of valuation? Time to get back down to brass tacks. +Found this 2018 article, interesting/fun fact: [The Stock Market Works by Day, but It Loves the Night](https://www.nytimes.com/2018/02/02/your-money/stock-market-after-hours-trading.html) + +* If you had bought the SPY at the last second of trading on each business day since 1993 and sold at the market open the next day — capturing all of the net after-hour gains — your cumulative price gain would be 571% +* On the other hand, if you had done the reverse, buying the ETF at the first second of regular trading every morning at 9:30 a.m. and selling at the 4 p.m. close, you would be down 4.4% + +Chart: [https://i.imgur.com/YPTjg3v.jpg](https://i.imgur.com/YPTjg3v.jpg) + +Disclaimer - I'm not posting this to endorse the above strategy, I prefer to buy and hold. +There has recently been a user who posts super well written DD on certain stocks, and then the price will jump 50% (or even 200%) in about 30 minutes. Make sure you’re checking when that post was made because otherwise, you’re going to be buying at the top of a major pump. The price will likely fall down close to where it was before and then you will have a much better chance to buy in and get gains. When a stock is $3 and the DD says it’s price target is $7, generally that means that within the year, they expect the price to reach $7 - not within the day or week. + +Just be careful buying stock an hour after a convincing DD is posted, that is all. + +Disclaimer: I do think this user’s DD is very well written and he finds good stocks to invest in. I just think that waiting a day or two after the initial post would provide a better entry point. + ***Prerequisite DD:*** + +1. [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) +2. [The EVERYTHING Short](https://www.reddit.com/r/GME/comments/mgucv2/the_everything_short/) +3. [The House of Cards – Part 1](https://www.reddit.com/r/Superstonk/comments/mvk5dv/a_house_of_cards_part_1/) +4. [The House of Cards - Part 2](https://www.reddit.com/r/Superstonk/comments/nlwaxv/house_of_cards_part_2/) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +**TL;DR-** **No freaking way I can do that.** + +**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** + +**Continuing from HOC Part II...** + +**4.** **Slimy…** + +If you watched the [AMA with Wes Christian](https://www.youtube.com/watch?v=2rJujnpKiqM), he talks about the number of occurrences where the actual short interest is severely understated based on the data his firm obtained for legal proceedings. According to his numbers, in most cases the short interest is 50% - 150% **MORE** than what is reported by the SEC *(starting at 14:30).* + +The objective isn’t to address the issue: it’s to keep the issue hidden. Firms that underreport their short interest are gaming the system by taking advantage of how the short interest calculation is done. When the SEC relies on reports that broker-dealers provide, and FINRA takes YEARS to reveal the lies within those reports, the broker-dealer can lie without immediately facing the consequences. It allows these firms to operate in a high-risk environment without exposing just HOW big their risk-appetite is. + +Another example that Wes mentioned was [Merrill Lynch](https://www.sec.gov/news/pressrelease/2016-128.html). Merrill was fined [$415,000,000](https://files.brokercheck.finra.org/firm/firm_16139.pdf) *(violation 3)* in 2016 for using securities held in their customer’s accounts to cover their own trades. Check out this screenshot I took from that case: + +https://preview.redd.it/v9625j8wek171.jpg?width=1115&format=pjpg&auto=webp&s=85d43bc351fbda75e347bd33a1a550b67dda970e + +Remember when we mentioned [SEA 15c3-3](https://www.finra.org/sites/default/files/SEA.Rule_.15c3-3.pdf) in the case with Apex? They were asking customers to book short positions to either a cash account or a short margin account. [SEA 15c3-3](https://www.finra.org/sites/default/files/SEA.Rule_.15c3-3.pdf) protects those customers from allowing brokers to lend out the securities within their cash accounts… + +Well Merrill Lynch knocked that one right out of the f\*cking park… + +&#x200B; + +https://preview.redd.it/s3zok5wyek171.jpg?width=1129&format=pjpg&auto=webp&s=815e5344912234ceba846dc0d45c8b8b488b82c4 + +Merrill made it seem like the required deposit in their customer reserve account was much lower than it truly was. They wouldn’t have been able to use that cash if it reduced the amount below the minimum capital requirement, so they found a way to fudge the numbers. In doing so, they managed to prevent a CODE RED while reaping the benefits of a high-risk ‘opportunity’. Should Merrill have filed bankruptcy during that time, those customers would have been completely blindsided. + +In the case of short selling, the *true* exposure of short interest is unknown… and I’m not just talking about the short sale indicator. When a firm fails to deliver securities that were sold short, there’s a pretty good indication that they’ve exposed themselves to a bit of a problem.. Now imagine a case where the FTDs start piling up and they STILL continue to short sell that same security.. think I’m joking? + +Check out the [Royal Bank of Canada](https://files.brokercheck.finra.org/firm/firm_31194.pdf): + +https://preview.redd.it/u6yl6tj2fk171.png?width=812&format=png&auto=webp&s=1e44cc507247db1e28c00a213f90054b9abdaa6a + +Again… I was pretty shocked at that one. However, nothing rang-the-bell quite like this one from [Goldman Sachs](https://files.brokercheck.finra.org/firm/firm_361.pdf): + +https://preview.redd.it/5f408er6fk171.png?width=1031&format=png&auto=webp&s=38b9ad83d2a07360af5b5cd99d834a8771b66c93 + +Goldman had 68 occasions in 4 months where they didn’t close a failure-to-deliver… In 45 occasions, they CONTINUED to accept customer short sale orders in securities which it had an active failure-to-deliver… + +When a firm is really starting to sweat, they pull certain tricks out of their ass to quell the situation. Again, this is nothing but smoke and mirrors because that’s all they can really do. Just as Merrill Lynch artificially lowered their customer reserve deposit, other firms make it look like they cover their short positions. + +One of the ways they do this is by short selling a SH\*T load of shares right before a buy-in… Since we’re talking about Goldman Sachs, this seems like a great time to showcase their experience with this.. + +https://preview.redd.it/zhf1hr1afk171.png?width=1049&format=png&auto=webp&s=f704c3722ae287480057ce3e01c561a28b77cf4c + +I promise… It really is as dumb as it sounds… + +So the perception here is when Goldman’s client has a FTD and they find out a buy-in is coming, the required buy-in would obviously be too extreme for the client to handle.. So they begin to buy those shares while simultaneously shorting AT LEAST the same amount they were required to purchase… + +Have you ever failed to repay a loan so you went to another bank and got a loan to cover the first one? Well that’s exactly what this is… I know what you’re probably thinking… “didn’t that just kick the can down the road?”. The answer is YES: it didn’t actually solve anything.. + +There’s still one more citation that Goldman received which truly represents the pinnacle of *no-sh\*ts-given.* After I cover this, I don’t know how anyone could argue the systematic risks that exist within the securities lending business.. Check it out: + +https://preview.redd.it/0md200bdfk171.png?width=940&format=png&auto=webp&s=cf5e8310fbcbd73699e3593b2ab5dab418055ab0 + +For 5 years, Goldman relied on a team of 10-12 individuals to locate shares to be used by its clients for short selling. This group was known as the “demand team”. Naturally, as the number of requests coming in the door started to increase, it became difficult for the team to properly document all of them. The volume peaked at 20,000 requests PER DAY, but the number of individuals that handled this job stayed the same. + +Obviously, this became too much for them to handle so they opted out of the manual process and found another solution- the F3 key…. + +Yes- the F3 key… This button activated an autofill system which completed **98% of Goldman’s orders to locate shares** + +https://preview.redd.it/exqzge3gfk171.png?width=964&format=png&auto=webp&s=ed9c8b740974dad01db69460332c56df81a8d768 + +The problem with Goldman’s autofill system was that it used the number of shares available to borrow at the beginning of that day, which had already been accounted for. After using the auto-locate feature, the demand team didn’t even verify the accuracy of the autofill feature or document which method was used to locate the shares for each order… and this happened for 5 years.. + +Just goes to show how dedicated firms like Goldman Sachs truly are to the smallest of details, you know? Great f\*cking work, guys. + +By the way, I have to show one of Goldman’s short sale indicator violations… It’s too good to pass up. + +https://preview.redd.it/5iuhlkcjfk171.png?width=1082&format=png&auto=webp&s=f4e2fa1f106e78b9d282b60c3cee9944e919ea82 + +At some point, you just have to laugh at these ass clowns… I mean seriously… one violation for a 4 year period involving over 380,000,000 short interest positions… they have plenty of other short interest violations, I just laughed at how the magnitude of this one was summarized by FINRA with 10 lines and roughly 4 minutes... whoever wrote that one must have been late for lunch.. + +The last thing I’d like to note here is the way in which short sellers use options to “cover” their positions. Wes gave a great overview of this in the AMA *(starting at 6:25)*. Basically, one group will buy puts and another group buys calls. This creates a synthetic share that is only provided if the option is activated. Regardless, short sellers will use that synthetic share to cover their short position and the regulators actually accept it… + +However, as Wes points out, most of those options expire without being activated which means the share is never delivered. This expiration can be set months down the road and allows the short seller to keep kicking the can. + +I doubt I need to say this, but we all remember the wild options activity that was happening shortly after GameStop spiked in January. u/HeyItsPixel was one of the first to point this out. While a lot of that activity was on the retail front, I suspect a lot of it was done by short sellers to cover those positions. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +**5.** **Hedgies are f\*cked…** + +I’m officially +20 pages deep and there’s still so much I’d like to say. It’s best saved for another time and another post, I suppose. So I guess I’ll wrap all of this up with some of the best news I can possibly provide… + +It all started with a [73 page PDF](https://www.sec.gov/comments/s7-08-08/s70808-318.pdf) that was published in 2005 by a silverback named John D. Finnerty. + +John was a Professor of Finance at Fordham University when he published *“short selling, death spiral convertibles, and the profitability of stock manipulation”*. The document is loaded with sh\*t that’s incredibly relevant today, especially when it comes to naked short selling. He dives into the exact formula that short sellers use, which is far beyond what my wrinkled brain can interpret, alone… + +..However, when firms are naked shorting a company with the goal of bankrupting them, they leave footprints which are only explained by this event. The proof is in the pudding, so to speak.. + +https://preview.redd.it/ax7u0r4wfk171.jpg?width=1072&format=pjpg&auto=webp&s=1828755bfe49c47ca178d960f91dfd21d8b0d680 + +Any of this sound familiar?? + +*“The manipulator can not drive the share price close to zero unless he can naked short an extraordinary number of shares…* *this form of manipulation would result in… unusually heavy trading volume, and unusually large and persistent fails to deliver at the NSCC”.* + +Anyone else remember the volume in GME during the run-up in January? The total volume traded between **1/31/2021 and 2/5/2021 was 1,508,793,439** **shares**, or an average daily trade volume of **88,752,555 shares.** On 1/22/2021, the volume reached 197,157,946… that’s roughly 3x the number of shares that exist.. + +if this doesn’t sound like unusual volume then I’m not sure what is. Furthermore, the FTD report on GameStop was through the roof during this time: + +&#x200B; + +https://preview.redd.it/brz98nbzfk171.jpg?width=1625&format=pjpg&auto=webp&s=83ae877853acd2ec65fa73f57216f00b708a7eab + +&#x200B; + +https://preview.redd.it/zlla3ak0gk171.jpg?width=1038&format=pjpg&auto=webp&s=c5d4a1331f8c9d97b5338cc55a37310a95c9559b + + + +Notice the statement where the manipulator will be relieved of its obligation to cover **IF** the firm’s shares are cancelled in bankruptcy? Did you happen to see footnotes 65 & 66 in the first screenshot of his PDF? It references a company that he used for his analysis… + +https://preview.redd.it/zdp3at43gk171.jpg?width=997&format=pjpg&auto=webp&s=8508c9d0c869544f0ccd3a15477abfd64d38897c + +Charter Communications had a whopping **241.8% short float in 2005**… **The ONLY way the manipulator could have escaped this was by bankrupting the company and relieving the obligation to repurchase those shares…** + +Guess what happened to Charter? They filed for [bankruptcy](https://abcnews.go.com/Business/story?id=7189668&page=1) in 2009… + +However, unlike John’s example where naked short sellers were driving down the price without opposition, GameStop had extremely high demand from retail investors to counter this activity. As I have discussed with Dr. T and Carl Hagberg, the run-up in volume during January and February was largely conducted by naked short sellers in an attempt to suppress the share price. As I have shown in the example with Goldman Sachs, firms will short sell during a buy-in for the same exact reason. To stabilize the price, you must stabilize supply and demand. + +…You know what Charter didn’t have? + +AN ARMY OF APES TO HODL THE STONK + +&#x200B; + +DIAMOND. F\*CKING. HANDS +Throwaway account for obvious reasons. + +Mid 30s - I work as a Senior Director in a well-respected industry leading firm. I’ve made my way up over the last few years. I looked at my work calendar over the last 6 months and it turns out that I average about 16 hours of actual work a week. My reward is about 200k in base, 30 percent bonus and an equity package of about 75K per year.I ’ve pretty much reached as high as I could at this job and could coast here with your average 8 percent raises. Doing so would get me to FIRE in the next few years and FATFIRE in probably 10-15 years, + +I have a few offers on the table from startups and one competitor that would essentially get me to about 500K a year in a more exciting role with lots of growth. I know that’s not as much as some of you FAANG folks, but its a pretty chunk of change for my household and might get me to FATFIRE faster. The catch is of course, is likely 40-60 hours weeks + more stress. + +EDIT: NW is about \~$1M split across two properties, and a few brokerage funds. My wife is a doctor so it is unlikely were going to retire together anytime soon, but I’d like to essentially FATFIRE by the time I’m 50. I estimate needing about $6M to complement my wife’s income to maintain our lifestyle. + +&#x200B; + +EDIT 2: This is not a 40 hour job that I’m just putting in 16 hours. No, this is a WFH job where really I put in 16 hours and the rest, I’m taking care of the house, working on my car, etc etc. Thanks for all the comments, at least my conflict, in theory, is represented here. + +&#x200B; +I don't really know where to post this but I feel like I need to vent. + +Do not take this as criticism of Bitcoin, blockchain technology, or cryptocurrency users & developers, it's not. + +There are probably other factors that led to my brother's suicide, but he had been beating himself up over Bitcoin for the past several years to the point where he seemed constantly depressed over it and gradually became a shadow of his former happy self. + +He claimed to have owned 15,000 at one point, which may have been an exaggeration. But I know for a fact that at some point around October-November 2012 he did have at least 6,000 BTC which he showed me in his wallets. He was so enthusiastic about Bitcoin and how cryptocurrencies would revolutionize the financial world. For awhile he was annoying the fuck out of our relatives about how it would make them millionaires. + +I'm not sure exactly what happened to his BTC. Sometime in 2013 he claimed to have lost most of them in a hack and sold the remainder too early. He very well may have sold them all too early, but who knows. + + As the price took off in late 2013-early 2014 you could tell he was distraught over it and became increasingly withdrawn from family and friends. Whenever I did manage to contact him he would sometimes end up ranting about how badly he had fucked up and how he would never have a chance to be rich again. + +As the price climbed up to 10k over the past several months it became even more difficult to make contact with him, he just wouldn't reply to me or my parents calls and texts. A couple weeks ago my parents flew out to see my brother and found him dead by suicide with no note. He was 29 with 50 years of life ahead of him. + +Other than obvious grief I don't really know how to feel about this. If I had missed out on $50M I might have killed myself too. I can't imagine what my brother must have been feeling these past several years knowing he missed his best & easiest shot at the wealthy life he had always fantasized about. Bitcoin totally fucked up his mindset to the point where you couldn't talk about anything related to investing, money or finances without him storming off or crying. + +If there's any more of you in a similar situation feel free to PM me. Please try to recognize there are endless economic opportunities in life and 1 mistake doesn't define your future. There are family and friends who care about you and will listen. +I have three call options, one with a 510 strike price. Just before the halt, I got notifications from my broker that all three options were in the money. Before the halt was lifted, I was notified that all three were no longer in the money. + +How much more theft are we going to put up with? How much more blatant can you get? The American market is just as bad, if not worse, than the LME. These idiots seem to have forgotten why there was a French revolution. At some point, people will decide enough is enough. +Use this as an opportunity to introduce people to your favourite ticker that they may have never come across otherwise! Maybe find a hidden gem or two.. **ALWAYS DO YOUR OWN DD!!** + +**Keep the main comments to this format:** +“$#### - Describe the company, blah blah blah. 🚀” + +**Rules:** +Main comments must be 2 sentences or less in the format above. +No crazy text walls in replies (extensive DD, copy paste press releases, etc.) +No links in main comment. Links in replies allowed ONLY if it answers a question. + +**Low karma/new accounts:** +Comments will be moderated but this is a good chance to join the discussion and earn karma to get past auto mod restrictions! + +Ask questions, chat & have fun! None of this is financial advice. +So I just recently sold my first property and turned a good profit after almost 6 years of owning it. This was my first time selling a property so I relied on the realtor for a lot of advice. When he first saw the property ahead of listing, he recommended a price of $210k and I agreed since it was in the range of comps that had sold around that time, a month ago. I ultimately ended up accepting a full cash offer for $203k with a waived inspection, at his recommendation before it even hit the open market. This was still above the price of most of the condos that had sold during that time. Well, we just closed last week and 3 days later it shows up on all the platforms listed for sale at $240k. He’s listed as the realtor representing the property. For background this is a 1/1 condo on the water in south Florida. + +Am I an idiot for not listing it for more or is this just the result of a crazy and fast moving market? Did my realtor just pull a shady move? + +Edit: I appreciate all the responses. Spoke to a trusted realtor/broker I know in another part of the state and they agreed this was extremely unethical. Also did some digging into the documents and saw that that The name was changed a couple of weeks before closing to a corporation who’s address is in the same building as the realtor, so the case for shadiness is mounting. + +TLDR: Sold my condo for $203k at the recommendation of my realtor. 3 days after closing it’s listed again for $240k. Was I just duped? +Back in my 30's I was similar to so many people who post here. I was a computer programmer making good money from my salary, stock grants, bonuses, investments, and the booming housing market. If I had stuck with it a few more years I could have retired early. + +People who haven't experienced it will never understand. "Just stick with it," they'll say, "How bad can it be?" + +If you've been in a job you hate, or are right now, you know that sometimes the money simply isn't worth it. I was bringing my work stress home with me. I wasn't a happy person and that wasn't fair to my wife or young kids. So I quit. + +I could have taken some time off, decompressed, then found another job to continue my FIRE journey. Nope, instead I bought a coffee farm in Hawaii. I wasn't at my FIRE number yet and after purchasing the farm I was even further away but I don't regret my decision. In fact, I'd say it was the best decision I've ever made. + +Farming isn't easy. If you think any idiot can be a farmer, you're wrong. Computer programming was easy, farming is not. Still, it was totally worth it. Of course I might be biased because growing coffee in Hawaii is different than growing corn in Minnesota. + +Now I'm in my 50's, the kids are grown, and I'm selling the farms. I don't have enough money to retire so I'll have to get a job. That's kind of scary. It's been decades since I had to look for a job. + +Some might think I made a huge mistake. I was close to permanent retirement but I blew it. Instead of retiring early I have spent my entire life working and now I need to keep working. "Fail!" they might say. + +I look at it different. Which is better, enjoying life while you're young or waiting until you're old? I quit a job I hated and created one I enjoyed. Whenever I wanted to go surfing, sailing, play computer games, take a nap, or hang out with my family and friends, all I had to do was ask the boss. Since I am the boss I always said yes. + +Maybe some people like the hustle of Silicon Valley, personally I have enjoyed the quiet life on a Kona coffee farm. I'm not trying to convince anyone to give up their journey to FatFIRE land. If I had stuck with it for a few more years, I might be very comfortably retired now. Or I might be a divorced alcoholic with no stories to tell. + +I have touched lava, swam with dolphins and sharks, chased a pet goat out of my living room, wrestled a wild boar, been sunburned on my private parts, been lost in the jungle, and every day I drink ridiculously expensive gourmet coffee that I grew myself. + +If I'm working at age 65, will I still think I made the right decision? +&#x200B; + +Throwaway because numbers. + +I've been on this FIRE journey since I was 18. I've done pretty well for myself so far and am on track to retire by 40. But, I royally fucked up this week. This is just a reminder to everyone who can hopefully learn from my mistakes: never, ever let people find out how much money you have. Hide it at all costs & don't trust anyone. Also, I need advice. + +My mom was in town the other day and, while I was at work, I let her chill at my apartment before an appointment she had. That morning, I was working on some papers for a visa application. For the application, I have to account for my current income and assets ($115k/yr, $525k) and also include copies of my account statements. Those papers were on my desk in my bedroom in plain sight. + +I didn't think about it until she called me yesterday and flat out told me that she saw the papers on my desk. Then, she started crying and told me in very clear terms that she expected help. She then laid out (in detail) all the financial problems that she and the rest of my family were having. I honestly didn't know what to do or say so I just hung up. + +Yes, because I am socially inept and can't handle confrontation like that, I hung up... and ignored the next 4 calls and 5 texts she sent. I also ignored the calls from my siblings and aunt. So I am thinking that she talked to the rest of my family about this and told them that I am now ignoring her. $525k is basically an unlimited amount of money from her perspective and my family thought that I was just as poor as they are so, I get it? I understand how much of a shock that would have been for her. But, I wish I wasn't so careless. I had no idea she would go snooping in my bedroom. + +I don't know what to do now. I don't plan on ignoring my family forever and I can't talk to any of my friends about this so.... what would you do? OR if anyone here has actually dealt with a situation like this, advice on a way forward is greatly appreciated. I just feel like I've now become the family bank and everyone is going to constantly ask for a bailout. +Title says it all. + +The amount of comments and posts I've had to remove over the last few days that were just telling people to buy random low liquidity ticker symbols or meme stocks is silly. + +Be warned, we are not WSB. If you post something off-topic to algo trading, such as pumping a MEME stock, you will be perma-banned. +I understand it sucks to see people losing their life savings, but we have been telling you not to sell naked calls on meme stocks FOR 6 FUCKING MONTHS. That’s more than enough time to grasp the fact that the premium on meme stock options are high for a reason. I have absolutely no sympathy for any of you. To the ones who sold covered calls, I also have no sympathy. You made max profit. Stop bitching about missed gains because it could have just as easily gone the opposite way. Be grateful and move your capital to another stock + +Edit: why is this doing numbers? It’s a shitpost. Thank you for the awards though lmao +So often someone will ask an amazing question, something I’m really interested in getting a good answer to, or even someone’s opinion, but I always just see that message explaining that comments need to be approved. + +99.9% is an exaggeration, but not many people are going to come back to look at a post to see if any comments have been approved. +As a completely new day trader i’m ecstatic, i have been severely depressed for some time now & life just seemed to be taking no brakes with the whole shitting in my cereal thing. Learning & starting this adventure has brought me so much purpose & motivation i feel like i can maybe just maybe start creating some direction for myself. + +this is just nothing from no one but thank you for reading this anyways i appreciate & love all of you. +I just finished a scan of reddit and twitter, searching for Bittrex support issues. It's ridiculous to read about some clients of theirs who have been waiting 4+ months for a response, let alone a resolution. + +This just isn't right. They happily accepted our deposits to trade. That's an agreement that our issues should be dealt with in good faith, in a timely manner and with open communication. + +The backlog excuse, I've heard it many, many, many times before. That's not our problem. It's theirs. And whatever they have to do to resolve and lessen the backlog, do it. No more excuses. + +Hire more staff. Change the resolution process. Increase shifts. Overtime. So many options. + +God doesn't need to tell us you're rolling in crypto right now. I'm sure the funds are there to implement whatever possible improvements are necessary and give people back their money. + +Do you think support is this tough with the largest traditional stock brokerage sites? Or banks? Not even a chance. After a 10 minute call, issues are rectified. And that includes waiting on hold for five minutes. + + This is from their twitter account on December 14, 2017... + +"We have turned off user registration for a DB upgrade due to a large spike in new user sign ups." + +What about support upgrades? That's great about your new DB but seems like your tickets are only going to increase now by being able to handle more sign-ups. More congestion. More waiting. + +I currently have over $15,000 in support tickets with them. I know I'm not the only one. But if there is no fire under their ass, nothing will get done in a timely manner. + +POST YOUR ISSUES HERE AT REDDIT.COM/R/BITTREXSUPPORTLOGS. + +They are not listening on twitter anymore so here's another way for us to voice and let them know we won't tolerate the way they're handling OUR money. + +Subscribe. Post. Upvote other posts. Comment. That's the only way we'll get this rolling. + +And if you haven't had to file a support ticket, lucky you. I hope you'll never have to. But help us out anyway. +Seriously, obviously the number of members is also growing here, but somehow we escaped the MASSIVE influx of noobs and mainstream people caused by the short squeeze event and the global media attention that was put around wsb. + +I feel like this is one of the last bastions of what wsb once was, a time capsule of the culture that we had before everything changed and was completely ruined, at least in my opnion. And for this I'll say: cherish this sub. Do not mention it too much outside, because it might go down the same tragic path of being just a bunch of memes and total monopolization. +Guys, first off i’ve been part of this community for only a short time, a little bit before this whole short interest craze but I seriously love the amazing things we’ve done for peoples lives. I’ve read about college kids paying off their student loans, people being able to afford to pay for family members cancer treatment, pet owners being able to afford their pups surgery. It’s incredible and I couldn’t be more proud to know I have a stake in this historical moment in time with all of you. + + +You see those headlines? That pushback from the big suits of wall street? WE did that. Together. If today was any indication at all, they are shitting their pants right now. I urge all of you to hold AMC and take advantage of dips if you’re inclined to do so. Please do not fall for hedge funds manipulating the market to send you into a panic sell frenzy. + + +The squeeze may not be tomorrow, and maybe not Monday, but it’s coming. I was DEEP in the red today and in any other scenario, I’d be panicking but this is bigger than me. It’s bigger than you, yes you reading this. This is a chance for us to come together as a collective and revolutionize the economy for better. + +Do your DD, stay on the ball, don’t let emotions cloud your judgement. I’m here to ride or die, AMC (and GME) to the fuckin moon baby, i love all you morons🚀🚀🚀🚀🌕🌕🌕💎🙌📈📈 +(edit: ik this technically isn’t a penny stock but we do have an AMC mega thread here) +Asda has announced all of its own in-store cafe’s will be offering over 60’s a roll, hot soup and hot drinks through November and December for £1 to help with the cost of living crisis. + +This isn’t strictly personal finance related but I’m sure there’s plenty of people over this age or with family over this age that may see this post and benefit from it, so I though it’d be worth posting for awareness. +By Econ 101, I do not mean people who are ignorant of the study of economics. I mean individuals who draw incorrect conclusions about economics based on a failure to recognize the simplifying assumptions we make in introductory courses. + + +Here is something I believed early on in undergrad when I (wrongly) thought I knew everything there was to know about economics: "printing money" essentially has a 1:1 relationship with inflation. I never considered that the velocity of money could fall! +Cost of everything up, mortgage payments up, everything still going up. Can someone explain in a basic way how the rba raising interest rates helps me? Someone must be winning and it doesn't feel like it's me. And how does this help those looking to buy a home? Isn't the drop in house prices cancelled out by the interest rates rising? + +Edit: Thanks everyone. I really appreciate the replies and knowledge share. I have to be thankful for what I have though never feels good to pay more for the same. One thing I am really thankful for (and amateur tip)is getting a mortgage/home based on what I would be comfortable paying monthly at 7-8% not what the bank would give me which was a lot more. +Hey, this is my first DD, I've been trading for around 6 months, and I found this very interesting penny stock with great growth potential! I'd like to hear your opinions aswell! + +Namaste Technologies (NV/NXTTF) is the largest ONLINE retailer for medical cannabis systems across the world. Majority of the market is situated in the biggest countries such as: Europe, Australia, UK, Canada, Germany, and keeps expanding into new markets such as Brazil, Mexico and Chile. Namaste Tech. is an international leader in vaporizer and accessories distribution, with great potential up ahead. We are the most bullish on the international side of the industry. Here are some keys aspects to consider upon investments: + +-Advances USA Expansion with approval from TSX Exchange, engaging in sales of smoking accessories and hemp derived CBD in the U.S. Namaste looks forward to leveraging its VendorLink technology in collaboration with DankStop and PeakBirch Logic, Inc. They also launched another brand under the name: Roilty. + +-Expects to go live for U.S customers thru CAnnmart by the end of this February 2021. This proves that their expansion is significant and should affect the attention of the company. + +-This company got approved for their launch of a new nutraceutical division and an expansion of the business into psychedelics. + +-Estimation of 100% surge on Q4 revenue to $8m + +From the looks of it, Namaste Technologies have extremely great potential for growth. Through the power of expansion and innovation, there’s no surprise that the company grew by 88% this last month. It is truly a company to watch out for closely, as they are very active with deal-breaking new ideas and constant development. +PRICE TARGET: Short Term: 2$-2.25$ - Long Term: 5$+ + +My personal position stands at 10.3k shares at 0.29$ + +NAMASTE TECH. EXTRA INFORMATION (10/02/2021): +Market Cap: 115.62M +Volume: 8,341,194 +Avg. Volume: 1,008,808 + + + + + + + + +References: +https://finpedia.co/bin/Namaste%20Technologies/ + + https://www.namastetechnologies.com/news/ +Hi! I just closed on the sale of my second investment property, and I'm officially "out of the game". I read this sub religiously for two years before making a leap and buying property. So I thought I'd come back here and share what I learned and what I should have done differently. + + +My story is very common: high income, high cost of living area, property here is crazy expensive, want to diversify, etc. I started looking for places to invest. After a couple failed attempts and about six months of research into cities I decided on a Midwest city. I flew out there and met a property manager and realtor (business partners) and eventually bought 2 duplexes. I was super excited to start my real estate empire! I ran the numbers hundreds of times. The rents were almost double the payments. What could go wrong? + + +Then reality hit. There was always something happening with the properties. Always. Sometimes big stuff like the AC breaking. Stupid stuff too. Every time the PM sent someone it would be another $200-300 out of my pocket. We had two evictions (across 4 units total) and unit turnover was 10k every time, and that's after I pushed back on most of the stuff the PM insisted on "fixing" (like replacing a shower head that worked just fine. why?!). Good months, I got 80% of the rent I had been counting on in those spreadsheets I spent so much time on, but there were a lot of months where there was nothing coming in. + +So what does it mean when you have a mortgage on two properties with no money coming in? Risk. How long can you remain solvent? The properties were supposed to be net positive, instead I never even bothered putting them in the income section of my budget sheet because it was so unreliable. I realized that I have no stomach for the degree of risk that comes with increased debt. I once thought that I would buy one property per year. I can easily afford the down payments. But each one is another amount that becomes a tighter noose around your neck if / when the tenants don't pay. I sold my first property after the tenant got evicted. I sold the most recent one after I had a dream that covid caused the economy to crash to 2008 levels and it lost half its value. I just don't have the stomach for that level of risk. + + +Lessons learned: + + +** Do not invest out of state unless you have multiple, personal connections that have worked with the property manager in the past. I still don't know if they fucked me over or if I got unlucky with the properties/tenants. I suspect it's a bit of both. They certainly padded the to do list when turning the units over by at least 50 percent. I was charged $400 to haul away the debris after one turnover. + +** Get a separate property manager, realtor, and attorney with no connections to each other. You need checks and balances. + +** Understand how much risk you can stomach. Know yourself. I have a "fuck you money" amount of savings in cash because I'm just inherently not a very risk taking person. You don't want your investment to keep you up at night. + +** Talk to the PM before signing anything on what the process is to end your relationship with them if things go south. Document it. + +** This one is kinda random but if you're trying to keep your investment a secret from family, put it in an LLC. Wholesale vultures called my estranged father trying to get him to sell them his property in <city>! Which was just great when I purposefully didn't tell anyone about the investment to keep my financial situation under wraps. + +So, in the end, I'm a failed real estate investor. Due to property appreciation I basically broke even on one property and made maybe $20k on the sale of the other, so it was just a collosal waste of time for the number of trips across country, all the transaction fees, etc. Hope this was useful info for someone. Like I said, I never told any of my friends or family about any of this so Reddit is all I've got to get this off my chest. + Hi all beginners, I was once like you, had no idea what I was doing, no idea what an option was, and had no idea how to even buy a stock. Now, you could say I'm an "experienced" trader (Whatever the f%&\* that means), and I see a decent amount of posts "totally new - what should I invest in". From all the smooth brains that have been doing this for awhile - that's really annoying and no one wants to help you for the most part. + +Instead, do you own research first - I mean, you literally have Google, it is so simple. Im really not trying to bash on anyone, but Google is amazing and if you just take the 15 minutes to read an article or watch the ENTIRE youtube video, you will be so much further ahead. people are so obsessed with the known and dont want to work. It has taken me about 3-4 years to finally understand the market, charts, DD, and more about stocks and I still lose money on trades, and if u see someone saying they never loss money its a scam and stay away. Anyways, what im trying to preface this with is stocks take time to understand do you DD. + +For those complete beginners that dont even have brokerage app installed yet, here are some good places to start: + +[https://www.investopedia.com/articles/basics/06/invest1000.asp](https://www.investopedia.com/articles/basics/06/invest1000.asp) (investopedia in general is amazing for learning) + +[https://www.thebalance.com/stock-trading-101-358115](https://www.thebalance.com/stock-trading-101-358115) + +Those are two good articles to start reading, giving you a basic understanding. I know most of you wont read that so for complete beginners here is the TL;DR: FIND A BROKEAGE LIKE ROBINHOOD,WEBULL ETC, DEPOSIT MONEY, THEN ONCE THE MONEY HITS START RESEARCHING STOCKS YOU WANT TO BUY. + +So now that you have a brokerage app installed on your phone, or you can access it via your laptop, doesnt matter, and you have some money in there, you can actually start buying the stocks. Depending on what brokerage you are using all the UIs look different so buying and selling will look different but buying and selling is the same. If you buy a stock you get shares, and when you sell the stock you lose those shares and "collect" your money, whether thats a profit or loss. + +Anyways, you have a brokerage now with some money in it, how do you find stocks to buy. There are a million difference ways you can decide. The first way I recommend you find stocks to buy is through create a "stock screener". [Finviz.com](https://finviz.com/) has a great free tool that alot of people use for this, and there are a ton of youtube videos on how to create your own screener..here are some of my favorite screeners: + +[https://www.youtube.com/watch?v=M8sNMhPJINU&t=2s](https://www.youtube.com/watch?v=M8sNMhPJINU&t=2s) + +[https://www.youtube.com/watch?v=bWpe30R2VnM](https://www.youtube.com/watch?v=bWpe30R2VnM) + +[https://www.youtube.com/watch?v=7xKOo6vNaq8](https://www.youtube.com/watch?v=7xKOo6vNaq8) + +Each morning, you can run these scans premarket and have some stock ideas on what you want to trade. But don't just base your screener off of the stocks you are going to buy, you have to make sure they are a good stock with potential because just because its in your screener doesn't mean it is a stock you want to trade. So go through technical chart analysis (will cover that further down), read up on the stock, look at the price target, with analysts think it is a good buy or if you should sell, you can look at the fundamentals, and much more. The good news is all of that can be found on Finviz as well. + +Before we get into the meat of breaking down your pre-market screener stocks, there are some other ways you can check out stocks to buy. There are way to many accounts to count on twitter that provide great advise and tweet about what stocks they are watching and buying into - this is complete free. Another great place you can go is right here - REDDIT. People are always posting stock ideas, so instead of posting "what should I buy" take that time to look through subreddits of what people are buying, what they are looking at or some of the DDs, those can be super helpful. + +Now that you have an idea on how to find the stocks, the next part is determining if you should actually buy the stock or not. The first step I like is the technical chart analysis. If this is a swing trade, a stock you plan on holding for more than a day but less than a year, technical analysis is super important in my opinion. If you are LONG on a stock and are going to hold it for more than a year or even 10+ years then it is more about the company and the direction you think they will be going which is more fundamental trading, but I focus on more of the swing trading, and sometimes day trading but I dont really do that. Here are some good videos to understand technical analysis of a stock chart: + +[https://www.youtube.com/watch?v=rlZRtQkfK04](https://www.youtube.com/watch?v=rlZRtQkfK04) + +[https://www.youtube.com/watch?v=o6hZma0bajE](https://www.youtube.com/watch?v=o6hZma0bajE) + +[https://www.youtube.com/watch?v=ItacPNRujiU](https://www.youtube.com/watch?v=ItacPNRujiU) + +Those are some great videos that should get you started and really will teach you what all the stuff on the charts mean so you can start to break down charts on your own and know if those stocks from your screener are worth buying or not. + +The next analysis that is popular is called funamental, I dont do this style but here are 2 videos that cover it in good detail: + +[https://www.youtube.com/watch?v=a63yvv4vjDE](https://www.youtube.com/watch?v=a63yvv4vjDE) + +[https://www.youtube.com/watch?v=baAzH5ZfNbs](https://www.youtube.com/watch?v=baAzH5ZfNbs) + +There you have it. Now you can sign up for a broker to get money into an account, deposit money in, start screening for stocks that you may want to buy, and then review their chart to see if you want to buy the stock. + +If it still seems confusing go back to what confuses you and re-read the article or find another video that may explain it better than the videos I found. Its all about just doing the process over and over again and you will see what works and what doesnt. That is the honest truth, like i said it took me about 3 years to find what works for me and what doesnt. And what works for me may not work for you, the biggest part of understanding a stock or the market in general is having your own way so you are confident when you invest in a stock. + +Pro-tip, when you buy your stocks, set a stop loss order for the stock. This means that if the stock doesnt go up and starts falling, once it hits a certain price it will automatically sell. This is very important for managing your risk, especially as a beginner. + +check out this video on stop losses: [https://www.youtube.com/watch?v=VW7P22B\_99A](https://www.youtube.com/watch?v=VW7P22B_99A) + +I hope you beginners learned something from this, if not no problem. drop your questions below I will try to answer, but again im now financal advisor or millionaire. +Obligatory: This is not to brag, but more a gratitude post for all the help over the years from people in this sub, and other mentors. Also, there are very few people in my circle outside of my wife and a few core friends that I'm able to share this with. + +Five years ago (2016), at the age of 23, I got my first taste of real estate. I purchased a single family home. A little 1300 sq. ft. house, with 4 bedrooms, and 2 bathrooms. I lived in the master suite, and rented out the three extra bedrooms to my buddies. I lived completely for free, which was a miracle as I was living paycheck-to-paycheck, and had a net worth of -$50k (student loans, CCs, and car loan). Little did I know that this even had a coined term -- "house hacking". + +Two years later, my life had changed quite a bit. I was getting married, and rather than keeping that home as a rental, my wife and I decided that we would kick out the roommates, and sell the house to pay off debt, and move into her home. When my house sold, I stood in awe, holding a check for $40k -- the same amount as my entire year's salary. Not only did I get to live completely for free for two years, I made $40k. I thought to myself, "I've got to do this again." + +That $40k paid off all of my remaining student loans, and all of my credit cards. With the money we had leftover ($25k), we rolled the remaining into our first rental property. We started attending our local REIA, networked, and made connections. + +The first rental rolled into a duplex. And then the duplex rolled into a fourplex. Then we snagged another single family property. We did our first BRRRR deal. Then we found a great deal on a commercial property. We tried GC'ing a home on our own. And then we tried an AirBnb. We've used every type of financing under the sun: FHA, Conventional, HELOC, Seller Financing, 401k Loans, Hard Money, and Cash-out Refi's. Little by little, just with consistency and patience, we've been able to build a nice little portfolio of 9 properties and 20 units. + +Our current NW consists of: + +Cash - $37k +RE Equity - $889k +Vehicles/Toys - $112k + +It's a really cool feeling to be able to say "I'm a millionaire." It's a fun milestone to hit, yet at the same time, feels very small now when I look at other investors with insane net worths. Regardless, I'm really pleased and grateful with what we've been able to achieve in just a few short years. We're on track to hit $1.2M or $1.3M by the end of the year. + +Of course, a lot of the credit goes to being privileged, as well. I realize that I won the lottery by being born into a white, middle-class family, in America. I never grew up hungry, and both of my parents were well-educated with college degrees. I'm grateful for my upbringing and know that this absolutely has attributed to our success. + +Anyway, I think the whole point of this post is to say that it's easy to look at others and compare and see what they have. But it's amazing how 4-5 years of consistency and hard work with laser focus can truly change your life. + +I have SO much to learn, but finally feel that I sort of have a decent "hang" of it. I love RE. I still work a 9-5 (mostly because it's easier to qualify for loans with a W2), but have a goal to quit by my 30th birthday. Onto the next million! +People tend to feel a sense of guilt when it comes to leaving a job like they owe them or their coworkers something. That is because America preaches this "family" culture that we are such a strong team all working together. In reality, if they need to close your entire division, they will do it without hesitation. If they can outsource something cheaper, they will do it. You do not owe them anything and if you see a better opportunity for yourself or your family, please take it and make your own financial future. +I recently started reading rich dad poor dad. The information to me is simple and seems to be true but is it actually true. Any more guidance on personal finance / hustle? +I made a statement in the daily thread that if the stock reached $200, I would put a watermelon in my anus. I watched in horror as the stock I liked soared from about $170 to over $215, a price it had not seen in weeks. ^(Is ^this ^the ^catalyst?) + +After careful consideration and measurements, I have come to the conclusion that fulfilling this bet would cause severe trauma for both myself and the watermelon. + +I had hoped that my bet would be forgotten about but as we have all learned over these last 7 months, Apes never forget. + +I cannot give you all what you ask of me, but I can give you justice. + +I will change my flair to whatever suggestion gets the most upvotes, and I also won't contest a ban from the mods. + +I wish you all good fortune in the weeks to come, it's been a fun 7 months. Stonks only go up (unlike watermelons) + + + +**TL;DR** no melon, no cry. + + +**TA;DR** 🚫🍉⬆️🍑 +You cant even post about moderate gains without some fanatic or social justice warrior trying to tell you that you are a "paper handed bitch" or that you "turned your back on the movement". What fucking movement?! Stocks are not a movement. What happened with the meme stocks is not a movement. It's a bunch of idiots who got too greedy and in turn attracted a larger group of idiots who think putting $100 into a fractional share is going to bankrupt all the large players and change the way capital is dispersed to the people. Get your head out of your ass. You didn't even bankrupt 1 hedge fund. You just forced them to close their position and borrow from their friends. I hope these people go back to r/charity or r/socialjustice or where ever they usually bitch and moan about not knowing how to make money. r/investing r/stocks r/stockmarket are for investing and trading not for furthering your cause or political beliefs. That's it. GL making that paper guys. + +Edit: For those who are upset about my inclusion of r/socialjustice and r/charity I will admit It was an uncalled for jab at them and I do appreciate the work they do. I am actually upset about those false, fake, or wannabee, sjw's acting like this is a movement we are all a part of or even wanted to be involved in when they really just wanted to see meme stocks get them rich quick. + +Edit 2: For anyone who is new to trading and looking to learn more I would like to direct you to the following educational sources:-Most Brokers have excellent educational resources on their platforms when it comes to the basics.-Investopedia has articles and educational resources on most charts, technical analysis, trading strategies, and techniques. [https://www.investopedia.com/](https://www.investopedia.com/)The subs bot also provided me with these: [https://github.com/ckz8780/market-toolkit#getting-started](https://github.com/ckz8780/market-toolkit#getting-started) + +Edit 3: Hey all, This was really fun chatting and arguing with you all. I tried to answer every comment and now I'm gonna call it because at this point most of the comments are just angry kids yelling at me for being paper handed or a whiney bitch. So have a great day & good luck on your future trades! + +Disclaimer: None of my comments should be considered financial advice. +More or less all stock prices have been continously falling for the last week, if not longer. The housing market sees skyrocketing prices, the price on food, gas and electricity is increasing, and subsequently the consumer spending index drops. All of this leads to an increase in inflation. + +Are we going to see a stock market crash and financial crisis, like the ones in 1929 and 2008? Or are things different this time? + +Also, should I personally be worried that I'm not going to be able to get a job, and afford stuff like a house and a normal standard of living, once I've finished my education in 5-6 years? +I don't have any GME/AMC, I'm not riding this hype train, but I find it ridiculous that a broker is basically prohibiting people to invest in whatever they want. It's their money, not yours, T212. + +Great thing I abandoned them! + +https://i.imgur.com/h6HMchO.png +Hello, +American here. Astounded at how much the pound dropped vs USD after Liz Truss’ and Kwasi Kwarteng’s speeches on tax cuts and breaks. +Imo multinationals listed in London should perform better on paper because of the decreased tax burden and oversees sales (in USD) should bolster balance sheets, however I’m curious what others thing! +Alright good afternoon my wrinkle wizards and smoothbrain boners, we’ve got a situation on our hands and things are looking…spicy. + +[HODL ON!!!! \(don’t try this at home\)](https://i.redd.it/6dl9q3os3k381.gif) + +So over the past couple months, we’ve had the Mainstream Media (MSM) reach out to the Mod Team for interviews. We told them all no, we can’t do interviews. For transparency purposes, these news agencies are Reuters, Market Watch, Wall Street Journal, & CBC (Canadian Broadcast Company). Hell, we even had a possible connection to a US Senator lol. We haven’t done anything with them other than some initial back and forth to find out what they want. It’s not our place to speak on behalf of the Apes. We do not represent Apes, we do not speak for Apes, and we sure as hell aren’t gonna try. + +Recently, we’ve had an uptick in outside agencies reaching out and if we’re honest, we think SuperStonk and the Apes are gonna be dealing with a lot more of the press/politicians as we get closer to MOASS. As such, the Mods have felt we need to collaborate with you guys on a game plan for dealing with these agencies, together as a community, because it’s gonna be a bumpy ride. + +[\(for real, don’t try this at home\)](https://i.redd.it/mvexvi9u3k381.gif) + +So here’s what we know: We received modmail with requests for interviews, we asked about what, some have responded, some have not, and here we are. One of them had a focus on why we were so adamant about Computershare and what changes we’ve noticed since moving our shares into our names. We expect that soon, others will reach out and want us to say something. Especially when we start seeing the stock price add some commas 😉. Until the subreddit figures out how to proceed, we’re gonna leave them on “Read.” + +How do you guys think we should proceed with the news? Should we engage? If so, how? Do you want to directly talk to them? Or should we tell them to fuck off? We want to hear your thoughts and ideas. The Mods do have an option to manually approve reporters if you wish to invite them to the subreddit to ask their questions. It’s a lot of ground we need to cover. And because of how open ended this situation is, the Mods would like to pitch an idea to you. + +[\(this can be tried at home\)](https://preview.redd.it/x2xfnf8v3k381.jpg?width=1908&format=pjpg&auto=webp&s=0eef10eaf8d09cc19d9488f625b7f5867435f091) + +…is band together and use the combined skills of the community to develop and create the first Superstonk Official Communications Kit (S.O.C.K.) to give to reporters when they come knocking. + +[CODE NAME: S.O.C.K.](https://preview.redd.it/qnno9yzv3k381.png?width=504&format=png&auto=webp&s=94681587b08248abc9f427cae7769413ab5a99b3) + +[\(definitely don’t try this at home\)](https://preview.redd.it/nr368rkw3k381.jpg?width=432&format=pjpg&auto=webp&s=b5a79f3ca1844f2ab911c94d87d4375242fa87e4) + +[\(you’ve already tried this at home\)](https://preview.redd.it/yxrzwv0x3k381.jpg?width=480&format=pjpg&auto=webp&s=5dbbe80c241e4005bf1685271235729e0791ea6f) + +The SOCK would ideally have some basic stuff that says who we are and what we’re about. What do we like? What do we not like? Something to give the MSM a clear picture of what it means to be an Ape of Superstonk. It would need to be a polished document that is fact checked and peer reviewed and yes, it needs to look “presentable” to the outside world. + +Or you can just say fuck that idea lmao. It totally doesn’t matter. The Mods are putting the power of our representation to the world in your diamond hands. However you guys want to decide this, whether it be a committee, or an election, or whatever, you guys just come up with the idea and the Mods will watch and support you beautiful Apes along the way (we will still moderate the subreddit lmayo you can’t break rules for this). + +I’m a firm believer that when enough critical thinkers get together, then any problem can be solved and we just so happen to have an entire network of people asking the right questions. We don’t speak on your behalf, so we present you with this mission, and *should you choose to accept it*, we will let you go and do your thing. We want this to be a community driven effort. By the Apes, For the Apes. + +Some pointers up front: you guys are gonna figure out how tricky it is to maneuver this size of a group. Sometimes it’ll be a delicate dance with a rope and floor and gravity. + +[\(I'd be impressed if you could try this at home, but don't try this at home\)](https://i.redd.it/2u15f92y3k381.gif) + +You’ll need to use your wrinkles and your wits. And don’t go full smoothbrain 😂 + +\- - OH WAIT IT’S PROBABLY MORE LIKE THIS - - + +[\(SAFELY try this at home and make a Superstonk meme lol\)](https://i.redd.it/3uolo1jy3k381.gif) + +So now you guys know basically what we know and I’m fascinated to see how you’re going to react. From here, the Mods will liaison and support where necessary. Ball’s in your court. Godspeed, Ape. + +THIS MESSAGE WILL SELF DESTRUCT IN 5…4…3…2…1… + +[\(can you even try this at home? lol please don’t try\)](https://i.redd.it/gjcihmez3k381.gif) + +lol jk there’s no destruction + +# XOXO the Superstonk Mods 🦍💎✋🚀🌕🐳🚽🦙🐸🍦 + +&#x200B; + +# TA;DR: The mod team is seeing an uptick in inquiries from MSM outlets requesting interviews and questions. The mod team does not speak for you. So, this is your chance. Do you want us to tell them to fuck off? Or do you want to talk to them? Or maybe, as a community, you could put together the S.O.C.K. (Superstonk Official Communications Kit) to give to reporters? You decide! Time to speak up! +Mark Cuban will be joining us to do an AMA. During this period, new accounts will be allowed to comment and post questions for Mark to answer. We will be using a Q&A sort. Q&A sort shows all threads Cuban replies to, so low quality comments are highly unlikely to be seen. Please Behave. + +UPDATE: Shit is 2/2/2021 not 2/1/2021. +**TL;DR- The DTC has been taken over by big money. They transitioned from a manual to a computerized ledger system in the 80s, and it played a significant role in the 1987 market crash. In 2003, several issuers with the DTC wanted to remove their securities from the DTC's deposit account because the DTC's participants were naked short selling their securities. Turns out, they were right. The DTC and it's participants have created a market-sized naked short selling scheme. All of this is made possible by the DTC's enrollee- Cede & Co.** + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +[**Andrew MoMoney - Live Coverage**](https://youtu.be/zKzRDpBBFLQ) + +**I hit the image limit in this DD. Given this, and the fact that there's already SO MUCH info in this DD, I've decided to break it into AT LEAST 2 posts. So stay tuned.** + +**Previous DD** + +[1. Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) + +[2. BlackRock Bagholders, INC.](https://www.reddit.com/r/GME/comments/m7o7iy/blackrock_bagholders_inc/) + +[3. The EVERYTHING Short](https://www.reddit.com/r/GME/comments/mgucv2/the_everything_short/) + +[4. Walkin' like a duck. Talkin' like a duck](https://www.reddit.com/r/Superstonk/comments/ml48ov/walkin_like_a_duck_talkin_like_a_duck/) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +*Holy SH\*T!* + +The events we are living through *RIGHT NOW* are the 50-year ripple effects of stock market evolution. From the birth of the DTC to the cesspool we currently find ourselves in, this DD will illustrate just how fragile the *House of Cards* has become. + +We've been warned so many times... We've made the same mistakes *so. many. times.* + +**And we never seem to learn from them..** + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +In case you've been living under a rock for the past few months, the DTCC has been proposing a boat load of rule changes to help better-monitor their participants' exposure. If you don't already know, the DTCC stands for Depository Trust & Clearing Corporation and is broken into the following (primary) subsidiaries: + +1. **Depository Trust Company (DTC)** \- *centralized clearing agency that makes sure grandma gets her stonks and the broker receives grandma's tendies* +2. **National Securities Clearing Corporation (NSCC)** \- *provides clearing, settlement, risk management, and central counterparty (CCP) services to its members for broker-to-broker trades* +3. **Fixed Income Clearing Corporation (FICC)** \- *provides central counterparty (CCP) services to members that participate in the US government and mortgage-backed securities markets* + +*Brief* *history* *lesson: I promise it's relevant (this* [*link*](https://www.dtcc.com/annuals/museum/index.html) *provides all the info that follows).* + +The DTC was created in 1973. It stemmed from the need for a centralized clearing company. Trading during the 60s went through the roof and resulted in many brokers having to quit before the day was finished so they could manually record their mountain of transactions. All of this was done on paper and each share certificate was physically delivered. This obviously resulted in many failures to deliver (FTD) due to the risk of human error in record keeping. In 1974, the Continuous Net Settlement system was launched to clear and settle trades using a rudimentary internet platform. + +In 1982, the DTC started using a [Book-Entry Only](https://www.investopedia.com/terms/b/bookentrysecurities.asp) (BEO) system to underwrite bonds. For the first time, there were no physical certificates that actually traded hands. Everything was now performed virtually through computers. Although this was advantageous for many reasons, it made it MUCH easier to commit a certain type of securities fraud- naked shorting. + +One year later they adopted [NYSE Rule 387](https://www.finra.org/rules-guidance/rulebooks/retired-rules/rule-387) which meant most securities transactions had to be completed using this new BEO computer system. Needless to say, explosive growth took place for the next 5 years. Pretty soon, other securities started utilizing the BEO system. It paved the way for growth in mutual funds and government securities, and even allowed for same-day settlement. At the time, the BEO system was a tremendous achievement. However, we were destined to hit a brick wall after that much growth in such a short time.. By October 1987, that's exactly what happened. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +[*"A number of explanations have been offered as to the cause of the crash... Among these are computer trading, derivative securities, illiquidity, trade and budget deficits, and overvaluation.."*](https://historynewsnetwork.org/article/895)*.* + +If you're wondering where the birthplace of High Frequency Trading (HFT) came from, look no further. The same machines that automated the exhaustively manual reconciliation process were also to blame for amplifying the fire sale of 1987. + +[https:\/\/historynewsnetwork.org\/article\/895](https://preview.redd.it/3l08f1ud6bu61.png?width=810&format=png&auto=webp&s=2331f409fb4f60b3d62e475c58cf44211b4122a3) + +The last sentence indicates a much more pervasive issue was at play, here. The fact that we still have trouble explaining the calculus is even more alarming. The effects were so pervasive that it was dubbed the [1st global financial crisis](https://www.federalreservehistory.org/essays/stock-market-crash-of-1987) + +Here's another great summary published by the [NY Times](https://www.nytimes.com/2012/10/19/business/a-computer-lesson-from-1987-still-unlearned-by-wall-street.html): \*"..\****to be fair to the computers.. \[they were\].. programmed by fallible people and trusted by people who did not understand the computer programs' limitations. As computers came in, human judgement went out."*** Damned if that didn't give me goosiebumps... \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +Here's an EXTREMELY relevant [explanation](https://historynewsnetwork.org/article/895) from [Bruce Bartlett](https://www.creators.com/author/bruce-bartlett) on the role of derivatives: + +https://preview.redd.it/tu88v96vqau61.png?width=805&format=png&auto=webp&s=6e69760997379cb404163cfc6a11b411adbaa344 + +Notice the last sentence? A major factor behind the crash was a disconnect between the price of stock and their corresponding derivatives. The value of any given stock should determine the derivative value of that stock. It shouldn't be the other way around. **This is an important concept to remember as it will be referenced throughout the post.** + +In the off chance that the market DID tank, they hoped they could contain their losses with [portfolio insurance](https://www.investopedia.com/terms/p/portfolioinsurance.asp#:~:text=Portfolio%20insurance%20is%20a%20hedging,also%20refer%20to%20brokerage%20insurance)*.* Another [article from the NY times](https://www.nytimes.com/2012/10/19/business/a-computer-lesson-from-1987-still-unlearned-by-wall-street.html) explains this in better detail. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +https://preview.redd.it/rf6ocoe9abu61.png?width=629&format=png&auto=webp&s=e638c4479aceac77a003ae86fa1cfdd23f5406b8 + +https://preview.redd.it/8igwi6mflbu61.png?width=612&format=png&auto=webp&s=853945852aea5a355266bf52b6f1fa573db1e29a + +https://preview.redd.it/fe78gr1qlbu61.png?width=608&format=png&auto=webp&s=4ec59987333e04cef07541229161b3ff30881444 + +A major disconnect occurred when these futures contracts were used to intentionally tank the value of the underlying stock. In a perfect world, organic growth would lead to an increase in value of the company (underlying stock). They could do this by selling more products, creating new technologies, breaking into new markets, etc. This would trigger an organic change in the derivative's value because investors would be (hopefully) more optimistic about the longevity of the company. It could go either way, but the point is still the same. This is the type of investing that most of us are familiar with: investing for a better future. + +I don't want to spend too much time on the crash of 1987. I just want to identify the factors that contributed to the crash and the role of the DTC as they transitioned from a manual to an automatic ledger system. **The connection I really want to focus on is the ENORMOUS risk appetite these investors had. Think of how overconfident and greedy they must have been to put that much faith in a computer script.. either way, same problems still exist today.** + +Finally, the comment by Bruce Bartlett regarding the mismatched investment strategies between stocks and options is crucial in painting the picture of today's market. + +Now, let's do a super brief walkthrough of the main parties within the DTC before opening this **can of worms.** + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +I'm going to talk about three groups within the DTC- **issuers, participants, and Cede & Co.** + +Issuers are companies that issue securities (stocks), while participants are the clearing houses, brokers, and other financial institutions that can utilize those securities. Cede & Co. is a subsidiary of the DTC which holds the share certificates. + +Participants have MUCH more control over the securities that are deposited from the issuer. Even though the issuer created those shares, participants are in control when those shares hit the DTC's doorstep. The DTC transfers those shares to a holding account *(Cede & Co.)* and the participant just has to ask "*May I haff some pwetty pwease wiff sugar on top?"* \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +**Now, where's that can of worms?** + +Everything was relatively calm after the crash of 1987.... until we hit 2003.. + +*\*deep breath\** + +The DTC started receiving several requests from issuers to pull their securities from the DTC's depository. I don't think the DTC was prepared for this because they didn't have a written policy to address it, let alone an official rule. Here's the half-assed response from the DTC: + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm \(section II\)](https://preview.redd.it/1ctpj263zdu61.png?width=788&format=png&auto=webp&s=6ff2e2d543f53a6ece6d95c334ed995fe67f9c8d) + +Realizing this situation was heating up, the DTC proposed [SR-DTC-2003-02](https://www.sec.gov/rules/sro/34-47978.htm#P19_6635).. + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P19\_6635](https://preview.redd.it/io22id3n7eu61.png?width=774&format=png&auto=webp&s=424ef5b6a70d073c62a47f6a1b82cd739b527b88) + +Honestly, they were better of WITHOUT the new proposal. + +It became an even BIGGER deal when word got about the proposed rule change. Naturally, it triggered a TSUNAMI of comment letters against the DTC's proposal. There was obviously something going on to cause that level of concern. Why did *SO MANY* issuers want their deposits back? + +**...you ready for this sh\*t?** + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +As outlined in the DTC's opening remarks: + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P19\_6635](https://preview.redd.it/eq9q8mcubeu61.png?width=1028&format=png&auto=webp&s=eee6231336e398b0d53299a2a7639fdfd333af8c) + +*OK... see footnote 4.....* + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P19\_6635](https://preview.redd.it/v884rfqwbeu61.png?width=1053&format=png&auto=webp&s=6fe5db76c9c6fd5e596bbe3c3c64bc6feb64fd97) + +**UHHHHHHH WHAT!??!** Yeah! I'd be pretty pissed, too! Have my shares deposited in a clearing company to take advantage of their computerized trades just to get kicked to the curb with NO WAY of getting my securities back... AND THEN find out that the big-d\*ck "participants" at your fancy DTC party are literally short selling my shares without me knowing....?! + +....This sound familiar, anyone??? IDK about y'all, but this "trust us with your shares" BS is starting to sound like a major con. + +The DTC asked for feedback from all issuers and participants to gather a consensus before making a decision. All together, the DTC received 89 comment letters (a pretty big response). 47 of those letters opposed the rule change, while 35 were in favor. + +*To save space, I'm going to use smaller screenshots. Here are just a few of the opposition comments..* + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/srdtc200302-89.pdf](https://preview.redd.it/ds068omndeu61.png?width=894&format=png&auto=webp&s=7958cbf3fde10e1bbb81c6adeb87f2bfc5dc8fde) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +**And another:** + +&#x200B; + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/rsrondeau052003.txt](https://preview.redd.it/953v7l47feu61.png?width=884&format=png&auto=webp&s=83c2d1998b3c111da7cb31b183b83c62abbe353b) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +**AAAAAAAAAAND another:** + +&#x200B; + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/msondow040403.txt](https://preview.redd.it/pkifz41sqeu61.png?width=804&format=png&auto=webp&s=733a219050239012a2b6b29c1985bdbd1df60303) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +***Here are a few in favor***\*..\* + +*All of the comments I checked were participants and classified as market makers and other major financial institutions... go f\*cking figure.* + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/srdtc200302-82.pdf](https://preview.redd.it/myk7675zseu61.png?width=617&format=png&auto=webp&s=94c622511fc3392bacca6f1c34375920612bc9bb) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +**Two** + +&#x200B; + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/srdtc200302-81.pdf](https://preview.redd.it/ouwx18qmteu61.png?width=692&format=png&auto=webp&s=39dcaabcc228e60ba5e472353285aa330c13ea0a) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +&#x200B; + +**Three** + +&#x200B; + +[https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/rbcdain042303.pdf](https://preview.redd.it/xpzt606pueu61.png?width=600&format=png&auto=webp&s=79685c694f661b9c7d03093a8908eebe6cad421e) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +Here's the [full list](https://www.sec.gov/rules/sro/dtc200302.shtml) if you wanna dig on your own. + +...I realize there are advantages to "paperless" securities transfers... However... It is EXACTLY what Michael Sondow said in his comment letter above.. ***We simply cannot trust the DTC to protect our interests when we don't have physical control of our assets***\*\*.\*\* + +Several other participants, including **Edward Jones, Ameritrade, Citibank,** and **Prudential** overwhelmingly favored this proposal.. How can someone NOT acknowledge that the absence of physical shares only makes it easier for these people to manipulate the market....? + +This rule change would allow these 'participants' to continue doing this because it's extremely profitable to sell shares that don't exist, or have not been collateralized. Furthermore, it's a win-win for them because it forces issuers to keep their deposits in the holding account of the DTC... + +Ever heard of the [fractional reserve banking system](https://www.investopedia.com/terms/f/fractionalreservebanking.asp#:~:text=Fractional%20reserve%20banking%20is%20a,by%20freeing%20capital%20for%20lending)?? Sounds A LOT like what the stock market has just become. + +Want proof of market manipulation? Let's fact-check the claims from the opposition letters above. *I'm only reporting a few for the time period we discussed (2003ish). This is just to validate their claims that some sketchy sh\*t is going on.* + +1. [**UBS Securities**](https://files.brokercheck.finra.org/firm/firm_7654.pdf) **(formerly UBS Warburg):** + 1. pg 559; SHORT SALE VIOLATION; 3/30/1999 + 2. pg 535; OVER REPORTING OF SHORT INTEREST POSITIONS; 5/1/1999 - 12/31/1999 + 3. PG 533; FAILURE TO REPORT SHORT SALE INDICATORS;INCORRECTLY REPORTING LONG SALE TRANSACTIONS AS SHORT SALES; 7/2/2002 +2. [**Merrill Lynch**](https://files.brokercheck.finra.org/firm/firm_16139.pdf) **(Professional Clearing Corp.):** + 1. pg 158; VIOLATION OF SHORT INTEREST REPORTING; 12/17/2001 +3. [**RBC**](https://files.brokercheck.finra.org/firm/firm_31194.pdf) **(Royal Bank of Canada):** + 1. pg 550; FAILURE TO REPORT SHORT SALE TRANSACTIONS WITH INDICATOR; 9/28/1999 + 2. pg 507; SHORT SALE VIOLATION; 11/21/1999 + 3. pg 426; FAILURE TO REPORT SHORT SALE MODIFIER; 1/21/2003 + +Ironically, I picked these 3 because they were the first going down the line.. I'm not sure how to be any more objective about this.. Their entire FINRA report is littered with short sale violations. Before anyone asks "how do you know they aren't ALL like that?" The answer is- I checked. If you get caught for a short sale violation, chances are you will ALWAYS get caught for short sale violations. Why? Because it's more profitable to do it and get caught, than it is to fix the problem. + +Wanna know the 2nd worst part? + +Several comment letters asked the DTC to investigate the claims of naked shorting **BEFORE** coming to a decision on the proposal.. I never saw a document where they followed up on those requests..... + +NOW, wanna know the WORST part? + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P99\_35478](https://preview.redd.it/q6jk7as8rfu61.png?width=1057&format=png&auto=webp&s=c66aac021818993e6c23bb7fe96382de8cc9fe7e) + +The DTC passed that rule change.... + +They not only prevented the issuers from removing their deposits, they also turned a 'blind-eye' to their participants manipulative short selling, even when there's public evidence of them doing so... + +....Those companies were being attacked with shares THEY put in the DTC, by institutions they can't even identify... + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +..Let's take a quick breath and recap: + +The DTC started using a computerized ledger and was very successful through the 80's. This evolved into trading systems that were also computerized, but not as sophisticated as they hoped.. They played a major part in the 1987 crash, along with severely desynchronized derivatives trading. + +In 2003, the DTC denied issuers the right to withdraw their deposits because those securities were in the control of participants, instead. When issuer A deposits stock into the DTC and participant B shorts those shares into the market, that's a form of [rehypothecation](https://www.investopedia.com/terms/r/rehypothecation.asp#:~:text=Rehypothecation%20is%20a%20practice%20whereby,or%20a%20rebate%20on%20fees). This is what so many issuers were trying to express in their comment letters. In addition, it hurts their company by driving down it's value. They felt robbed because the DTC was blatantly allowing it's participants to do this, and refused to give them back their shares.. + +It was critically important for me to paint that background. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +..now then.... + +Remember when I mentioned the DTC's enrollee- Cede & Co.? + +[https:\/\/www.sec.gov\/rules\/sro\/34-47978.htm#P19\_6635 \(section II\)](https://preview.redd.it/97z3b2k9pju61.png?width=283&format=png&auto=webp&s=67ad209f338a0ccebfaee09cd43944730ac35279) + +I'll admit it: I didn't think they were that relevant. I focused so much on the DTC that I didn't think to check into their enrollee... + +..Wish I did.... + +[https:\/\/www.americanbanker.com\/news\/you-dont-really-own-your-securities-can-blockchains-fix-that](https://preview.redd.it/oqpj59jypju61.png?width=830&format=png&auto=webp&s=a7de5c100699c85132b531b501b79a8bafcdfa18) + +That's right.... Cede & Co. hold a "master certificate" in their vault, which **NEVER** leaves. Instead, they issue an *IOU* for that master certificate.. + +&#x200B; + +Didn't we JUST finish talking about why this is such a major flaw in our system..? And that was almost 20 years ago... + +**Here comes the mind f\*ck** + +[https:\/\/smithonstocks.com\/part-8-illegal-naked-shorting-series-who-or-what-is-cede-and-what-role-does-cede-play-in-the-trading-of-stocks\/](https://preview.redd.it/o4xemx63rju61.png?width=1117&format=png&auto=webp&s=26f60bceb160cefcd95b0d55d2b375f4058981e2) + +[https:\/\/smithonstocks.com\/part-8-illegal-naked-shorting-series-who-or-what-is-cede-and-what-role-does-cede-play-in-the-trading-of-stocks\/](https://preview.redd.it/1yfr9x0arju61.png?width=1109&format=png&auto=webp&s=066cac93b0c8fb05e617c81e9fc63eeacb847d4f) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +Now..... + +You wanna know the BEST part??? + +*I found a list of all the DTC* [*participants*](https://www.dtcc.com/-/media/Files/Downloads/client-center/DTC/alpha.pdf) *that are responsible for this mess..* + +**I've got your name, number, and I'm coming for you-** ***ALL OF YOU*** + +&#x200B; + +&#x200B; + +***to be continued.*** + +**DIAMOND.F\*CKING.HANDS** +It's tempting to buy some of the top growth companies after the recent market downturn but history tells us that in 5 years 1-2 of the top 10 stocks will change and in 10 years up to half could be different. + +There is a chance one of the top 10 stocks at the end of 2021 already has hit there all time highs and may not fully recover. + +The top 10 stocks in the US at the end of 2021 before most of the sell off were: + +1. Apple +2. Microsoft +3. Alphabet +4. Amazon +5. Meta +6. Tesla +7. Berkshire Hathaway +8. Nvidia +9. Visa +10. JP Morgan and Chase + +For international top 10 add in Tencent, Alibaba, and TSMC to the mix. Already from the end of 2021 to the second quarter, Alibaba and TSMC are out and UnitedHealth and JNJ are in. + +Personally, I think that Berkshire Hathaway and Nvidia are good bets to be out in 5-10 years. Berkshire because of questions about what is the company like when Buffett and Munger pass away. Nvidia I think may still be the leader in GPUs but never get back to previous all time highs due to decreased crypto mining demand. + +JP Morgan and Visa could flirt in and out of the top ten also. + +What companies do you think will be out of the top ten in 5-10 year? And the million dollar question, which companies will replace them? +Maybe I'm missing something but printing dozens of trillions USD out of thin air in order to buy junk bonds and bail out every major company that is about to fail should have some major concequences right? Like the USD devaluating or hyperinflation? + +If not, which I don't currently see(if anything the stock market is rallying), then what stops them from printing a couple trillion more to inject into healthcare, infastructure - hell might as well write a 50K USD check and mail it to everyone, I don't see why not. +&#x200B; + +# Edit: Numbers from RobinHood case are alleged so far, not proven. I cannot edit the post title. That being said, results of Deep ITM CALLs comes up with roughly the same 226.42%, which is quite telling. We also see that PHLX exchange is used to buy and exercise these calls almost immediately - exactly as outlined in the SEC document on how to shift a short position to become synthetic. + +# 0. Preface + +I am not a financial advisor and I do not provide financial advice. Thoughts here are my opinion, and others are speculative. + +Shout out to king /u/broccaaa for their contributions. I always figured that your assumptions were correct that the SHFs were using these Deep ITM CALLs to hide SI%, but we never got some quick maths behind it to see if it was true. (Maybe we did though! Sorry if I did not see anyone's posts about this) + +Well, this is for you /u/broccaaa, and all the apes. + +[Spreading Love To All](https://preview.redd.it/seveg72frd771.png?width=466&format=png&auto=webp&s=820b960584c2976dfe040f84463f84e3d9ba1ad3) + +# 1. GME SI% Is A Minimum Of 226.42%; Shorts Were Hidden With Deep ITM CALLs + +Way way back in time, since many of you probably feel like you've aged years over the course of 6 months, there was a blip of **226.42**% SI in January. Many believed this was a glitch: + +[https:\/\/www.reddit.com\/r\/GME\/comments\/lgjztf\/wtf\_is\_going\_on\_with\_finra\_is\_it\_7846\_or\_22642\/](https://preview.redd.it/scgcw5t6qd771.png?width=959&format=png&auto=webp&s=10059cac48bcb52fdb8cbc8d27743f3dcff97166) + +~~That's what many may have thought, that it was just a glitch, until recently a~~ [~~Class Action against RobinHood~~](https://www.reddit.com/r/Superstonk/comments/o6mp0c/from_class_action_against_rh_look_at_that_juicy/) ~~proved that was, indeed, the SI% upon January 15th, 2021:~~ + +Edit: Thank you much for everyone's replies. We must consider this as still speculative and not proven as it is a number alleged by the plantiff. + +Allegedly, [per a Class Action against RobinHood](https://www.reddit.com/r/Superstonk/comments/o6mp0c/from_class_action_against_rh_look_at_that_juicy/), the SI% was 226.42% upon January 15th, 2021: + +[https:\/\/www.reddit.com\/r\/Superstonk\/comments\/o6mp0c\/from\_class\_action\_against\_rh\_look\_at\_that\_juicy\/](https://preview.redd.it/vnlimw17qd771.png?width=602&format=png&auto=webp&s=079aa90f257df07a297b6c5d8961e6500bc17139) + +Put yourself in the SHF's shoes. You have a shitload of retail buy pressure going on. You're way overshorted. What do you do? Do you cover? Pfft. Nah. That's way too much. Impossible to cover. Absolutely screwed. + +Lucky for you the SEC [has identified malicious options practices](https://www.sec.gov/about/offices/ocie/options-trading-risk-alert.pdf) which can be used for just such an occasion to make it appear that you've covered. + +Let's say you want to make it "appear" that you covered your short. You can perform a buy-write trade with a bona-fide Market Maker. Who might help you out as a bona-fide Market Maker? **Citadel** might come to mind (not saying it's them, just an example since they are well known)! The trade ends up being the following: + +1. Trader A who needs to hide their short position enters the buy-write trade with Trader B (Citadel). +2. Trader A sells a Deep ITM CALL to Trader B (Citadel). +3. Trader A simultaneously buys shares from Trader B (Citadel). +4. Trader A now appears to have purchased shares to cover their short position, and Trader B (Citadel) gets a small amount of cash in return. + +* They tend to trade Deep ITM CALLs that have little to no OI so that the trade is almost guaranteed to be between Trader A and Trader B. +* Trader B tends to exercise these CALLs **on the same day.** **And this is exactly what we have been seeing because CALL OI does not increase.** +* The net effect on this is that Trader B has looped around their shares. They sold them to Trader A, and then got them back through exercising the CALL. Meanwhile, Trader A has "covered" their original short position but now they are "short" the CALL, meaning it is now a synthetic short. + +Here is the supporting text [from the SEC itself](https://www.sec.gov/about/offices/ocie/options-trading-risk-alert.pdf) if you want to verify for yourself. A report from 2013 titled "**Strengthening Practices for Preventing and Detecting Illegal Options Trading Used to Reset Reg SHO Close-out Obligations**": + +[https:\/\/www.sec.gov\/about\/offices\/ocie\/options-trading-risk-alert.pdf Section II](https://preview.redd.it/eckz2hh7qd771.png?width=794&format=png&auto=webp&s=ec5f2fe9ca82bfba28eac658aac8fd3eb5c21d5e) + +[https:\/\/www.sec.gov\/about\/offices\/ocie\/options-trading-risk-alert.pdf Section II](https://preview.redd.it/ttjlxv28qd771.png?width=797&format=png&auto=webp&s=0eaaba948743cc947567322eba21603acf2ac2df) + +[https:\/\/www.sec.gov\/about\/offices\/ocie\/options-trading-risk-alert.pdf Section II](https://preview.redd.it/pti33wf8qd771.png?width=780&format=png&auto=webp&s=237494bf40c19dd2ef0771f42168bbf3ca90d6cb) + +[https:\/\/www.sec.gov\/about\/offices\/ocie\/options-trading-risk-alert.pdf Section II](https://preview.redd.it/zq8z28y8qd771.png?width=804&format=png&auto=webp&s=c80ec2e4932aa8e5660bcb8da4b88871611a377f) + +[https:\/\/www.sec.gov\/about\/offices\/ocie\/options-trading-risk-alert.pdf Section II](https://preview.redd.it/2zah2nc9qd771.png?width=798&format=png&auto=webp&s=df0a14005a591657d993ea153a5240516417f875) + +[https:\/\/www.sec.gov\/about\/offices\/ocie\/options-trading-risk-alert.pdf Section II](https://preview.redd.it/sjip9hp9qd771.png?width=800&format=png&auto=webp&s=1848c26e64e7c9806e77e5b60bc2f1a4c7feacc8) + +&#x200B; + +So, they can utilize Deep ITM CALLs to hide their short positions. + +We don't care about identifying Trader A and Trader B in this case. Just the fact that trades occurred on these Deep ITM CALL strikes and that OI is unaffected the day thereafter. That's enough to support the above theory that they're utilizing this practice to make it 'appear' that they've covered their short position. + +Check out what /u/broccaaa's data identified. Tons and tons of Deep ITM CALLs were traded in January prior to SI% dropping off of a cliff. By [my estimations](https://www.reddit.com/r/Superstonk/comments/nc1lny/ive_estimated_the_current_si_based_on_the_si/), about 1,100,000 CALL OI was traded prior to January 29th SI Report Date: + +[\/u\/broccaaa Data on Deep ITM CALL Volumes Vs FTDs of GME](https://preview.redd.it/0hp6hvx9qd771.png?width=1789&format=png&auto=webp&s=19d5261cf1cd7ec7995c12409bd46d2116094203) + +The SI Report Date of January 29th matters because that is the cutoff of when FINRA will [require settlement of short interest numbers](https://www.finra.org/filing-reporting/regulatory-filing-systems/short-interest) for the next SI report date. The next SI report date following January 29th settlement is February 12th. + +And we can see that after the mayhem of Deep ITM CALL purchases, SI% dropped from 226.42% of the January 15th report, to 30.2% upon February 12th: + +[https:\/\/www.marketbeat.com\/stocks\/NYSE\/GME\/short-interest\/](https://preview.redd.it/qpvqagaaqd771.png?width=1683&format=png&auto=webp&s=6d54d763f3bb46a697c4ff2ee94148806bf928e3) + +With the difference in SI% from 226.42% on January 15th down to 30.2% on February 12th, **we can assume that they have not covered their short position but rather hid their short position in synthetics if we can come up with a roughly equivalent SI% from the approximate Deep ITM CALL purchases.** + +The float of GME in January was approximately 57,840,000. + +The estimated Deep ITM CALL OI that was swapped is \~1,100,000 OI = \~110,000,000 shares worth. + +Which then gives an estimated SI% reduction of \~110,000,000 / 57,840,000 = \~190.18% shorts hidden between January 15th and February 12th report date. + +And since SI% on February 12th was 30.2%, then that gives a grand total of 190.18% + 30.2% = **220.38% SI per estimations**. + +That's dangerously close to the reported 226.42% SI from January 15th. + +So with that in mind - do you think they covered? + +[Estimations of SI&#37; Based on Deep ITM CALL Purchases Up To January 29th](https://preview.redd.it/oieer6saqd771.png?width=1878&format=png&auto=webp&s=3355b8760408907f165bf7687581ce722bedc844) +My 15-year-old son is obsessed with money and thinks it's a kind of power that produces a kind of freedom and all my conversations with him are about ways to make money and ways to build wealth and I find it's worrisome and excessive, especially for someone his age + +so I want to ask you Is this normal or not? +Anyone following the WSB drama this morning will see that several brokers have blocked only the 'Buy' button to prevent GME, AMC etc being purchased. People can still sell. Don't let this happen to your bitcoin. Don't buy bitcoin on Robinhood. +I'm a guy in my early 30s and just sold my startup for over $50M. The money hit my account today. + +I've always loved to travel. I previously spent 3 years of my life backpacking, just hopping between hostels around the world. Last year, I was invited to spend a week at the Cheval Blanc in the Maldives and it was a truly eye-opening experience, the first time I got to experience real luxury. + +I'd really like to start my retirement with a bang. What FAT destinations can you recommend? And perhaps more importantly, which luxury travel advisors? + +&#x200B; + +UPDATE: + +Whoa, I didn't expect such massive response. This has been super helpful. + +I especially wanted to thank /u/CupResponsible797 for putting me in touch with Berkeley Travel, communicating with the team there has been super impressive. I'll be starting my first trip with them in just a couple of days. +Hi guys I really feel like giving up forex, after 4/5 years giving up thousands of hours of my life and still not consistently profitable I think it’s time to throw the towel in. I technically haven’t lost a tonne of money, I’ve never blown an account, so that’s a good thing, I’m just consistently losing more money than I’m profiting, struggle to hit 1:2 ratios. I work full time and one of few things I can take away from my experience is the higher timeframes are the best, nothing below 4hour TF for sure, and recently been looking more and more into daily timeframe for analysis AND entry. I feel like I’ve tried EVERYTHING, and that’s the main thing that sticks with me, the idea of looking at charts for analysis and entry just once a day sounds like a dream. Anyway, I’m struggling! Come so close so many times over the years to nail this. I’ll be brutally honest my ‘strategy’ is too much of ‘trade what you see’ for e.g. if there is a strong rejection of a major trendline and an entry candlestick then that is enough for me. I cannot faff around with hourly candlesticks and checking my phone multiple times per day for the perfect 15min candlestick…. I guess I’m looking for more literature or general education on higher timeframe trading… Who has come very close to giving up and been grateful to themselves for sticking with it in the ups and downs? +Not sure about the other trading apps but Trading212 prevents people now from buying shares. Quote: + +- Warning! In the interest of mitigating risk for our clients, we have temporarily placed GameStop and AMC Entertainment in reduce-only mode as highly unusual volumes have led to an unprecedented market environment. New positions cannot be opened, existing ones can be reduced or closed. - + +Not sure if they are really concerned about their customers, or they've been lobbied by hedge funds to prevent ordinary people from destroying them. I don't care about GME and AMC, I have no position, but now I am angry for this decision. They always go against the poor individuals and let the billionaires save their asses. No one saves us when we go bankrupt by them. + +Let that sink in + +Edit: thank you for all the rewards and comments! What a great community we are! +&#x200B; + +# 0. Preface + +I am not a financial advisor, and I do not provide financial advice. Many thoughts here are my opinion, and others can be speculative. + +TL;DR - **(Though I think you REALLY should consider reading because it is important to understand what is going on**): + +* The market crash of 2008 never finished. It was can-kicked and the same people who caused the crash have **still** been running rampant doing the **same** **bullshit in the derivatives market** as that market continues to be unregulated. They're profiting off of short-term gains at the risk of killing their institutions and potentially the global economy. **Only this time it is much, much worse.** +* The bankers abused smaller amounts of leverage for the 2008 bubble and have since abused much higher amounts of leverage - creating an even larger speculative bubble. Not just in the stock market and derivatives market, but also in the crypt0 market, upwards of 100x leverage. +* COVID came in and rocked the economy to the point where the Fed is now pinned between a rock and a hard place. In order to buy more time, the government triggered a flurry of protective measures, such as mortgage forbearance, expiring end of Q2 on June 30th, 2021, and SLR exemptions, which expired March 31, 2021. **The market was going to crash regardless. GME was and never will be the reason for the market crashing.** +* The rich made a fatal error in **way** overshorting stocks. There is a potential for their decades of sucking money out of taxpayers to be taken back. The derivatives market is potentially a **$1 Quadrillion market**. "Meme prices" are not meme prices. There is so much money in the world, and you are just accustomed to thinking the "meme prices" are too high to feasibly reach. +* The DTC, ICC, OCC have been passing rules and regulations (auction and wind-down plans) so that they can easily eat up competition and consolidate power once again like in 2008. The people in charge, including Gary Gensler, are not your friends. +* The DTC, ICC, OCC are also passing rules to make sure that retail will **never** be able to to do this again. **These rules are for the future market (post market crash) and they never want anyone to have a chance to take their game away from them again**. These rules are not to start the MOASS. They are indirectly regulating retail so that a short squeeze condition can never occur after GME. +* The COVID pandemic exposed a lot of banks through the Supplementary Leverage Ratio (SLR) where mass borrowing (leverage) almost made many banks default. Banks have account 'blocks' on the Fed's balance sheet which holds their treasuries and deposits. **The SLR exemption made it so that these treasuries and deposits of the banks 'accounts' on the Fed's balance sheet were not calculated into SLR, which allowed them to boost their SLR until March 31, 2021 and avoid defaulting. Now, they must extract treasuries from the Fed in reverse repo to avoid defaulting from SLR requirements. This results in the reverse repo market explosion as they are scrambling to survive due to their mass leverage.** +* This is not a "retail vs. Melvin/Point72/Citadel" issue. This is a "retail vs. **Mega Banks**" issue. The rich, and I mean **all of Wall Street,** are trying **desperately** to shut GameStop down because it has the chance to suck out trillions if not hundreds of trillions from the game they've played for decades. They've rigged this game since the 1990's when derivatives were first introduced. **Do you really think they, including the Fed, wouldn't pull all the stops now to try to get you to sell?** + +End TL;DR + +&#x200B; + +A ton of the information provided in this post is from the movie **Inside Job (2010)**. I am paraphrasing from the movie as well as taking direct quotes, so please understand that a bunch of this information is a summary of that film. + +I understand that **The Big Short (2015)** is much more popular here, due to it being a more Hollywood style movie, but it does not go into such great detail of the conditions that led to the crash - and how things haven't even changed. But in fact, got worse, and led us to where we are now. + +Seriously. **Go**. **Watch**. **Inside Job**. It is a documentary with interviews of many people, including those who were involved in the Ponzi Scheme of the derivative market bomb that led to the crash of 2008, and their continued lobbying to influence the Government to keep regulations at bay. + +&#x200B; + +[Inside Job \(2010\) Promotional](https://preview.redd.it/vvdd32qkei571.png?width=776&format=png&auto=webp&s=982445a99f17af054bd351990017e364b137cf02) + +&#x200B; + +# 1. The Market Crash Of 2008 + +# 1.1 The Casino Of The Financial World: The Derivatives Market + +It all started back in the 1990's when the **Derivative Market** was created. This was the opening of the literal Casino in the financial world. These are bets placed upon an underlying asset, index, or entity, and are **very** risky. Derivatives are contracts between two or more parties that derives its value from the performance of the underlying asset, index, or entity. + +One such derivative many are familiar with are **options** (CALLs and PUTs). Other examples of derivatives are **fowards**, **futures**, **swaps**, and variations of those such as **Collateralized Debt Obligations (CDOs)**, and **Credit Default Swaps (CDS)**. + +The potential to make money off of these trades is **insane**. Take your regular CALL option for example. You no longer take home a 1:1 return when the underlying stock rises or falls $1. Your returns can be amplified by magnitudes more. Sometimes you might make a 10:1 return on your investment, or 20:1, and so forth. + +Not only this, you can grab leverage by borrowing cash from some other entity. This allows your bets to potentially return that much more money. You can see how this gets out of hand really fast, because the amount of cash that can be gained absolutely skyrockets versus traditional investments. + +Attempts were made to regulate the derivatives market, but due to mass lobbying from Wall Street, regulations were continuously shut down. **People continued to try to pass regulations, until in 2000, the** [Commodity Futures Modernization Act](https://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000) **banned the regulation of derivatives outright**. + +And of course, once the Derivatives Market was left unchecked, it was off to the races for Wall Street to begin making tons of risky bets and surging their profits. + +The Derivative Market exploded in size once regulation was banned and de-regulation of the financial world continued. You can see as of 2000, the cumulative derivatives market was already out of control. + +[https:\/\/www.hilarispublisher.com\/open-access\/investment-banks-and-credit-institutions-the-ignored-and-unregulateddiversity-2151-6219-1000224.pdf](https://preview.redd.it/9igfmi69di571.png?width=578&format=png&auto=webp&s=27fefbf3443e8be528849221f2eadeb1a5c10833) + +The Derivatives Market is big. **Insanely big**. Look at how it compares to **Global Wealth**. + +[https:\/\/www.visualcapitalist.com\/all-of-the-worlds-money-and-markets-in-one-visualization-2020\/](https://preview.redd.it/s22atssgdi571.png?width=1029&format=png&auto=webp&s=086dcebf3e710052f78b7490150203d0f8376b89) + +At the bottom of the list are three derivatives entries, with "Market Value" and "Notional Value" called out. + +The "Market Value" is the value of the derivative at its current trading price. + +The "Notional Value" is the value of the derivative if it was at the strike price. + +E.g. A CALL option (a derivative) represents 100 shares of ABC stock with a strike of $50. Perhaps it is trading in the market at $1 per contract right now. + +* Market Value = 100 shares \* $1.00 per contract = $100 +* Notional Value = 100 shares \* $50 strike price = $5,000 + +**Visual Capitalist estimates that the cumulative Notional Value of derivatives is between $558 Trillion and $1 Quadrillion**. So yeah. **You** are not going to cause a market crash if GME sells for millions per share. The rich are already priming the market crash through the Derivatives Market. + +# 1.2 CDOs And Mortgage Backed Securities + +Decades ago, the system of paying mortgages used to be between two parties. The buyer, and the loaner. Since the movement of money was between the buyer and the loaner, the loaner was very careful to ensure that the buyer would be able to pay off their loan and not miss payments. + +But now, it's a chain. + +1. Home buyers will buy a loan from the lenders. +2. The lenders will then sell those loans to Investment Banks. +3. The Investment Banks then combine thousands of mortgages and other loans, including car loans, student loans, and credit card debt to create complex derivatives called "**Collateralized Debt Obligations (CDO's**)". +4. The Investment Banks then pay Rating Agencies to rate their CDO's. This can be on a scale of "AAA", the best possible rating, equivalent to government-backed securities, all the way down to C/D, which are junk bonds and very risky. **Many of these CDO's were given AAA ratings despite being filled with junk**. +5. The Investment Banks then take these CDO's and sell them to investors, including retirement funds, because that was the rating required for retirement funds as they would only purchase highly rated securities. +6. Now when the homeowner pays their mortgage, the money flows directly into the investors. The investors are the main ones who will be hurt if the CDO's containing the mortgages begin to fail. + +[Inside Job \(2010\) - Flow Of Money For Mortgage Payments](https://preview.redd.it/0xtaww3ydi571.png?width=1493&format=png&auto=webp&s=f448a113043b043243efd879f174493bd33423fe) + +[https:\/\/www.investopedia.com\/ask\/answers\/09\/bond-rating.asp](https://preview.redd.it/uyk9ms4fei571.png?width=756&format=png&auto=webp&s=d61e9a0754b676e64a1f6c97277ba877e946fcb6) + +# 1.3 The Bubble of Subprime Loans Packed In CDOs + +This system became a ticking timebomb due to this potential of free short-term gain cash. Lenders didn't care if a borrower could repay, so they would start handing out riskier loans. The investment banks didn't care if there were riskier loans, because the more CDO's sold to investors resulted in more profit. And the Rating Agencies didn't care because there were no regulatory constraints and there was no liability if their ratings of the CDO's proved to be wrong. + +So they went wild and pumped out more and more loans, and more and more CDOs. Between 2000 and 2003, the number of mortgage loans made each year nearly quadrupled. They didn’t care about the quality of the mortgage - they cared about maximizing the volume and getting profit out of it. + +In the early 2000s there was a huge increase in the riskiest loans - “Subprime Loans”. These are loans given to people who have low income, limited credit history, poor credit, etc. They are very at risk to not pay their mortgages. It was predatory lending, because it hunted for potential home buyers who would never be able to pay back their mortgages so that they could continue to pack these up into CDO's. + +[Inside Job \(2010\) - &#37; Of Subprime Loans](https://preview.redd.it/wsr30iorei571.png?width=1447&format=png&auto=webp&s=59cf72f6eb8209d69e0a13ccf2f0127e69a45142) + +In fact, the investment banks **preferred** subprime loans, because they carried higher interest rates and more profit for them. + +**So the Investment Banks took these subprime loans, packaged the subprime loans up into CDO's, and many of them still received AAA ratings. These can be considered "toxic CDO's" because of their high ability to default and fail despite their ratings.** + +Pretty much **anyone** could get a home now. Purchases of homes and housing prices skyrocketed. It didn't matter because everyone in the chain was making money in an unregulated market. + +# 1.4 Short Term Greed At The Risk Of Institutional And Economic Failure + +In Wall Street, annual cash bonuses started to spike. Traders and CEOs became extremely wealthy in this bubble as they continued to pump more toxic CDO's into the market. Lehman Bros. was one of the top underwriters of subprime lending and their CEO alone took home over $485 million in bonuses. + +[Inside Job \(2010\) Wall Street Bonuses](https://preview.redd.it/io87r9vxei571.png?width=1494&format=png&auto=webp&s=944300df8faf8da35d75de6f10fb951a6d230154) + +And it was all short-term gain, high risk, with no worries about the potential failure of your institution or the economy. When things collapsed, they would not need to pay back their bonuses and gains. They were literally risking the entire world economy for the sake of short-term profits. + +AND THEY EVEN TOOK IT FURTHER WITH LEVERAGE TO MAXIMIZE PROFITS. + +During the bubble from 2000 to 2007, the investment banks were borrowing heavily to buy more loans and to create more CDO's. The ratio of banks borrowed money and their own money was their leverage. The more they borrowed, the higher their leverage. They abused leverage to continue churning profits. And are still abusing massive leverage to this day. It might even be much higher leverage today than what it was back in the Housing Market Bubble. + +In 2004, Henry Paulson, the CEO of Goldman Sachs, helped lobby the SEC to relax limits on leverage, allowing the banks to sharply increase their borrowing. Basically, the SEC allowed investment banks to gamble a lot more. **Investment banks would go up to about 33-to-1 leverage at the time of the 2008 crash**. Which means if a 3% decrease occurred in their asset base, it would leave them insolvent. **Henry Paulson would later become the Secretary Of The Treasury from 2006 to 2009**. He was just one of many Wall Street executives to eventually make it into Government positions. Including the infamous Gary Gensler, the current SEC chairman, who helped block derivative market regulations. + +[Inside Job \(2010\) Leverage Abuse of 2008](https://preview.redd.it/k87x53h7fi571.png?width=1619&format=png&auto=webp&s=b12004d6bb3e70643516ef0477303f4652ccd348) + +The borrowing exploded, the profits exploded, and it was all at the risk of obliterating their institutions and possibly the global economy. Some of these banks knew that they were "too big to fail" and could push for bailouts at the expense of taxpayers. Especially when they began planting their own executives in positions of power. + +# 1.5 Credit Default Swaps (CDS) + +To add another ticking bomb to the system, AIG, the worlds largest insurance company, got into the game with another type of derivative. They began selling Credit Default Swaps (CDS). + +For investors who owned CDO's, CDS's worked like an insurance policy. An investor who purchased a CDS paid AIG a quarterly premium. If the CDO went bad, AIG promised to pay the investor for their losses. Think of it like insuring a car. You're paying premiums, but if you get into an accident, the insurance will pay up (some of the time at least). + +But unlike regular insurance, where you can only insure your car once, **speculators could also purchase CDS's from AIG in order to bet against CDO's they didn't own**. You could suddenly have a sense of rehypothecation where fifty, one hundred entities might now have insurance against a CDO. + +[Inside Job \(2010\) Payment Flow of CDS's](https://preview.redd.it/7xoupx0ffi571.png?width=1258&format=png&auto=webp&s=869beb0d99b9fbb4108cd5af692d0a6332fd52dd) + +If you've watched The Big Short (2015), you might remember the Credit Default Swaps, because those are what Michael Burry and others purchased to bet against the Subprime Mortgage CDO's. + +CDS's were unregulated, so **AIG didn’t have to set aside any money to cover potential losses**. Instead, AIG paid its employees huge cash bonuses as soon as contracts were signed in order to incentivize the sales of these derivatives. But if the CDO's later went bad, AIG would be on the hook. It paid everyone short-term gains while pushing the bill to the company itself without worrying about footing the bill if shit hit the fan. People once again were being rewarded with short-term profit to take these massive risks. + +AIG’s Financial Products division in London issued over $500B worth of CDS's during the bubble. Many of these CDS's were for CDO's backed by subprime mortgages. + +The 400 employees of AIGFP made $3.5B between 2000 and 2007. And the head of AIGFP personally made $315M. + +# 1.6 The Crash And Consumption Of Banks To Consolidate Power + +By late 2006, Goldman Sachs took it one step further. It didn’t just sell toxic CDO's, it started actively betting against them at the same time it was telling customers that they were high-quality investments. + +Goldman Sachs would purchase CDS's from AIG and bet against CDO's it didn’t own, and got paid when those CDO's failed. Goldman bought at least $22B in CDS's from AIG, and it was so much that Goldman realized AIG itself might go bankrupt (which later on it would and the Government had to bail them out). So Goldman spent $150M insuring themselves against AIG’s potential collapse. They purchased CDS's against AIG. + +[Inside Job \(2010\) Payment From AIG To Goldman Sachs If CDO's Failed](https://preview.redd.it/m54zv03yfi571.png?width=1411&format=png&auto=webp&s=f6cb605b4c9b36c22e60cd8205b80bd6ac770fac) + +Then in 2007, Goldman went even further. They started selling CDO's specifically designed so that the more money their customers lost, the more Goldman Sachs made. + +Many other banks did the same. They created shitty CDO's, sold them, while simultaneously bet that they would fail with CDS's. All of these CDO's were sold to customers as “safe” investments because of the complicit Rating Agencies. + +The three rating agencies, Moody’s, S&P and Fitch, made billions of dollars giving high ratings to these risky securities. Moody’s, the largest ratings agency, quadrupled its profits between 2000 and 2007. The more AAA's they gave out, the higher their compensation and earnings were for the quarter. AAA ratings mushroomed from a handful in 2000 to thousands by 2006. Hundreds of billions of dollars worth of CDO's were being rated AAA per year. When it all collapsed and the ratings agencies were called before Congress, the rating agencies expressed that it was “their opinion” of the rating in order to weasel their way out of blame. Despite knowing that they were toxic and did not deserve anything above 'junk' rating. + +[Inside Job \(2010\) Ratings Agencies Profits](https://preview.redd.it/tto0v644gi571.png?width=1332&format=png&auto=webp&s=f4361dcc23801691d46ec88b241c7d5fa56e2aaf) + +[Inside Job \(2010\) - Insane Increase of AAA Rated CDOs](https://preview.redd.it/91dpnu78gi571.png?width=1259&format=png&auto=webp&s=1f196573f47a757a8bcca8b9e712c537be84cbe2) + +By 2008, home foreclosures were skyrocketing. Home buyers in the subprime loans were defaulting on their payments. Lenders could no longer sell their loans to the investment banks. And as the loans went bad, dozens of lenders failed. The market for CDO's collapsed, leaving the investment banks holding hundreds of billions of dollars in loans, CDO's, and real estate they couldn’t sell. Meanwhile, those who purchased up CDS's were knocking at the door to be paid. + +In March 2008, Bear Stearns ran out of cash and was acquired for $2 a share by JPMorgan Chase. The deal was backed by $30B in emergency guarantees by the Fed Reserve. This was just one instance of a bank getting consumed by a larger entity. + +[https:\/\/www.history.com\/this-day-in-history\/bear-stearns-sold-to-j-p-morgan-chase](https://preview.redd.it/gbgc30vlhi571.png?width=873&format=png&auto=webp&s=74def34d1783c5e3195492913370e6ae65670301) + +AIG, Bear Stearns, Lehman Bros, Fannie Mae, and Freddie Mac, were all AA or above rating days before either collapsing or being bailed out. Meaning they were 'very secure', yet they failed. + +The Fed Reserve and Big Banks met together in order to discuss bailouts for different banks, and they decided to let Lehman Brothers fail as well. + +The Government also then took over AIG, and a day after the takeover, asked the Government for $700B in bailouts for big banks. At this point in time, **the person in charge of handling the financial crisis, Henry Paulson, former CEO of Goldman Sachs**, worked with the chairman of the Federal Reserve to force AIG to pay Goldman Sachs some of its bailout money at 100-cents on the dollar. Meaning there was no negotiation of lower prices. **Conflict of interest much?** + +The Fed and Henry Paulson also forced AIG to surrender their right to sue Goldman Sachs and other banks for fraud. + +**This is but a small glimpse of the consolidation of power in big banks from the 2008 crash. They let others fail and scooped up their assets in the crisis.** + +**After the crash of 2008, big banks are more powerful and more consolidated than ever before. And the DTC, ICC, OCC rules are planning on making that worse through the auction and wind-down plans where big banks can once again consume other entities that default.** + +# 1.7 The Can-Kick To Continue The Game Of Derivative Market Greed + +After the crisis, the financial industry worked harder than ever to fight reform. The financial sector, as of 2010, employed over 3000 lobbyists. More than five for each member of Congress. Between 1998 and 2008 the financial industry spent over $5B on lobbying and campaign contributions. And ever since the crisis, they’re spending even more money. + +President Barack Obama campaigned heavily on "Change" and "Reform" of Wall Street, but when in office, nothing substantial was passed. But this goes back for decades - the Government has been in the pocket of the rich for a long time, both parties, both sides, and their influence through lobbying undoubtedly prevented any actual change from occurring. + +So their game of playing the derivative market was green-lit to still run rampant following the 2008 crash and mass bailouts from the Government at the expense of taxpayers. + +There's now more consolidation of banks, more consolidation of power, more years of deregulation, and over a decade that they used to continue the game. And just like in 2008, it's happening again. We're on the brink of another market crash and potentially a global financial crisis. + +# + +&#x200B; + +# 2. The New CDO Game, And How COVID Uppercut To The System + +# 2.1 Abuse Of Commercial Mortgage Backed Securities + +It's not just /u/atobitt's "House Of Cards" where the US Treasury Market has been abused. It is abuse of many forms of collateral and securities this time around. + +It's the **same thing** as 2008, but much worse due to even higher amounts of leverage in the system on top of massive amounts of liquidity and potential inflation from stimulus money of the COVID crisis. + +Here's an excerpt from [The Bigger Short: Wall Street's Cooked Books Fueled The Financial Crisis of 2008. It's Happening Again](https://theintercept.com/2021/04/20/wall-street-cmbs-dollar-general-ladder-capital/): + +>A longtime industry analyst has uncovered creative accounting on a startling scale in the commercial real estate market, in ways similar to the “liar loans” handed out during the mid-2000s for residential real estate, according to financial records examined by the analyst and reviewed by The Intercept. A recent, large-scale academic study backs up his conclusion, **finding that banks such as Goldman Sachs and Citigroup have systematically reported erroneously inflated income data that compromises the integrity of the resulting securities.** +> +>... +> +>The analyst’s findings, first reported by ProPublica last year, are the subject of a whistleblower complaint he filed in 2019 with the Securities and Exchange Commission. Moreover, the analyst has identified complex financial machinations by one financial institution, one that both issues loans and manages a real estate trust, that may ultimately help one of its top tenants — the low-cost, low-wage store Dollar General — flourish while devastating smaller retailers. +> +>This time, the issue is not a bubble in the housing market, **but apparent widespread inflation of the value of commercial businesses, on which loans are based.** +> +>... +> +>**Now it may be happening again** — this time not with residential mortgage-backed securities, based on loans for homes, **but commercial mortgage-backed securities, or CMBS, based on loans for businesses.** And this industrywide scheme is colliding with a collapse of the commercial real estate market amid the pandemic, which has **business tenants across the country unable to make their payments.** + +They've been abusing Commercial Mortgage Backed Securities (CMBS) this time around, and potentially have still been abusing other forms of collateral - they might still be hitting MBS as well as treasury bonds per /u/atobitt's DD. + +John M. Griffin and Alex Priest released a study last November. They sampled almost 40,000 CMBS loans with a market capitalization of $650 billion underwritten from the beginning of 2013 to the end of 2019. **Their findings were that large banks had 35% or more loans exhibiting 5% or greater income overstatements.** + +The below chart shows the overstatements of the biggest problem-making banks. The difference in bars is between samples taken from data between 2013-2015, and then data between 2016-2019. Almost every single bank experienced a positive move up over time of overstatements. + +>Unintentional overstatement should have occurred at random times. Or if lenders were assiduous and the overstatement was unwitting, one might expect it to diminish over time as the lenders discovered their mistakes. **Instead, with almost every lender, the overstatement** ***increased*** **as time went on**. - [Source](https://theintercept.com/2021/04/20/wall-street-cmbs-dollar-general-ladder-capital/) + +[https:\/\/theintercept.com\/2021\/04\/20\/wall-street-cmbs-dollar-general-ladder-capital\/](https://preview.redd.it/5xmcu9hwhi571.png?width=846&format=png&auto=webp&s=66f636574bd66afd3512b9587981e4caaa381cf3) + +So what does this mean? **It means they've once again been handing out subprime loans (predatory loans). But this time to businesses through Commercial Mortgage Backed Securities.** + +Just like Mortgage-Backed Securities from 2000 to 2007, the loaners will go around, hand out loans to businesses, and rake in the profits while having no concern over the potential for the subprime loans failing. + +# 2.2 COVID's Uppercut Sent Them Scrambling + +The system was propped up to fail just like from the 2000-2007 Housing Market Bubble. Now we are in a speculative bubble of the entire market along with the Commercial Market Bubble due to continued mass leverage abuse of the world. + +Hell - also in Crypt0currencies that were introduced after the 2008 crash. **Did you know that you can get over 100x leverage in crypt0 right now? Imagine how terrifying that crash could be if the other markets fail.** + +There is SO. MUCH. LEVERAGE. ABUSE. IN. THE. WORLD. All it takes is one fatal blow to bring it all down - **and it sure as hell looks like COVID was that uppercut to send everything into a death spiral.** + +When COVID hit, many people were left without jobs. Others had less pay from the jobs they kept. It rocked the financial world and it was so unexpected. Apartment residents would now become delinquent, causing the apartment complexes to become delinquent. Business owners would be hurting for cash to pay their mortgages as well due to lack of business. The subprime loans all started to become a really big issue. + +Delinquency rates of Commercial Mortgages started to **skyrocket** when the COVID crisis hit. They even surpassed 2008 levels in March of 2020. Remember what happened in 2008 when this occurred? **When delinquency rates went up on mortgages in 2008, the CDO's of those mortgages began to fail. But, this time, they can-kicked it because COVID caught them all off guard.** + +[https:\/\/theintercept.com\/2021\/04\/20\/wall-street-cmbs-dollar-general-ladder-capital\/](https://preview.redd.it/cqbceix0ii571.png?width=848&format=png&auto=webp&s=da81781094a31ae1293b019c4e24f68dfdccc634) + +# 2.3 Can-Kick Of COVID To Prevent CDO's From Defaulting Before Being Ready + +COVID sent them **Scrambling**. They could not allow these CDO's to fail just yet, because they wanted to get their rules in place to help them consume other failing entities at a whim. + +Like in 2008, they wanted to not only protect themselves when the nuke went off from these decades of derivatives abuse, they wanted to be able to scoop up the competition easily. That is when the DTC, ICC, and OCC began drafting their auction and wind-down plans. + +In order to buy time, they began tossing out emergency relief "protections" for the economy. Such as preventing mortgage defaults which would send their CDO's tumbling. **This protection ends on June 30th, 2021**. + +And guess what? **Many people are still at risk of being delinquent**. [This article](https://therealdeal.com/issues_articles/defusing-the-forbearance-time-bomb/) was posted just **yesterday**. The moment these protection plans lift, we can see a surge in foreclosures as delinquent payments have accumulated over the past year. + +When everyone, including small business owners who were attacked with predatory loans, begin to default from these emergency plans expiring, it can lead to the CDO's themselves collapsing. **Which is exactly what triggered the 2008 recession**. + +[https:\/\/www.housingwire.com\/articles\/mortgage-forbearance-drops-as-expiration-date-nears\/](https://preview.redd.it/b68fsf5aii571.png?width=945&format=png&auto=webp&s=daa8c725185480d988802023a27291ee782b5c5f) + +# 2.4 SLR Requirement Exemption - Why The Reverse Repo Is Blowing Up + +Another big issue exposed from COVID is when SLR requirements were leaned during the pandemic. They had to pass a quick measure to protect the banks from defaulting in April of 2020. + +>In a brief announcement, the Fed said it would allow a change to the **supplementary leverage ratio to expire March 31**. The initial move, announced April 1, 2020, **allowed banks to exclude Treasurys and deposits with Fed banks from the calculation of the leverage ratio**. - [Source](https://www.cnbc.com/2021/03/19/the-fed-will-not-extend-a-pandemic-crisis-rule-that-had-allowed-banks-to-relax-capital-levels.html) + +What can you take from the above? + +**SLR is based on the banks deposits with the Fed itself. It is the treasuries and deposits that the banks have on the Fed's balance sheet. Banks have an 'account block' on the Fed's balance sheet that holds treasuries and deposits. The SLR pandemic rule allowed them to neglect these treasuries and deposits from their SLR calculation, and it boosted their SLR value, allowing them to survive defaults.** + +This is a **big**, **big**, **BIG** sign that **the banks are way overleveraged by borrowing tons of money just like in 2008.** + +The SLR is the "Supplementary Leverage Ratio" and they enacted quick to allow it so banks wouldn't fail under mass leverage for failing to maintain enough equity. + +>The supplementary leverage ratio is the US implementation of the Basel III Tier 1 **leverage ratio**, with which **banks calculate the amount of common equity capital they must hold relative to their total leverage exposure**. **Large US banks must hold 3%**. **Top-tier bank holding companies must also hold an extra 2% buffer, for a total of 5%**. The SLR, which does not distinguish between assets based on risk, is conceived as a backstop to risk-weighted capital requirements. - [Source](https://www.risk.net/definition/supplementary-leverage-ratio-slr) + +[Here is an exposure of their SLR](https://www.fool.com/investing/2020/07/26/which-of-the-large-us-banks-is-most-leveraged.aspx) from earlier this year. The key is to have **high SLR, above 5%, as a top-tier bank**: + +|Bank|Supplementary Leverage Ratio (SLR)| +|:-|:-| +|JP Morgan Chase|6.8%| +|Bank Of America|7%| +|Citigroup|6.7%| +|Goldman Sachs|6.7%| +|Morgan Stanley|7.3%| +|Bank of New York Mellon|8.2%| +|State Street|8.3%| + +The SLR protection ended on March 31, 2021. Guess what started to happen just after? + +T**he reverse repo market started to explode. This is VERY unusual behavior because it is not at a quarter-end where quarter-ends have significant strain on the economy. The build-up over time implies that there is significant strain on the market AS OF ENTERING Q2 (April 1st - June 30th).** + +[https:\/\/fred.stlouisfed.org\/series\/RRPONTSYD](https://preview.redd.it/ijp4wkxdii571.png?width=1455&format=png&auto=webp&s=46f67d7efcc98ee475ba27fa41850fbf5d894064) + +**Speculation: SLR IS DEPENDENT ON THEIR DEPOSITS WITH THE FED ITSELF. THEY NEED TO EXTRACT TREASURIES OVER NIGHT TO KEEP THEM OFF THE FED'S BALANCE SHEETS TO PREVENT THEMSELVES FROM FAILING SLR REQUIREMENTS AND DEFAULTING DUE TO MASS OVERLEVERAGE. EACH BANK HAS AN ACCOUNT ON THE FED'S BALANCE SHEET, WHICH IS WHAT SLR IS CALCULATED AGAINST. THIS IS WHY IT IS EXPLODING. THEY ARE ALL STRUGGLING TO MEET SLR REQUIREMENTS.** + +# 2.5 DTC, ICC, OCC Wind-Down and Auction Plans; Preparing For More Consolidation Of Power + +We've seen some interesting rules from the DTC, ICC, and OCC. For the longest time we thought this was all surrounding GameStop. Guess what. **They aren't all about GameStop**. Some of them are, but not all of them. + +**They are furiously passing these rules because the COVID can-kick can't last forever. The Fed is dealing with the potential of runaway inflation from COVID stimulus and they can't allow the overleveraged banks to can-kick any more. They need to resolve this as soon as possible. June 30th could be the deadline because of the potential for CDO's to begin collapsing.** + +Let's revisit a few of these rules. The most important ones, in my opinion, because they shed light on the bullshit they're trying to do once again: Scoop up competitors at the cheap, and protect themselves from defaulting as well. + +* **DTC-004:** Wind-down and auction plan. - [Link](https://www.sec.gov/rules/sro/dtc/2021/34-91429.pdf) +* **ICC-005:** Wind-down and auction plan. - [Link](https://www.sec.gov/rules/sro/icc/2021/34-91806.pdf) +* **OCC-004:** Auction plan. Allows third parties to join in. - [Link](https://www.sec.gov/rules/sro/occ/2021/34-91935.pdf) +* **OCC-003**: Shielding plan. Protects the OCC. - [Link](https://www.sec.gov/rules/sro/occ/2021/34-92038.pdf) + +Each of these plans, in brief summary, allows each branch of the market to protect themselves in the event of major defaults of members. They also **allow members to scoop up assets of defaulting members**. + +What was that? Scooping up assets? **In other words it is more concentration of power**. **Less competition**. + +I would not be surprised if many small and large Banks, Hedge Funds, and Financial Institutions evaporate and get consumed after this crash and we're left with just a select few massive entities. That is, after all, exactly what they're planning for. + +They could not allow the COVID crash to pop their massive speculative derivative bubble so soon. It came too sudden for them to not all collapse instead of just a few of them. It would have obliterated the entire economy even more so than it will once this bomb is finally let off. They needed more time to prepare so that they could feast when it all comes crashing down. + +# 2.6 Signs Of Collapse Coming - ICC-014 - Incentives For Credit Default Swaps + +A comment on this subreddit made me revisit a rule passed by the ICC. It flew under the radar and is another sign for a crash coming. + +This is [ICC-014](https://www.sec.gov/rules/sro/icc/2021/34-91922.pdf). Passed and effective as of June 1st, 2021. + +Seems boring at first. Right? That's why it flew under the radar? + +But now that you know the causes of the 2008 market crash and how toxic CDO's were packaged together, and then CDS's were used to bet against those CDO's, check out what ICC-014 is doing **as of June 1st**. + +[ICC-014 Proposed Discounts On Credit Default Index Swaptions](https://preview.redd.it/phrxcouvii571.png?width=731&format=png&auto=webp&s=469560cf06458b51b1b5439d84062e9f6e04bda4) + +**They are providing incentive programs to purchase Credit Default Swap Indexes. These are like standard CDS's, but packaged together like an index. Think of it like an index fund.** + +**This is allowing them to bet against a wide range of CDO's or other entities at a cheaper rate. Buyers can now bet against a wide range of failures in the market. They are allowing upwards of 25% discounts.** + +There's many more indicators that are pointing to a market collapse. But I will leave that to you to investigate more. Here is quite a scary compilation of charts relating the current market trends to the crashes of Black Monday, The Internet Bubble, The 2008 Housing Market Crash, and Today. + +[Summary of Recent Warnings Re Intermediate Trend In Equities](https://preview.redd.it/y4reiv86hi571.jpg?width=550&format=pjpg&auto=webp&s=8845b7b90adf28409772483c6eeeef1763bbaaaf) + +&#x200B; + +&#x200B; + +&#x200B; + +# 3. The Failure Of The 1% - How GameStop Can Deal A Fatal Blow To Wealth Inequality + +# 3.1 GameStop Was Never Going To Cause The Market Crash + +GameStop was meant to die off. The rich bet against it many folds over, and it was on the brink of Bankruptcy before many conditions led it to where it is today. + +It was never going to cause the market crash. And it never will cause the crash. The short squeeze is a result of high abuse of the derivatives market over the past decade, where Wall Street's abuse of this market has primed the economy for another market crash on their own. + +We can see this because when COVID hit, GameStop was a non-issue in the market. The CDO market around CMBS was about to collapse on its own because of the instantaneous recession which left mortgage owners delinquent. + +If anyone, be it the media, the US Government, or others, try to blame this crash on GameStop or anything **other than the Banks and Wall Street**, **they are WRONG.** + +# 3.2 The Rich Are Trying To Kill GameStop. They Are Terrified + +In January, the SI% was reported to be 140%. But it is very likely that it was **underreported at that time**. Maybe it was 200% back then. 400%. 800%. Who knows. From the above you can hopefully gather that Wall Street **takes on massive risks all the time, they do not care as long as it churns them short-term profits**. There is loads of evidence pointing to shorts never covering by hiding their SI% through malicious options practices, and manipulating the price every step of the way. + +The conditions that led GameStop to where it is today is a miracle in itself, and the support of retail traders has led to expose a fatal mistake of the rich. **Because a short position has infinite loss potential**. There is SO much money in the world, especially in the derivatives market. + +This should scream to you that any price target that **you** think is low, could very well be extremely low in **YOUR** perspective. You might just be accustomed to thinking "$X price floor is too much money. There's no way it can hit that". I used to think that too, until I dove deep into this bullshit. + +The market crashing no longer was a matter of simply scooping up defaulters, their assets, and consolidating power. The rich now have to worry about the potential of **infinite** losses from GameStop and possibly other meme stocks with high price floor targets some retail have. + +It's not a fight against Melvin / Citadel / Point72. **It's a battle against the entire financial world**. There is even speculation from multiple people that the Fed is even being complicit right now in helping suppress GameStop. **Their whole game is at risk here.** + +**Don't you think they'd fight tooth-and-nail to suppress this and try to get everyone to sell?** + +**That they'd pull every trick in the book to make you think that they've covered?** + +The amount of money they could lose is unfathomable. + +With the collapsing SI%, it is mathematically impossible for the squeeze to have happened - its mathematically impossible for them to have covered. /u/atobitt also discusses this in [House of Cards Part 2](https://www.reddit.com/r/Superstonk/comments/nlwaxv/house_of_cards_part_2/). + +[https:\/\/www.thebharatexpressnews.com\/short-squeeze-could-save-gamestop-investors-a-third-time\/](https://preview.redd.it/6hge0pxfhi571.png?width=871&format=png&auto=webp&s=aab736cc279cc727524d2cf96384ea3e33109250) + +And in regards to all the other rules that look good for the MOASS - I see them in a negative light. + +They are passing NSCC-002/801, DTC-005, and others, in order to prevent a GameStop situation from **ever** occurring again. + +They realized how much power retail could have from piling into a short squeeze play. These new rules will snap new emerging short squeezes instantly if the conditions of a short squeeze ever occur again. There will **never** be a GameStop situation after this. + +It's their game after all. They've been abusing the derivative market game for decades and GameStop is a huge threat. It was supposed to be, "crash the economy and run with the money". Not "crash the economy and pay up to retail". But GameStop was a flaw exposed by their greed, the COVID crash, and the quick turn-around of the company to take it away from the brink of bankruptcy. + +The rich are now at risk of losing that money and insane amounts of cash that they've accumulated over the years from causing the Internet Bubble Crash of 2000, and the Housing Market Crash of 2008. + +So, yeah, I'm going to be fucking greedy. +I'm a software developer in my 30s. I have a day job in my field but I don't see myself getting anymore promotions. Most developers my age move on to managerial positions. I don't have the social skills required for those kind of positions. + +I have recently started reading up on day trading and slowly trying to get in this market. My goal is to start very slow and make progress over a span of 3 - 5 years. + +So if you're trading while holding 9 - 5 jobs, I'd be grateful for some tips and strategies. +Hello + +I'm an unproven value investor. + +My qualifications are that I've recently read all the industry standard books on this topic. + +I only have two investments, BABA and VZ. Rest of the money is hard cash. + +Buffet says why put your money in your second best idea when you can in your first. + +I have not changed my views on BABA. Still find it to be an awesome business. About VIE structure, I don't think I'll be hurt by that as an investor (but who knows). + +So is it worth adding more at this point? Or should I sit still? 😅 +I’ve read a lot of post about the outrage and how unjust this decision was. I wonder if I am alone in feeling this is the first time the government has directly helped me as a citizen. + +I’m 32 years old went to college and nursing school, have a modest house and two children. I have worked as a registered nurse for 8 years now. I personally have cared for thousands of individuals on some of the worst days of their lives, and still make just enough money to buy groceries and pay bills. I have felt that essentially I’ve never been directly helped my government and often felt they were out to make my life harder. The amount of money that comes from my check, I pay in property taxes , school taxes , tax on everything I purchase, ect. + +It appears people are disgusted by this decision. I still will have 40,000 debt from my schooling after this assistance. But this will greatly improve the life of my family and the dread of student loan payments when looking at the ability to pay for everyday things. Clothes for my children, groceries, gas. I haven’t found a lot of things to be excited about recently. If you turn on the news it’s quite literally depressing. But today I felt some hope. Is there anybody else out there that feels this way? Or is it just people that think we are freeloaders and don’t deserve assistance? + **Mods do not delete, this is important to me, please read** + +&#x200B; + +I was in my early teens during the '08 crisis. I vividly remember the enormous repercussions that the reckless actions by those on Wall Street had in my personal life, and the lives of those close to me. I was fortunate - my parents were prudent and a little paranoid, and they had some food storage saved up. When that crisis hit our family, we were able to keep our little house, but we lived off of pancake mix, and powdered milk, and beans and rice for a year. Ever since then, my parents have kept a food storage, and they keep it updated and fresh. + +Those close to me, my friends and extended family, were not nearly as fortunate. My aunt moved in with us and paid what little rent she could to my family while she tried to find any sort of work. Do you know what tomato soup made out of school cafeteria ketchup packets taste like? My friends got to find out. Almost a year after the crisis' low, my dad had stabilized our income stream and to help out others, he was hiring my friends' dads for odd house work. One of them built a new closet in our guest room. Another one did some landscaping in our backyard. I will forever be so proud of my parents, because in a time of need, even when I have no doubt money was still tight, they had the mindfulness and compassion to help out those who absolutely needed it. + +To Melvin Capital: you stand for everything that I hated during that time. You're a firm who makes money off of exploiting a company and manipulating markets and media to your advantage. Your continued existence is a sharp reminder that the ones in charge of so much hardship during the '08 crisis were not punished. And your blatant disregard for the law, made obvious months ago through your (for the Melvin lawyers out there: alleged) illegal naked short selling and more recently your obscene market manipulation after hours shows that you haven't learned a single thing since '08. And why would you? Your ilk were bailed out and rewarded for terrible and illegal financial decisions that negatively changed the lives of millions. I bought shares a few days ago. I dumped my savings into GME, paid my rent for this month with my credit card, and dumped my rent money into more GME (which for the people here at WSB, I would not recommend). And I'm holding. This is personal for me, and millions of others. You can drop the price of GME after hours $120, I'm not going anywhere. You can pay for thousands of reddit bots, I'm holding. You can get every mainstream media outlet to demonize us, I don't care. I'm making this as painful as I can for you. + +To CNBC: you must realize your short term gains through promoting institutions' agenda is just that - short term. Your staple audience will soon become too old to care, and the millions of us, not just at WSB but every person affected by the '08 crash that's now paying attention to GME, are going to remember how you stuck up for the firms that ruined so many of us, and tried to tear down the little guys. I know for sure I'll remember this. In response, here is a [list of CNBC sponsors and partners](https://www.cnbcevents.com/sponsors/). They include, but are not limited to, **IBM**, **Cisco**, **TMobile**, **JPMorgan**, **Oracle**, and **ZipRecruiter**. Their parent company is [NBCUniversal](https://en.wikipedia.org/wiki/NBCUniversal), owned by **Comcast** and **GE**. + +To the boomers, and/or people close to that age, just now paying attention to these "millennial blog posts": you realize that, even if you weren't adversely effected by the '08 crash, your children and perhaps grandchildren most likely were? *We're not enemies, we're on the same side*. Stop listening to the media that's making us out to be market destroyers, and start rooting for us, because we have a once in a lifetime opportunity to punish the sort of people who caused so much pain and stress a decade ago, and we're taking that opportunity. Your children, your grandchildren, might have suffered as I described because of the institutions that we're fighting against. You really want to choose them, over your own family and friends? We're not asking you to risk your 401k or retirement fund on a single GME bet. We're just asking you to be understanding, supportive, and to not support the people that caused so much suffering a decade ago. + +To WSB: you all are amazing. I imagine that I'm not the only one that this is personal for. I've read myself so many posts on what you guys went through during the '08 crash. Whether you're here for the gains, to stick it to the man as I am, or just to be part of a potentially market changing movement - thank you. Each and every one of you are the reason that we have this chance. I've never felt this optimistic about the future before. This is life changing amounts of money for so many of you, and to be part of a rare instance of a wealth distribution from the rich to the poor is just incredible. I love you all. + +&#x200B; + +&#x200B; + +Note: I can't seem to get a hold of mods and they keep fucking removing the post. I have no idea how to get this to stick and its important to me that the people I'm addressing read it. +From what I've read house prices being high and rapidly increasing is a good sign they may crash. I've read this in property investment guides and online about timing the cycle. Everywhere I look seems to assume that property prices will continue to rise well into the 2040s! + +Now I've read the average baby boomer will die in 2034, which will create a buyers market but no analysts from property firms or banks seem to agree. My sneaking suspicion is that they are wealthy and benefit from increasing house prices and wouldn't want anyone to know the party has to end eventually. +It does not matter if you invested in GME, made money on NOK, or you are just interested in the stock market. + +Today different brokers took down from MILLIONS of retail traders the opportunity to partecipate actively in the stock market to save some billionaires hedge funds. + +In the last generation most of the people thought about the stock market as something abstract and only reserved to the richest getting richer, only having a clue about what Wall Street is thanks to movies. + +For few years in wich the possibility to partecipate was estended to a lot of retail users, and guess what happened? Most retail users (up to 80%) lost money having no idea what they were doing. + +In the last few weeks GME has been the opportunity for normal people to take something back from the people controlling the market, and when they were finally succeeding, guess what? + +They cut us out. + +I do not know how today will be called but it will go down in history books after the Wall Street Crash of 1929 and the crash of 2008. +For example. + +https://np.reddit.com/r/OutOfTheLoop/comments/x9btdc/whats_up_with_black_twitter_celebrating_queen/innq96h/ + +https://np.reddit.com/r/interestingasfuck/comments/xaekvs/during_the_british_rule_of_india_from_1769_to/ + +I also get [this](https://mronline.org/2019/01/15/britain-robbed-india-of-45-trillion-thence-1-8-billion-indians-died-from-deprivation/) article accusing not only Britain of stealing almost $50 trillion but also killing 1.8 *billion* Indians. + +Lastly, a [master's thesis](https://www.diva-portal.org/smash/record.jsf?pid=diva2%3A1590981&dswid=-5913) from Linnaeus University in Sweden, states + +> British economic exploitation of Indian society is visible in the dreadful death toll from famine. Emeritus professor Utsa Patnaik estimated under the British regime, about **1. 6 trillion people had died.** + +Would like to know how far these large numbers are true. +Multiple people have received a notice at the bottom of their October statement. These accounts are scheduled to be converted to Core Checking in January 2018. + +If you don't want to pay fees for a checking account or want a savings account that actually pays interest instead of charging fees, you can check the wiki for a list of the most frequently recommended banking institutions on /r/personalfinance: + +https://www.reddit.com/r/personalfinance/wiki/banks_and_credit_unions +⚠️⚠️⚠️ ***DON'T BUY SILVER, IT'S A TRAP***⚠️⚠️⚠️ + +They're talking on CNBC as if people on Reddit are actually squeezing silver. It's fucking absurd, they're practically encouraging it. + +They're like, "Wow, these redditors are squeezing silver, how cool" actually fucking encouraging it. + +Literally scum + +Edit: Should have mentioned, it's literally fucking impossible to squeeze silver. It's not shorted at all. Hedge funds and Citadel hold lots of Long positions in it, not shorts. Buying it would be playing right into their hands. + +Buying silver will make you likely lose money and absolutely give it to the hedge funds and Citadel. + +By Silver, I mean $SLV, *I know nothing about phisical silver*. For anybody confused + +Edit 2: If you bought $SLV months or years ago and made a profit, that's fantastic. This post is just saying that you should not buy silver right now. + +This isn't financial advice, I am mentally challenged +You hear about the kid who put in $500 into a memecoin and made 100k, but you don't hear about the hundreds who put $1000 and are left with $0.1 + +You also don't hear about the guys who put $10,000 but cant cash out because these memecoins have no liquidity. + +Don't beat yourself up for missing out. + +Survivorship bias is a dangerous thing. +Have natural resources - check + +Having an educated population - check + +Being able to create complex technologies with high added value - check + +My country (Brazil) lacks an educated population and high value-added technology, so I understand it to be poor. But Russia, has a Soviet legacy of industry and a population skilled in technology, see the war and space capabilities they have, in addition to some national car brands. So it tortures me that Australia has 1/6 of the population but six times the GDP per capita. It makes no sense. +Here is the link to Roaring Kitty (DFV channel). He has been posting about gme for awhile now. + +https://youtu.be/1zi7XVudxME + +He describes himself as a value investor. +The stock market has witnessed a huge inflow of new investors during this calendar year. The pandemic allowed young people to stay at home with nothing to do. Several have lost their jobs and people have started to realise the importance of investing, and that's always a good thing. Starting off early is a huge advantage for investors. + +Although we have [a set of posts for people who are absolutely zero in terms of money management](https://www.reddit.com/r/IndiaInvestments/comments/9ltgni/for_someone_who_is_absolutely_at_level_zero_in/), I want to focus specifically on stock market investing. + + +There are several things to know about investing in the stock market. Searching on Youtube or Google or Reddit will provide us with an abundance of information. New investors are often confused because of the availability of many different investment products. And, new investors are often indecisive on what to do after starting their investment. I'll do my best to summarise the experiences that I have learned throughout my investment journey, and share all the details that can be helpful for new investors. + +To be a successful investor in the stock market, here are the things that we need to do : + + +##1. Invest with a proper goal and purpose. + +The first step in investing is not to select the best stocks or best mutual funds. It's to identify why you're investing. Find out what you want to achieve by investing. The goal/purpose can be as generic as 'to become wealthy' or 'to save up for retirement'. Or, it can be more specific like 'to buy a home in 10 years', 'to save for my children's education in 20 years' etc. + +Deciding on the goal is crucial, since it allows the investor to think of a proper plan. A goal that's 10 years away will need a different investment strategy than a goal that's 20 years away. If we're saving up for retirement, we'll likely have 20-30 years ahead of us. Knowing the end goal allows the investors to properly decide the amount of money they need to invest. Without a goal or purpose, we'll have a hard time continuing our investment journey. + + +##2. Invest with consistency and discipline. + +An average investor doesn't need any special skills to invest successfully in the stock market. We don't always have to be invested in the *best* mutual funds or the top stocks. We just have to stay invested. + +Before choosing a stock or mutual fund for investment, research about it and convince yourself that this is a good investment and that you'll stay invested in it for the long haul. We shouldn't invest in something just because it has performed well recently. + +Once you have chosen your investment, invest consistently. Don't stop investing just because the returns in the last couple of years have been bad. Even the best stocks/mutual funds undergo periods of bad performance. + + +**Example :** [The Average Investor Lost Money in the Best Performing Mutual Fund in History](https://www.alphawealthfunds.com/2019/08/the-average-investor-lost-money-in-the-best-performing-mutual-fund-in-history/) + +Peter Lynch is one of the best investors of all time, and his Magellan fund has an [annualised returns of 29%](https://i.imgur.com/RfrRMvU.png). Even if the fund outperformed the S&P 500, the average investor lost money. Because, the investor will 'buy high and sell low'. That is, whenever the fund isn't performing well, they'll withdraw & whenever the fund performs well, they'll invest money. Instead of investing consistently, they'll look at the past performance of the fund and then invest. So, investing consistently is more important than choosing the best investment. + +Even for a consistent investor, they might be forced to withdraw from their investments if there's a sudden need for money. To avoid this, **have a rock-solid emergency fund**. Keep 5% of your net worth in low-risk liquid assets that is unrelated to the stock market. It's good to keep 1 year's expenses as an emergency fund, so that even during worse-case scenarios, you can handle financial emergencies without withdrawing your investments. + +##3. Don't stop investing just because there's 'choppy waters' in the market. Don't start investing just because there's optimism in the market. + + +We should stop investing only when we're close to attaining our goal. When we're years from achieving our goals, we should invest irrespective of the short-term market conditions. + +Often, a mutual fund will give nil or negative returns over the span of a few years. It can be extremely discouraging for investors, but that shouldn't a reason to stop investing. Equities don't always perform well. They undergo periods of low performance. That's the time to invest a lot of money, so that when they perform well, we'll reap the rewards for investing in the rough times. The volatility of the stock market can be hard for new investors to grasp. Slowly build up a tolerance to it. Embrace it, and appreciate it. + + +**Example :** [Time in the market beats timing the market.](https://www.reddit.com/r/investing/comments/k7cnl9/a_discussion_about_time_in_the_market_vs_timing/). There'll always be some reason to cause turmoil in the market. Even most recently, a lot of people expected the market to crash because of the 2020 US election. But, nothing happened ! In fact, the market rallied even more during and after election. + +[If an investor investing in the S&P 500 index missed out on the 10 best days during the past 15 years, their returns would have been halved !](https://www.putnam.com/literature/pdf/II508-ac37f7ad02b2d8889f7e5361f0e8ac86.pdf). Missing out on the 20 best trading days means that their returns would be ~1/9th of the index's returns. Missing out on the best 30 trading days means that they have lost money. + +In the short-term, no one knows what the market is going to do. For a healthy growing economy, the stock market tends to go up in the long-term. For an average investor, [Buy & Hold](https://www.investopedia.com/articles/stocks/08/passive-active-investing.asp) is the best strategy. + + +## 4. Don't chase after 'returns'. Stick to your plan. + +There's always going to an investment that'll give the 'best returns' of a particular year. If we look at a mutual fund and invest in it just because the past 1 year return has been good, we'll be disappointed. No mutual fund or stock (unless it's Asian Paints) perform consistently on a yearly basis. All of them will have periods of low performance. + + +**Example :** Let's take [PPLTE mutual fund](https://www.valueresearchonline.com/funds/19701/parag-parikh-long-term-equity-fund-direct-plan#fund-performance). It's one of the most favourite mutual fund among investors. When it started in 2014, it gave an annual return of 45%. Any new investor seeing this fund's return would be ecstatic. They'll think "If i Invest in this, I'll also get such great returns". They'll invest without any plan or research, and will be utterly disappointed because the returns for the next two years (2015 and 2016) were 9% and 3% respectively. A new investor, who lacks discipline, will stop investing or withdraw because it's a 'bad fund'. BUT, such investors will lose out on the next year's great return which is 30%. + + + +##5. Have faith and optimism in yourself & your investments. + +Self-confidence is crucial for investing success. Let's say we buy a luxury house for 2 crores. If someone sees the house and says "Oh, this house is worth only 1 crore", would we panic and sell the house for 1 crore ? We wouldn't, right ? We should have the same mentality for our stock market investments. + +If we had done enough research, we would know the intrinsic value of our investments. Therefore, we shouldn't sell randomly whenever it's performing badly (temporarily) or if someone criticises it. I'm not saying that we should invest in the same thing throughout out life. I'm saying that we should have faith in our plan. Have faith in the fact that we have analysed and chosen an investment. If the investment tuns out to be bad investment, no problem. Analyse and choose a better investment, and invest with conviction. + +Mutual fund investors often have the nagging doubt of whether they have chosen the 'best' mutual fund. For a fund to be the best fund, the fund manager has to do a good job & the market conditions should be good as well. So, the investor has to put their faith in the fund managers and the market. If you find yourself struggling to trust any fund manager to give you consistently good returns, invest in a broad market index fund like Nifty or Sensex. In such a case, you'll just have to put faith in the economy of the country. Even if you don't have faith in the Government, have faith in the county's overall economy. Have the faith that the country will grow, thrive and prosper. Indices like Nifty and S&P 500 are a decent representation of how the county's economy is going. + + +Quotes from the book **Learn to Earn : A Beginner's Guide to the Basics of Investing and Business** - + +> Before 1930, depressions and panics were a common occurrence, but since the Great One, we haven’t had a single repeat. So in the last fifty years or so, the odds of a slowdown turning into a depression have been quite remote—in fact, they’ve been zero in nine chances. Nobody can be sure you’ll never see a depression in your lifetime, but so far, in the past half-century, you would have gone broke betting on one. + + +> Is it possible that we’ve found a permanent cure for economic depression, the way we have for polio? There are several reasons to think so. First, the government, through its Federal Reserve Bank system, stands ready to lower interest rates and pump money into the economy any time it begins to look sluggish and to jolt it back into action. Second, we’ve got millions of people on social security and pensions, with money to spend no matter what. Add in the 18 million employees of government at all levels, from federal to local, and you’ve got an army of spenders. As long as this huge group is throwing its money around, the economy can slow, but it can’t come to a complete halt, the way it did in the 1930s. Third, we’ve got deposit insurance at the banks and the savings and loans, so if the banks go bankrupt, people won’t lose all their money. In the 1930s, when hundreds of banks shut their doors, their depositors lost everything. That in itself was enough to drive the country into a catatonic state. + + +> If you buy the argument that we’re not likely to suffer a relapse into depression, then you can be a little more relaxed about drops in the stock market. **As long as the economy is alive and kicking, companies can make money. If companies are making money, their stocks won’t go to zero. The majority will survive until the next period of prosperity, when stock prices will come back. History doesn’t have to repeat itself. When somebody tells you that it does, remind him or her that we haven’t had a depression in more than a half-century. People who stay out of stocks to avoid a 1929-style tragedy are missing out on all the benefits of owning stocks, and that’s a bigger tragedy.** + +Because of fear-mongering news articles, there'll always be a fear of an 'impending market crash' or a recession. An esteemed investor rarely changes his long-term investing strategy no matter what the market does. + + +##6. Don't chase after shiny new funds/stocks. + +[Successful investing is quite boring](https://www.thebalance.com/why-boring-is-almost-always-more-profitable-357440). An average investor is better-off by investing in [index funds](https://i.imgur.com/h433tbs.jpg) and going on with their lives. Even if we invest in stocks directly, always chasing after the 'best' stocks is a recipe for disaster. Yes, there's a miniscule chance that an average investor can invest in a 'multi-bagger'. But, it's nearly impossible to do it consistently. + +Some of the consistently-performing stocks are companies that do business in boring sectors. Buying stocks of quality companies (with good financials) will do well in the long-term. Buy stocks of companies that are considered as 'essential' goods, and those stocks will prosper even during recessions. + +**Example :** [Domino’s stock outperformed Apple and Amazon over 7 years](https://www.cnbc.com/2018/03/01/no-point-1-pizza-chain-dominos-outperformed-amazon-google-and-apple-stocks.html) . For the past decade, Asian Paints has a CAGR of ~25%, and it's stock price has increased tenfold during the decade. Pidilite Industries's stock price has went up by 15 times during the past decade. Neither Asian Paints nor Pidilite Industries is doing anything 'revolutionary' and 'world-changing', like the tech companies. Yet, their stock went up because they produce goods that are essential & they're pioneers in their respective industries. + + +##7. Keep your emotions in control. + +When investing, it's crucial to keep our emotions under control. It's better to avoid having any emotions towards our investments. For instance, let's say that an investor has 20 lakhs invested in a Nifty index fund. Every 1% gain or fall in the Nifty would mean that the investor's money increased or decreased by 20 thousand. Those are not real losses (or gains). They're real only when we sell them. + +Let me clarify some of the emotionally-charged doubts that new investors face on a consistent basis : + +**Question :** "The market is at an all-time-high. Should I sell ?!!" + +**Answer :** For whatever reasons, new investors are scared of all-time-highs. They somehow think that if a market reaches a new ATH, it means that there'll be a correction. Selling at an all-time-high to 'book profits', for a goal that's several years away, is the most amateurish things an investor can do. Most investors don't even have a plan on what to do with the money after selling. Let the money be invested. No one is gonna steal it. + + +[If you're not investing in the market to reach all-time-highs, what're you investing for ?](https://www.reddit.com/r/investing/comments/k6tj3j/sp_500_nasdaq_dow_30_russell_2000_close_at_all/genawtv/). ATHs are [nothing to be afraid of](https://www.reddit.com/r/investing/comments/k6tj3j/sp_500_nasdaq_dow_30_russell_2000_close_at_all/gen01sn/). + +**Queston :** "The market is falling everyday.. Should I stop my SIPs?" + +**Answer:** This is something that new investors think when they encounter their first bear market. If they started invested during a bull market, they'll suddenly feel scared when the market goes down gradually. + +A falling market is the best time to invest, for a long-term goal. A falling market means that you're buying stocks at a cheaper price. The market isn't going to keep going down forever. Invest more and more during bear markets, so that you'll make more gains during the bull market. + +**Question :** "What is the best time to book profits ?" + +**Answer :** Only if you're approaching your goals. Otherwise, **don't redeem your investments for no real reason !** Time in the market is important. Although, some would recommend a tactical rebalancing between equity and debt investments. + +**Question :** "Should I subscribe to this new NFO/IPO ?!" + +**Answer :** Avoid it. Let the stock or mutual fund perform for a while, and then decide. There's no need to chase after 'shiny new things'. + +**Question :** "The market is at an all time high. Is it a good time to start investing ?" + +**Answer :** Yes, it is a good time. [Market will be a lot higher 10 years from now](https://i.imgur.com/MheXjxP.jpg). You'd wish that you had started investing right now. + +For a real life example, let's assume that an investor started doing an SIP in a Sensex index fund on Jan 2008. It was the peak of the market, right before the market crash. IF the investor continued the monthly SIP till now, the investor's returns would have been ~11%. + +Even if there's a 10% market correction during next month, have the faith that the market will recover gradually. India is a growing economy with a young population. Being the 5th largest economy in the world, we have a LOT of growth ahead of us. An equities investor can reap the benefits of our economic development by investing early and investing consistently. +Final edit at bottom. If you are on new Reddit or the standard app, a screenshot from the final update may appear here, when it is supposed to appear at the bottom. + +I’m not sure why this screenshot shows at the top of the post, when it isn’t at the top, so I’ll just write here to let you know, it goes with the final link in the final update from 10JAN21, at the bottom. 🤷‍♂️ + +Alternatively, view this post by opening it in old Reddit: + +https://old.reddit.com/r/Superstonk/comments/rv4axv/a_news_blackout_on_the_feds_naming_of_the_banks/ + +___ + + +Second attempt to try to post this...will post the link in the comments below. + +Intro: + +> Four days ago, the Federal Reserve released the names of the banks that had received $4.5 trillion in cumulative loans in the last quarter of 2019 under its emergency repo loan operations for a liquidity crisis that has yet to be credibly explained. Among the largest borrowers were JPMorgan Chase, Goldman Sachs and Citigroup, three of the Wall Street banks that were at the center of the subprime and derivatives crisis in 2008 that brought down the U.S. economy. That’s blockbuster news. But as of 7 a.m. this morning, not one major business media outlet has reported the details of the Fed’s big reveal. + + + +___ + +Edit: This appears to be the dataset used: + +https://www.newyorkfed.org/markets/OMO_transaction_data.html#rrp + + +*(Also, thank you for the awards - I’m just glad this got some attention. The real awards should go to the authors, Pam Martens and Russ Martens, but that’s another matter, and I am not allowed to directly link the WSOP site here in the post, despite the site having an incredibly reputable, fact-based reputation for several decades now. Regardless, the link is in the comments (odd, site-wide rule, huh?). Here is what I will add: Please read the full article, I know it’s tempting to just read a headline, but this is kind of a serious matter in my personal opinion. And, if you would like this to gain more attention, please consider reaching out to your state’s representatives, consider sharing the article with those outside of reddit, etc.)* + + +___ + +Edit 2: The site was given the ol’ Reddit hug o’ death - I emailed the author, Pam Martens, explained (and apologized). I don’t think she was aware of where all the traffic was coming from. She said they’re working on a server fix, and was thankful for us bringing this “assault on press freedom” (her exact words) to the attention of Reddit users. She also has no idea why they’re banned from Reddit, as they post articles 5 days a week and have no time for a social media presence. Nice job Reddit! :) + + +*RIP inbox, gonna take some time to sort through this* + + +___ + +**Edit 3:** How can we petition (?) Reddit admins to unban links to WSOP? No idea why it was actually originally banned, and it makes no sense. The site is great and there’s simply no reasonable, logical reason it should be banned at a site-wide level. It doesn’t seem to be subreddit specific. That in itself is insane to me. Kinda mirrors what the article is talking about, actually. This seems to go to the top (the Reddit admins), not the mods here. If the mods or anyone has any experience with appealing a ban like that, I welcome your help. *shrug* + + +___ + +**Edit 4:** Today’s article, “Redditors Raged Against the News Blackout of the Fed’s Bailout – Then All Hell Broke Loose When They Learned the Wall Street Banks Literally Own the New York Fed” was just posted. + +wallstreetonparade dot com/2022/01/redditors-raged-against-the-news-blackout-of-the-feds-bailout-then-all-hell-broke-loose-when-they-learned-the-wall-street-banks-literally-own-the-new-york-fed/ + + +(Site may take a couple of tries to load) + +Archived version if that doesn’t work: + +https://archive.is/zYcb9 + + +*(And, upon seeing a few requests, I’ve updated the flair from News -> Due Diligence. Hope this helps.)* + + +**Nice job everyone!** + + +___ + + +**final edit - Today, 10Jan22, ~10PM ET, I was permanently banned, without warning, from news sub for trying to post the following article from bettermarkets.org:** + + +https://bettermarkets.org/newsroom/vice-chairman-claridas-resignation-confirms-there-is-an-epidemic-of-ethical-and-legal-violations-at-the-highest-levels-of-the-federal-reserve/ + +I’m not sure why, as this is not a political issue, and better markets is a nonpartisan, nonprofit group. Further, I was given no warning, and was told I was banned because my account had an “agenda.” + + +I replied that my only “agenda” was exposing corruption. + +Here is the conversation. (*The “blank spot” in my final message to them was simply a link to wallstreetonparade’s article. The Apollo app has a bug right now where it sometimes doesn’t show the links you send in messages.*) + + +___ + + +Convo: + +> https://imgur.com/a/nntFVwe/ + + +If they decide to unban me I will update this, but so far they have not responded. + +More and more, it seems that information distribution online cannot be trusted to be fair. +"Nice car OP, I'm really happy for you and all, but if you'd bought something else you could have made more money. May I recommend not buying a car in the future, but maybe a house instead or in fact maybe just keep hodling forever? That's how you maximize profit OP, buying that car was a financially unwise decision. But yeah really happy for you OP, big congratulations" + +Don't be that guy. OP isn't a fucking moron, he didn't make hundreds of thousands by being retarded, he obviously didn't buy an expensive car without realising it will lose resale value. You're not adding anything useful, you're not giving solid advice, you're just being really petty. Meanwhile you probably got a gaming rig and a laptop and an android phone all "depreciating in value" while you're sharing this bullshit advice. + +Maybe this one time you bought a $10 pizza, but do you realise if you'd put those $10 into ETH when it was worth $3.50 you would have had over $2,000 now?! Have you been wiping your ass with 3-ply toilet paper? Yeah should have used your hand and put all those dollars into ETH. You've literally been wiping your ass with thousands of dollars! But yeah congratulations, real happy you wiped your ass. +Good afternoon r/dividends, + +This post is to let the record show that the moderators of r/dividends support our fellow investors at r/wallstreetbets in their quest to make as much money from the Gamestop short squeeze as possible. + +This community believes wholeheartedly in all retail investors making money. We do not judge how others choose to earn their fortunes. We wish you all the best of luck in teaching the mainstream investing world some humility. + +Many of our community members live outside the US and do not have access to American markets. As a result, many of the r/dividends community can only look on and wish the community the best of luck. + +Thank you for your time. + +u/Firstclass30 +How do you cope with disclosing (not disclosing) your finances to others? I don't feel comfortable talking about how much money I earn or have. Not with the random strangers, but with the closest people. My SO of 5 years doesn't know my true net worth. + +I mean, I don't have to tell anyone, but I'm afraid if at some point in time I say "Honey, I have a **XXXk** of euros, let's buy a home" how should she react that all of a sudden I'm considerably wealthy and I haven't told her before? I feel like she'll feel betrayed that I haven't told her before - it's not like I got it overnight. My online business is doing well in the past few years. + +I would disclose this to a max of 3 people that I have a closest personal relationship with (family member, SO, and best friend) but I'm still resentful to that idea. Currently, I feel like I'm lying to them when finance topic came to discussion even though no one asked specifically about how much I earn or have. At some point they will probably figure out after I make some big purchase (i.e. property), so is it better to delay it even more or be straightforward? + +*Random bad idea: One thing that could mask big purchase is to use loan, so I wouldn't have to disclose anything to anyone - ever. Hooraay!* + +The main reason that no one knows about it is that I don't want people to look at me differently and willingly or unwillingly influence my financial decisions. + +Does anyone have experience in situations like this? Am I overthinking this and creating potential problems only in my head? +This is a throwaway account (I'm a longtime redditor under another login). /r/economics might not be the correct place to put this, but it was the best I could think of. I'm a mid-career guy in a business that does a lot of work with governmental and quasi-governmental agencies. I've never ripped anyone off personally, but I have seen and occasionally been an incidental beneficiary of quite a bit of patronage, insider dealing, nepotism, misuse of taxpayer money, and outright corruption. While I have always been honest in my own dealings on a case-by-case basis, I have refrained from many opportunities to be a "whistleblower". + +A lot of stuff on reddit misunderstands the relationships between wealth, power, and influence. For starters, all the above three are always and have always been inter-related, and probably always will be. And that might not always be a bad thing: those who have risen to high levels of wealth are often pretty smart, and surprisingly often exceptionally honest. Those who rise to high levels of influence usually have some pretty good insight and talent in their area of expertise. Those who have acquired a lot of power tend to be good at accomplishing things that lots of people want to see happen. + +None of which is purely democratic, nor even purely meritocratic, but there is a certain dose of both kind of baked into the cake: stuff like wealth or family connections only gets you so far in modern, developed, and relatively open and transparent societies such as the US. And while that can be pretty far by normal standards, at some point sunlight does shine through any crack, and outright robbery or complete incompetence is difficult to sustain indefinitely. + +But there is an awful lot of low-level waste, patronage, and corruption that happens both in the private and in the public sector. + +Without going ideological, the private sector in a free-ish market has a more immediate system of checks and balances if only because you have to actually persuade the end users to keep buying your stuff for the price you're charging: if it's no good, or if you are grossly over-charging, your customers will tend to catch on sooner or later. + +But in the public sector, the "consumer" often has little choice... so-called "market discipline" is a lot more diffuse when you have a former-schoolteacher-or-real-estate-broker-turned city councilman whose job it is to disburse a multi-million-dollar street-paving contract or whatever. And neither the schoolteacher nor the real-estate broker has any clue how to write or evaluate a road-paving contract... + +Let's say that there are three credible bidders for that street-paving contract: + +* Bidder 1 is "Paver Joe", a local guy with a driveway-paving company and three trucks who sees this as a big opportunity to expand his business and get the city to pay for five new trucks. He puts in a dirt-cheap bid that he wrote up himself with the help of his estate attorney. The cost to taxpayers is very low, but the certainty that he will complete it on schedule and as specified is a little iffy. Paver Joe plans to work overtime and bust his tail on the job, not for profits, but to grow his business. He's offering the taxpayers a great deal, but a slightly risky one. + +* Bidder 2 is "Muni Paver Inc", a company who has the experience and expertise to do the job, who knows what's involved and who has done this work before. They already have the trucks, their workers are all unionized and paid "prevailing wage", everything will be done by the book, all their EPA certifications are in place, etc... The bid is a lot more expensive than Paver Joe, but it's credible and reliable. They are offering the taxpayers a degree of certainty and confidence that Paver Joe cannot match. + +* Bidder 3 is me, "Corruptocorp". Instead of Paver Joe's 2-page contract with typos, or Muni-Paving's 20-page contract, I'm offering the city council a full package of videos, brochures, and a 40-page contract with a price just a tad higher than Paver Joe (my quoted price is meaningless, as we will see). Moreover, I'm inviting the city council to Corruptocorp-owned suites in a golf resort near my headquarters to give my presentation (all expenses paid, of course, and of course, bring your spouses). There the city council members will, after the first day of golf, dinner, dancing, and cocktails, see a slideshow and chorus-line of smiling multi-ethnic faces and working mothers talking about how much Corruptocorp's paving improved their town and their lives. I'll then stand up and tell a self-effacing joke about being one of those corporate guys trying to get their money, and then I'll wax a bit emotional about my small-town roots and how Corruptocorp was started by a man with a simple dream to make life better for everyone, and to do well by doing good in local communities, and that we actually plan to hire local contractors such as Joe's Paving to do the work, backed our economies of scale and reliability. I'll mention that paragraph 32 subsection B of our proposal mandates twice-yearly performance reviews by the city council, to of course be held at the golf resort, at Corruptocorp's expense, ("so I hope to see you all back here every February and August!"), and of course I make sure that each of them has my "personal" cell phone and home numbers in case they have any questions.... + +So needless to say I get the bid, and six months later it's time for our review at the golf resort. After dinner and cocktails I step up to the podium and announce that there is both good news and bad news: + +*"The bad news is that our subcontractor has found over 1,000 rocks in the road. And as I'm sure you know, paragraph 339 subsection D.12 specifies that any necessary rock removal will be done at prevailing wages, currently $1,500 per rock, for a total cost overrun of $1.5 million. But the good news is (and believe me, I had to fight long and hard for this with the board of directors), Corruptocorp has agreed to remove those rocks for only $1,000 apiece! So even though there have been some cost overruns, your smart decisions have saved your taxpayers **half a million dollars**! Give yourselves a round of applause!"* + +*"Now, the other situation is that there has been some 'difficult terrain' as described in subsection 238b, which I'm sure you're all familiar with. And as you know, 'difficult terrain' is not covered by the contract, which is for paving, not for turning mountains into flat roads... (wistful chuckle). Now, technically, according to the contract, we should be charging your town prevailing rates for these sections, but I've worked it so that you will be allowed to re-bid them, if you wish, since our contract doesn't specifically include terrain as described in subsection 238b."* + +Now the contract price has doubled, and Corruptocorp has completely sidestepped all of the difficult and costly work, taking profits only on the easy stuff. The city council members can either admit that they were duped and bought (political suicide), or can simply feed corruptocorp's line to the voters. Which do you think will happen? + +And it gets even worse on smaller scales: look up your local building or electrical inspector. Ten-to-one he is a relative, friend, or campaign donor to the mayor or city council. What's in it for him? Every single construction or home improvement project not only has to pay him a fee, it also has to pass his inspection. Guess which contractors are most likely to pass his inspection? His brothers, friends, family... or the cheapest guy who for some reason has a hard time finding work in this town? Guess how the local inspector feels about homeowner self-improvements: does he think they are a great way for regular people to improve their wealth with a little elbow grease, or does he see them as stealing work from his friends and family? + +The US military is by far the most wasteful customer I've ever had. I'll talk about that if this topic gets any interest. + +edit: as promised, here's the post about military spending: + +http://www.reddit.com/r/Economics/comments/c84bp/how_realworld_corruption_works/c0qrt6i +Good afternoon r/dividends, + +This post is to let the record show that the moderators of r/dividends support our fellow investors at r/wallstreetbets in their quest to make as much money from the Gamestop short squeeze as possible. + +This community believes wholeheartedly in all retail investors making money. We do not judge how others choose to earn their fortunes. We wish you all the best of luck in teaching the mainstream investing world some humility. + +Many of our community members live outside the US and do not have access to American markets. As a result, many of the r/dividends community can only look on and wish the community the best of luck. + +Thank you for your time. + +u/Firstclass30 +The $10k I put into eth over the past 18 months is worth about $75k at the moment. + +I am considering selling at least half today, to lock in some gains, but may just sell all of it. + +I come from modest means and have modest expectations in terms of lifestyle. 65k in profit is not exactly a life changing amount of money, but it’s a lot, even after taxes, and not something I’m comfortable risking any more. + +I fully recognize that eth will probably be worth more in the future, but this is eth *trader* after all, not eth holder. This is a good trade. Putting a down payment on a house this summer is my personal moon. + +I salute those of you who have the courage to power thorough long term. Please hire me as your butler in 10 years. +Make sure you backtest this baby to learn how it works, but god damn has it improved my winrate drastically. I love retail traders. But to hell with the institutions that manipulate this game in their favor and take advantage of people like us only trying to earn a nice life for our families. Here is my hard-work, and I'm giving it to you all to look out for the little guy, like the stupidly wealthy of society fail and refuse to do. + +[https://www.tradingview.com/script/dBpudiCE-Volume-Strength-Indicator/](https://www.tradingview.com/script/dBpudiCE-Volume-Strength-Indicator/) + +Comment below any questions regarding the use of this indicator and I will try to answer as many as I can. I wish everyone a sincere, honest luck with the markets. May we all master them one day and earn the lives we can only dream of. + +Btw I will be starting a Youtube series to educate people on how to make their own market edge. If that is something there is a lot of interest for, be sure to let me know, and I can get started on it ASAP. + +Thanks and love you guys, + +T. + +EDIT: Due to some overwhelming demand I will be releasing a short tutorial video on YouTube to go over some uses I have found with this unique indicator. I will update with the link when it's live. +Long time WSB member. Been dabbling in Thetagang for years even when it was all one in WSB. + +Really sucks to see WSB blow up so quickly and lose the culture. There used to be some really solid DD and some really smart people just acting like a bunch of idiots. Now, it’s just a bunch of idiots. + +So with that. I guess Theta gang is the new home, where I can intelligently discuss stock plays and not just see retards spam emojis and try to “bring down hedge funds” + +Please don’t let the noobs find this sub. +https://shortdata.ca/largest-short-positions/ + +List includes: +HITI +FLT +EXRO +NUMI +NEXE +GDNP +CBDT +FANS +DFLY +TRIP + +What are you thoughts? +Why are these retards shorting companies that for the most part, want to make the world a better place? +basically, i'm one of like 10 people in the family who was given this stock and it looks like I was given the least amount of anyone, but i'll take it. So, i'm wondering if I should keep it or just sell and dump into my VOO fund. IBM grew almost 1000% since the mid 90s, but does the stock have any room to grow? Its late to the game in cloud, but it does have a tight grip on the mainframe market because the government and many other companies will not give up their mainframes. +Democratic presidential hopeful Bernie Sanders introduced a plan on Monday that would reverse President Donald Trump's tax cuts for businesses and return the corporate tax rate to 35% from its current 21%. + +The Corporate Accountability and Democracy Plan would also eliminate many of the tax breaks and loopholes in the tax code and do away with off-shore tax havens. + +The senator is also calling to democratize corporate boards, ban stock buybacks and diversify corporations. + +The detailed plan includes these highlights, according to the campaign website: + +- Nearly half of the board of directors in any large corporation with at least $100 million in annual revenue, corporations with at least $100 million in balance sheet total, and all publicly traded companies would be directly elected by the firm's workers. + +- They would be required to consider the interests of all of the stakeholders in a company – including workers, customers, shareholders and the communities in which the corporation operates. + +- Large-scale stock buybacks would be "treated like stock manipulation" via repeal of the Securities and Exchange Commission's Rule 10b-18. + +- Rules would be developed to diversify corporate boards "ensuring a significant portion of every board be comprised of people from historically underrepresented groups." And they would require every corporation to "complete an annual report that gives the compensation, gender, and racial composition of board and employees." + +[CNBC](https://www.cnbc.com/amp/2019/10/14/bernie-sanders-would-raise-corporate-tax-rate-to-35percent-ban-stock-buybacks.html) +Whilst all other crypto went up in value... Those were some frustrating times but I always believed in ethereum and I'm glad I stuck with it and didn't move to bitcoin and litecoin because in all honesty I don't at all believe in those technologies. Ethereum for me is the future. I can see it's potential use cases in the real world and I am excited as fuck right now to see the price at over $1000 +Guys, first off i’ve been part of this community for only a short time, a little bit before this whole short interest craze but I seriously love the amazing things we’ve done for peoples lives. I’ve read about college kids paying off their student loans, people being able to afford to pay for family members cancer treatment, pet owners being able to afford their pups surgery. It’s incredible and I couldn’t be more proud to know I have a stake in this historical moment in time with all of you. + + +You see those headlines? That pushback from the big suits of wall street? WE did that. Together. If today was any indication at all, they are shitting their pants right now. I urge all of you to hold AMC and take advantage of dips if you’re inclined to do so. Please do not fall for hedge funds manipulating the market to send you into a panic sell frenzy. + + +The squeeze may not be tomorrow, and maybe not Monday, but it’s coming. I was DEEP in the red today and in any other scenario, I’d be panicking but this is bigger than me. It’s bigger than you, yes you reading this. This is a chance for us to come together as a collective and revolutionize the economy for better. + +Do your DD, stay on the ball, don’t let emotions cloud your judgement. I’m here to ride or die, AMC (and GME) to the fuckin moon baby, i love all you morons🚀🚀🚀🚀🌕🌕🌕💎🙌📈📈 +(edit: ik this technically isn’t a penny stock but we do have an AMC mega thread here) +Here's the facts. + +We live in one of the most expensive cities in North america. Average two/three bedroom townhouse here is about 900k. We have finally saved up 15% of a down payment (other 5% covered) and we would love to get into the market before our family expands and before the inevitable interest rate hikes in the new year. + +Most of the holding is in ETH. We're kind of going sideways with price right now but I would still cover the down payment if I pulled today at a recent low (4800cdn). + +My question is, if even 1% of an interest rate hike means an extra $100k on a mortgage, is holding for 6 months to a year to see a possible 10K eth a smart move? Am I basically gaining more crypto but paying more for a house as the rates go up? + +I feel like I'm stuck between a rock and a hard place. A lot of hard work got me to the single goal that most crypto apes hold for, a house, but now I'm finding it impossible to pull the trigger. Also I don't know shit about fuck and she's probably smarter than me. + +Ps: yes i'll make sure to ignore any DMs with great offers on how to double my eth thx + +EDIT: Thank you everyone for your solid advice, knowledge and stories. I didn't expect such a reaction. They say you should always bet against the common sentiment in the sub but today we prove them wrong. I think I know what I need to do now. +[Original Post](https://www.reddit.com/r/personalfinance/comments/6t8hme/i_found_out_that_a_coworker_in_the_same_position/?st=J7T77MXH&sh=810eb4d6) + +For those of you who read my original post, I just wanted to update. Everyone was so encouraging and supportive, I really did not expect it! + +After making my post, I met with my boss in order to inform her that I needed a raise. She told me she would submit a pay raise request. + +1 week later she called me into her office. She absolutely berated me for thinking I could move into the coordinator position for which I was already doing the work, and complained about my work performance. Last month I had an evaluation, and received very high praise for my performance, and there has not ever been complaints about my performance in the past. All in all, I assume she was making excuses not to increase my pay. + +Fast forward a bit, and I received a text from the wife of one of my boyfriend's friends, offering me a job at a rehab facility. I interviewed for the job, and they offered me the position at $20 an hour ($6 more an hour than my current job). + +In the meantime, my boss called me into her office AGAIN, and informed me that I was VERY fortunate, as corporate had approved my pay increase. She stated that she "truly shot for the stars when submitting my new pay" and that corporate had "gone above and beyond" anything she ever thought I would receive: $17 an hour. Still $7 less than my coworker. + +I accepted the new job, and put in my two weeks notice. My boss was absolutely side swept. She could not believe that I was quitting. She waited a day, and called me into her office yet again, and asked me what they were offering me that was so great that I would choose to leave. I told her $20 an hour. + +She said, "If I can offer you that, will you stay?" Wow. And here I thought $17 was above and beyond what they could ever offer me. + +I told her I would think about it. + +In the meantime, I contacted my new employer and informed them that my current employer was offering to match their offer to keep me, and got an even bigger offer from them. + +I start next Monday!! + +Thank you r/personalfinance for all your support and advice! I can't wait to start my new job :) +&#x200B; + +[Because editing my name out of 4 JPEGs is fuck \(also lifeline didnt email a receipt yet\)](https://preview.redd.it/rs0tn8agvws61.png?width=2048&format=png&auto=webp&s=80f27687dd731dd419a0138586c54a4a8ebe5167) + +Hey Cunts, + +So the last few runs of DW8 and EXR have finally pipped me over the $100k portfolio + +I made a promise back in Jan to donate $10k once i hit this milesone..([https://www.reddit.com/r/ASX\_Bets/comments/l6hwxu/rasx\_bets\_gives\_back\_a\_pledge/](https://www.reddit.com/r/ASX_Bets/comments/l6hwxu/rasx_bets_gives_back_a_pledge/)) + +It is with the utmost humbleness that I offer my tendies to these organisations as a thank you to all of you who have allowed me to find financial independence that I could have only dreamed of what feels like a short year ago. + +Although this might look like an outrageous humblebrag (whales have big peepees etc) - that really isnt my aim. I do hope that others, who have made profits, consider giving back in their communities if you can afford to do so. Im not very good at this trading shit and most of it is dumb luck for me. But I hope it continues so that when i reach $150k I can make another donation. + +A few shoutouts for anyone still reading this: + +Im donating to Batyr because they do awesome work in mental health prevention in young australians. That donation is in the name of a friend who took her life and left us too soon. Her name was Carli. + +Im donating to Lifeline because the service they provide is amazing and saves lives. The donation is in the name of another friend who took her own life and is dearly missed. Her name was Denise. + +Im donating to guide dogs Aus because I like dogs. Also u/kervio suggested naming a dog ("Tendie") which would be fukn rad - but it costs like $35k to name a dog so yeah... nah. + +Im donating to Autism Austrlia with the literal message of "u/stinkyfatwhale is donating these funds on behalf of all the cucks on r/ASX_Bets". Im not sure if the people at Autism australia will find that funny but idgaf and they $2.5k to the good so meh. Also u/urban_avocado suggested it and it got the most up ticky things. + +A massive shoutout to all my madlad autistic big peepee smol brain friends that ive met and made within this community. Its been a fukn blast. I could try name you all - but ill just fuck up and type your names wrong and its gonna be a mess. Typing with fat flippers is hard enough as it is. + +u/username-taken82 \- you may take me off the purge list if im still on it - If more proof is required i can provide the actual tax receipts to these organisations for verification purposes - Just DM me. + + (except lifeline - coz they slow as fuck but ill get it from them eventually - TAX RETURN BABY) + +lucky last - huge thank you to the mods u/letsburn00 u/The_lordofruin u/phantom_hax0r u/username-taken82 u/mcfucking and even AutoMod for keeping all these retards in some semblance of order and creating an awesome community. mad respect lads. + +*"May your tendies be plentiful so you can ride a coke line to the moon🚀" - Ghandi* + +Godspeed retards + +🐋❤ + +Stinky +I've been following /r/wallstreetbets for years. Usually just for a laugh as I am a stodgy buy and hold guy and don't speculate often. When I saw the $GME shit happening a week ago I thought it was pure stupidity and was not planning on investing. In fact, I bought some $GME puts (which I've since sold since somehow they've gone up based on volatility) betting against the crowd here. + +However, what has started as a decentralized short squeeze has morphed into a class movement. I'm a big populist and think we need big changes in this country, especially a transfer of wealth and power from the elites to the people. When this morphed into a class movement I became obsessed. However, I still wasn't going to buy in because I shy away from speculating on ultra risky stuff like this. But when Robinhood and all the other major brokerages colluded to cause a massive sell off, that's when it became a matter of principle. I've watched all day as the stock has remained relatively stable on very little volume. People are holding despite wall street twisting your arm and trying to make you tap out by only allowing you to sell. It's a beautiful thing to see. I don't think of my purchase as an investment, but as putting my own skin in the game as a fuck you against a rigged system. +3 people have more money than the bottom 50% of Americans. 3 investment firms control virtually everything: Blackstone, Vanguard, State Street. Most Congress, House, Senators, and even the president are bribed and paid off by big corporations to do their bidding, which usually means fucking over the middle/lower classes in every way including gaming the system so they don’t have to pay any taxes while the middle class carries most of the tax burden. + +Student loan companies are spending hundreds of millions bribing politicians, hiring lobbyists, flooding mass media with anti-loan forgiveness leaning news articles, to keep student loans high and extremely difficult to pay off so we stay debt slaves for the rest of our life while they live a decadent life of luxury + +The only way things will change is when all the working poor unite, take over the military from within, and guillotine the top 0.01% multi-billionaires pulling the strings of politicians in their pockets just like the French Revolution in the 1700s +Sounds crazy but WSB just made value investing cool again. I know right now its all hype and momo investing but the guy that started it all was a value investor named deepf&ingvalue. He bought gamestop as a value play, they are celebrating michael burry for his value play. I know this is value play plus huge luck that market shenanigans amplified your play, but still it started as a value play. I think when its all over people will start looking for the next gamestock buy digging through undervalued out of favor stocks. + +plus when everyone loses money they always come to Buffett. +Hey guys, I’ve had a few comments on reddit and instagram to explain the ATH (all time high) breakout trades I take on a daily basis and so here it is. + +I’m a full time trader and I hope you guys find this helpful. + +To explain this in great detail would take hours upon hours however I’ve wrote up a simplified description to make it digestible. + +“We do not trade ideas we trade set ups” + +As professional traders you should not be trading ideas, you should be trading sets ups. Something that you can measure, replicate, improve upon and learn from. Not random events. + +Here’s an example of how a novice traders mind may work: + +You see an article pop up about a Tesla car that was on auto pilot and crashed into a stationary car causing injury to both the driver and the passenger. Your instant thoughts are “This could effect Tesla’s stock price” and you put it on your watchlist for the day. Now the issue with this is this the specific event Is not measurable. The way in which the stock reacts will be random and you won’t be able to use the stats for any other trades. Making the event a coin flip and therefore a gamble. + +Focus on set ups not ideas. It’s ok to have an idea for the set up but the set up HAS TO BE THERE. + +Now lets get straight to it. + +What is an all time high breakout? + +1. The answer is simple. This is when a stock breaks out into a new ATH. + +Why is this such a good set up to take? + +1. Because everybody who’s EVER brought the stock is now in the GREEN “no reason to sell” and everybody who’s shorting the stock is now red “May look to cover” + +Here’s how it works: + +A lot of professional traders, myself included, love the all time high break outs for many reasons. The main being the explosive moves it can often provide. Due to this a lot of day traders, swing traders, investors, funds and algorithms will monitor the market for these potential plays. Meaning they’re often on the buying side. This is why you can see what appears to be a stock doing very little yet the moment it trickles over it’s previous ATH high it can rally for days. + +It’s called “buying the breakout” + +You see the market is run on mostly Human emotion, we know this but very few understand how that works. + +The reason most people lose money in the market is they are untrained and do not have the discipline to handle their own barbaric emotions. + +Here’s why that’s important. + +For this example we’ll call the company $STONKS it’s been on the market for 3 years and it’s current all time high is $10. Some bad news comes out and the stock gaps down to $8 causing people to panic sell and the stock to drop even further. Over the next 12 months it drops to a low of $5 until finally reclaiming to today at $9.90. It’s been consolidating between $9 and $9.90 for 10 days. + +For the past year there has been a lot of people bag holding. Those who brought at the previous all time high have seen their investment drop by 50% and slowly recover. In between this time a lot of people have cut their loses, some have averaged down, new investors have “brought the dip” and we’re now back to where we was a year ago. + +Now we have a few things at play here. + +1. Those who rode through the entire year, the 50% drop and who haven’t sold now at break even clearly have no intention to sell. +2. Out of those who brought the dip some will have sold and some and still holding onto their shares even though the price has been stagment the past 10 days. +3. For the past 10 days people have been buying consistently and have been paying $9 or above for the stock. Showing a growing interest and price acceptance at these prices. +4. People who shorted the stock are now either at break even or at a loss. +5. Anybody new who wants to purchase some shares has currently got to pay all time high prices. + +The longer we consolidate at these price the more powerful the move can become, why you ask? + +Because it has more chance of the float being rotated. Understand that the first time $STONKS went up to $10 1 year ago the average price paid by an investor may have been $3 which meant a lot of profit taking occurred. When the bad news hit a lot of those investors jumped ship. Causing more supply than demand and therefore the price to drop. + +Fast forward to today and the longer it consolidates above $9 the high the AVG price held will be. When this happens the buyers are literally sitting on basically no loss nor no gain giving them no reason to sell. + +For those unaware, if you short a stock the only way to get out for a loss is to cover your position. This in turn means “buying the stock”. Creating more buying pressure. Short positions will often risk in this scenario the all time high. Meaning if it breaks they start to cover. If they start to cover it increases buying pressure and with buying pressure increasing the stock moves up (extremely simple explanation). + +So we as traders recognise the stock is setting up for an ATH breakout and here’s what we do. + +We decide we want to risk $2,000 in the stock. + +We buy $500 worth at 9.20 known as a starter position and we wait. + +A week goes by and it’s still chopping between this range. A press release then comes out (a bullish catalyst). The market opens are $STONKS see’s a huge 15 minute candle at open. The largest amount of volume it’s seen in months. On that volume it breaks $10 and instantly jumps to $10.50. + +We managed to get our other $1,500 in at $10.20 bringing our average to roughly $9.90 a share. We move our stop loss to below the previous ATH with some breathing room AKA $9.50/share. + +Everybody who now has shares in this stock prior to today is in the green, they’re estactic. Those who held through the entire past year and refused to sell are now mentioning how they’re in profit on an investment they made to work colleagues. + +Short positions are now aware there’s no resistance and start covering “buying shares”. FOMO buyers who are “trading the news” (not a set up ;) ) are now buying in. Professional swing traders are buying the break out, day traders are buying the opening drive. Everybody is buying.. + +The stock closes at $12 marking a 25% daily gain. Barrons, CNBC, MSN all post above how $STONKS rallied into ATH due to X,Y,Z + +The following morning the stock gaps up. People are hyped, pre market goes wild and opens at $16. + +We instantly sell half… + +The stock is extremely extended as new investors flurry in, we sell them some more. There’s now 25% left of our original investment. + +We move our stop loss under PM support and go to focus on the next set up. The same set up. Something we can measure. Something we take day in day out. + +If the stock goes to 20 then we don’t get annoyed we could have missed out on further profits as it wasn’t our trade. + +The stock taps 20, massive selling occurs and settles around 14. Where it stays for months, consolidationg. Meanwhile, we’re just waiting for it to once again set up. + +So how do I find these trades? + +I use trading view, I create a list of sectors such as EVs, Solar, Tech, AI etc etc and I scan through each day. Literally just flick through. Is the stock near it’s ATH? If not, I go to the next and the next. + +My indicators are as follows. + +Volume Profile, RSI (for the daily only) + +That’s it. + +If you master just this single set up you can make money consistently. Why? Because it’s measurable, you can improve upon it. You can learn from each event but most importantly you have a set plan where the market is in your favour for the outcome to work. Never under estimate human emotion. + +I post all my trades on Instagram at the moment but I’ll look into posting my watchlist here too if it’ll help you guys. + +Feel free to ask questions. +I don't have any GME/AMC, I'm not riding this hype train, but I find it ridiculous that a broker is basically prohibiting people to invest in whatever they want. It's their money, not yours, T212. + +Great thing I abandoned them! + +https://i.imgur.com/h6HMchO.png +Sources: + +https://en.m.wikipedia.org/wiki/Government_spending_in_the_United_States + +https://www.ukpublicspending.co.uk/government_spending.html?show=n +This is a throwaway account (I'm a longtime redditor under another login). /r/economics might not be the correct place to put this, but it was the best I could think of. I'm a mid-career guy in a business that does a lot of work with governmental and quasi-governmental agencies. I've never ripped anyone off personally, but I have seen and occasionally been an incidental beneficiary of quite a bit of patronage, insider dealing, nepotism, misuse of taxpayer money, and outright corruption. While I have always been honest in my own dealings on a case-by-case basis, I have refrained from many opportunities to be a "whistleblower". + +A lot of stuff on reddit misunderstands the relationships between wealth, power, and influence. For starters, all the above three are always and have always been inter-related, and probably always will be. And that might not always be a bad thing: those who have risen to high levels of wealth are often pretty smart, and surprisingly often exceptionally honest. Those who rise to high levels of influence usually have some pretty good insight and talent in their area of expertise. Those who have acquired a lot of power tend to be good at accomplishing things that lots of people want to see happen. + +None of which is purely democratic, nor even purely meritocratic, but there is a certain dose of both kind of baked into the cake: stuff like wealth or family connections only gets you so far in modern, developed, and relatively open and transparent societies such as the US. And while that can be pretty far by normal standards, at some point sunlight does shine through any crack, and outright robbery or complete incompetence is difficult to sustain indefinitely. + +But there is an awful lot of low-level waste, patronage, and corruption that happens both in the private and in the public sector. + +Without going ideological, the private sector in a free-ish market has a more immediate system of checks and balances if only because you have to actually persuade the end users to keep buying your stuff for the price you're charging: if it's no good, or if you are grossly over-charging, your customers will tend to catch on sooner or later. + +But in the public sector, the "consumer" often has little choice... so-called "market discipline" is a lot more diffuse when you have a former-schoolteacher-or-real-estate-broker-turned city councilman whose job it is to disburse a multi-million-dollar street-paving contract or whatever. And neither the schoolteacher nor the real-estate broker has any clue how to write or evaluate a road-paving contract... + +Let's say that there are three credible bidders for that street-paving contract: + +* Bidder 1 is "Paver Joe", a local guy with a driveway-paving company and three trucks who sees this as a big opportunity to expand his business and get the city to pay for five new trucks. He puts in a dirt-cheap bid that he wrote up himself with the help of his estate attorney. The cost to taxpayers is very low, but the certainty that he will complete it on schedule and as specified is a little iffy. Paver Joe plans to work overtime and bust his tail on the job, not for profits, but to grow his business. He's offering the taxpayers a great deal, but a slightly risky one. + +* Bidder 2 is "Muni Paver Inc", a company who has the experience and expertise to do the job, who knows what's involved and who has done this work before. They already have the trucks, their workers are all unionized and paid "prevailing wage", everything will be done by the book, all their EPA certifications are in place, etc... The bid is a lot more expensive than Paver Joe, but it's credible and reliable. They are offering the taxpayers a degree of certainty and confidence that Paver Joe cannot match. + +* Bidder 3 is me, "Corruptocorp". Instead of Paver Joe's 2-page contract with typos, or Muni-Paving's 20-page contract, I'm offering the city council a full package of videos, brochures, and a 40-page contract with a price just a tad higher than Paver Joe (my quoted price is meaningless, as we will see). Moreover, I'm inviting the city council to Corruptocorp-owned suites in a golf resort near my headquarters to give my presentation (all expenses paid, of course, and of course, bring your spouses). There the city council members will, after the first day of golf, dinner, dancing, and cocktails, see a slideshow and chorus-line of smiling multi-ethnic faces and working mothers talking about how much Corruptocorp's paving improved their town and their lives. I'll then stand up and tell a self-effacing joke about being one of those corporate guys trying to get their money, and then I'll wax a bit emotional about my small-town roots and how Corruptocorp was started by a man with a simple dream to make life better for everyone, and to do well by doing good in local communities, and that we actually plan to hire local contractors such as Joe's Paving to do the work, backed our economies of scale and reliability. I'll mention that paragraph 32 subsection B of our proposal mandates twice-yearly performance reviews by the city council, to of course be held at the golf resort, at Corruptocorp's expense, ("so I hope to see you all back here every February and August!"), and of course I make sure that each of them has my "personal" cell phone and home numbers in case they have any questions.... + +So needless to say I get the bid, and six months later it's time for our review at the golf resort. After dinner and cocktails I step up to the podium and announce that there is both good news and bad news: + +*"The bad news is that our subcontractor has found over 1,000 rocks in the road. And as I'm sure you know, paragraph 339 subsection D.12 specifies that any necessary rock removal will be done at prevailing wages, currently $1,500 per rock, for a total cost overrun of $1.5 million. But the good news is (and believe me, I had to fight long and hard for this with the board of directors), Corruptocorp has agreed to remove those rocks for only $1,000 apiece! So even though there have been some cost overruns, your smart decisions have saved your taxpayers **half a million dollars**! Give yourselves a round of applause!"* + +*"Now, the other situation is that there has been some 'difficult terrain' as described in subsection 238b, which I'm sure you're all familiar with. And as you know, 'difficult terrain' is not covered by the contract, which is for paving, not for turning mountains into flat roads... (wistful chuckle). Now, technically, according to the contract, we should be charging your town prevailing rates for these sections, but I've worked it so that you will be allowed to re-bid them, if you wish, since our contract doesn't specifically include terrain as described in subsection 238b."* + +Now the contract price has doubled, and Corruptocorp has completely sidestepped all of the difficult and costly work, taking profits only on the easy stuff. The city council members can either admit that they were duped and bought (political suicide), or can simply feed corruptocorp's line to the voters. Which do you think will happen? + +And it gets even worse on smaller scales: look up your local building or electrical inspector. Ten-to-one he is a relative, friend, or campaign donor to the mayor or city council. What's in it for him? Every single construction or home improvement project not only has to pay him a fee, it also has to pass his inspection. Guess which contractors are most likely to pass his inspection? His brothers, friends, family... or the cheapest guy who for some reason has a hard time finding work in this town? Guess how the local inspector feels about homeowner self-improvements: does he think they are a great way for regular people to improve their wealth with a little elbow grease, or does he see them as stealing work from his friends and family? + +The US military is by far the most wasteful customer I've ever had. I'll talk about that if this topic gets any interest. + +edit: as promised, here's the post about military spending: + +http://www.reddit.com/r/Economics/comments/c84bp/how_realworld_corruption_works/c0qrt6i + Apparently the war costs Russia [$20 Billion a day](https://www.consultancy.eu/news/7433/research-ukraine-war-costs-russian-military-20-billion-per-day), and assuming that half of Russias $630 Billion foreign reserve remains frozen - russia only has reserves for two weeks of war. One of which is already over. + +Obviously, Russia also has a acces to rubel reserves. But you also have to consider that the aftermath will also cost Russia a lot if they want to achive their goal (an independant Ukraine). If Ukraine ties itself to the EU to finance rebuilding, that would kinda miss the point of the whole invasion.(Comparison: Rebuilding [Donbas alone was estimated to cost $20 billion](https://wiiw.ac.at/ukraine-reconstruction-of-donbas-will-cost-at-least-usd-21-7-billion-or-16-of-ukraine-s-gdp-n-448.html) \- even without the additional damage of the invasion). So I'm just ignoring that and say thats the money is allocated elsewhere. + +I guess Russia is largely self-sustaining regarding the most basic needs (food, water, energy), but rebuilding the army after the war seems like it would eat all of russias reserves. All that wouln't really be a problem if Russia would amass debts like any other country - but I can hardly see anyone willing to lend them money to rebuild their army? + +TLDR: The numbers above seem to align with articels like [this](https://www.dailymail.co.uk/news/article-10554269/Ukraine-DESTROYS-Russian-convoy-Zelenskys-troops-derail-Kremlin-push-Kyiv.html), claiming the war is over after 10 days. But the majority of news claim the sanctions don't hurt Russia (shortterm) and the war might go on for a long time still. How is that possible? +4New is the first blockchain solution in the world for waste to energy conversion. It's a tangible and eco-friendly solution that is taking the world by storm. 4New is currently offering coins for investors who are interested in getting involved with the first-ever waste to energy conversion and treatment facility. It will be based entirely on the blockchain network. + +What Is 4NEW? + +4New is based on the idea that waste to energy conversion is a new necessity. They claim 4New will solve several problems that the whole world is facing: waste is in surplus and energy is running out. By using 4New, these social and global issues will be remedied and the environment, and people, will benefit. + +The supply chain will go from the collection of waste to the conversion and generation process. This electricity will be sold in units to the national grid. + +Why 4NEW Is Lucrative + +On top of the concept behind 4New being a ground-breaking way to reduce waste and produce energy, 4New is also utilitarian in nature. It's lucrative because everyone uses electricity on a regular basis. 4New sees it like this: rather than trying to reduce the amount of energy we consume-since both are inevitable to some degree-why not? That's what drives 4New forward. + +4New says they will successfully integrate the real-world waste disposal process with blockchain technology to take that waste, convert it to energy, and sell those energy units. + +4NEW Coin Offerings + +4New is offering coins throughout October, November, and December 2017. The decentralized blockchain network 4New runs on uses the 4New Coins as a currency. These coins will be used in all transactions for acquiring and selling waste and energy. The ledger of 4New will contain all transactions and will display an auditable journal of every purchase and sale. All parties involved or associated with each transaction will be able to see the ledger entry-including potential disputes, reconciliation, and revenue leakage, which will be controlled as much as possible. + +4NEW Conclusion + +4New claims they will standardize the waste and energy industries, which they describe as two industries in need of innovation and technological integration. They also foresee the 4New Coin becoming the global currency of peers and consumers for any waste or energy related services they seek. In addition to this information, 4New provides a wealth of other insight into their company and development plans. + +Altogether, they claim their management team has over 300 years of combined experience and their research claims they will be able to provide a 15% to 20% savings to consumers. They also promise zero impact on the environment and compliance with all government regulations and standardized best practices. + +[https://4new.io/](https://4new.io/) +4New is the first blockchain solution in the world for waste to energy conversion. It's a tangible and eco-friendly solution that is taking the world by storm. 4New is currently offering coins for investors who are interested in getting involved with the first-ever waste to energy conversion and treatment facility. It will be based entirely on the blockchain network. + +What Is 4NEW? + +4New is based on the idea that waste to energy conversion is a new necessity. They claim 4New will solve several problems that the whole world is facing: waste is in surplus and energy is running out. By using 4New, these social and global issues will be remedied and the environment, and people, will benefit. + +The supply chain will go from the collection of waste to the conversion and generation process. This electricity will be sold in units to the national grid. + +Why 4NEW Is Lucrative + +On top of the concept behind 4New being a ground-breaking way to reduce waste and produce energy, 4New is also utilitarian in nature. It's lucrative because everyone uses electricity on a regular basis. 4New sees it like this: rather than trying to reduce the amount of energy we consume-since both are inevitable to some degree-why not? That's what drives 4New forward. + +4New says they will successfully integrate the real-world waste disposal process with blockchain technology to take that waste, convert it to energy, and sell those energy units. + +4NEW Coin Offerings + +4New is offering coins throughout October, November, and December 2017. The decentralized blockchain network 4New runs on uses the 4New Coins as a currency. These coins will be used in all transactions for acquiring and selling waste and energy. The ledger of 4New will contain all transactions and will display an auditable journal of every purchase and sale. All parties involved or associated with each transaction will be able to see the ledger entry-including potential disputes, reconciliation, and revenue leakage, which will be controlled as much as possible. + +4NEW Conclusion + +4New claims they will standardize the waste and energy industries, which they describe as two industries in need of innovation and technological integration. They also foresee the 4New Coin becoming the global currency of peers and consumers for any waste or energy related services they seek. In addition to this information, 4New provides a wealth of other insight into their company and development plans. + +Altogether, they claim their management team has over 300 years of combined experience and their research claims they will be able to provide a 15% to 20% savings to consumers. They also promise zero impact on the environment and compliance with all government regulations and standardized best practices. + +[https://4new.io/](https://4new.io/) +4New is the first blockchain solution in the world for waste to energy conversion. It's a tangible and eco-friendly solution that is taking the world by storm. 4New is currently offering coins for investors who are interested in getting involved with the first-ever waste to energy conversion and treatment facility. It will be based entirely on the blockchain network. + +What Is 4NEW? + +4New is based on the idea that waste to energy conversion is a new necessity. They claim 4New will solve several problems that the whole world is facing: waste is in surplus and energy is running out. By using 4New, these social and global issues will be remedied and the environment, and people, will benefit. + +The supply chain will go from the collection of waste to the conversion and generation process. This electricity will be sold in units to the national grid. + +Why 4NEW Is Lucrative + +On top of the concept behind 4New being a ground-breaking way to reduce waste and produce energy, 4New is also utilitarian in nature. It's lucrative because everyone uses electricity on a regular basis. 4New sees it like this: rather than trying to reduce the amount of energy we consume-since both are inevitable to some degree-why not? That's what drives 4New forward. + +4New says they will successfully integrate the real-world waste disposal process with blockchain technology to take that waste, convert it to energy, and sell those energy units. + +4NEW Coin Offerings + +4New is offering coins throughout October, November, and December 2017. The decentralized blockchain network 4New runs on uses the 4New Coins as a currency. These coins will be used in all transactions for acquiring and selling waste and energy. The ledger of 4New will contain all transactions and will display an auditable journal of every purchase and sale. All parties involved or associated with each transaction will be able to see the ledger entry-including potential disputes, reconciliation, and revenue leakage, which will be controlled as much as possible. + +4NEW Conclusion + +4New claims they will standardize the waste and energy industries, which they describe as two industries in need of innovation and technological integration. They also foresee the 4New Coin becoming the global currency of peers and consumers for any waste or energy related services they seek. In addition to this information, 4New provides a wealth of other insight into their company and development plans. + +Altogether, they claim their management team has over 300 years of combined experience and their research claims they will be able to provide a 15% to 20% savings to consumers. They also promise zero impact on the environment and compliance with all government regulations and standardized best practices. + +[https://4new.io/](https://4new.io/) +A little background: I'm a ML intern at a non tech/finance startup and recently my boss wants to start an algo hedge fund. The previous intern managed to produce supernormal returns, so much so that my boss compares it to RenTec. Clearly its over fitted and flawed and my boss knows but he is convinced that it's true as 'the backtest has shown'. + +Now I'm tasked to build a fund that fixes the flaw and I'm the only one working on it. I've fair knowledge in finance and some knowledge in ML. So far I've been able to produce solely technical analysis-based models. I find myself going in circles as I've huge knowledge gap to build real quantitative models. I'm exasperated and am looking for advice on moving forward. +I’m just venting…. +So i used to setup iron condors, buy shares to write calls on, and speculate on stocks. I made over 7k net profit (58%) plus more on crypto and other crap. After listening to a bunch of value investors talking about Walmart, apple, Berkshire Hathaway and other companies and how many baggers you would have made if u invested a while ago and didn’t touch it and reinvested dividends and…. i realized i want to be a value guy. With times being hard for value investors i ended up buying 17k+ of baba and kept buying more with extra money from paychecks as the price kept plummeting. Now i am down a helllllll lotta money. More importantly, i feel so stupid and insecure now. I got a bunch of people in stocks and told them to buy SPY for rest of their working careers and they are up 20%+ and happy, while i (with all my knowledge) have lost not just all my gains but my entire portfolio is in the red. U guys ever get the urge to just yolo ur money into some meme stock otm calls or is it just me atm? +Democratic presidential hopeful Bernie Sanders introduced a plan on Monday that would reverse President Donald Trump's tax cuts for businesses and return the corporate tax rate to 35% from its current 21%. + +The Corporate Accountability and Democracy Plan would also eliminate many of the tax breaks and loopholes in the tax code and do away with off-shore tax havens. + +The senator is also calling to democratize corporate boards, ban stock buybacks and diversify corporations. + +The detailed plan includes these highlights, according to the campaign website: + +- Nearly half of the board of directors in any large corporation with at least $100 million in annual revenue, corporations with at least $100 million in balance sheet total, and all publicly traded companies would be directly elected by the firm's workers. + +- They would be required to consider the interests of all of the stakeholders in a company – including workers, customers, shareholders and the communities in which the corporation operates. + +- Large-scale stock buybacks would be "treated like stock manipulation" via repeal of the Securities and Exchange Commission's Rule 10b-18. + +- Rules would be developed to diversify corporate boards "ensuring a significant portion of every board be comprised of people from historically underrepresented groups." And they would require every corporation to "complete an annual report that gives the compensation, gender, and racial composition of board and employees." + +[CNBC](https://www.cnbc.com/amp/2019/10/14/bernie-sanders-would-raise-corporate-tax-rate-to-35percent-ban-stock-buybacks.html) +If you buy a house for $30,000 and rent for $1,500 it would take you almost 2 years just to break even. So how do people become so rich by renting by properties? And how do they rent multiple properties at once when they’re not even breaking even on the first one? +Long time WSB member. Been dabbling in Thetagang for years even when it was all one in WSB. + +Really sucks to see WSB blow up so quickly and lose the culture. There used to be some really solid DD and some really smart people just acting like a bunch of idiots. Now, it’s just a bunch of idiots. + +So with that. I guess Theta gang is the new home, where I can intelligently discuss stock plays and not just see retards spam emojis and try to “bring down hedge funds” + +Please don’t let the noobs find this sub. +How many people, getting rich through stock investing, do you actually know? In real life I mean. Not celebrities or social media pretenders. Real people, in your life. How many of them became rich? By rich I mean millionaires or billionaires. + +How many? +Anyone following the WSB drama this morning will see that several brokers have blocked only the 'Buy' button to prevent GME, AMC etc being purchased. People can still sell. Don't let this happen to your bitcoin. Don't buy bitcoin on Robinhood. +Who was pulling the strings on multiple brokers to ban clients from buying $GME and causing panic selling as well as margin liquidations? By locking out investors, brokers took away the bid for the stock. The market makers then orchestrated a drop of 371 points, 77% with ONLY 8 million shares traded triggering multiple trading halts. It was brutal, especially, when GME only moved 10-20 points on similar volume on previous trading days. A full comprehensive investigation is necessary. Also investigators must take a close look at what happened to the options during that time. These criminals should rot in jail. + +Edit: This video shows how they brought $GME down 371 points (77%) and also how they brought down the $GME options. It’s a must see. https://youtu.be/YKNIf2PHvf4 +Feel free to check your area's Living wage; this is the same [calculator](https://livingwage.mit.edu/) used in "The Fight for $15", which started in 2012. [CHECK RENTS HERE](https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2022_code/select_Geography.odn) \*\* + +Adjusting for [inflation](https://www.bls.gov/data/inflation_calculator.htm) in 2012, $15 is about $19.40 today. However, the cost of housing and other expenses has outpaced inflation and wage growth. [Productivity](https://fred.stlouisfed.org/series/OPHNFB) has tripled since 1970, yet we have lower living standards, and the [birth rate is plummeting as a result](https://en.wikipedia.org/wiki/Demographics_of_the_United_States). + +[Living Wage Calculation for New York-Newark-Jersey City, NY](https://livingwage.mit.edu/metros/35620) \- I live in Manhattan, so the $26 is the minimum for me, but in an area with over 15 million people, it is still well above $20/hr + +[Living Wage Calculation for Bronx County, New York](https://livingwage.mit.edu/counties/36005) \- I grew up here, In one of the poorest areas in the united states; a one-bedroom now costs $2,000/mo. Without social safety nets, an individual can't support oneself or live within a two-hour commute of the city center. How is this economic model sustainable? If you use the inflation [calculator](https://www.bls.gov/data/inflation_calculator.htm) and this [data](https://www.huduser.gov/portal/datasets/fmr/fmrs/histsummary.odb?inputname=5600.0*New+York%2C+NY+PMSA) and compare it with [this](https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2022_code/select_Geography.odn), you can see rent has outpaced inflation. + +MIT Research states explicitly: + +>[The living wage model does not allow for what many consider the basic necessities enjoyed by many Americans. It does not budget funds for pre-prepared meals or those eaten in restaurants. It does not include money for unpaid vacations or holidays. Nor does it provide money income to cover unexpected expenses such as a sudden illness, a major car repair, or the purchase of a household appliance such as a refrigerator. Lastly, it does not provide a financial means for planning for the future through savings and investment or for the purchase of capital assets (e.g. provisions for retirement or home purchases).](https://livingwage.mit.edu/resources/Living-Wage-Users-Guide-Technical-Documentation-2022-05-10.pdf) + +This is literally only enough money to not be homeless, starve or die from preventable disease. The barest of the bare minimums. +Long time WSB member. Been dabbling in Thetagang for years even when it was all one in WSB. + +Really sucks to see WSB blow up so quickly and lose the culture. There used to be some really solid DD and some really smart people just acting like a bunch of idiots. Now, it’s just a bunch of idiots. + +So with that. I guess Theta gang is the new home, where I can intelligently discuss stock plays and not just see retards spam emojis and try to “bring down hedge funds” + +Please don’t let the noobs find this sub. +Democratic presidential hopeful Bernie Sanders introduced a plan on Monday that would reverse President Donald Trump's tax cuts for businesses and return the corporate tax rate to 35% from its current 21%. + +The Corporate Accountability and Democracy Plan would also eliminate many of the tax breaks and loopholes in the tax code and do away with off-shore tax havens. + +The senator is also calling to democratize corporate boards, ban stock buybacks and diversify corporations. + +The detailed plan includes these highlights, according to the campaign website: + +- Nearly half of the board of directors in any large corporation with at least $100 million in annual revenue, corporations with at least $100 million in balance sheet total, and all publicly traded companies would be directly elected by the firm's workers. + +- They would be required to consider the interests of all of the stakeholders in a company – including workers, customers, shareholders and the communities in which the corporation operates. + +- Large-scale stock buybacks would be "treated like stock manipulation" via repeal of the Securities and Exchange Commission's Rule 10b-18. + +- Rules would be developed to diversify corporate boards "ensuring a significant portion of every board be comprised of people from historically underrepresented groups." And they would require every corporation to "complete an annual report that gives the compensation, gender, and racial composition of board and employees." + +[CNBC](https://www.cnbc.com/amp/2019/10/14/bernie-sanders-would-raise-corporate-tax-rate-to-35percent-ban-stock-buybacks.html) +So unlike some of the guys on WSB I'm not stupid enough to think that there's a free money glitch in the market somewhere, hence my question is where I'm missing something: from my understanding, selling OTM covered calls on stocks you'd golf anyway can't result in an actual loss, ignoring missed capital gains of course. Is that true? You'd always get the premium and the worst that could happen is selling shares at an unexpected high price, sounds like too good to be true to me but I can't see any obvious error in my thinking. Am I right or do I belong to WSB +Hi, I'm a teenager looking to get into stocks to make some money and I'm unsure if I should invest in typical blue chips or go with penny stocks? I start with about $500 and trade with either ETrade or Scott trade. Any tips from anyone? +I’m 26 years old, I’m currently unemployed, I have a debt of 14k and I had saved 100k, in January I invested in dividend stocks: swk, intc, vfc, cmcsa, ally and para, but since January my portfolio lost 40% so now I need to earn 66.70%, yesterday I closed all my positions, so now I only have 60k. + +should I invest in sso, tqqq and udow to quickly recover the lost money? + +sorry for my english, it's my second language. +Ok, I buy crypto and spend A lot of time on crypto Twitter and I notice they always talk about hyperinflation is coming and it's the end of the world, and compare it to the weimer republic. + +I want to ask someone that actually knows economics works because I see hyperinflation thrown around since January and I haven't seen anything crazy yet, I've seen prices increase but it's not like I'm spending $100 for a sack of potatoes. + +So is this hyperinflation a reality or do we not know? +I certainly don't want to deter people from saving and thinking about their future. Just remember that there is life now too. I just got done diagnosing Alzheimer's in a woman in her early 60's. + +Her and her husband were looking forward to travel and leisure and life, all these things they forbade themselves in the prospect of "enjoying it later." Now they are likely looking at assisted living if not a nursing home. + +Balance. Be wise about your future, but don't get caught up in the rat race. Enjoy your life now, but don't forget about rainy days. + +Thank you guys for the wonderful advice on this subreddit. + +Edit: IDK how many of these awards cost real money. But if they do, give it to a charity and post a link on here instead! Thanks y'all! +I was also a professional derivatives trader. Even at work, all we needed were two monitors. A lot of us old guys (mid 40s) are still very actively trading and for the life of us, we dont understand why folks need that many monitors. + +What are we missing out on? I'm not being snarky or sarcastic. Why do you need that much information for a job you do for an hour after open and an hour before close? Most lifers only work the opening gaps and make a very comfortable living. Even if you're scanning setups to scalp throughout the day, how many setups are you scanning that requires that many screens? + + +Again, not being sarcastic. Just sincerely curious. +I know that “being rich” might not be the philosophy of successful and consistent traders, but the ones that are successful seem to get great financial reward. + +So my question is, why doesn’t everyone do it? +Welcome to the ETH Daily Discussion thread of /r/EthTrader. + +*** + +The thread guidelines are as follows: + +- All sub rules apply here. Please review our **[rules page](https://www.reddit.com/r/ethtrader/about/rules/)** to become familiar with them. The rules page is also linked in the announcement bar above. +- General discussion topics include, but are not limited to, events of the day, technical analysis, alternative Ethereum projects, or support issues. +- Breaking news or other important content should be submitted as a separate post. +- In-depth altcoin discussions should be referred to the /r/CryptoCurrency discussion thread. To view the thread, [follow this link](https://np.reddit.com/r/CryptoCurrency/search?q=%5BMonthly+General+Discussion%5D&restrict_sr=on&sort=new&t=all) and choose the latest entry on the search page. +- Pumping, venting, trolling, or any other similar behavior **should be reported** and redirected to the /r/CryptoMarkets trollbox thread. To visit this thread, [follow this link](https://np.reddit.com/r/CryptoMarkets/search?q=Trollbox+Thread&sort=new&restrict_sr=on&t=all) and choose the latest entry on the search page. + +*** + +Resources and other information: + +* For newcomers who have basic questions about Ethereum, you can find answers by visiting /r/EthereumNoobies or our [Ethereum Education wiki page](https://www.reddit.com/r/ethtrader/wiki/education). + +* To view live streaming comments for this thread, [click here](https://reddit-stream.com/comments/auto). Account permissions are required to post comments through Reddit-Stream.com. + +* **The daily thread will no longer be stickied so please remember to upvote it for visibility.** + +*** + +Thank you in advance for your participation. Enjoy! + +Safe +Fully borderless (available in more than 180 countries) +Accessible to all +Fun and engaging +trainer +Fast transfer between 3 and 6 seconds +Cheap transaction costs less than $ 0.01 +Safe +Fully borderless (available in more than 180 countries) +Accessible to all +Fun and engaging +trainer +Fast transfer between 3 and 6 seconds +Cheap transaction costs less than $ 0.01 +Safe +Fully borderless (available in more than 180 countries) +Accessible to all +Fun and engaging +trainer +Fast transfer between 3 and 6 seconds +Cheap transaction costs less than $ 0.01 +(Bloomberg) -- Wealthsimple Inc., a commission-free Canadian online brokerage with more than 350,000 clients, is warning traders about the risks of investing in certain highly speculative stocks, but isn’t planning to halt trading in those shares. + +Wealthsimple, whose motto is “get rich slow,” doesn’t offer riskier investment choices such as options trading or margin accounts, and has sent clients emails reminding them about the dangers of speculation, Chief Executive Officer Mike Katchen said in an interview with BNN Bloomberg Television Friday. It also embedded in-app notifications for users looking at certain stocks. + +The firm doesn’t plan to restrict trading on those shares the way Robinhood Markets Inc. and other brokerages have done in recent days, Katchen said. + +“If people are taking calculated risks and want to join in on the fun, but are doing it in a responsible way with an amount of their portfolio that they can effectively lose if and when these stock prices do come down, that’s OK,” Katchen said. “But we want to make sure that people are being responsible, and we’re trying to be as proactive as we can about that messaging.” + +The recent frenzy of retail trading has spurred a surge in interest even in the tamer platform of Wealthsimple, which touts passive investing in ETFs and is building out cash, checking, insurance and mortgage products. The company, owned by Power Corp. of Canada financial conglomerate, saw sign-ups increase more than 50% from a week earlier and daily volume more than double, Katchen said. + +That surge in interest could be a good thing if handled properly, he said. + +‘Fine Line’ + +“We have to walk that fine line of using this opportunity to bring more and more people into the capital markets and into the opportunity of investing,” he said. “But let’s also remember that investment carries risks, and it does require thoughtfulness and long-term thinking.” + +Katchen would like to see investors use individual stock-picking and cryptocurrencies such as Bitcoin, which his firm does allow trading in, as part of a “play money” account on the margins of their larger, core, long-term investing strategy. He also doesn’t see options and margin accounts as inherently wrong, but said they can be dangerous when used by new investors who don’t understand them. + +“The gamification of these highly risky tools is problematic and could result in some very bad outcomes for people, and we don’t want to be a part of that,” Katchen said. + +https://www.bnnbloomberg.ca/canada-s-answer-to-robinhood-warns-traders-but-won-t-halt-stocks-1.1556216 +Ok guys, I've officially capitulated. Apparently I misread my /CL trade I was putting on as only requiring $11,000 to be cash-secured, but that was not the case, it needs $110,000 to be cash-secured. I sold a put at the $115 strike that has exploded in BP. Coupled with some NET cash-secured puts sitting at the $110 strike, I have officially lost 58% of my account today and have bought to close everything and am never trading again, finding this subreddit was one of the worst things that has happened to me, financially. +I’ll preface this with - I didn’t say anything negative to her, I just screamed internally. + +One of my friends and her husband (both 33) rent a nice 3 bedroom place. They’ve said many times that they’re struggling to save enough money for a deposit on a house and have said that their combined income is roughly $90k. + +I had lunch with my friend recently and she was saying they were going to buy a Spa. We started talking about what they were getting, features, it’s top of the line and all that jazz. Then, she says that they’ve decided to use their savings to buy it. I tried to clarify that she still has an emergency fund, still has their house deposit savings etc.. She said no. They don’t have an emergency fund, they don’t have an account for house deposit savings. They have one savings account and they’re using it all on a Spa. I asked what they were planning to do RE buying a house and she said that they’re still saving. So I thought phew! They’re not literally using all of it. But, then she says “we’re just starting again is all”. It’s okay because “we’ll still have about $400 left”. + +As the title states.... + +&#x200B; + +I've been a long time lurker and just crunched the numbers tonight and wanted to share. I am so happy. I did it. Brings tears to my eyes. + +&#x200B; + +I'm 32, African American and a single mom of 1 teenager. I was born and raised in a true "hood", long ago, before gentrification came along. My parents were a part of the 80s crack epidemic that wiped out many families, especially African American families. I ended up in foster care and remained there my entire childhood until being emancipated and left to fend for myself in the streets of NYC at 15 years old in the early 2000s. I was a homeless and pregnant teen and immediately became a single mom. + +&#x200B; + +Through this turmoil and the crippling depression and feeling of hopelessness that came along with the "humble beginnings" of my life, I was able to graduate school early, find a job, saved just enough money to go to a trade school (it was $700 back then and every single dime that I had.) Through HARD work and insane grit and perseverance, I obtained all of my certifications and began my career at age 19. I've never looked back. + +&#x200B; + +I discovered the FIRE and personal finance community nearly 3 years ago and its been a God send. I am rewriting my families wealth tree and I couldn't be prouder. + +&#x200B; + +I am navigating the world solo (no biological family besides my son) yet I've found the will to succeed, despite all of the trials, tribulations and abandonments. + +&#x200B; + +At 12:15am on 7/16/19, 32 years of age, 13 years into my career, 1 teen son, and a LOT OF PRAYERS along the way....later.. my NET WORTH is $103,408! + +&#x200B; + +A MIXTURE of 457, 457 Roth, 401K, 529, smaller investment portfolio and pension. + +I will be retiring at age 45 with a full pension and God willing a MILLION DOLLAR portfolio. + +&#x200B; + +This is the most I'm willing to share. Please don't nit-pick, pry more or be passive aggressive. Just wanted to inspire someone somewhere who may not have as many or ANY resources to succeed. + +&#x200B; + +Long Story Short: No one thought I'd make it out from under the shitty hand I was dealt. I did and just surpassed a $100K Net Worth! + +&#x200B; + +EDIT #1: Some of you are super triggered. LOL. I don't see this type of responses on other more "traditional" postings. Y'all do know I have thick skin and come from a place where nightmares are made of...right?! I also have worked in a very AGGRESSIVE fast pace career interacting with strangers during their absolute worst moments for 13 yrs +.... read: they are with the shxts and so am I.... LOL....you do know your typed "insults" don't hurt...right?! + +&#x200B; + +EDIT #2: If I did not a THING else I would STILL be retiring with a FULL PENSION of nearly 50K + health insurance. Yes, at age 45. 25 years of service and that's it. Not 25 years of service + age requirement. + +&#x200B; + +EDIT #3: Yes, a 1 million dollar portfolio is lofty for some and not lofty for others. For me, it's just an idealistic number...really... + +&#x200B; + +EDIT #4: 20-30K + investments I'll continue to have yearly for the next 14 years. I am currently at 26K invested this year and we are only in July. I am nearly 3 years in to saving this aggressively at 50%+ (had it at nearly 70% for months and just lowered my percentages. It's not a race.) + +&#x200B; + +EDIT #4: I am a Paramedic. I also clean apartments as a side gig. My current career has no overtime cap. I have coworkers making 100% OVER their salary. + + +EDIT #5: I live on 30K in NYC (by choice: frugal minimalist). I invest ALL OF THE REST. I do NOT have to invest this aggressively. God covered me and I made a great choice in trade/career and the medical field knows no recession especially in NYC. I am BLACK AND PROUD of what I am doing, no plans to stop. Thank you for ALL the comments. Positive, neutral and negative. I learned a long time ago that SUCCESS can't be denied. I will surely be back with updates. + +EDIT #6: WAKANDA FOREVER‼️ + +EDIT #7: I can’t give clues on this post about my social media (sorry for the rule violation!) Im replying to everyone who’s inboxed me. Im STILL doing my best to reply back to those who were kind enough to write me. Wow so many of you! I’m so appreciative. You all are awesome! Thank you so much! +I tried to buy a house. I met with a broker and we crunched all the numbers: income, expenses, savings, assets, etc. He gave me a figure to work with. + +I purchased a house in Sydney for 100k less than what he said I could borrow. Signed the contract and everything. + +It's a week before settlement and the broker has just called me. The loan application came back **300k** short. Apparently the bank won't accept the percentage of my salary that's commission (even though I can prove to them that I've received 100% of it for the past 3 years). + +The broker knew that part was commission. I was very upfront about my entire financial situation. How does someone miscalculate to that degree? + +Now I have one week to come up with 300k before I can "just switch to another bank that accepts commission as salary." And my broker's solution? Personal loans from people I know... + +I think I might pass out. + +&#x200B; + +EDIT: I'm very aware that this is a bad situation. Venting anonymously online is a coping mechanism. Yes I was misinformed. In my defence, if you saw my salary and the price of what I'm buying, it really doesn't look daunting. I also live at home and have near-zero expenses. At the time, it did not look like a longshot. Internet strangers, I invite you to cringe alongside me. It's weirdly helping + +&#x200B; + +UPDATE: +[https://www.reddit.com/r/AusFinance/comments/w5ry40/update\_im\_gonna\_be\_okayhopefully/?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/AusFinance/comments/w5ry40/update_im_gonna_be_okayhopefully/?utm_source=share&utm_medium=web2x&context=3) +Good afternoon r/dividends, + +This post is to let the record show that the moderators of r/dividends support our fellow investors at r/wallstreetbets in their quest to make as much money from the Gamestop short squeeze as possible. + +This community believes wholeheartedly in all retail investors making money. We do not judge how others choose to earn their fortunes. We wish you all the best of luck in teaching the mainstream investing world some humility. + +Many of our community members live outside the US and do not have access to American markets. As a result, many of the r/dividends community can only look on and wish the community the best of luck. + +Thank you for your time. + +u/Firstclass30 +I just finished a scan of reddit and twitter, searching for Bittrex support issues. It's ridiculous to read about some clients of theirs who have been waiting 4+ months for a response, let alone a resolution. + +This just isn't right. They happily accepted our deposits to trade. That's an agreement that our issues should be dealt with in good faith, in a timely manner and with open communication. + +The backlog excuse, I've heard it many, many, many times before. That's not our problem. It's theirs. And whatever they have to do to resolve and lessen the backlog, do it. No more excuses. + +Hire more staff. Change the resolution process. Increase shifts. Overtime. So many options. + +God doesn't need to tell us you're rolling in crypto right now. I'm sure the funds are there to implement whatever possible improvements are necessary and give people back their money. + +Do you think support is this tough with the largest traditional stock brokerage sites? Or banks? Not even a chance. After a 10 minute call, issues are rectified. And that includes waiting on hold for five minutes. + + This is from their twitter account on December 14, 2017... + +"We have turned off user registration for a DB upgrade due to a large spike in new user sign ups." + +What about support upgrades? That's great about your new DB but seems like your tickets are only going to increase now by being able to handle more sign-ups. More congestion. More waiting. + +I currently have over $15,000 in support tickets with them. I know I'm not the only one. But if there is no fire under their ass, nothing will get done in a timely manner. + +POST YOUR ISSUES HERE AT REDDIT.COM/R/BITTREXSUPPORTLOGS. + +They are not listening on twitter anymore so here's another way for us to voice and let them know we won't tolerate the way they're handling OUR money. + +Subscribe. Post. Upvote other posts. Comment. That's the only way we'll get this rolling. + +And if you haven't had to file a support ticket, lucky you. I hope you'll never have to. But help us out anyway. +[https://www.reuters.com/article/cramer-interview-idUKN2036292620070320](https://www.reuters.com/article/cramer-interview-idUKN2036292620070320) + +[Direct link to Interview Video since the old in-article links aren't working](https://www.youtube.com/watch?v=CpMEFtPZJLc) + +"What's important when you're in that hedge fund mode, is to not do anything remotely truthful. Because the truth is so against your view, that it's important to create a new view, to create a fiction." + +"Then you call the (Wall Street) Journal and get the bozo reporter in Research in Motion and you would feed that (rival) Palm's got a killer it's going to give away. These are all the things you must do on a day like today, and if you're not doing it, maybe you shouldn't be in the game." + +“It might cost me $15 million or $20 million to knock RIM down but it would be fabulous because it would beleaguer all the moron longs who are also keying on Research in Motion." + +"A lot of times when I was short at my hedge fund ... meaning I needed (a stock) down, I would create a level of activity beforehand that could drive the futures. It’s a fun game and it’s a lucrative game." + +"Who cares about the fundamentals? The great thing about the market is that it has nothing to do with the actual stocks." + +\- Jim Cramer, hedge fund manager from 1987-2001, Dec 2006 + +[Dealbook NY Times Article on Cramer's Interview](https://dealbook.nytimes.com/2007/03/20/cramer-market-manipulator/) + +[Investopedia Article: Short and Distort Bear Market Stock Manipulation](https://www.investopedia.com/articles/analyst/030102.asp#:~:text=Short%20and%20distort%20(S%26D)) + +[Anatomy of a Short Attack](https://seekingalpha-com.cdn.ampproject.org/v/s/seekingalpha.com/amp/instablog/11442671-gerald-klein/3096735-anatomy-of-a-short-attack?amp_js_v=a6&amp_gsa=1&usqp=mq331AQHKAFQArABIA%3D%3D#aoh=16119453107704&referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fseekingalpha.com%2Finstablog%2F11442671-gerald-klein%2F3096735-anatomy-of-a-short-attack) +So today I went on www.bittrex.com to create an account and deposited roughly 26 BTC and traded them for other coins. Of course before doing this I did the basic verification, phone verification and enhanced verification and the 2FA authentication. I tested everything out and everything seemed fine... Then I logged out at 18:54:27 2 Hours later I come home and try to log in and it says that Bittrex is checking for my browser and that this might take up to 5 minutes. Few minutes later it goes through and asks me for my 2FA which I provide. Again it takes a long time and ends up failing. So I wait a bit and do the whole process again and when I finally log in I notice that everythings gone... All my coins were sold for btc and gone. So I check the history and this is what I see... NEW IP LOGIN UNKNOWN_IP_WITHDRAWAL_APIV1_SUCCESS NEW_IP WITHDRAWAL_APIV1_SUCCESS and then a few mins later I log in... so what happend? +I certainly don't want to deter people from saving and thinking about their future. Just remember that there is life now too. I just got done diagnosing Alzheimer's in a woman in her early 60's. + +Her and her husband were looking forward to travel and leisure and life, all these things they forbade themselves in the prospect of "enjoying it later." Now they are likely looking at assisted living if not a nursing home. + +Balance. Be wise about your future, but don't get caught up in the rat race. Enjoy your life now, but don't forget about rainy days. + +Thank you guys for the wonderful advice on this subreddit. + +Edit: IDK how many of these awards cost real money. But if they do, give it to a charity and post a link on here instead! Thanks y'all! +Let me start by saying that I think we can learn a lot from other people’s mistakes and our own. In the hopes of avoiding them in the future. This should be an interesting discussion. +Wall Street has essentially no artificial restriction on the amount of people who can achieve the credentials required to enter the industry, unlike, say, medicine, which is restricted by the amount of medical school graduates, which is turn restricted by the number of medical schools. Also, it is not a winner take all industry, the way, say, social media or entertainment is. To that end, why are investment banks and hedge funds able to maintain such high margins and salaries that aren’t present in other fields? + +Oddly, in spite of there being orders of magnitudes more hedge funds now than in 1980, there is very little in the way of price competition. The 2 and 20 compensation model has remained the standard in spite of middling performance from most funds. How is the sector able to get away with this when other sectors are not? For example, structural engineers aren’t able able to charge 2% of a buildings construction cost annually in perpetuity as long as it doesn’t fall down because there are other firms that will work for $150/man hour with no residuals. Why hasn’t this happened in finance? + +However, on the other hand, unlike hedge funds, there seem to be essentially no startup investment banks. If you look at the top investment banks, basically none were founded recently (mergers excluded). One would think that the profitability of the sector would drive lots of startups, but it doesn’t happen. + +What economic factors make the financial sector unique in being able to prevent competition from destroying their huge profits and commensurate wages? +After first 2-3 millions, a paid off home and a good car, there is no difference In qualify of life between you and Jeff Bezos. Both of you have limited amount of time on earth - you have twice if not more than Jeff, so you are richer than him. A cheese burger is a cheese burger whether a billionaire eats or you do. + +Money is nothing but a piece of paper or a number in your app. Real life is outdoors. + +Become financially independent that’s usually 2-3 M. Have good food. Enjoy the relations. Workout and enjoy sex. Sleep well. Call your parents. That’s all there is to life. Greed has no end. + +Repeat after me. Time is the currency of life. Money is not. + +Sooner you figure this out, happier you will be. + +Agree/Disagree ? + +Edit - CEO of Twitch confirming this mindset. https://youtu.be/yzSeZFa2NF0 +3 people have more money than the bottom 50% of Americans. 3 investment firms control virtually everything: Blackstone, Vanguard, State Street. Most Congress, House, Senators, and even the president are bribed and paid off by big corporations to do their bidding, which usually means fucking over the middle/lower classes in every way including gaming the system so they don’t have to pay any taxes while the middle class carries most of the tax burden. + +Student loan companies are spending hundreds of millions bribing politicians, hiring lobbyists, flooding mass media with anti-loan forgiveness leaning news articles, to keep student loans high and extremely difficult to pay off so we stay debt slaves for the rest of our life while they live a decadent life of luxury + +The only way things will change is when all the working poor unite, take over the military from within, and guillotine the top 0.01% multi-billionaires pulling the strings of politicians in their pockets just like the French Revolution in the 1700s +Cross-posted from /r/BTC. As many as possible in the crypto space should be educated. + +Here is his post: + +https://np.reddit.com/r/ledgerwallet/comments/7obot7/all_my_cryptocurrency_stolen/ + +Here's where we find out how he was scammed. The scam Ledger Nano (bought on Ebay) came with a "scratch off" paper, to reveal the seed words. With a real Ledger Nano, the seed words are generated by the device. + +https://np.reddit.com/r/ledgerwallet/comments/7obot7/all_my_cryptocurrency_stolen/ds8khhw/ + +Some other people have come across the same scam: + +https://np.reddit.com/r/ledgerwallet/comments/7i12x5/latest_ledger_nano_s/ + +https://np.reddit.com/r/ledgerwallet/comments/7i12x5/latest_ledger_nano_s/dqvdulw/ + +Picture of the fake "scratch off" paper with seed words. + +https://imgur.com/DsICkge + +Pictures of the scam instructions: + +https://imgur.com/a/pw9L0 + +Brutal scam. + +It seems like a lot of people make a lot of money and it seems like I’m missing out on something. So those of you that do, whats your occupation that pays so well? +So often someone will ask an amazing question, something I’m really interested in getting a good answer to, or even someone’s opinion, but I always just see that message explaining that comments need to be approved. + +99.9% is an exaggeration, but not many people are going to come back to look at a post to see if any comments have been approved. +You cant even post about moderate gains without some fanatic or social justice warrior trying to tell you that you are a "paper handed bitch" or that you "turned your back on the movement". What fucking movement?! Stocks are not a movement. What happened with the meme stocks is not a movement. It's a bunch of idiots who got too greedy and in turn attracted a larger group of idiots who think putting $100 into a fractional share is going to bankrupt all the large players and change the way capital is dispersed to the people. Get your head out of your ass. You didn't even bankrupt 1 hedge fund. You just forced them to close their position and borrow from their friends. I hope these people go back to r/charity or r/socialjustice or where ever they usually bitch and moan about not knowing how to make money. r/investing r/stocks r/stockmarket are for investing and trading not for furthering your cause or political beliefs. That's it. GL making that paper guys. + +Edit: For those who are upset about my inclusion of r/socialjustice and r/charity I will admit It was an uncalled for jab at them and I do appreciate the work they do. I am actually upset about those false, fake, or wannabee, sjw's acting like this is a movement we are all a part of or even wanted to be involved in when they really just wanted to see meme stocks get them rich quick. + +Edit 2: For anyone who is new to trading and looking to learn more I would like to direct you to the following educational sources:-Most Brokers have excellent educational resources on their platforms when it comes to the basics.-Investopedia has articles and educational resources on most charts, technical analysis, trading strategies, and techniques. [https://www.investopedia.com/](https://www.investopedia.com/)The subs bot also provided me with these: [https://github.com/ckz8780/market-toolkit#getting-started](https://github.com/ckz8780/market-toolkit#getting-started) + +Edit 3: Hey all, This was really fun chatting and arguing with you all. I tried to answer every comment and now I'm gonna call it because at this point most of the comments are just angry kids yelling at me for being paper handed or a whiney bitch. So have a great day & good luck on your future trades! + +Disclaimer: None of my comments should be considered financial advice. +I understand it sucks to see people losing their life savings, but we have been telling you not to sell naked calls on meme stocks FOR 6 FUCKING MONTHS. That’s more than enough time to grasp the fact that the premium on meme stock options are high for a reason. I have absolutely no sympathy for any of you. To the ones who sold covered calls, I also have no sympathy. You made max profit. Stop bitching about missed gains because it could have just as easily gone the opposite way. Be grateful and move your capital to another stock + +Edit: why is this doing numbers? It’s a shitpost. Thank you for the awards though lmao +Hi everyone, I’m a fairly new user on this sub but I just wanted to bring up the conversation on something I’ve noticed. + +If you look at the posts in the sub, almost all of them are from people asking others to rate their portfolio. Aside from the fact that it’s hard to see so few posts on any other topic, it drives me nuts that the portfolios of users on this sub, are often fairly identical. Everyone owns the same Nasdaq stocks, ark funds, BETZ, clean energy, and marijuana. + +Another post that’s even more infuriating is when people want this sub to do their due diligence for them and basically their entire post consist of “What do you think about $WXYZ, should I buy it?”. There’s never any other info on the post either, like what made you believe that this might be a good ETF to invest in in the first place. + +I have a few proposals to curb this kind of behavior and hopefully make this sub better : + +1. A post in the sidebar to a link on the basics of how to construct a portfolio, or simple ETF investment strategies. This hopefully will decrease the number of daily new posts asking about this. + +2. A post on the side bar with detailed answers to why this sub is generally in favor of or against certain commonly inquired about ETFs. If everyone is going to build their portfolios so similarly, we may as well have a prepared post with the subs concensus on stocks like ICLN, ARKG, QQQM, SPY, MSOS, LIT, BLOK etc... + +3. We could start a monthly subreddit favorite ETF funds post. Maybe put up a poll or a stickies discussion thread on which ETFs everyone currently loves. This way if the top 10 funds users on this sub approve of are easily available, people can stop asking about them in those types of posts + +4. This is my favorite suggestion. In order for anyone to post asking for feedback on their portfolio, they must share one piece of due diligence in their post, preferably about a stock they are inquiring about. You have to tell us why you like the stock and how it got included in your portfolio, even if your reasons are basic and incomplete. Anyone who is investing in ETFs without doing some type of DD is a fool of they’re blindly following the advice they get from strangers on here. Even if it’s something as giving us the P/E ratio, div yield, expense ratio and top 10 holdings, that’s more than what most posts contain. In doing so, I think the number of new posts without due diligence that just ask the sub to do the work for someone will decrease, and hopefully if everyone is sharing DD then we’ll all learn something new when we come on here. + +Let me know what you all think. + +If you have some suggestion your own, I’d love to hear them! +&#x200B; + +[Because editing my name out of 4 JPEGs is fuck \(also lifeline didnt email a receipt yet\)](https://preview.redd.it/rs0tn8agvws61.png?width=2048&format=png&auto=webp&s=80f27687dd731dd419a0138586c54a4a8ebe5167) + +Hey Cunts, + +So the last few runs of DW8 and EXR have finally pipped me over the $100k portfolio + +I made a promise back in Jan to donate $10k once i hit this milesone..([https://www.reddit.com/r/ASX\_Bets/comments/l6hwxu/rasx\_bets\_gives\_back\_a\_pledge/](https://www.reddit.com/r/ASX_Bets/comments/l6hwxu/rasx_bets_gives_back_a_pledge/)) + +It is with the utmost humbleness that I offer my tendies to these organisations as a thank you to all of you who have allowed me to find financial independence that I could have only dreamed of what feels like a short year ago. + +Although this might look like an outrageous humblebrag (whales have big peepees etc) - that really isnt my aim. I do hope that others, who have made profits, consider giving back in their communities if you can afford to do so. Im not very good at this trading shit and most of it is dumb luck for me. But I hope it continues so that when i reach $150k I can make another donation. + +A few shoutouts for anyone still reading this: + +Im donating to Batyr because they do awesome work in mental health prevention in young australians. That donation is in the name of a friend who took her life and left us too soon. Her name was Carli. + +Im donating to Lifeline because the service they provide is amazing and saves lives. The donation is in the name of another friend who took her own life and is dearly missed. Her name was Denise. + +Im donating to guide dogs Aus because I like dogs. Also u/kervio suggested naming a dog ("Tendie") which would be fukn rad - but it costs like $35k to name a dog so yeah... nah. + +Im donating to Autism Austrlia with the literal message of "u/stinkyfatwhale is donating these funds on behalf of all the cucks on r/ASX_Bets". Im not sure if the people at Autism australia will find that funny but idgaf and they $2.5k to the good so meh. Also u/urban_avocado suggested it and it got the most up ticky things. + +A massive shoutout to all my madlad autistic big peepee smol brain friends that ive met and made within this community. Its been a fukn blast. I could try name you all - but ill just fuck up and type your names wrong and its gonna be a mess. Typing with fat flippers is hard enough as it is. + +u/username-taken82 \- you may take me off the purge list if im still on it - If more proof is required i can provide the actual tax receipts to these organisations for verification purposes - Just DM me. + + (except lifeline - coz they slow as fuck but ill get it from them eventually - TAX RETURN BABY) + +lucky last - huge thank you to the mods u/letsburn00 u/The_lordofruin u/phantom_hax0r u/username-taken82 u/mcfucking and even AutoMod for keeping all these retards in some semblance of order and creating an awesome community. mad respect lads. + +*"May your tendies be plentiful so you can ride a coke line to the moon🚀" - Ghandi* + +Godspeed retards + +🐋❤ + +Stinky +Edit: please check comments and upvote for free Reddit gold! + +Now that Bitfinex is restricting EOS and SAN er20 tokens for US customers people are gonna dump those coins and get back into ETH before August 16th. This is great for Ethereum long term, because pretty much all the value that drained out of Ethereum from low 400's and high 300's was from those ICOs. If you have any of these tokens my general suggestion is to dump back into ETH before anyone else does and take your profits if you have them. Ethereum is also now making progress on plasma that will make scalable financial contracts that industry like the EEA want and what is going to be the backbone of ETH value in the near future. (Link to plasma: http://plasma.io/) This is the long-term use case that will work for the Ethereum network and slingshot it past Bitcoin. + +"Pursuant to the recent report of investigation issued by the U.S. Securities and Exchange Commission, Bitfinex is taking the proactive step of barring U.S. customers from trading certain digital tokens that may be deemed securities in the eyes of the SEC. + +The restriction will generally apply to ERC20 tokens issued through "ICOs" and will go into effect at noon UTC on Wednesday, August 16, 2017. No trading of these tokens will be allowed for U.S. customers. At the time of this post, the tokens active on Bitfinex that will be subject to this restriction are EOS (EOS) and Santiment (SAN)." https://www.bitfinex.com/posts/216 +People tend to feel a sense of guilt when it comes to leaving a job like they owe them or their coworkers something. That is because America preaches this "family" culture that we are such a strong team all working together. In reality, if they need to close your entire division, they will do it without hesitation. If they can outsource something cheaper, they will do it. You do not owe them anything and if you see a better opportunity for yourself or your family, please take it and make your own financial future. +#Disclaimer + +The following post contains strictly public information that I have gathered from my own independent research. This information concerns the operations of S3 Consortiums, who I call "Next Investors", and the publicly listed companies they operate with. All further analysis built on top of this is my own, meaning both my subjective opinion and independent calculations, and is prone to error. I am not a financial adviser, and this is not financial advice. I strongly condemn any brigading that results from this post, all information regarding individuals has been sourced from publicly available profiles on the web. + +#Intro + +Alright cunts, I'm back from my self-imposed exile after falling flat on my face putting a number on the returns from the Next Investor emails. This post again is focused on the Next Investors, but taking a different angle. Over the past few days, I've had some messages from individuals asking about my analysis, and the possibility of predicting when they appear. Based on my independent analysis, I believe this is possible, but I won't be discussing that today. Today I will be discussing something that came up in those conversations, which I believe to be a bigger story about who and what the Next Investors really are. Everything below is based on my independent research, with a few helping hands. + + +#Who and what Next Investors claim to be. + +Next Investors claim to be an "investment group" that does research on companies looking for buying opportunities. When they find such an opportunity, they send out an email to their readers. This has a [Well Documented](https://imgur.com/a/i95GieK) pumping effect on the price when the email is sent, which you can read about further in depth [here](https://old.reddit.com/user/Mutated_Cunt/comments/moqm5e/the_next_pump_a_comprehensive_analysis_of_the/). + +They do claim that they do not engage in any trading activities for a given stock within 72 hours either side of sending an email which I am inclined to believe. I don't think even ASIC would let something that blatant past them. + +One thing a lot of people have noticed is that Next Investors have a real lack of transparency about who they are. No email they have ever sent has had an author attached. If you go to their [website](https://www.nextinvestors.com/) nothing immediate is available. On the front page, you get a standard spiel about how they look for small cap opportunities they are dying to share with their readers. Their explicitly stated business model is the following: + +[**What is our business model: We only make money when our portfolio increases in value. We don’t charge subscription fees or management fees - everything here is free.**](https://imgur.com/a/NurrTuK) + +But this tells us nothing about who they are. If we go to their [about page](https://www.nextinvestors.com/lp/about-us/), we get more of a standard spiel about how expert and incredibly helpful they are. Absolutely nothing about the people behind this group, and proof of their expertise. The only proof they show is their claimed returns on their portfolio. + +Way down the bottom of the page, hiding in the [smallest fucking text on a grey background](https://imgur.com/a/Frvxhls), they disclose something about S3 Consortium Pty Ltd. This is their parent, and the next breadcrumb of the trail. + + + +#S3 Consortium Pty Ltd (Stocks Digital), the Bigger picture + + +A lot of you already know this, but Next Investors is one of three "promotion groups", the other two being [Catalyst Hunter](https://catalysthunter.com/) and [Wise Owl](https://wise-owl.com/), that fall under the umbrella of Stocks Digital. This is something that [confused me at first](https://old.reddit.com/r/ASX_Bets/comments/mlx7qd/premarket_thread_for_general_trading_and_plans/gtqwncq/?context=3), but makes a little sense according to their "philosophy". Catalyst hunter is for their short term, Next Investors for mid term, and Wise Owl for long term plays. All three of these have email lists you can sign up for, that have a notable pumping effect on the stock when sent. + +From here, I was able to find the first person with a face I could connect, the twitter page of **their founder [Damian Hajda](https://twitter.com/dhajda).** I have no idea why, but I could not find his name mentioned anywhere on any website run by Stocks Digital. Maybe he prefers anonymity. Personally, I believe it is unethical to hide who you are if you are actively promoting public companies. I had to stalk the people Next Investors follows on twitter to find him. In my dig, I didn't find too much about his background. He started Next Investors around late 2018 / early 2019. He is also the founder of another startup [Socialsuite](https://www.smartcompany.com.au/startupsmart/news/socialsuite-wins-128000-prize-money-at-salesforce-pitch-comp/#.Wp89iLjcdxI.linkedin) which aims to help charities be more effective through data analysis, which appears to be doing [quite nicely](https://www.theaustralian.com.au/business/technology/twitter-again-targets-trump/news-story/bdc98d20179d568e45d9826e980668c5) in more recent times. Their website is [here](https://socialsuitehq.com/). + +Digging through articles posted on Next Investors website, I was only able to find two names attached to articles, [Jonathan Jackson](https://www.nexttechstock.com/immediate-upside-whk-reveals-future-revenue-growth/) and [Meagan Evans](https://www.nexttechstock.com/whk-secures-a21m-us-government-contract-extension/). Remember the first one. + +According to Stocks Digital, the following is their Investment process, which is found directly on their homepage. + +#Our Investment Process +- Our network introduces us to pre screened investment opportunities. + +- Our trusted advisors and sector experts help us assess the investment. + +- We conduct regular meetings with management to build trust and a relationship. + +- Our inhouse team of analysts conduct due diligence and analysis + +- The investment committee makes the final investment decision. + +- We announce the investment to our followers and update them as the company progresses + +- We aim to increase position as the company delivers over time. + +- We aim for free carry within 24 months of investing. + +Now I will focus on that very first step, on what "Our network introduces us to pre screened investment opportunities" really means. + +#How Next Investors Really Make Money + +They are reasonably transparent about the basics of this process on their Stocks Digital website, but not the specifics. Next Investors do not "find" their stocks by doing their own research digging deep, they get approached by the companies. If Next Investors like what they see, they work out an arrangement, and "purchase" the shares in the company and begin "promoting" it under one of their three groups. Lets have a look at this process in detail with an example, their recent pickup of ONE. + +#ONE Case Study, The Devil is in the Details. + +On the 12th of March 2021, ONE released a price sensitive announcement stating that they had [entered an agreement](https://imgur.com/a/T6XxLPk) with Stocks Digital. The previous day, the price closed at $0.08. [Here are the details of this agreement](https://imgur.com/a/VDxEcHP). Translated to English, this means the following: + +- After some haggling, ONE has agreed to pay Next Investors 6.25 million shares instead of a $375,000 cash sum, which is the equivalent of $500,000 in stock, for the **"Services"** of Next Investors. + +- In addition to this, Next Investors agrees to pay $1m in cash for 16,666,666 shares, at an average price of $0.06. + +However, if you look at the net effect of this, according to this agreement Next Investors have acquired (16,666,666+6,250,000)\*0.08 = **$1.83 MILLION** worth of **ONE** shares according to the previous market close, for only **$1 MILLION DOLLARS.** + +- This means that Next Investors paid an effective **$0.044 per share**, representing a **45%** discount to the previous closing price. + +So why are ONE practically donating their shares away for only $1m? The key here is the "services" they are acquiring. Immediately after this announcement was made at 10:23am, the Next Investor email was sent at 10:25 am. This [caused the price](https://ibb.co/2PsTJqz) to **open at $0.14**, a **75% increase** on the closing price of the previous day, to a **maximum of $0.20**, and finally a **closing price of $0.16.** Unfortunately, my free intraday data isn't working for this date, so I cannot show you the instant price movements. Clearly, we can see the backing of Next Investors has a powerful effect, especially since this was their very first email announcing their partnership with ONE, claiming it as their [2021 Tech Pick of the Year](https://www.nexttechstock.com/our-new-2021-tech-pick-year/). + +What am I trying to say with all this? In my opinion, they appear to be an advertising company that masquerades as the retail investor's best friend. I bet that my returns would be pretty fucking great if I could "buy" at a 45% discount. When Next Investors talk about their next "great opportunity", they're already well in the money. They paid $1m for $1.83m of stock, an instant $830k return. At the close of the day, their net assets doubled in value, to $3.66m. **In the space of a day, they "earned" $2.66m on paper.** That's a fucking solid racket if I've ever seen one. + +Another dishonest aspect behind this purchase is that they advertise their [entry price](https://imgur.com/a/sYiSKkO) as $0.08 proudly on their home page. This is highly misleading, and has also been [picked up by another journalist](https://arichlife.com.au/s3-consortium-publishing-misleading-returns-about-oneview-asxone/) who apparently gets paid to do this shit unlike yours truly. + +However, I think this journalist ended his story too soon, because he didn't mention another tidbit hiding inside that announcement which really shines the spotlight on how their "services" work, and I am sure is of great interest to retail investors. From the announcement, they state their intent to ["further increase awareness"](https://imgur.com/a/Pb3iJJ9) of the company ONE through their digital publisher network amplicat.com. + +Okay I lied a little there for the narrative, the first time I became aware of Amplicat was thanks to the legend /u/Darebottle, who discovered that Next Investor's website accesses an API hosted on the Amplicat.com domain. Weaponised autism is powerful. He wanted to know if there was a link because what was on there was very confusing. The ONE announcement confirms that Amplicat and Next Investors are indeed one and the same company operating under different personas. + +From my understanding, Next Investors is the **face they present to retail**, and Amplicat is the **face they present to companies they wish to do business with.** This connection is the headshot, and the most egregious, disgusting part of this post that motivated me to write. + + +#Amplicat, what the fuck is that? + +Amplicat is yet **ANOTHER** component of the behemoth that is Stocks Digital, and as far as I have searched, is advertised fucking **NOWHERE**. In not a SINGLE PLACE is this website named in ANY of Next Investors websites that I can find. I challenge you to prove me wrong. If I do a google search for news of their name, I get [**9 results**](https://imgur.com/a/xeUfSWW) in a fucking foreign language with no relation. + + These guys are off the map. Lets take a dive into [their website](https://www.amplicat.com/) and see why they're keeping such a low profile to retail. Remember, this website is run and OWNED by Stocks Digital. I have taken screenshots of everything, because I suspect that once retail discovers this page, it will be vanished quickly. + +If I had to guess, I believe Amplicat is a concatenation of "Amplify Catalyst", which is a very generous wording. + +Amplicat is what I consider the **TRUE PRODUCT** of Next Investors. When companies trade their shares at enormous discounts to Next Investors, they are buying the services of Amplicat. Their home page advertises themselves as a provider of [GUARANTEED MEDIA COVERAGE](https://imgur.com/a/gJ6rsjT). The business model is simple, you provide shares of your company to Next Investors at a discount, and they will provide a sophisticated, coordinated online marketing campaign for your company. They are mercenaries for hire. + +[Here is a very helpful explainer](https://imgur.com/a/wZLlLRd) from their home page on how it works. For a suitable payment, Next Investors will publish articles/send emails within their own network, and create sponsored content for you. Like a smorgasbord, you get to choose what online publications you want these guys to publish "positive news" about your company in. You can get good news about your company straight onto [Yahoo finance]( +https://au.finance.yahoo.com/news/pursuit-minerals-pursues-european-nickel-targets-to-meet-growing-battery-metal-demand-062832688.html), [bloomberg financial](https://sponsored.bloomberg.com/news/sponsors/features/the-next-oil-rush/88energy/?adv=25442&prx_t=FnYFAwbU-At_sQA) or [news.com.au](https://www.news.com.au/sponsored/wWGLmt5IPjDyNhO0XhLC/the-untapped-potential-of-alaskan-energy/) if you please. This is powerful. + +Lets have a look at the way they describe these articles. One thing I noticed in my original Next Investor analysis was that an awful lot of emails that they sent coincided with a major company announcement. This is no coincidence, it is an [explicitly stated TIMING strategy](https://imgur.com/a/br49hy3) that they employ. They love a good excuse to "promote", and know this is an effective strategy. + +[Here are some companies](https://imgur.com/a/tIgZaoM) that they advertise as having used their services. You may recognize some names (cough cough **RAC** cough cough). + +Now we are up to the **shameful** section, where by my interpretation Next Investors appear to "**boast**" about their ability to increase a share price. On their website, they have a section of [case studies](https://www.amplicat.com/case-studies.html), where they "brag" about their past performance as "promoters" to attract future clients. + +#CASE STUDY 1: Pursuit Minerals' (PUR) Norwegian Nickel Exploration FEBRUARY 2020 + +In this example, Next Investors take credit for ["drawing investor attention to their Norwegian nickel project to improve liquidity in ahead of a capital raising."](https://imgur.com/a/CH8Bax9) TRANSLATION: THEY P****** THE STOCK UP SO PUR COULD GET $$$$ FROM A CR. [Here is the image](https://imgur.com/a/rYEKsP9) from their website showing how over the month of February 2020, their shilling media campaign TRIPLED the stock price from $0.004 to a high of $0.012, a **~~300%~~ 200% INCREASE**(fuck I'm bad at math). One thing awfully dodgy about this is where their chart cuts off, its awfully convenient. It does coincide with about the time a certain virus you may have heard of made its presence known. + + +[HERE IS THE FULL PRICE CHART](https://imgur.com/a/2ApQjW6) for PUR including the months after the purported media campaign. Following their "Successful Cap Raise" the price has PLUMMETED down to $0.002! To be fair, they got fucked pretty hard by external factors, Mar-2020 was a scary time for the entire economy. + +Allow me to do my best to construct the timeline of PUR's Activities straight from their announcements. I might fuck this up because I have absolutely zero qualifications, but feel free to fact check me by reading the announcements on PUR's page. + +#PUR NICKEL VIKING SAGA TIMELINE + +- **Oct 2019** (Share price ~$0.009) : PUR is primarily a [Vanadium exploration company in Scandinavia](https://imgur.com/a/cs27KBl) with 5 projects in Finland, 8 projects in Sweden, and 3 projects in Queensland. [They undergo a Capital Raise of ~$1.2m.](https://imgur.com/a/IZrkfDg) + +- **Jan 2020:** [Progress continues](https://imgur.com/a/KldThQw) on these projects, share price hits an [absolute low of $0.0037!](https://imgur.com/a/lwuvBLB) + +- **Start of Feb 2020:** By my understanding of what Amplicat has put on their website, this is when [Next Investors claims to have started contact with PUR](https://imgur.com/a/rYEKsP9) about "promoting" them at the same time PUR wants to perform a Capital Raise to fund a new Norwegian Nickel exploration project. This time period was not highlighted by me, this was highlighted by them and publicly advertised on their [Amplicat website](https://www.amplicat.com/case-studies.html). The Norwegian project is not yet public information. + +- **Feb 11th 2020:** No public announcement has been made. Next Investors has not published any articles that I can find or sent any emails. The price of PUR has increased to a high of 0.0085. At 12:16pm, their [trading is halted](https://imgur.com/a/q8QmCOa) pending an announcement. + +- **Feb 13th 2020:** PUR undergoes a ["voluntary suspension"](https://imgur.com/a/oIWOkhd) because they love ASIC so much and can't wait to explain why their stock price has doubled under no news prior to this trading halt. + +- **Feb 17th 2020:** PUR is reinstated, and announces their new plans to enter an Option/Purchase agreement for [three Nickel Exploration Projects in Norway.](https://imgur.com/a/kqZxl0U). The next day, they announce another [Capital Raise](https://imgur.com/a/Z3OQ5Ch) of ~23m shares at $0.0073 = $170k to fund this. + +- **Feb 20-21 2020:** Next Investors post a [series of 5 articles](https://imgur.com/a/EWTM4PB), two articles on their own websites, three articles that are sponsored content published to financial sites such as Yahoo Finance. This pushes the price to an intra day high of $0.0125. A certain virus is starting to make itself known. + +- **Mar 24 2020:** PUR admits defeat to the [Wuhan flu](https://imgur.com/a/cUVy9HS), and ceases all exploration activities in Scandinavia. Their share price reaches a low of $0.002. + +- **Skip a few months** they start pursuing exploration activities in other regions, [a gold mine in Arizona](https://www.nextminingboom.com/pursuit-1moz-gold-high-grade-usa-alluvial-project/), and eventually land an exploration license in the [infamous Julimar region](https://www.nextminingboom.com/1600-gain-sparks-julimar-explorer-race-we-just-found-cheapest/), where every new prospector is trying to copy the astronomical rise of Chalice Mines (CHN). + +- Jan 20th 2021: The Viking saga ends, PUR effectively [sells all 18 of their Scandinavian assets for a total of $3m](https://imgur.com/a/ojKvpx2), or $60k per project. The market however is liking their new direction with their company, the share price is $0.032. + + +What we can learn from this case study? If you had followed Next Investors and held, you would be making money but for what I believe to be the wrong reason. The Next Investor promotion was explicitly focused on the Scandinavian projects to support a Cap Raise, and they were paid by PUR to do this. If you had bought shares of PUR believing in the success of the Nickel project, you most likely would have sold at a great loss following the White Swan event of COVID-19 closing their exploration. **Obviously, I don't blame Next Investors for this crash**, but I find it very disingenuous that the stated purpose of their promotional campaign was to support an upcoming Capital Raise, and is touted as a success. + +#CASE STUDY 2: The Golden Child VUL, Feb 2020 + + +In this example, Next Investors take credit for ["a significant rise in liquidity and share price movement immediately after Amplicat promotion."](https://imgur.com/a/QhiXCF2). Again, they pull the same trick of cutting off the COVID crash following their ["promotion"](https://imgur.com/a/NUaPzP7). They claim credit for [20 articles posted](https://imgur.com/a/opMnrrb) in the month of February, two of them to their own websites, and EIGHTEEN sponsored articles. + +The share price rose from a [low of $0.185, to a peak of $0.38](https://imgur.com/a/o896VAp), before again it hit the same problem as PUR where they got fucked by COVID back down to a low of $0.15. + + + + +Again, VUL follows an awfully familiar pattern. Next Investor's chart highlights the beginning of Feb-2020 as the start of their "arrangement". On Feb 11th, they go into trading halt. On Feb 15th, they announce their Positive Pre-feasibility study. On Feb 20th, they say "trust us bro" when ASX asks them about the suspicious price movements before that announcement. + +From Feb 21st to Feb 24th, Next Investors start "promoting" VUL throughout their network. This coincides with the official announcement on the 21st of February for the Positive Scoping study of their project. The share price reaches an intra-day high of $0.38 on the 24th of Feb. + +Again, March 2020 arrives and tanks the share price down to $0.15, along with the rest of the market. + +Ultimately, what can we learn from this case study? The current share of VUL is $7.430 as of my typing this. This was a scenario where everybody won. If you bought at the peak price of this "promotion", your return is ~1700%. Short term, investors may have gotten fucked by covid, but long term this is a winner. Congratulations Next Investors. + + +#CASE STUDY 3: An Awfully Familiar Story + +Along with SGC/XST, one of the most spectacular loss porn events of this year was with 88E, which plummeted from a peak of $0.097 to its current price of ~$0.022, following their failed drilling results. + +Here are some articles about the lead up to this story. + +[Exhibit A](https://www.nextoilrush.com/88-energy-edge-closer-spud-date-one-biggest-oil-wells-2020/#_ga=2.60745130.600602532.1585875991-103860279.1584488176) + + +[Exhibit B](https://sponsored.bloomberg.com/news/sponsors/features/the-next-oil-rush/88energy/?adv=25442&prx_t=FnYFAwbU-At_sQA) + + +[Exhibit C](https://www.news.com.au/sponsored/wWGLmt5IPjDyNhO0XhLC/the-untapped-potential-of-alaskan-energy/) + + +[Exhibit D](https://www.sharecafe.com.au/2019/11/19/88-energys-north-slope-well-could-be-one-of-the-biggest-in-2020/) + +Wait, is there an error? Those articles say "88 Energy’s North Slope Well Could Be One Of The Biggest In 2020"? + +Nope you're reading it right, this is something they pulled not once, but TWICE, and **IN MY COMPLETELY SUBJECTIVE OPINION** they are [BRAGGING ABOUT IT](https://ibb.co/kyT0kXp). + +"88 Energy (ASX: 88E | AIM: 88E) engaged Amplicat(Next Investors) to generate investor interest in the company ahead of its upcoming drilling program scheduled that was anticipated to commence in months’ time." + +This happened in 2020, and it happened again in 2021, WITH NEXT INVESTORS ACTIVELY PROMOTING BOTH TIMES! + +From Nov-2019 to Jan-2020, [Next Investors take credit](https://ibb.co/CHn5Th5) for "Amplifying" the price of 88E from $0.014 to $0.026 in the lead up for their drill campaign. They achieved this [with 22 articles](https://ibb.co/0CDnCZV), 6 of them posted on their own website, and 16 sponsored articles. + +Here is a [pastebin of 10 of these articles](https://pastebin.com/BhQxBMyr) for your viewing displeasure. + +Here is an [article from earlier this year](https://www.nextoilrush.com/oil-strikes-back-88e-leveraged-exploration-success-coming-weeks/) by Next Investors that makes ZERO MENTION of this previous failure, and ZERO MENTION of their previous involvement "promoting" this dog of a company. + +How can Next Investors claim to have a team of sophisticated investors with an eager eye for early opportunities when they pull something like this? + +#The Next Investors Media Network. + +Now I will do a mini summary behind the mechanisms of how Next Investors spread their news today, but you may have already picked up on this. + +[This is what I imagine I look like by now](https://i.imgflip.com/55r9e7.jpg) + +They have three primary methods of distribution + +- **News Articles posted on their own websites [Next Investors](https://www.nextinvestors.com/latest-articles/), [Wise Owl](https://wise-owl.com/commentaries/) [Catalyst Hunter](https://catalysthunter.com/), and most importantly [FinFeed](https://finfeed.com/)** + +You cannot find a direct link to FinFeed from the Next Investor website, but you can find direct links to Next Investors from Finfeed, so its not as "hidden" as they make Amplicat. Finfeed is the primary website where they post articles about companies they are involved with. For articles of all three email producers, Catalyst Hunter, Wise Owl, and Next Investors, corresponding articles are congregated here. + +From Finfeed, we can actually dig into who the fuck is writing these articles. There is no direct page for you to view their authors, but again thanks to the magic of the legendary /u/darebottle , I can give you a [pastebin of all 80 unique authors](https://pastebin.com/rne8z2WD). + +The majority of these authors have only posted 1 or 2 articles, so it is misleading to say they are all affiliated closely with Next Investors. However, I would like to bring attention to two authors. This is all public information, + +[Trevor Hoey](https://finfeed.com/author/trevor-hoey) + +[Jonathan Jackson](https://finfeed.com/author/jonathan-jackson) + +These two authors are responsible for the majority of articles written on Finfeed. Jonathan Jackson is the "Managing Editor at Stocks Digital", which I would creatively describe as "Leader of the Ministry of Propaganda" for Next Investors. Trevor Hoey is a former senior writer for AFR who now works for Next Investors. + +As a sample, today I clicked on the front page of Finfeed, and 7/9 featured articles were written by these two individuals. This holds all the way back to 2019. It is my imperfect suspicion that I cannot prove that the majority of content produced by Next Investors is written by these two people. This is all public information which I simply want to make transparent, as Next Investors provides virtually zero information on their main websites about who is producing their content. + +Another writer that appeared often historically was [Meagan Evans](https://finfeed.com/author/meagan-evans), ~~but as of late she has not posted anything since [Oct 16, 2020](https://finfeed.com/small-caps/technology/retail-isnt-all-dead-which-corner-of-the-market-is-booming/). I believe it is safe to say she is no longer involved prominently with Next Investors.~~ EDIT: Based on more research, I have found [this article](https://catalysthunter.com/technology/fgl/tiny-retail-analytics-stock-fgl-signs-deal-34bn-wholesale-giant-metcash/) posted to Catalyst hunters on the 10th of March 2021. It is now safe to say she is still in the game. + +- **Sponsored Articles posted on Prominent websites** + +In the case studies, I've provided examples of these Sponsored articles. Next Investors gets their writers to copy paste the "promotions" from their own website onto financial news websites online, for a price. In every sponsored content article I have linked in those case studies, the author was one of the three individuals I have mentioned. If you are reading news about a Next Investor company, look for the author name to discover if you are being shilled. + +- **Emails sent directly to Retail Investors** + +This is the obvious one everyone knows about, people sign up to the newsletter, they send the email, the price shoots up. This is a modern development, in the early days of their case studies Next Investors did not send emails, only posted articles. I believe that they have discovered the email method of distribution to be much more powerful in pumping prices up than articles. We can see instant ~20% increases from the minute the email is sent on a candlestick chart. I believe the emails are written by the same people writing the articles, as you can easily correlate the emails sent with named articles written and posted by the individuals on finfeed. + +#A Fourth Frontier? Astroturfing Social Media + +This section is pure speculation, but I believe the next stage in Next Investor's promotional evolution will be astroturfing social media websites like our very own shitposting haven. They are well aware that we exist, and [exploit us to promote their companies](https://ibb.co/3Cf8GzM), and have hired individuals in our demographic to work for them [making memes](https://ibb.co/mD4cXgL) referencing us. What a fucking time to be alive. Because of the effectiveness of their promotional emails/articles, the rising stock prices naturally creates people posting about the Next Investor stocks going up. However, we need to be on red alert for astroturfing shills, remember **POSITIONS OR BAN**. + +#Conclusion + +I believe the business model of Next Investors is highly predatory on retail investors. Companies approach them, and I believe there is evidence to suggest that they make Next Investors aware of non-public information about upcoming announcements for the company. They do this so that Next Investors can co-ordinate emails/articles that are specifically co-ordinated with their announcements. This "timing feature" is an explicitly stated service that Next Investors provide under the name Amplicat. + +In their dealings, they acquire shares in companies at a huge discount to the fair market price, and begin to "actively promote" them across a vast media network. Short term, this causes a significant price increase, and for mining explorers it is for the purpose of justifying Capital Raises at elevated prices. + +This creates unhealthy market cycles, where prices for their stocks surge violently upwards. When you combine this with their media propaganda empire, this causes retail investors (the retards on here) to FOMO into peak prices, and short term become left holding the bag. + +There are cases such as VUL where everybody wins, and I do not believe a company being associated with Next Investors makes it inherently bad. However, their relationship with 88E disgusts me on a personal level. If you are going to promote a company that has failed previously under your promotion, I believe you have the moral obligation to be transparent about this history. I will not tell another person to buy PEN without letting them know about some of the problems they're having with their In Situ chemistry. + +Ultimately, the long term price of these companies makes no difference substantial difference, because they have already been paid for their promotional services. Remember the Silicon Valley maxim, if you are getting something for free, you are not a customer, **YOU ARE THE PRODUCT**. + + +#Open Letter to Next Investors + +Finally, I leave a series of questions that I would like Next Investors to answer, even if this a longshot. I think leaving these questions unanswered speaks louder anyway. Here goes + +#1. Who are the so called "experts" behind your "investment decisions" and what are their credentials? + +There is zero transparency offered on any of your affiliated websites about the "team" involved. There have been clear winners like VUL, but also complete dogs like 88E that you have shilled not once, but twice, leaving retail investors holding the bag. + +At most, I have been able to link five people to your group, but that is all. Why should we not assume you are a marketing company that helps public companies make money by selling shares, not selling a product? + +#2. Why is the entry price on your [website](https://www.nextinvestors.com/portfolio/) misleading for PUR, and are there any other listed entry prices that are similarly misleading? + +From my previously calculation, we know that you effectively purchased 22,916,666 shares of ONE at an average price of $0.044, yet your website states your entry price as $0.08. In this scenario, why have you chosen to use the market price of the closing day prior to your investment as your entry price instead of the actual effective price you paid? +Also the fact that you highlight the "Highest Return" in green on your website is pretty fucking cringe + + +#3. Why are the Entry Dates on your website misleading with regards to your relationships with these companies? + +From the Case Studies page of Amplicat, we know you have been affiliated/doing business with PUR since at least Feb-2020, and 88E since at least Nov-2019, yet you list your "entry date" for these companies as Dec-2020 and Jun-2020 respectively. I believe the first time, they may have only paid you cash instead of shares, but I still find this to be an incredibly dishonest way to operate. + +#4. Why is it so hard to find Amplicat? + +The services offered by your other website "Amplicat" are not advertised anywhere on any of the "retail investor webpages". On this website, you boast about your ability to "improve liquidity in ahead of a capital raising" and create "significant share price movement". Is this conflict of interest not something the retail investors you advertise towards should be aware of? + +#5. How is it possible to "time" emails regarding price sensitive announcements using only public information? + +Your Amplicat website advertises your ability for "Swift & synchronised publication to coincide with material news announcements and macro-economic events". + +I have identified [five separate occasions](https://ibb.co/WHwvXSL) where the email you sent was less than 60 minutes after the announcement was officially made on the ASX. Are you simply that amazing and awesome at processing announcement information and churning it into an email in record speeds, or are you aware of certain things the public is not? + +#6. Do you think your behaviour under Amplicat is befitting of someone holding an Australian Financial Services License? + +I'm no lawyer, but I think there's something to be said about a "conflict of interest" that is hidden away inside the Amplicat division that you do not advertise on your main websites. + +and finally, the one question I really hope they answer + +#7. Why is the [official Twitter account of Amplicat](https://twitter.com/amplicat) suspended for violating Twitter's policies? + +I followed the link to your social media on your website, and as of writing this, [the linked Amplicat twitter account is banned.](https://ibb.co/98qZYbP) Does Jack Dorsey have stricter standards than ASIC? 🤡 🤡 🤡 🤡 (**UPDATE** Amplicat's twitter account is now unbanned) + + +Congrats if you made it all the way through this post in one go. Love you all, lets keep this place special. + +#Update + +I don't know why, but google has decided to show me an actual news article instead of foreign languages when I search for Amplicat now. [Here are the details of their agreement to promote EMN](https://www.globenewswire.com/news-release/2020/08/25/2083606/0/en/Euro-Manganese-Inc-Appoints-Digital-Investor-Relations-Firm.html) +Asda has announced all of its own in-store cafe’s will be offering over 60’s a roll, hot soup and hot drinks through November and December for £1 to help with the cost of living crisis. + +This isn’t strictly personal finance related but I’m sure there’s plenty of people over this age or with family over this age that may see this post and benefit from it, so I though it’d be worth posting for awareness. +[Original Post](https://www.reddit.com/r/personalfinance/comments/6t8hme/i_found_out_that_a_coworker_in_the_same_position/?st=J7T77MXH&sh=810eb4d6) + +For those of you who read my original post, I just wanted to update. Everyone was so encouraging and supportive, I really did not expect it! + +After making my post, I met with my boss in order to inform her that I needed a raise. She told me she would submit a pay raise request. + +1 week later she called me into her office. She absolutely berated me for thinking I could move into the coordinator position for which I was already doing the work, and complained about my work performance. Last month I had an evaluation, and received very high praise for my performance, and there has not ever been complaints about my performance in the past. All in all, I assume she was making excuses not to increase my pay. + +Fast forward a bit, and I received a text from the wife of one of my boyfriend's friends, offering me a job at a rehab facility. I interviewed for the job, and they offered me the position at $20 an hour ($6 more an hour than my current job). + +In the meantime, my boss called me into her office AGAIN, and informed me that I was VERY fortunate, as corporate had approved my pay increase. She stated that she "truly shot for the stars when submitting my new pay" and that corporate had "gone above and beyond" anything she ever thought I would receive: $17 an hour. Still $7 less than my coworker. + +I accepted the new job, and put in my two weeks notice. My boss was absolutely side swept. She could not believe that I was quitting. She waited a day, and called me into her office yet again, and asked me what they were offering me that was so great that I would choose to leave. I told her $20 an hour. + +She said, "If I can offer you that, will you stay?" Wow. And here I thought $17 was above and beyond what they could ever offer me. + +I told her I would think about it. + +In the meantime, I contacted my new employer and informed them that my current employer was offering to match their offer to keep me, and got an even bigger offer from them. + +I start next Monday!! + +Thank you r/personalfinance for all your support and advice! I can't wait to start my new job :) +https://en.wikipedia.org/wiki/Supply_and_demand#Criticism + +Basically, there's two arguments here: + +1. Supply and demand is a tautology, or the existence of it is unfalsifiable. The labor theory of value is a better way to set prices. +2. Supply and demand doesn't apply to modern goods, since stores set prices using a fixed markup percentage over their costs. + +I thought supply and demand was a cornerstone of economics, like Newton's laws are to physics, but I'm just a layperson. + +Are these criticisms supported by a lot of economists? Is supply and demand really in doubt? Or are these just fringe positions that aren't backed up by research? +Guys, first off i’ve been part of this community for only a short time, a little bit before this whole short interest craze but I seriously love the amazing things we’ve done for peoples lives. I’ve read about college kids paying off their student loans, people being able to afford to pay for family members cancer treatment, pet owners being able to afford their pups surgery. It’s incredible and I couldn’t be more proud to know I have a stake in this historical moment in time with all of you. + + +You see those headlines? That pushback from the big suits of wall street? WE did that. Together. If today was any indication at all, they are shitting their pants right now. I urge all of you to hold AMC and take advantage of dips if you’re inclined to do so. Please do not fall for hedge funds manipulating the market to send you into a panic sell frenzy. + + +The squeeze may not be tomorrow, and maybe not Monday, but it’s coming. I was DEEP in the red today and in any other scenario, I’d be panicking but this is bigger than me. It’s bigger than you, yes you reading this. This is a chance for us to come together as a collective and revolutionize the economy for better. + +Do your DD, stay on the ball, don’t let emotions cloud your judgement. I’m here to ride or die, AMC (and GME) to the fuckin moon baby, i love all you morons🚀🚀🚀🚀🌕🌕🌕💎🙌📈📈 +(edit: ik this technically isn’t a penny stock but we do have an AMC mega thread here) +I wired $27000 to GDAX, and it was declined due to a name mismatch. They said they would reverse the funds, and that it would take up to 7 days. It's now been 40 days, and I have tried everything. I've made multiple cases, I've tried to reach out to them on Twitter, sent messages to random employees on LinkedIn. I've contacted their bank, and their bank in NY said that Coinbase has not replied to any of their emails inquiring about the reversal, and that the money was received by Coinbase but that they have still not put in a reversal on the money. + +Please upvote for support. + +Case ID #: 3361542 + +UPDATE: GDAX has reached out to me and are helping me to fix the issue. Thanks for upvoting for support. Feeling relieved. + +Update 2: Wire still not reveived, and GDAX has gone no-contact again. + +Update 3: Received! Finally. On 1/22/18, and the wire was supposed to be reversed on 12/1/2017. +I’m interested to know how so many people have 400,000+ to invest in risky or volatile stocks? If you’re willing to share how you have accumulated your wealth, or have an opinion, I’d love to hear it. The factors I can think of are: +- Inherited wealth +- Years of hard work +- Huge amounts of stock-market-luck +- Impressive savings plans + +I am new to this gig, but as a 24 year old working in the community services sector I just can’t imagine ever achieving this level of wealth. Like, how do you get the money to invest in the stock market in order to make money? +Potential stupid question here so please bare with me.. + +1. If say I hold shares for 5 years, is the interest being compounded? And if so is it daily/weekly/monthly? Or is it just that they have gone up in value? + +2. Or does one need to sell / rebuy to benefit from compounding? + +3. Is there any difference? + +I know dividends being reinvested means that the return is compounded, but not sure how this applies to non yielding shares? + +Thanks +Berkshire is now outperforming the S&P 500 over the past 10 and 20 years while quickly closing the gap for the past 5 years. This is nuts, not only because of how well growth has done versus value this past decade but also because Berkshire currently trades at a sub 10 PE ratio while the S&P 500 trades at a PE ratio over 40. + +Original inspiration for the post and graphs of performance: + +[https://twitter.com/oabdelmaged1/status/1390103777940738050](https://twitter.com/oabdelmaged1/status/1390103777940738050) +The Russia invasion happened on Feb 24th so basically March 1 and in the US the average fuel price was already $4.22 in March 2022. The average fuel price on Jan 2021 when Biden was elected was only $2.33 and by the time the Russia/Ukraine war started it had went up almost $2.00 per gallon. + +&#x200B; + +Source data on U.S. Regular All Formulations Retail Gasoline Prices (Dollars per Gallon - + +[https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm\_epmr\_pte\_nus\_dpg&f=m](https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epmr_pte_nus_dpg&f=m) + +&#x200B; + +Source data on the start date of the Russia/Ukraine war - + +[https://www.cnn.com/2022/02/24/europe/ukraine-russia-attack-timeline-intl/index.html](https://www.cnn.com/2022/02/24/europe/ukraine-russia-attack-timeline-intl/index.html) +I read a washington post op/ed saying that Biden's new loan forgiveness plan is regressive and mostly helps higher earning individuals. Is that the case? If it really is a regressive policy, why does it seem that its mostly left leaning progressives that are celebrating it? +Hi guys, + +I have been using reddit for years in my personal life (not trading!) and wanted to give something back in an area where i am an expert. + +I worked at an investment bank for seven years and joined them as a graduate FX trader so have lots of professional experience, by which i mean I was trained and paid by a big institution to trade on their behalf. This is very different to being a full-time home trader, although that is not to discredit those guys, who can accumulate a good amount of experience/wisdom through self learning. + +When I get time I'm going to write a mid-length posts on each topic for you guys along the lines of how i was trained. I guess there would be 15-20 topics in total so about 50-60 posts. Feel free to comment or ask questions. + +**The first topic is Risk Management and we'll cover it in three parts** + +**Part I** + +* Why it matters +* Position sizing +* Kelly +* Using stops sensibly +* Picking a clear level + +# Why it matters + +The first rule of making money through trading is to ensure you do not **lose** money. Look at any serious hedge fund’s website and they’ll talk about their first priority being “preservation of investor capital.”  + +You have to keep it before you grow it. + +Strangely, if you look at retail trading websites, for every one article on risk management there are probably fifty on trade selection. This is completely the wrong way around. + +The great news is that this stuff is pretty simple and process-driven. Anyone can learn and follow best practices. + +Seriously, avoiding mistakes is one of the most important things: there's not some holy grail system for finding winning trades, rather a routine and fairly boring set of processes that ensure that you are profitable, despite having plenty of losing trades alongside the winners. + +# Capital and position sizing + +The first thing you have to know is how much capital you are working with. Let’s say you have $100,000 deposited. This is your maximum trading capital. Your trading capital is not the leveraged amount. It is the amount of money you have deposited and can withdraw or lose. + +Position sizing is what ensures that a losing streak does not take you out of the market. + +A rule of thumb is that one should risk no more than 2% of one’s account balance on an individual trade and no more than 8% of one’s account balance on a specific theme. We’ll look at why that’s a rule of thumb later. For now let’s just accept those numbers and look at examples. + +So we have $100,000 in our account. And we wish to buy EURUSD. We should therefore not be risking more than 2% which $2,000.  + +We look at a technical chart and decide to leave a stop below the monthly low, which is 55 pips below market. We’ll come back to this in a bit. So what should our position size be?  + +We go to the calculator page, select Position Size and enter our details. There are many such calculators online - just google "Pip calculator". + +&#x200B; + +https://preview.redd.it/y38zb666e5h51.jpg?width=1200&format=pjpg&auto=webp&s=26e4fe569dc5c1f43ce4c746230c49b138691d14 + +So the appropriate size is a buy position of 363,636 EURUSD. If it reaches our stop level we know we’ll lose precisely $2,000 or 2% of our capital.  + +You should be using this calculator (or something similar) on every single trade so that you know your risk. + +Now imagine that we have similar bets on EURJPY and EURGBP, which have also broken above moving averages. Clearly this EUR-momentum is a theme. If it works all three bets are likely to pay off. But if it goes wrong we are likely to lose on all three at once. We are going to look at this concept of correlation in more detail later. + +The total amount of risk in our portfolio - if all of the trades on this EUR-momentum theme were to hit their stops - should not exceed $8,000 or 8% of total capital. This allows us to go big on themes we like without going bust when the theme does not work.  + +As we’ll see later, many traders only win on 40-60% of trades. So you have to accept losing trades will be common and ensure you size trades so they cannot ruin you. + +Similarly, like poker players, we should risk more on trades we feel confident about and less on trades that seem less compelling. However, this should always be subject to overall position sizing constraints. + +For example before you put on each trade you might rate the strength of your conviction in the trade and allocate a position size accordingly: + +&#x200B; + +https://preview.redd.it/q2ea6rgae5h51.png?width=1200&format=png&auto=webp&s=4332cb8d0bbbc3d8db972c1f28e8189105393e5b + +To keep yourself disciplined you should try to ensure that no more than one in twenty trades are graded exceptional and allocated 5% of account balance risk. It really should be a rare moment when all the stars align for you.  + +Notice that the nice thing about dealing in percentages is that it scales. Say you start out with $100,000 but end the year up 50% at $150,000. Now a 1% bet will risk $1,500 rather than $1,000. That makes sense as your capital has grown. + +It is extremely common for retail accounts to blow-up by making only 4-5 losing trades because they are leveraged at 50:1 and have taken on far too large a position, relative to their account balance.  + +Consider that GBPUSD tends to move 1% each day. If you have an account balance of $10k then it would be crazy to take a position of $500k (50:1 leveraged). A 1% move on $500k is $5k.  + +Two perfectly regular down days in a row — or a single day’s move of 2% — and you will receive a margin call from the broker, have the account closed out, and have lost all your money.  + +Do not let this happen to you. Use position sizing discipline to protect yourself. + +&#x200B; + +# Kelly Criterion + +If you’re wondering - why “about 2%” per trade? - that’s a fair question. Why not 0.5% or 10% or any other number? + +The Kelly Criterion is a formula that was adapted for use in casinos. If you know the odds of winning and the expected pay-off, it tells you how much you should bet in each round. + +This is harder than it sounds. Let’s say you could bet on a weighted coin flip, where it lands on heads 60% of the time and tails 40% of the time. The payout is $2 per $1 bet. + +Well, absolutely you should bet. The odds are in your favour. But if you have, say, $100 it is less obvious how much you should bet to avoid ruin.  + +Say you bet $50, the odds that it could land on tails twice in a row are 16%. You could easily be out after the first two flips.  + +Equally, betting $1 is not going to maximise your advantage. The odds are 60/40 in your favour so only betting $1 is likely too conservative. The Kelly Criterion is a formula that produces the long-run optimal bet size, given the odds. + +Applying the formula to forex trading looks like this: + +*Position size % = Winning trade % - ( (1- Winning trade %) / Risk-reward ratio* + +If you have recorded hundreds of trades in your journal - see next chapter - you can calculate what this outputs for you specifically. + +If you don't have hundreds of trades then let’s assume some realistic defaults of **Winning trade %** being 30% and **Risk-reward ratio** being 3. The 3 implies your TP is 3x the distance of your stop from entry e.g. 300 pips take profit and 100 pips stop loss. + +So that’s  0.3 - (1 - 0.3) / 3 = 6.6%. + +Hold on a second. 6.6% of your account probably feels like a LOT to risk per trade.This is the main observation people have on Kelly: whilst it may optimise the long-run results it doesn’t take into account the pain of drawdowns. It is better thought of as the rational maximum limit. You needn’t go right up to the limit! + +With a 30% winning trade ratio, the odds of you losing on four trades in a row is nearly one in four. That would result in a drawdown of nearly a quarter of your starting account balance. Could you really stomach that and put on the fifth trade, cool as ice? Most of us could not. + +Accordingly people tend to reduce the bet size. For example, let’s say you know you would feel emotionally affected by losing 25% of your account. + +Well, the simplest way is to divide the Kelly output by four. You have effectively hidden 75% of your account balance from Kelly and it is now optimised to avoid a total wipeout of just the 25% it can see. + +This gives 6.6% / 4 = 1.65%. Of course different trading approaches and different risk appetites will provide different optimal bet sizes but as a rule of thumb something between 1-2% is appropriate for the style and risk appetite of most retail traders. + +Incidentally be very wary of systems or traders who claim high winning trade % like 80%. Invariably these don’t pass a basic sense-check: + +* How many live trades have you done? *Often they’ll have done only a handful of real trades and the rest are simulated backtests, which are overfitted. The model will soon die.*  +* What is your risk-reward ratio on each trade? *If you have a take profit $3 away and a stop loss $100 away, of course most trades will be winners. You will not be making money, however!* In general most traders should trade smaller position sizes and less frequently than they do. If you are going to bias one way or the other, far better to start off too small. + +# How to use stop losses sensibly + +Stop losses have a bad reputation amongst the retail community but are absolutely essential to risk management. No serious discretionary trader can operate without them.  + +A stop loss is a resting order, left with the broker, to automatically close your position if it reaches a certain price. For a recap on the various order types visit this chapter. + +The valid concern with stop losses is that disreputable brokers look for a concentration of stops and then, when the market is close, whipsaw the price through the stop levels so that the clients ‘stop out’ and sell to the broker at a low rate before the market naturally comes back higher. This is referred to as ‘stop hunting’. + +This would be extremely immoral behaviour and the way to guard against it is to use a highly reputable top-tier broker in a well regulated region such as the UK. + +Why are stop losses so important? Well, there is no other way to manage risk with certainty. + +You should always have a pre-determined stop loss before you put on a trade. Not having one is a recipe for disaster: you will find yourself emotionally attached to the trade as it goes against you and it will be extremely hard to cut the loss. This is a well known behavioural bias that we’ll explore in a later chapter. + +Learning to take a loss and move on rationally is a key lesson for new traders. + +*A common mistake is to think of the market as a personal nemesis. The market, of course, is totally impersonal; it doesn’t care whether you make money or not.* + +*Bruce Kovner, founder of the hedge fund Caxton Associates* + +There is an old saying amongst bank traders which is “losers average losers”. + +It is tempting, having bought EURUSD and seeing it go lower, to buy more. Your average price will improve if you keep buying as it goes lower. If it was cheap before it *must* be a bargain now, right? Wrong. + +Where does that end? Always have a pre-determined cut-off point which limits your risk. A level where you know the reason for the trade was proved ‘wrong’ ... and stick to it strictly. If you trade using discretion, use stops. + +# Picking a clear level + +Where you leave your stop loss is key.  + +Typically traders will leave them at big technical levels such as recent highs or lows. For example if EURUSD is trading at 1.1250 and the recent month’s low is 1.1205 then leaving it just below at 1.1200 seems sensible.  + +&#x200B; + +[If you were going long, just below the double bottom support zone seems like a sensible area to leave a stop](https://preview.redd.it/y7cs0cn1f5h51.png?width=1200&format=png&auto=webp&s=81639093b28c5ed778f293f6ab47c25c7aa7d139) + +You want to give it a bit of breathing room as we know support zones often get challenged before the price rallies. This is because lots of traders identify the same zones. You won’t be the only one selling around 1.1200.  + +The “weak hands” who leave their sell stop order at exactly the level are likely to get taken out as the market tests the support. Those who leave it ten or fifteen pips below the level have more breathing room and will survive a quick test of the level before a resumed run-up. + +Your timeframe and trading style clearly play a part. Here’s a candlestick chart (one candle is one day) for GBPUSD. + +&#x200B; + +https://preview.redd.it/moyngdy4f5h51.png?width=1200&format=png&auto=webp&s=91af88da00dd3a09e202880d8029b0ddf04fb802 + +If you are putting on a trend-following trade you expect to hold for weeks then you need to have a stop loss that can withstand the daily noise. Look at the downtrend on the chart. There were plenty of days in which the price rallied 60 pips or more during the wider downtrend.  + +So having a really tight stop of, say, 25 pips that gets chopped up in noisy short-term moves is not going to work for this kind of trade. You need to use a wider stop and take a smaller position size, determined by the stop level. + +There are several tools you can use to help you estimate what is a safe distance and we’ll look at those in the next section. + +There are of course exceptions. For example, if you are doing range-break style trading you might have a really tight stop, set just below the previous range high.  + +&#x200B; + +https://preview.redd.it/ygy0tko7f5h51.png?width=1200&format=png&auto=webp&s=34af49da61c911befdc0db26af66f6c313556c81 + +Clearly then where you set stops will depend on your trading style as well as your holding horizons and the volatility of each instrument.  + +Here are some guidelines that can help: + +1. Use technical analysis to pick important levels (support, resistance, previous high/lows, moving averages etc.) as these provide clear exit and entry points on a trade. +2. Ensure that the stop gives your trade enough room to breathe and reflects your timeframe and typical volatility of each pair. See next section. +3. Always pick your stop level first. Then use a calculator to determine the appropriate lot size for the position, based on the % of your account balance you wish to risk on the trade. + +So far we have talked about price-based stops. There is another sort which is more of a fundamental stop, used alongside - not instead of - price stops. If either breaks you’re out. + +For example if you stop understanding why a product is going up or down and your fundamental thesis has been confirmed wrong, get out. For example, if you are long because you think the central bank is turning hawkish and AUDUSD is going to play catch up with rates … then you hear dovish noises from the central bank and the bond yields retrace lower and back in line with the currency - close your AUDUSD position. You already know your thesis was wrong. No need to give away more money to the market. + +# Coming up in part II + +[EDIT: part II here](https://www.reddit.com/r/Forex/comments/ibd24i/former_investment_bank_fx_trader_risk_management/) + +Letting stops breathe + +When to change a stop + +Entering and exiting winning positions + +Risk:reward ratios + +Risk-adjusted returns + +# Coming up in part III + +Squeezes and other risks + +Market positioning + +Bet correlation + +Crap trades, timeouts and monthly limits + +&#x200B; + +\*\*\* + +*Disclaimer:This content is not investment advice and you should not place any reliance on it. The views expressed are the author's own and should not be attributed to any other person, including their employer.* +I am 25 years old and just started earning 18 lpa in hand. My location will be gurgaon and I think I will be able to live in 50,000 rs per month. That leaves me with 1 lakh rs to spare every month. I already have a sip of 28000 per month. I don’t want to do debt investment as I am already investing 2 LPA in epf (deducted from my ctc of 22.5 lpa). Should I stick to mutual funds or try direct stocks ? + + +Edit: I am a Software Engineer from a Tier 2 college, many people are asking. +I assume Santa uses magic to conjure up the materials needed to manufacture the various toys. I also assume his elves work for free (maybe they get some room and board, but that too is provided via magic), and they can perform specialist tasks, like forging microchips for game systems, etc. His reindeer also serve as a super efficient global distribution network, so he doesn't need to hire any deliverymen or procure any delivery services. With all these presents being delivered to Christmas trees around the world without contributing anything at all to the global economy, what economic impacts can we expect? Mass unemployment? Commodity crashes? Deflationary pressure? Inverted yield curves? How bad is it going to be? + +As the title states.... + +&#x200B; + +I've been a long time lurker and just crunched the numbers tonight and wanted to share. I am so happy. I did it. Brings tears to my eyes. + +&#x200B; + +I'm 32, African American and a single mom of 1 teenager. I was born and raised in a true "hood", long ago, before gentrification came along. My parents were a part of the 80s crack epidemic that wiped out many families, especially African American families. I ended up in foster care and remained there my entire childhood until being emancipated and left to fend for myself in the streets of NYC at 15 years old in the early 2000s. I was a homeless and pregnant teen and immediately became a single mom. + +&#x200B; + +Through this turmoil and the crippling depression and feeling of hopelessness that came along with the "humble beginnings" of my life, I was able to graduate school early, find a job, saved just enough money to go to a trade school (it was $700 back then and every single dime that I had.) Through HARD work and insane grit and perseverance, I obtained all of my certifications and began my career at age 19. I've never looked back. + +&#x200B; + +I discovered the FIRE and personal finance community nearly 3 years ago and its been a God send. I am rewriting my families wealth tree and I couldn't be prouder. + +&#x200B; + +I am navigating the world solo (no biological family besides my son) yet I've found the will to succeed, despite all of the trials, tribulations and abandonments. + +&#x200B; + +At 12:15am on 7/16/19, 32 years of age, 13 years into my career, 1 teen son, and a LOT OF PRAYERS along the way....later.. my NET WORTH is $103,408! + +&#x200B; + +A MIXTURE of 457, 457 Roth, 401K, 529, smaller investment portfolio and pension. + +I will be retiring at age 45 with a full pension and God willing a MILLION DOLLAR portfolio. + +&#x200B; + +This is the most I'm willing to share. Please don't nit-pick, pry more or be passive aggressive. Just wanted to inspire someone somewhere who may not have as many or ANY resources to succeed. + +&#x200B; + +Long Story Short: No one thought I'd make it out from under the shitty hand I was dealt. I did and just surpassed a $100K Net Worth! + +&#x200B; + +EDIT #1: Some of you are super triggered. LOL. I don't see this type of responses on other more "traditional" postings. Y'all do know I have thick skin and come from a place where nightmares are made of...right?! I also have worked in a very AGGRESSIVE fast pace career interacting with strangers during their absolute worst moments for 13 yrs +.... read: they are with the shxts and so am I.... LOL....you do know your typed "insults" don't hurt...right?! + +&#x200B; + +EDIT #2: If I did not a THING else I would STILL be retiring with a FULL PENSION of nearly 50K + health insurance. Yes, at age 45. 25 years of service and that's it. Not 25 years of service + age requirement. + +&#x200B; + +EDIT #3: Yes, a 1 million dollar portfolio is lofty for some and not lofty for others. For me, it's just an idealistic number...really... + +&#x200B; + +EDIT #4: 20-30K + investments I'll continue to have yearly for the next 14 years. I am currently at 26K invested this year and we are only in July. I am nearly 3 years in to saving this aggressively at 50%+ (had it at nearly 70% for months and just lowered my percentages. It's not a race.) + +&#x200B; + +EDIT #4: I am a Paramedic. I also clean apartments as a side gig. My current career has no overtime cap. I have coworkers making 100% OVER their salary. + + +EDIT #5: I live on 30K in NYC (by choice: frugal minimalist). I invest ALL OF THE REST. I do NOT have to invest this aggressively. God covered me and I made a great choice in trade/career and the medical field knows no recession especially in NYC. I am BLACK AND PROUD of what I am doing, no plans to stop. Thank you for ALL the comments. Positive, neutral and negative. I learned a long time ago that SUCCESS can't be denied. I will surely be back with updates. + +EDIT #6: WAKANDA FOREVER‼️ + +EDIT #7: I can’t give clues on this post about my social media (sorry for the rule violation!) Im replying to everyone who’s inboxed me. Im STILL doing my best to reply back to those who were kind enough to write me. Wow so many of you! I’m so appreciative. You all are awesome! Thank you so much! +I’ll preface this with - I didn’t say anything negative to her, I just screamed internally. + +One of my friends and her husband (both 33) rent a nice 3 bedroom place. They’ve said many times that they’re struggling to save enough money for a deposit on a house and have said that their combined income is roughly $90k. + +I had lunch with my friend recently and she was saying they were going to buy a Spa. We started talking about what they were getting, features, it’s top of the line and all that jazz. Then, she says that they’ve decided to use their savings to buy it. I tried to clarify that she still has an emergency fund, still has their house deposit savings etc.. She said no. They don’t have an emergency fund, they don’t have an account for house deposit savings. They have one savings account and they’re using it all on a Spa. I asked what they were planning to do RE buying a house and she said that they’re still saving. So I thought phew! They’re not literally using all of it. But, then she says “we’re just starting again is all”. It’s okay because “we’ll still have about $400 left”. +I’ve read a lot of post about the outrage and how unjust this decision was. I wonder if I am alone in feeling this is the first time the government has directly helped me as a citizen. + +I’m 32 years old went to college and nursing school, have a modest house and two children. I have worked as a registered nurse for 8 years now. I personally have cared for thousands of individuals on some of the worst days of their lives, and still make just enough money to buy groceries and pay bills. I have felt that essentially I’ve never been directly helped my government and often felt they were out to make my life harder. The amount of money that comes from my check, I pay in property taxes , school taxes , tax on everything I purchase, ect. + +It appears people are disgusted by this decision. I still will have 40,000 debt from my schooling after this assistance. But this will greatly improve the life of my family and the dread of student loan payments when looking at the ability to pay for everyday things. Clothes for my children, groceries, gas. I haven’t found a lot of things to be excited about recently. If you turn on the news it’s quite literally depressing. But today I felt some hope. Is there anybody else out there that feels this way? Or is it just people that think we are freeloaders and don’t deserve assistance? +[Original Post](https://www.reddit.com/r/personalfinance/comments/6t8hme/i_found_out_that_a_coworker_in_the_same_position/?st=J7T77MXH&sh=810eb4d6) + +For those of you who read my original post, I just wanted to update. Everyone was so encouraging and supportive, I really did not expect it! + +After making my post, I met with my boss in order to inform her that I needed a raise. She told me she would submit a pay raise request. + +1 week later she called me into her office. She absolutely berated me for thinking I could move into the coordinator position for which I was already doing the work, and complained about my work performance. Last month I had an evaluation, and received very high praise for my performance, and there has not ever been complaints about my performance in the past. All in all, I assume she was making excuses not to increase my pay. + +Fast forward a bit, and I received a text from the wife of one of my boyfriend's friends, offering me a job at a rehab facility. I interviewed for the job, and they offered me the position at $20 an hour ($6 more an hour than my current job). + +In the meantime, my boss called me into her office AGAIN, and informed me that I was VERY fortunate, as corporate had approved my pay increase. She stated that she "truly shot for the stars when submitting my new pay" and that corporate had "gone above and beyond" anything she ever thought I would receive: $17 an hour. Still $7 less than my coworker. + +I accepted the new job, and put in my two weeks notice. My boss was absolutely side swept. She could not believe that I was quitting. She waited a day, and called me into her office yet again, and asked me what they were offering me that was so great that I would choose to leave. I told her $20 an hour. + +She said, "If I can offer you that, will you stay?" Wow. And here I thought $17 was above and beyond what they could ever offer me. + +I told her I would think about it. + +In the meantime, I contacted my new employer and informed them that my current employer was offering to match their offer to keep me, and got an even bigger offer from them. + +I start next Monday!! + +Thank you r/personalfinance for all your support and advice! I can't wait to start my new job :) +### The Royal Swedish Academy of Sciences has decided to award the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2020 to Paul R. Milgrom and Robert B. Wilson “for improvements to auction theory and inventions of new auction formats”. + +#### Nobel Prize Committee + +* [Video announcement](https://www.youtube.com/watch?v=XIl-OBg1jmg) +* [Summary](https://www.nobelprize.org/prizes/economic-sciences/2020/summary/) +* [Press release](https://www.nobelprize.org/prizes/economic-sciences/2020/press-release/) +* [Popular science background: The quest for the perfect auction](https://www.nobelprize.org/uploads/2020/09/popular-economicsciencesprize2020.pdf) +* [Scientific Background: Improvements to auction theory and inventions of new auction formats](https://www.nobelprize.org/uploads/2020/09/advanced-economicsciencesprize2020.pdf) + +#### News Coverage + +* [CNN: Nobel Prize in economics awarded to Paul Milgrom and Robert Wilson +](https://edition.cnn.com/2020/10/12/business/nobel-prize-economics/index.html) +* [CNBC: Nobel Economics Prize awarded to Paul Milgrom and Robert Wilson for work on commercial auctions](https://www.cnbc.com/2020/10/12/nobel-economics-prize-awarded-to-paul-milgrom-and-robert-wilson.html) +* [Washington Post: Nobel Prize in economics awarded to Paul Milgrom and Robert B. Wilson for their work improving auction theory](https://www.washingtonpost.com/business/2020/10/12/nobel-prize-economics-awarded-paul-milgrom-robert-b-wilson-their-work-improving-auction-theory/) + +This page will be expanded with additional news coverage and commentary as the day progresses. Please direct all Nobel discussion here. +The highs, oh the fucking highs of it paying off, and the stress when it doesn't. + +At the start of the year I took the 5k available in my redraw out of my homeloan, I thought I was smart and could invest and earn more than I was going to save in interest. + +I was wrong, because I'm an idiot, with no self control. + +For a few weeks it was going great, I was having some wins and some losses and overall I'd made about 2k by the start of March. It fell apart. + +I made some bad moves, I started losing money on t+2, my worst was a 6k loss. I stopped for a few weeks, I regained my composure I started t+2ing again. It went from bad to worse, I had to apply for 3k pay day loan to get myself out of hot water. + +I didn't learn my lesson. + +I went in again, my final move, I t+2d on QEM at 2.45 on Thursday the 25th. + +I was a dickhead. I was an even bigger dickhead when I didn't sell out at 2.4 on Monday around 3pm. + +A bigger dickhead again when I still hadn't sold by 11:13 on Wednesday the 10th. Tommie sold my shares for 3k loss. He took the $800 sitting in my bank account. + +A week later, I'm in negotiations with Tommy for a payment plan. My account is being closed. I've lost 11k, maybe more with the little top ups I did when things were good. + +IF YOU DONT HAVE THE MONEY DON'T DO IT. + +I haven't slept in weeks, I've gotten a second job to get back to where I was, don't be dickhead. + +**EDIT** Tommie has spared my knee caps and is giving me an interest free payment plan. I had to cry to 4 people to achieve this. +My account is closed and I'm not welcome back. +I have 3 very beautiful children that I would do anything for. And in the case I die suddenly I want my kids to be able to benefit from my cryptos. + +&#x200B; + +Now I shared my phrase with my wife about two months ago and after that our marriage quickly started declining due to a couple issues. I always get this feeling that she might do me bad. I’m gonna have to change my wallet now and maybe use a crypto inheritance service. Something like Vault 12 should do, I read a lot about it. + +What’s bothering me is that this mistake will now cost me a lot to transfer my money to another wallet +[Some good news](https://www.nytimes.com/2018/07/23/business/irs-phone-scams-jeff-sessions.html) for those who have experienced this scam or know people who have been duped by the same: + +>With stiff sentences for 21 conspirators last week in the United States and a round of indictments in India, the Justice Department says it has broken up what appeared to be the nation’s first large-scale, multinational telephone fraud operation. + +>Over four years, more than 15,000 victims in the United States lost “hundreds of millions” of dollars to the sophisticated scam, and more than 50,000 individuals had their personal information misused, the department said Friday. The money was routed through call centers in India back to the ringleaders in eight states. + +>The fraudulent calls came suddenly and frequently while the scam was active from 2012 to 2016, according to court documents. A person posing as an Internal Revenue Service or immigration official was on the phone, threatening arrest, deportation or other penalties if the victims did not immediately pay their debts with prepaid cards or wire transfers. + +>In an announcement on Friday, the department said 21 people living in eight states — Illinois, Arizona, Florida, California, Alabama, New Jersey and Texas — were sentenced last week in Houston to prison for up to 20 years for their role in the scheme. + +>In addition, 32 contractors in India involving five call centers in Ahmedabad, a city in western India, have been indicted on wire fraud, money laundering and other conspiracy charges as part of the operation, the department said. + +As always, remain vigilant about supposed IRS claims, and never accept or believe any calls from people purporting to be the IRS. The IRS never demands immediate payment (e.g. wire transfers or gift cards), or threatens to bring in the police, immigration officers or other law-enforcement. Communication always begins over snail mail. Hopefully these arrests will serve as a warning to others trying to prey on vulnerable populations. +Now that I got your attention. What I am trying to say is, for successful algo traders, it is in their best interest to not share their algorithms, hence you probably wont find any online. + +Those who spent time but failed in creating a successful trading algo will spread the misinformation of 'it isnt possible for retail traders' as a coping mechanism. + +Those who ARE successful will not share that code even to their friends. + +I personally know someone (who knows someone) that are successful as a solo algo trader, he has risen few million from his wealthier friends to earn more 2/20 management fee. + +It is possible guys, dont look for validation here nor should you feel discouraged when someone says it isnt possible. You just got to keep grinding and learn. + +For myself, I am now dwelling deep in data analysis before proceeding to writing trading algos again. I want to write an algo that does not use the typical technical indicators at all, with the hypothesis that if everyone can see it, no one can profit from it consistently.. if anyone wanna share some light on this, feel free :) +Who was pulling the strings on multiple brokers to ban clients from buying $GME and causing panic selling as well as margin liquidations? By locking out investors, brokers took away the bid for the stock. The market makers then orchestrated a drop of 371 points, 77% with ONLY 8 million shares traded triggering multiple trading halts. It was brutal, especially, when GME only moved 10-20 points on similar volume on previous trading days. A full comprehensive investigation is necessary. Also investigators must take a close look at what happened to the options during that time. These criminals should rot in jail. + +Edit: This video shows how they brought $GME down 371 points (77%) and also how they brought down the $GME options. It’s a must see. https://youtu.be/YKNIf2PHvf4 +I certainly don't want to deter people from saving and thinking about their future. Just remember that there is life now too. I just got done diagnosing Alzheimer's in a woman in her early 60's. + +Her and her husband were looking forward to travel and leisure and life, all these things they forbade themselves in the prospect of "enjoying it later." Now they are likely looking at assisted living if not a nursing home. + +Balance. Be wise about your future, but don't get caught up in the rat race. Enjoy your life now, but don't forget about rainy days. + +Thank you guys for the wonderful advice on this subreddit. + +Edit: IDK how many of these awards cost real money. But if they do, give it to a charity and post a link on here instead! Thanks y'all! +I am a 33 years old female. Unfortunately, lost my father in 2010 and my mother in Sept this year. Both died unexpectedly.  + +While the focus in general when someone dies is on "emotional grieving", I cannot explain how much "financial grieving" we have had to go through to just get the claims processed. + + +My father was 58, was working as a senior manager in a Govt organization. Unfortunately, all the assets were in single name, no nominee. We had just got a house on loan (that had no insurance, in single name). My mother's name in Pension nominee was not correct. Our accounts were frozen, plus pension amounts were not released till a year. I can describe in detail how much running around we had to do, but long story short, we could got everything sorted only after 1-2 years and after going through Hiership process. + + +My mother and I learnt from the mistakes, and ensured everything had a nominee or was in joint account. After my mother passed away, I was like - "it will be better than what we faced during my father's time". But, no - I was wrong.  + +Even though things have moved online, so many of the processes remain same.  + +One would not believe, but my mother's favourite bank (India nationalized bank ofcourse), has not processed the claim since last 2 months despite me being the nominee for the accounts. Their response is - "The bank account has more than 2 lakhs, so you need to get indemity, affidavit, my brother (legal heirs' pan and aadhar). And what they have done is to freeze all the accounts (including the ones that are joint). So, I cannot even get the money from the joint accounts.  + + +I can go on and on for each bank, insurance company, mutual fund, pension office, demat and trading account but I hope you all are getting the point.  + + +Why am I writing this? + +1. My parents were both scientists, and I am an MBA+Engineer by profession. We have had fairly decent understanding of finance, but we still suffered. After going through the same churn twice, I realized I would not be alone. There should be so many others going through the same cycle without questioning the hardships or the processes. + + +2. I feel I am lucky enough to be in the "net positive" zone that I do not really need the money immediately. What about others who would be needing the money but they would be in so much distress? Especially after Covid. + + +3. All these fancy new apps like - Groww, Scripbox etc, just focus on the account opening and getting the money. And there is no concept of Nominee (or at least I could not find it out there on the app). There would be so many people (like me) who have invested, but when they pass away, their relatives would be in distress. And I am not even talking about cryptocurrency here. + + +What I think should be done? + +1. Death Claim processes should be easier, faster and online. Point blank. This should be across banks, Insurance corporations, Property, mutual funds, demat and trading accounts etc. + + +We can get food in 30 min in India, but a death claim takes more than a month typically. And in my case, it has taken 1-2 years for my father's assets to get sorted. + + +2. There needs to be a directive from RBI to make sure banks follow a common and simple procedure (and not harass people). RBI should mention the list of documents in case of nominee, no nominee cases. It should not be bank/financial institution dependent. While I saw a RBI directive, it was a 2005 directive - and I do not see it being actioned well. Reserve Bank of India - Notifications (rbi.org.in) + + +3. Nominee should be made compulsory across banks, Insurance corporations, Property, mutual funds, demat and trading accounts etc. Just like PAN to Aadhar linkage :) + + +4. The whole process for hiership certificate and 6-8 months long period should be shortened. + + +5. Financial planning should also involve education about death claim process. + + +Suggestions are most welcome on how can we solve this. Beyond doubt, I cannot do this alone, and I am looking for help for the broader community.   + + +Lastly, for youngsters and for oldies who are reading this - I want to make sure that my grief helps you in some way. Please get your finances fixed. It is okay for the money to grow at 4%, but not okay if your family cannot access it after you are gone.   + +This is a 4 am rant so if you do not find it useful, please ignore. + +thanks +We did it! + +Not bad for a sub that didn't exist 12 months ago. + +Edit: To commemorate the special event, the next 'does asx_bets affect your mental health' post should get a trillion day ban. +(Bloomberg) -- Wealthsimple Inc., a commission-free Canadian online brokerage with more than 350,000 clients, is warning traders about the risks of investing in certain highly speculative stocks, but isn’t planning to halt trading in those shares. + +Wealthsimple, whose motto is “get rich slow,” doesn’t offer riskier investment choices such as options trading or margin accounts, and has sent clients emails reminding them about the dangers of speculation, Chief Executive Officer Mike Katchen said in an interview with BNN Bloomberg Television Friday. It also embedded in-app notifications for users looking at certain stocks. + +The firm doesn’t plan to restrict trading on those shares the way Robinhood Markets Inc. and other brokerages have done in recent days, Katchen said. + +“If people are taking calculated risks and want to join in on the fun, but are doing it in a responsible way with an amount of their portfolio that they can effectively lose if and when these stock prices do come down, that’s OK,” Katchen said. “But we want to make sure that people are being responsible, and we’re trying to be as proactive as we can about that messaging.” + +The recent frenzy of retail trading has spurred a surge in interest even in the tamer platform of Wealthsimple, which touts passive investing in ETFs and is building out cash, checking, insurance and mortgage products. The company, owned by Power Corp. of Canada financial conglomerate, saw sign-ups increase more than 50% from a week earlier and daily volume more than double, Katchen said. + +That surge in interest could be a good thing if handled properly, he said. + +‘Fine Line’ + +“We have to walk that fine line of using this opportunity to bring more and more people into the capital markets and into the opportunity of investing,” he said. “But let’s also remember that investment carries risks, and it does require thoughtfulness and long-term thinking.” + +Katchen would like to see investors use individual stock-picking and cryptocurrencies such as Bitcoin, which his firm does allow trading in, as part of a “play money” account on the margins of their larger, core, long-term investing strategy. He also doesn’t see options and margin accounts as inherently wrong, but said they can be dangerous when used by new investors who don’t understand them. + +“The gamification of these highly risky tools is problematic and could result in some very bad outcomes for people, and we don’t want to be a part of that,” Katchen said. + +https://www.bnnbloomberg.ca/canada-s-answer-to-robinhood-warns-traders-but-won-t-halt-stocks-1.1556216 +Sup Apes, + +Full disclaimer before I go on, another APE posted the link to this document last week, I have searched for the post but cant find it. If you know who it was, please send me their name so I can give them the credit for finding it. + +The below document was written by Bruce Knuteson and published to [https://arxiv.org/abs/2201.00223](https://arxiv.org/abs/2201.00223) where you can download a pdf copy if needed. + +The link looks sus so I think this flew under the radar the first time it was posted. I have copied each page to image below so you can view without downloading the PDF. The site is actually fine and is an open access distributor for scholarly articles and seems to be owned by Cornell University. + +brief synopsis: + +&#x200B; + +https://preview.redd.it/vwpcptxj7ab81.png?width=642&format=png&auto=webp&s=03aff8e030b4705ff330090c8a19ba31b0e7002f + +Basically the author provides evidence that a large hedgefund (or hedgefunds) are using fuckery to generate their returns in the period of market close to market open. This practice could explain the usual dip we see at open. The manipulation is clear and SEC is either wilfully ignorant or incompetent. + +I read this before last weeks AH fuckery and keep going back to it. The article looks at overnight and intraday returns across the market and also GME and the SEC report that followed, ripping it to pieces and pointing out the numerous flaws : + +*"Footnote 78 (and specifically its penultimate sentence) says the SEC does not know who all was short GameStop’s stock. If you established a huge short position in GameStop on December 15, 2020 and did not trade GameStop for the next month, the SEC’s analysis thinks you have no position in the stock because the SEC’s analysis is ignorant of everything that happened before December 24, 2020. The title of the SEC’s plot should more accurately be “buying activity of some traders with large short positions in GameStop,” with a note clearly admitting they don’t really know what “some” means and therefore their orange histogram should be bigger and they don’t really know how much bigger. Since the point of the plot is that there isn’t much orange, the fact that there really should be more orange and the reader doesn’t have any sense of how much more orange there should be sort of defeats the point of the plot. Beginning the second to last sentence of footnote 78 with “Note that” – as though reminding you of a minor caveat they have previously mentioned rather than telling you for the first time a detail that undermines their entire analysis – comes across as particularly slimy. Not providing the number of shares that ended up being the threshold for “large” does little to increase the feeling of transparency. "* + +&#x200B; + +**TLDR: A large hedgefund (or hedgefunds) have been manipulating the market for at least 14 years to generate overnight returns whilst keeping intraday gains low or flat. The SEC continues to ignore the issue. Given most retail are locked out of trading out of hours, this affects us all.** + +&#x200B; + +edit: As many apes in the comments have noticed, this document is actually the most recent instalment of a series dating back to 2016. see this post for part 1: [https://www.reddit.com/r/Superstonk/comments/s2w1xn/information\_impact\_ignorance\_illegality\_investing/](https://www.reddit.com/r/Superstonk/comments/s2w1xn/information_impact_ignorance_illegality_investing/) + +&#x200B; + +https://preview.redd.it/zr00qdhh4ab81.png?width=959&format=png&auto=webp&s=112f5b566586ebcc68086cf9e8c16b2da719041e + +&#x200B; + +https://preview.redd.it/el561drl4ab81.png?width=957&format=png&auto=webp&s=02f7c97eadda4b7bc13a83daf4a540c609a99d34 + +&#x200B; + +https://preview.redd.it/rarcviro4ab81.png?width=958&format=png&auto=webp&s=2d8c8599aae07f0c74e9a043ee5a221e7b003e45 + +&#x200B; + +https://preview.redd.it/szl3f2vr4ab81.png?width=953&format=png&auto=webp&s=1bb51912a912c24b97c9e0ed6afe04166a5470e3 + +&#x200B; + +https://preview.redd.it/ed5p6mut4ab81.png?width=953&format=png&auto=webp&s=b1ad3ecfb2f842759d560158c9906ad827bde048 + +&#x200B; + +https://preview.redd.it/rm1c3nlv4ab81.png?width=956&format=png&auto=webp&s=c257c37537ab94af28b63a7a73e09cdc84459113 + +&#x200B; + +https://preview.redd.it/cn4d3s8x4ab81.png?width=955&format=png&auto=webp&s=76db71181e09b0a98f6b41772bf0539f9f95f41a + +&#x200B; + +https://preview.redd.it/9urctqbz4ab81.png?width=955&format=png&auto=webp&s=939a9d63b7c4458f44c7686fca18ba85c6f5fe01 + +&#x200B; + +https://preview.redd.it/fo40d3p45ab81.png?width=955&format=png&auto=webp&s=f7c428a00adb56d4195144d46ffa65d985cf4072 + +&#x200B; + +https://preview.redd.it/641cdxk65ab81.png?width=956&format=png&auto=webp&s=1591e6dbd23ba5722162843fb8404e0cd6668631 + +&#x200B; + +https://preview.redd.it/zfq8js685ab81.png?width=952&format=png&auto=webp&s=70a45667f5e36887edb1ece8e1c36ef443ccb0d2 + +&#x200B; + +https://preview.redd.it/2rubna8a5ab81.png?width=951&format=png&auto=webp&s=8586ad71c8666ebe0487380d00e54694baedd2ee +Tiny tiny apartment, 1bed $525pw in inner city Sydney. Lift had already made a few trips up, about 30 more people upstairs... I guess this was undervalued by about $75-100. +Final edit at bottom. If you are on new Reddit or the standard app, a screenshot from the final update may appear here, when it is supposed to appear at the bottom. + +I’m not sure why this screenshot shows at the top of the post, when it isn’t at the top, so I’ll just write here to let you know, it goes with the final link in the final update from 10JAN21, at the bottom. 🤷‍♂️ + +Alternatively, view this post by opening it in old Reddit: + +https://old.reddit.com/r/Superstonk/comments/rv4axv/a_news_blackout_on_the_feds_naming_of_the_banks/ + +___ + + +Second attempt to try to post this...will post the link in the comments below. + +Intro: + +> Four days ago, the Federal Reserve released the names of the banks that had received $4.5 trillion in cumulative loans in the last quarter of 2019 under its emergency repo loan operations for a liquidity crisis that has yet to be credibly explained. Among the largest borrowers were JPMorgan Chase, Goldman Sachs and Citigroup, three of the Wall Street banks that were at the center of the subprime and derivatives crisis in 2008 that brought down the U.S. economy. That’s blockbuster news. But as of 7 a.m. this morning, not one major business media outlet has reported the details of the Fed’s big reveal. + + + +___ + +Edit: This appears to be the dataset used: + +https://www.newyorkfed.org/markets/OMO_transaction_data.html#rrp + + +*(Also, thank you for the awards - I’m just glad this got some attention. The real awards should go to the authors, Pam Martens and Russ Martens, but that’s another matter, and I am not allowed to directly link the WSOP site here in the post, despite the site having an incredibly reputable, fact-based reputation for several decades now. Regardless, the link is in the comments (odd, site-wide rule, huh?). Here is what I will add: Please read the full article, I know it’s tempting to just read a headline, but this is kind of a serious matter in my personal opinion. And, if you would like this to gain more attention, please consider reaching out to your state’s representatives, consider sharing the article with those outside of reddit, etc.)* + + +___ + +Edit 2: The site was given the ol’ Reddit hug o’ death - I emailed the author, Pam Martens, explained (and apologized). I don’t think she was aware of where all the traffic was coming from. She said they’re working on a server fix, and was thankful for us bringing this “assault on press freedom” (her exact words) to the attention of Reddit users. She also has no idea why they’re banned from Reddit, as they post articles 5 days a week and have no time for a social media presence. Nice job Reddit! :) + + +*RIP inbox, gonna take some time to sort through this* + + +___ + +**Edit 3:** How can we petition (?) Reddit admins to unban links to WSOP? No idea why it was actually originally banned, and it makes no sense. The site is great and there’s simply no reasonable, logical reason it should be banned at a site-wide level. It doesn’t seem to be subreddit specific. That in itself is insane to me. Kinda mirrors what the article is talking about, actually. This seems to go to the top (the Reddit admins), not the mods here. If the mods or anyone has any experience with appealing a ban like that, I welcome your help. *shrug* + + +___ + +**Edit 4:** Today’s article, “Redditors Raged Against the News Blackout of the Fed’s Bailout – Then All Hell Broke Loose When They Learned the Wall Street Banks Literally Own the New York Fed” was just posted. + +wallstreetonparade dot com/2022/01/redditors-raged-against-the-news-blackout-of-the-feds-bailout-then-all-hell-broke-loose-when-they-learned-the-wall-street-banks-literally-own-the-new-york-fed/ + + +(Site may take a couple of tries to load) + +Archived version if that doesn’t work: + +https://archive.is/zYcb9 + + +*(And, upon seeing a few requests, I’ve updated the flair from News -> Due Diligence. Hope this helps.)* + + +**Nice job everyone!** + + +___ + + +**final edit - Today, 10Jan22, ~10PM ET, I was permanently banned, without warning, from news sub for trying to post the following article from bettermarkets.org:** + + +https://bettermarkets.org/newsroom/vice-chairman-claridas-resignation-confirms-there-is-an-epidemic-of-ethical-and-legal-violations-at-the-highest-levels-of-the-federal-reserve/ + +I’m not sure why, as this is not a political issue, and better markets is a nonpartisan, nonprofit group. Further, I was given no warning, and was told I was banned because my account had an “agenda.” + + +I replied that my only “agenda” was exposing corruption. + +Here is the conversation. (*The “blank spot” in my final message to them was simply a link to wallstreetonparade’s article. The Apollo app has a bug right now where it sometimes doesn’t show the links you send in messages.*) + + +___ + + +Convo: + +> https://imgur.com/a/nntFVwe/ + + +If they decide to unban me I will update this, but so far they have not responded. + +More and more, it seems that information distribution online cannot be trusted to be fair. +*Disclaimer: I do not own GME, nor do I intend to.* + +A friend of mine bought in to GME at around the $80 mark and has done well for himself. We met up recently and he is still very bullish on it, doesn't think it's a meme stock anymore, and believes it will continue to go up during corrections and crashes due to market forces. + +I'm worried that he will be caught off guard and lose a lot of money, but at the same time think that he should learn from his risky strategies. +After first 2-3 millions, a paid off home and a good car, there is no difference In qualify of life between you and Jeff Bezos. Both of you have limited amount of time on earth - you have twice if not more than Jeff, so you are richer than him. A cheese burger is a cheese burger whether a billionaire eats or you do. + +Money is nothing but a piece of paper or a number in your app. Real life is outdoors. + +Become financially independent that’s usually 2-3 M. Have good food. Enjoy the relations. Workout and enjoy sex. Sleep well. Call your parents. That’s all there is to life. Greed has no end. + +Repeat after me. Time is the currency of life. Money is not. + +Sooner you figure this out, happier you will be. + +Agree/Disagree ? + +Edit - CEO of Twitch confirming this mindset. https://youtu.be/yzSeZFa2NF0 +In light of all of the "should I sell posts" I have to speak up a bit. + +2 weeks ago you look at any rate my portfolio post and nearly everyone is recommending every high-risk ETF you could name. ARKK, ARKG, ARKW, ARKQ, ICLN, YOLO, MOON, TAN, LIT, I can keep going. And these were all recommended knowing damn well that a correction was due. And nearly unanimously every person would say something along the lines of "Buy and don't sell", "Cathie Wood could sell me on immortality at this point", "There'll be a correction I'm sure, but don't sell." + +Now the second a "correction appears to happen" you all panic. The market will bounce back, bottom line. It's like people forgot about the horrible drop when the pandemic happened. Now looking back, everyone wishes they bought more stock around then. + +Go ahead and sell, it not my portfolio and I don't lose sleep over your decisions. But let me double-check how far this correction has been so far. + +Yep.. checking ... the S&P is down to where we were all the way back to... exactly one month ago. Yep. + +The NASDAQ100 is down to ... 3 months ago. Incredible. + +ARKK is down slightly where it was in January 1... 2 months ago. + +But disregard all of that. Maybe the moral of the story is that Reddit shouldn't be defining your portfolio because no one knows what they're doing. The swarm of ARK followers has sort of disappeared. I haven't seen a single renewable energies ETF post that sounds like they're keeping it. Don't just "hear what's good" and then buy it and then the second "you hear what's bad", sell it. + +Jack Bogle said it best. There's nothing wrong with the ETF (with regards to TIFs), as long as you don't trade it. + +&#x200B; + +Second bottom line. + +100 VT or VTI/VXUS. Never worry about this shit again. Do some flash cards and build that memory back up. +Our combined take home income is at around £7700 per month, the house we're looking at is 550k. +That gets us four decently sized bedrooms and an okay sized garden (since it's a new build, we're not exactly getting tons of land with it). It's in a nice area that we know we like. + + +We'll go with either 5 or 10% deposit as we'd like to keep as much of our savings in ISAs if possible, so the mortgage payments would be slightly over 2000 with the current interest rates, which makes it more than the 25% rule would allow. + + +We live in a tiny house I purchased a few years ago, we've clearly outgrown it and we want something that we won't need to 'upgrade' from in a few years. We could get the same bedroom count for less but the rooms would be smaller and since we both work from home we'd really like to have some space. + + +We think we could comfortably afford the payments even if the interest rates rose significantly and we wouldn't be using all of our savings now so there's an emergency fund as well. + + +It's a bigger house than we *need* but it's not that extravagant either (we think?). We just want enough space for a potential family and for our current family / friends to be able to visit since we're moving pretty far away. With the way the property prices are going, we might not be able to afford a house like this in a couple of years. + + +Our spreadsheets add up, I'm just looking for validation, would you go for it, or too risky? +I wired $27000 to GDAX, and it was declined due to a name mismatch. They said they would reverse the funds, and that it would take up to 7 days. It's now been 40 days, and I have tried everything. I've made multiple cases, I've tried to reach out to them on Twitter, sent messages to random employees on LinkedIn. I've contacted their bank, and their bank in NY said that Coinbase has not replied to any of their emails inquiring about the reversal, and that the money was received by Coinbase but that they have still not put in a reversal on the money. + +Please upvote for support. + +Case ID #: 3361542 + +UPDATE: GDAX has reached out to me and are helping me to fix the issue. Thanks for upvoting for support. Feeling relieved. + +Update 2: Wire still not reveived, and GDAX has gone no-contact again. + +Update 3: Received! Finally. On 1/22/18, and the wire was supposed to be reversed on 12/1/2017. +I am already down don’t keep kicking me down. + +Anyway I learned from my mistakes and will ensure it never happens again by hedging and position sizing. + +I have a very small account left now and was wondering if trading options that expire at the end of December was a a good idea instead of day trading. + +Let’s say I buy 1 x PLTR at the strike money call +Option for Expiry in December and sell it after it rises few dollars in a week or two. + +I was thinking about day trading shares but it seems as I would have to constantly guess short term price action which is harder then swing trading. + +How would theta affect me if I plan to hold ATM strike only for a week or two and sell them after as soon as price moves in my direction. + +Thank you for taking time to respond and let me know if this strategy is okay or not. I don’t plan to trade more then 1 or 2 calls per ticker at a time and diversify between different sectors/tickers. + +The goal of buying options is to tie up less equity at any given time. +I just finished a scan of reddit and twitter, searching for Bittrex support issues. It's ridiculous to read about some clients of theirs who have been waiting 4+ months for a response, let alone a resolution. + +This just isn't right. They happily accepted our deposits to trade. That's an agreement that our issues should be dealt with in good faith, in a timely manner and with open communication. + +The backlog excuse, I've heard it many, many, many times before. That's not our problem. It's theirs. And whatever they have to do to resolve and lessen the backlog, do it. No more excuses. + +Hire more staff. Change the resolution process. Increase shifts. Overtime. So many options. + +God doesn't need to tell us you're rolling in crypto right now. I'm sure the funds are there to implement whatever possible improvements are necessary and give people back their money. + +Do you think support is this tough with the largest traditional stock brokerage sites? Or banks? Not even a chance. After a 10 minute call, issues are rectified. And that includes waiting on hold for five minutes. + + This is from their twitter account on December 14, 2017... + +"We have turned off user registration for a DB upgrade due to a large spike in new user sign ups." + +What about support upgrades? That's great about your new DB but seems like your tickets are only going to increase now by being able to handle more sign-ups. More congestion. More waiting. + +I currently have over $15,000 in support tickets with them. I know I'm not the only one. But if there is no fire under their ass, nothing will get done in a timely manner. + +POST YOUR ISSUES HERE AT REDDIT.COM/R/BITTREXSUPPORTLOGS. + +They are not listening on twitter anymore so here's another way for us to voice and let them know we won't tolerate the way they're handling OUR money. + +Subscribe. Post. Upvote other posts. Comment. That's the only way we'll get this rolling. + +And if you haven't had to file a support ticket, lucky you. I hope you'll never have to. But help us out anyway. +I hold an RBL Bank Credit Card along with a couple of others. + + +Today, I got a call from a mobile number 6391504865. The person was speaking fluent English and claimed to be from the RBL Bank. He asked me - at the time of getting the card whether I was told if this card is lifetime free or there will be a joining fee. Then he asked if I was actually given the credit limit which I was told. Till this point, I answered the questions. + +Then he told me that the bank is offering me a credit limit increase of 1 lakh if I want. And then asked - "Please confirm if the PAN number I am telling is correct." Then he told me my correct PAN number. He further proceeded saying that he was sending an OTP which should be shared with him for authorisation of this limit increase. Here comes the scary part. I received an OTP from the legit RBL messaging service (VK-RBLBNK) from which I usually receive the transaction messages. The content of this SMS was as following: + +“234567 is OTP (one time password) for updating your RBL Bank Credit Card settings.” + +Just to ensure that this is indeed a fraud, I asked him to tell me my existing card limit before I share the OTP. He couldn't answer it well and started beating around the bush. I told him unless the SMS mentions that this OTP is for credit card limit increase, I will not share the OTP. I asked him to send me an email from his RBL email id about this. He said yes and hung up the phone. +*** +From my personal experience of credit cards in the past, whenever there is credit limit increase offer, the banks usually let you know this by + +1) SMS - Then they ask us to send YES/NO in some format to a specified number to accept/reject the offer. + +2) The net banking/mobile banking account displays the alert about the offer. Then you yourself accept or reject the offer. + +3) If you yourself call the customer support helpline for some issue and you get to know that there is an offer for credit limit increase. Even on the phone if they have never asked for an OTP. + +Till date, I have never needed to share an OTP for a credit card limit increase. + +To further confirm that it was a fraud, I called the RBL Customer Support and connected with the fraud department. They told me that there is no offer on your card and the call which I received was definitely a fraud call. + +So this caller was a sophisticated caller/hacker who had access to my RBL Bank Credit Card data by which he was able to tell me the correct PAN and able to generate the OTP -possibly for a fraudulent withdrawal transaction from my card. Truecaller showed the number’s location as Uttar Pradesh. + +On extensive googling around this, I was able to locate this article which elaborates the exact same fraud which I experienced. The victim was also an RBL card holder. + +[Chandigarh cyber cell arrests 2 hackers for stealing credit card details](https://nationnews.in/chandigarh-cyber-cell-arrests-2-hackers-from-delhi-ncr-for-stealing-credit-card-details-credit-card-and-payment-gateway-recovered-from-their-possession/) +*** +Please beware of the calls you receive from people claiming from banks. Reverse check with the caller by asking them if they know your additional details. If they are unable to answer it, then it’s definitely a fraud. + +The best safety is to never share any kind of OTP with anyone. + +P.S. + +1) There is a series called [Jamtara](https://www.youtube.com/watch?v=GoXd_sESBBI) on Netflix which explored such scamming and phishing which takes place in India. + +Jamtara is a city from Jharhand. It is nicknamed the phishing capital of India. It got this title because there were numerous incidents of phishing across country whose centre point was this small town. + +2) **Just to ensure full safety and peace of mind, when I was talking to the fraud department of the customer support, with their help, I immediately blocked the credit card and requested a replacement.** +Hi guys, + +I have been using reddit for years in my personal life (not trading!) and wanted to give something back in an area where i am an expert. + +I worked at an investment bank for seven years and joined them as a graduate FX trader so have lots of professional experience, by which i mean I was trained and paid by a big institution to trade on their behalf. This is very different to being a full-time home trader, although that is not to discredit those guys, who can accumulate a good amount of experience/wisdom through self learning. + +When I get time I'm going to write a mid-length posts on each topic for you guys along the lines of how i was trained. I guess there would be 15-20 topics in total so about 50-60 posts. Feel free to comment or ask questions. + +**The first topic is Risk Management and we'll cover it in three parts** + +**Part I** + +* Why it matters +* Position sizing +* Kelly +* Using stops sensibly +* Picking a clear level + +# Why it matters + +The first rule of making money through trading is to ensure you do not **lose** money. Look at any serious hedge fund’s website and they’ll talk about their first priority being “preservation of investor capital.”  + +You have to keep it before you grow it. + +Strangely, if you look at retail trading websites, for every one article on risk management there are probably fifty on trade selection. This is completely the wrong way around. + +The great news is that this stuff is pretty simple and process-driven. Anyone can learn and follow best practices. + +Seriously, avoiding mistakes is one of the most important things: there's not some holy grail system for finding winning trades, rather a routine and fairly boring set of processes that ensure that you are profitable, despite having plenty of losing trades alongside the winners. + +# Capital and position sizing + +The first thing you have to know is how much capital you are working with. Let’s say you have $100,000 deposited. This is your maximum trading capital. Your trading capital is not the leveraged amount. It is the amount of money you have deposited and can withdraw or lose. + +Position sizing is what ensures that a losing streak does not take you out of the market. + +A rule of thumb is that one should risk no more than 2% of one’s account balance on an individual trade and no more than 8% of one’s account balance on a specific theme. We’ll look at why that’s a rule of thumb later. For now let’s just accept those numbers and look at examples. + +So we have $100,000 in our account. And we wish to buy EURUSD. We should therefore not be risking more than 2% which $2,000.  + +We look at a technical chart and decide to leave a stop below the monthly low, which is 55 pips below market. We’ll come back to this in a bit. So what should our position size be?  + +We go to the calculator page, select Position Size and enter our details. There are many such calculators online - just google "Pip calculator". + +&#x200B; + +https://preview.redd.it/y38zb666e5h51.jpg?width=1200&format=pjpg&auto=webp&s=26e4fe569dc5c1f43ce4c746230c49b138691d14 + +So the appropriate size is a buy position of 363,636 EURUSD. If it reaches our stop level we know we’ll lose precisely $2,000 or 2% of our capital.  + +You should be using this calculator (or something similar) on every single trade so that you know your risk. + +Now imagine that we have similar bets on EURJPY and EURGBP, which have also broken above moving averages. Clearly this EUR-momentum is a theme. If it works all three bets are likely to pay off. But if it goes wrong we are likely to lose on all three at once. We are going to look at this concept of correlation in more detail later. + +The total amount of risk in our portfolio - if all of the trades on this EUR-momentum theme were to hit their stops - should not exceed $8,000 or 8% of total capital. This allows us to go big on themes we like without going bust when the theme does not work.  + +As we’ll see later, many traders only win on 40-60% of trades. So you have to accept losing trades will be common and ensure you size trades so they cannot ruin you. + +Similarly, like poker players, we should risk more on trades we feel confident about and less on trades that seem less compelling. However, this should always be subject to overall position sizing constraints. + +For example before you put on each trade you might rate the strength of your conviction in the trade and allocate a position size accordingly: + +&#x200B; + +https://preview.redd.it/q2ea6rgae5h51.png?width=1200&format=png&auto=webp&s=4332cb8d0bbbc3d8db972c1f28e8189105393e5b + +To keep yourself disciplined you should try to ensure that no more than one in twenty trades are graded exceptional and allocated 5% of account balance risk. It really should be a rare moment when all the stars align for you.  + +Notice that the nice thing about dealing in percentages is that it scales. Say you start out with $100,000 but end the year up 50% at $150,000. Now a 1% bet will risk $1,500 rather than $1,000. That makes sense as your capital has grown. + +It is extremely common for retail accounts to blow-up by making only 4-5 losing trades because they are leveraged at 50:1 and have taken on far too large a position, relative to their account balance.  + +Consider that GBPUSD tends to move 1% each day. If you have an account balance of $10k then it would be crazy to take a position of $500k (50:1 leveraged). A 1% move on $500k is $5k.  + +Two perfectly regular down days in a row — or a single day’s move of 2% — and you will receive a margin call from the broker, have the account closed out, and have lost all your money.  + +Do not let this happen to you. Use position sizing discipline to protect yourself. + +&#x200B; + +# Kelly Criterion + +If you’re wondering - why “about 2%” per trade? - that’s a fair question. Why not 0.5% or 10% or any other number? + +The Kelly Criterion is a formula that was adapted for use in casinos. If you know the odds of winning and the expected pay-off, it tells you how much you should bet in each round. + +This is harder than it sounds. Let’s say you could bet on a weighted coin flip, where it lands on heads 60% of the time and tails 40% of the time. The payout is $2 per $1 bet. + +Well, absolutely you should bet. The odds are in your favour. But if you have, say, $100 it is less obvious how much you should bet to avoid ruin.  + +Say you bet $50, the odds that it could land on tails twice in a row are 16%. You could easily be out after the first two flips.  + +Equally, betting $1 is not going to maximise your advantage. The odds are 60/40 in your favour so only betting $1 is likely too conservative. The Kelly Criterion is a formula that produces the long-run optimal bet size, given the odds. + +Applying the formula to forex trading looks like this: + +*Position size % = Winning trade % - ( (1- Winning trade %) / Risk-reward ratio* + +If you have recorded hundreds of trades in your journal - see next chapter - you can calculate what this outputs for you specifically. + +If you don't have hundreds of trades then let’s assume some realistic defaults of **Winning trade %** being 30% and **Risk-reward ratio** being 3. The 3 implies your TP is 3x the distance of your stop from entry e.g. 300 pips take profit and 100 pips stop loss. + +So that’s  0.3 - (1 - 0.3) / 3 = 6.6%. + +Hold on a second. 6.6% of your account probably feels like a LOT to risk per trade.This is the main observation people have on Kelly: whilst it may optimise the long-run results it doesn’t take into account the pain of drawdowns. It is better thought of as the rational maximum limit. You needn’t go right up to the limit! + +With a 30% winning trade ratio, the odds of you losing on four trades in a row is nearly one in four. That would result in a drawdown of nearly a quarter of your starting account balance. Could you really stomach that and put on the fifth trade, cool as ice? Most of us could not. + +Accordingly people tend to reduce the bet size. For example, let’s say you know you would feel emotionally affected by losing 25% of your account. + +Well, the simplest way is to divide the Kelly output by four. You have effectively hidden 75% of your account balance from Kelly and it is now optimised to avoid a total wipeout of just the 25% it can see. + +This gives 6.6% / 4 = 1.65%. Of course different trading approaches and different risk appetites will provide different optimal bet sizes but as a rule of thumb something between 1-2% is appropriate for the style and risk appetite of most retail traders. + +Incidentally be very wary of systems or traders who claim high winning trade % like 80%. Invariably these don’t pass a basic sense-check: + +* How many live trades have you done? *Often they’ll have done only a handful of real trades and the rest are simulated backtests, which are overfitted. The model will soon die.*  +* What is your risk-reward ratio on each trade? *If you have a take profit $3 away and a stop loss $100 away, of course most trades will be winners. You will not be making money, however!* In general most traders should trade smaller position sizes and less frequently than they do. If you are going to bias one way or the other, far better to start off too small. + +# How to use stop losses sensibly + +Stop losses have a bad reputation amongst the retail community but are absolutely essential to risk management. No serious discretionary trader can operate without them.  + +A stop loss is a resting order, left with the broker, to automatically close your position if it reaches a certain price. For a recap on the various order types visit this chapter. + +The valid concern with stop losses is that disreputable brokers look for a concentration of stops and then, when the market is close, whipsaw the price through the stop levels so that the clients ‘stop out’ and sell to the broker at a low rate before the market naturally comes back higher. This is referred to as ‘stop hunting’. + +This would be extremely immoral behaviour and the way to guard against it is to use a highly reputable top-tier broker in a well regulated region such as the UK. + +Why are stop losses so important? Well, there is no other way to manage risk with certainty. + +You should always have a pre-determined stop loss before you put on a trade. Not having one is a recipe for disaster: you will find yourself emotionally attached to the trade as it goes against you and it will be extremely hard to cut the loss. This is a well known behavioural bias that we’ll explore in a later chapter. + +Learning to take a loss and move on rationally is a key lesson for new traders. + +*A common mistake is to think of the market as a personal nemesis. The market, of course, is totally impersonal; it doesn’t care whether you make money or not.* + +*Bruce Kovner, founder of the hedge fund Caxton Associates* + +There is an old saying amongst bank traders which is “losers average losers”. + +It is tempting, having bought EURUSD and seeing it go lower, to buy more. Your average price will improve if you keep buying as it goes lower. If it was cheap before it *must* be a bargain now, right? Wrong. + +Where does that end? Always have a pre-determined cut-off point which limits your risk. A level where you know the reason for the trade was proved ‘wrong’ ... and stick to it strictly. If you trade using discretion, use stops. + +# Picking a clear level + +Where you leave your stop loss is key.  + +Typically traders will leave them at big technical levels such as recent highs or lows. For example if EURUSD is trading at 1.1250 and the recent month’s low is 1.1205 then leaving it just below at 1.1200 seems sensible.  + +&#x200B; + +[If you were going long, just below the double bottom support zone seems like a sensible area to leave a stop](https://preview.redd.it/y7cs0cn1f5h51.png?width=1200&format=png&auto=webp&s=81639093b28c5ed778f293f6ab47c25c7aa7d139) + +You want to give it a bit of breathing room as we know support zones often get challenged before the price rallies. This is because lots of traders identify the same zones. You won’t be the only one selling around 1.1200.  + +The “weak hands” who leave their sell stop order at exactly the level are likely to get taken out as the market tests the support. Those who leave it ten or fifteen pips below the level have more breathing room and will survive a quick test of the level before a resumed run-up. + +Your timeframe and trading style clearly play a part. Here’s a candlestick chart (one candle is one day) for GBPUSD. + +&#x200B; + +https://preview.redd.it/moyngdy4f5h51.png?width=1200&format=png&auto=webp&s=91af88da00dd3a09e202880d8029b0ddf04fb802 + +If you are putting on a trend-following trade you expect to hold for weeks then you need to have a stop loss that can withstand the daily noise. Look at the downtrend on the chart. There were plenty of days in which the price rallied 60 pips or more during the wider downtrend.  + +So having a really tight stop of, say, 25 pips that gets chopped up in noisy short-term moves is not going to work for this kind of trade. You need to use a wider stop and take a smaller position size, determined by the stop level. + +There are several tools you can use to help you estimate what is a safe distance and we’ll look at those in the next section. + +There are of course exceptions. For example, if you are doing range-break style trading you might have a really tight stop, set just below the previous range high.  + +&#x200B; + +https://preview.redd.it/ygy0tko7f5h51.png?width=1200&format=png&auto=webp&s=34af49da61c911befdc0db26af66f6c313556c81 + +Clearly then where you set stops will depend on your trading style as well as your holding horizons and the volatility of each instrument.  + +Here are some guidelines that can help: + +1. Use technical analysis to pick important levels (support, resistance, previous high/lows, moving averages etc.) as these provide clear exit and entry points on a trade. +2. Ensure that the stop gives your trade enough room to breathe and reflects your timeframe and typical volatility of each pair. See next section. +3. Always pick your stop level first. Then use a calculator to determine the appropriate lot size for the position, based on the % of your account balance you wish to risk on the trade. + +So far we have talked about price-based stops. There is another sort which is more of a fundamental stop, used alongside - not instead of - price stops. If either breaks you’re out. + +For example if you stop understanding why a product is going up or down and your fundamental thesis has been confirmed wrong, get out. For example, if you are long because you think the central bank is turning hawkish and AUDUSD is going to play catch up with rates … then you hear dovish noises from the central bank and the bond yields retrace lower and back in line with the currency - close your AUDUSD position. You already know your thesis was wrong. No need to give away more money to the market. + +# Coming up in part II + +[EDIT: part II here](https://www.reddit.com/r/Forex/comments/ibd24i/former_investment_bank_fx_trader_risk_management/) + +Letting stops breathe + +When to change a stop + +Entering and exiting winning positions + +Risk:reward ratios + +Risk-adjusted returns + +# Coming up in part III + +Squeezes and other risks + +Market positioning + +Bet correlation + +Crap trades, timeouts and monthly limits + +&#x200B; + +\*\*\* + +*Disclaimer:This content is not investment advice and you should not place any reliance on it. The views expressed are the author's own and should not be attributed to any other person, including their employer.* +Anyone following the WSB drama this morning will see that several brokers have blocked only the 'Buy' button to prevent GME, AMC etc being purchased. People can still sell. Don't let this happen to your bitcoin. Don't buy bitcoin on Robinhood. +Tried to make a poll but it didn't allow me. Let's try it this way. Feel free to add you opinions on the matter in the comments. + +My personal opinion - Get the fuck out of here with your highschool drama. You had your chance. You broke the rules. Plenty of other very capable individuals ready to step up. + +Update: + +30.0k upvotes and on the front page. Do the right thing guys. + +There are millions of dollars worth of GME stock held by members of this sub. Your responsibility and loyalty is to them, and not to your fellow mods. + +u/broccaaa +u/luridess +u/jsmar18 +u/atobitt +Who was pulling the strings on multiple brokers to ban clients from buying $GME and causing panic selling as well as margin liquidations? By locking out investors, brokers took away the bid for the stock. The market makers then orchestrated a drop of 371 points, 77% with ONLY 8 million shares traded triggering multiple trading halts. It was brutal, especially, when GME only moved 10-20 points on similar volume on previous trading days. A full comprehensive investigation is necessary. Also investigators must take a close look at what happened to the options during that time. These criminals should rot in jail. + +Edit: This video shows how they brought $GME down 371 points (77%) and also how they brought down the $GME options. It’s a must see. https://youtu.be/YKNIf2PHvf4 +The moderators there have made that sub private before. That’s why this sub was created. It’ll probably open back up soon. Calm down. + +Edit: It's open again. Told you guys. +6.5M net-work, most of that liquid. + +Did it the slow and steady route. Spent my career as a SW engineer, mostly at biotechs. + +In exactly half an hour I will be logging off from work. + +No big plans at the moment other than more mountain biking and going out to some good restaurants. + +We do plan to do slow travel for the next year, or up until we feel ready to settle down again. + +I've thought about this day for a long time; but feels a bit weird now that the day has arrived. +I spend around $300 per month on various medications. Based my income and my other costs of living, I have essentially been breaking even for the past 6 years. + +I just signed up for Cost Plus Drugs and had my prescriptions moved over. It's going to cost me around $30 to get all my prescriptions shipped to me via this site. That means that I just went from breaking even to saving almost $300 per month. + +LOL retirement here I come!!! +I spend around $300 per month on various medications. Based my income and my other costs of living, I have essentially been breaking even for the past 6 years. + +I just signed up for Cost Plus Drugs and had my prescriptions moved over. It's going to cost me around $30 to get all my prescriptions shipped to me via this site. That means that I just went from breaking even to saving almost $300 per month. + +LOL retirement here I come!!! +Not sure about the other trading apps but Trading212 prevents people now from buying shares. Quote: + +- Warning! In the interest of mitigating risk for our clients, we have temporarily placed GameStop and AMC Entertainment in reduce-only mode as highly unusual volumes have led to an unprecedented market environment. New positions cannot be opened, existing ones can be reduced or closed. - + +Not sure if they are really concerned about their customers, or they've been lobbied by hedge funds to prevent ordinary people from destroying them. I don't care about GME and AMC, I have no position, but now I am angry for this decision. They always go against the poor individuals and let the billionaires save their asses. No one saves us when we go bankrupt by them. + +Let that sink in + +Edit: thank you for all the rewards and comments! What a great community we are! +i.e. What have economists discovered in the last 50 years? + +A lot has happened since the 1970s, like the two oil shocks, US stagflation, fall of the Soviet Union, 1997 Asian financial crisis, and the 2008 financial crisis. + +Has economics undergone any fundamental shifts over this period of time? Has there been any breakthroughs or major shifts of thought? +It seems like a lot of people make a lot of money and it seems like I’m missing out on something. So those of you that do, whats your occupation that pays so well? + ***Prerequisite DD:*** + +1. [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) +2. [The EVERYTHING Short](https://www.reddit.com/r/GME/comments/mgucv2/the_everything_short/) +3. [The House of Cards – Part 1](https://www.reddit.com/r/Superstonk/comments/mvk5dv/a_house_of_cards_part_1/) +4. [The House of Cards - Part 2](https://www.reddit.com/r/Superstonk/comments/nlwaxv/house_of_cards_part_2/) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +**TL;DR-** **No freaking way I can do that.** + +**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** + +**Continuing from HOC Part II...** + +**4.** **Slimy…** + +If you watched the [AMA with Wes Christian](https://www.youtube.com/watch?v=2rJujnpKiqM), he talks about the number of occurrences where the actual short interest is severely understated based on the data his firm obtained for legal proceedings. According to his numbers, in most cases the short interest is 50% - 150% **MORE** than what is reported by the SEC *(starting at 14:30).* + +The objective isn’t to address the issue: it’s to keep the issue hidden. Firms that underreport their short interest are gaming the system by taking advantage of how the short interest calculation is done. When the SEC relies on reports that broker-dealers provide, and FINRA takes YEARS to reveal the lies within those reports, the broker-dealer can lie without immediately facing the consequences. It allows these firms to operate in a high-risk environment without exposing just HOW big their risk-appetite is. + +Another example that Wes mentioned was [Merrill Lynch](https://www.sec.gov/news/pressrelease/2016-128.html). Merrill was fined [$415,000,000](https://files.brokercheck.finra.org/firm/firm_16139.pdf) *(violation 3)* in 2016 for using securities held in their customer’s accounts to cover their own trades. Check out this screenshot I took from that case: + +https://preview.redd.it/v9625j8wek171.jpg?width=1115&format=pjpg&auto=webp&s=85d43bc351fbda75e347bd33a1a550b67dda970e + +Remember when we mentioned [SEA 15c3-3](https://www.finra.org/sites/default/files/SEA.Rule_.15c3-3.pdf) in the case with Apex? They were asking customers to book short positions to either a cash account or a short margin account. [SEA 15c3-3](https://www.finra.org/sites/default/files/SEA.Rule_.15c3-3.pdf) protects those customers from allowing brokers to lend out the securities within their cash accounts… + +Well Merrill Lynch knocked that one right out of the f\*cking park… + +&#x200B; + +https://preview.redd.it/s3zok5wyek171.jpg?width=1129&format=pjpg&auto=webp&s=815e5344912234ceba846dc0d45c8b8b488b82c4 + +Merrill made it seem like the required deposit in their customer reserve account was much lower than it truly was. They wouldn’t have been able to use that cash if it reduced the amount below the minimum capital requirement, so they found a way to fudge the numbers. In doing so, they managed to prevent a CODE RED while reaping the benefits of a high-risk ‘opportunity’. Should Merrill have filed bankruptcy during that time, those customers would have been completely blindsided. + +In the case of short selling, the *true* exposure of short interest is unknown… and I’m not just talking about the short sale indicator. When a firm fails to deliver securities that were sold short, there’s a pretty good indication that they’ve exposed themselves to a bit of a problem.. Now imagine a case where the FTDs start piling up and they STILL continue to short sell that same security.. think I’m joking? + +Check out the [Royal Bank of Canada](https://files.brokercheck.finra.org/firm/firm_31194.pdf): + +https://preview.redd.it/u6yl6tj2fk171.png?width=812&format=png&auto=webp&s=1e44cc507247db1e28c00a213f90054b9abdaa6a + +Again… I was pretty shocked at that one. However, nothing rang-the-bell quite like this one from [Goldman Sachs](https://files.brokercheck.finra.org/firm/firm_361.pdf): + +https://preview.redd.it/5f408er6fk171.png?width=1031&format=png&auto=webp&s=38b9ad83d2a07360af5b5cd99d834a8771b66c93 + +Goldman had 68 occasions in 4 months where they didn’t close a failure-to-deliver… In 45 occasions, they CONTINUED to accept customer short sale orders in securities which it had an active failure-to-deliver… + +When a firm is really starting to sweat, they pull certain tricks out of their ass to quell the situation. Again, this is nothing but smoke and mirrors because that’s all they can really do. Just as Merrill Lynch artificially lowered their customer reserve deposit, other firms make it look like they cover their short positions. + +One of the ways they do this is by short selling a SH\*T load of shares right before a buy-in… Since we’re talking about Goldman Sachs, this seems like a great time to showcase their experience with this.. + +https://preview.redd.it/zhf1hr1afk171.png?width=1049&format=png&auto=webp&s=f704c3722ae287480057ce3e01c561a28b77cf4c + +I promise… It really is as dumb as it sounds… + +So the perception here is when Goldman’s client has a FTD and they find out a buy-in is coming, the required buy-in would obviously be too extreme for the client to handle.. So they begin to buy those shares while simultaneously shorting AT LEAST the same amount they were required to purchase… + +Have you ever failed to repay a loan so you went to another bank and got a loan to cover the first one? Well that’s exactly what this is… I know what you’re probably thinking… “didn’t that just kick the can down the road?”. The answer is YES: it didn’t actually solve anything.. + +There’s still one more citation that Goldman received which truly represents the pinnacle of *no-sh\*ts-given.* After I cover this, I don’t know how anyone could argue the systematic risks that exist within the securities lending business.. Check it out: + +https://preview.redd.it/0md200bdfk171.png?width=940&format=png&auto=webp&s=cf5e8310fbcbd73699e3593b2ab5dab418055ab0 + +For 5 years, Goldman relied on a team of 10-12 individuals to locate shares to be used by its clients for short selling. This group was known as the “demand team”. Naturally, as the number of requests coming in the door started to increase, it became difficult for the team to properly document all of them. The volume peaked at 20,000 requests PER DAY, but the number of individuals that handled this job stayed the same. + +Obviously, this became too much for them to handle so they opted out of the manual process and found another solution- the F3 key…. + +Yes- the F3 key… This button activated an autofill system which completed **98% of Goldman’s orders to locate shares** + +https://preview.redd.it/exqzge3gfk171.png?width=964&format=png&auto=webp&s=ed9c8b740974dad01db69460332c56df81a8d768 + +The problem with Goldman’s autofill system was that it used the number of shares available to borrow at the beginning of that day, which had already been accounted for. After using the auto-locate feature, the demand team didn’t even verify the accuracy of the autofill feature or document which method was used to locate the shares for each order… and this happened for 5 years.. + +Just goes to show how dedicated firms like Goldman Sachs truly are to the smallest of details, you know? Great f\*cking work, guys. + +By the way, I have to show one of Goldman’s short sale indicator violations… It’s too good to pass up. + +https://preview.redd.it/5iuhlkcjfk171.png?width=1082&format=png&auto=webp&s=f4e2fa1f106e78b9d282b60c3cee9944e919ea82 + +At some point, you just have to laugh at these ass clowns… I mean seriously… one violation for a 4 year period involving over 380,000,000 short interest positions… they have plenty of other short interest violations, I just laughed at how the magnitude of this one was summarized by FINRA with 10 lines and roughly 4 minutes... whoever wrote that one must have been late for lunch.. + +The last thing I’d like to note here is the way in which short sellers use options to “cover” their positions. Wes gave a great overview of this in the AMA *(starting at 6:25)*. Basically, one group will buy puts and another group buys calls. This creates a synthetic share that is only provided if the option is activated. Regardless, short sellers will use that synthetic share to cover their short position and the regulators actually accept it… + +However, as Wes points out, most of those options expire without being activated which means the share is never delivered. This expiration can be set months down the road and allows the short seller to keep kicking the can. + +I doubt I need to say this, but we all remember the wild options activity that was happening shortly after GameStop spiked in January. u/HeyItsPixel was one of the first to point this out. While a lot of that activity was on the retail front, I suspect a lot of it was done by short sellers to cover those positions. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +**5.** **Hedgies are f\*cked…** + +I’m officially +20 pages deep and there’s still so much I’d like to say. It’s best saved for another time and another post, I suppose. So I guess I’ll wrap all of this up with some of the best news I can possibly provide… + +It all started with a [73 page PDF](https://www.sec.gov/comments/s7-08-08/s70808-318.pdf) that was published in 2005 by a silverback named John D. Finnerty. + +John was a Professor of Finance at Fordham University when he published *“short selling, death spiral convertibles, and the profitability of stock manipulation”*. The document is loaded with sh\*t that’s incredibly relevant today, especially when it comes to naked short selling. He dives into the exact formula that short sellers use, which is far beyond what my wrinkled brain can interpret, alone… + +..However, when firms are naked shorting a company with the goal of bankrupting them, they leave footprints which are only explained by this event. The proof is in the pudding, so to speak.. + +https://preview.redd.it/ax7u0r4wfk171.jpg?width=1072&format=pjpg&auto=webp&s=1828755bfe49c47ca178d960f91dfd21d8b0d680 + +Any of this sound familiar?? + +*“The manipulator can not drive the share price close to zero unless he can naked short an extraordinary number of shares…* *this form of manipulation would result in… unusually heavy trading volume, and unusually large and persistent fails to deliver at the NSCC”.* + +Anyone else remember the volume in GME during the run-up in January? The total volume traded between **1/31/2021 and 2/5/2021 was 1,508,793,439** **shares**, or an average daily trade volume of **88,752,555 shares.** On 1/22/2021, the volume reached 197,157,946… that’s roughly 3x the number of shares that exist.. + +if this doesn’t sound like unusual volume then I’m not sure what is. Furthermore, the FTD report on GameStop was through the roof during this time: + +&#x200B; + +https://preview.redd.it/brz98nbzfk171.jpg?width=1625&format=pjpg&auto=webp&s=83ae877853acd2ec65fa73f57216f00b708a7eab + +&#x200B; + +https://preview.redd.it/zlla3ak0gk171.jpg?width=1038&format=pjpg&auto=webp&s=c5d4a1331f8c9d97b5338cc55a37310a95c9559b + + + +Notice the statement where the manipulator will be relieved of its obligation to cover **IF** the firm’s shares are cancelled in bankruptcy? Did you happen to see footnotes 65 & 66 in the first screenshot of his PDF? It references a company that he used for his analysis… + +https://preview.redd.it/zdp3at43gk171.jpg?width=997&format=pjpg&auto=webp&s=8508c9d0c869544f0ccd3a15477abfd64d38897c + +Charter Communications had a whopping **241.8% short float in 2005**… **The ONLY way the manipulator could have escaped this was by bankrupting the company and relieving the obligation to repurchase those shares…** + +Guess what happened to Charter? They filed for [bankruptcy](https://abcnews.go.com/Business/story?id=7189668&page=1) in 2009… + +However, unlike John’s example where naked short sellers were driving down the price without opposition, GameStop had extremely high demand from retail investors to counter this activity. As I have discussed with Dr. T and Carl Hagberg, the run-up in volume during January and February was largely conducted by naked short sellers in an attempt to suppress the share price. As I have shown in the example with Goldman Sachs, firms will short sell during a buy-in for the same exact reason. To stabilize the price, you must stabilize supply and demand. + +…You know what Charter didn’t have? + +AN ARMY OF APES TO HODL THE STONK + +&#x200B; + +DIAMOND. F\*CKING. HANDS +I’ll preface this with - I didn’t say anything negative to her, I just screamed internally. + +One of my friends and her husband (both 33) rent a nice 3 bedroom place. They’ve said many times that they’re struggling to save enough money for a deposit on a house and have said that their combined income is roughly $90k. + +I had lunch with my friend recently and she was saying they were going to buy a Spa. We started talking about what they were getting, features, it’s top of the line and all that jazz. Then, she says that they’ve decided to use their savings to buy it. I tried to clarify that she still has an emergency fund, still has their house deposit savings etc.. She said no. They don’t have an emergency fund, they don’t have an account for house deposit savings. They have one savings account and they’re using it all on a Spa. I asked what they were planning to do RE buying a house and she said that they’re still saving. So I thought phew! They’re not literally using all of it. But, then she says “we’re just starting again is all”. It’s okay because “we’ll still have about $400 left”. +I wired $27000 to GDAX, and it was declined due to a name mismatch. They said they would reverse the funds, and that it would take up to 7 days. It's now been 40 days, and I have tried everything. I've made multiple cases, I've tried to reach out to them on Twitter, sent messages to random employees on LinkedIn. I've contacted their bank, and their bank in NY said that Coinbase has not replied to any of their emails inquiring about the reversal, and that the money was received by Coinbase but that they have still not put in a reversal on the money. + +Please upvote for support. + +Case ID #: 3361542 + +UPDATE: GDAX has reached out to me and are helping me to fix the issue. Thanks for upvoting for support. Feeling relieved. + +Update 2: Wire still not reveived, and GDAX has gone no-contact again. + +Update 3: Received! Finally. On 1/22/18, and the wire was supposed to be reversed on 12/1/2017. +You cant even post about moderate gains without some fanatic or social justice warrior trying to tell you that you are a "paper handed bitch" or that you "turned your back on the movement". What fucking movement?! Stocks are not a movement. What happened with the meme stocks is not a movement. It's a bunch of idiots who got too greedy and in turn attracted a larger group of idiots who think putting $100 into a fractional share is going to bankrupt all the large players and change the way capital is dispersed to the people. Get your head out of your ass. You didn't even bankrupt 1 hedge fund. You just forced them to close their position and borrow from their friends. I hope these people go back to r/charity or r/socialjustice or where ever they usually bitch and moan about not knowing how to make money. r/investing r/stocks r/stockmarket are for investing and trading not for furthering your cause or political beliefs. That's it. GL making that paper guys. + +Edit: For those who are upset about my inclusion of r/socialjustice and r/charity I will admit It was an uncalled for jab at them and I do appreciate the work they do. I am actually upset about those false, fake, or wannabee, sjw's acting like this is a movement we are all a part of or even wanted to be involved in when they really just wanted to see meme stocks get them rich quick. + +Edit 2: For anyone who is new to trading and looking to learn more I would like to direct you to the following educational sources:-Most Brokers have excellent educational resources on their platforms when it comes to the basics.-Investopedia has articles and educational resources on most charts, technical analysis, trading strategies, and techniques. [https://www.investopedia.com/](https://www.investopedia.com/)The subs bot also provided me with these: [https://github.com/ckz8780/market-toolkit#getting-started](https://github.com/ckz8780/market-toolkit#getting-started) + +Edit 3: Hey all, This was really fun chatting and arguing with you all. I tried to answer every comment and now I'm gonna call it because at this point most of the comments are just angry kids yelling at me for being paper handed or a whiney bitch. So have a great day & good luck on your future trades! + +Disclaimer: None of my comments should be considered financial advice. +Alright good afternoon my wrinkle wizards and smoothbrain boners, we’ve got a situation on our hands and things are looking…spicy. + +[HODL ON!!!! \(don’t try this at home\)](https://i.redd.it/6dl9q3os3k381.gif) + +So over the past couple months, we’ve had the Mainstream Media (MSM) reach out to the Mod Team for interviews. We told them all no, we can’t do interviews. For transparency purposes, these news agencies are Reuters, Market Watch, Wall Street Journal, & CBC (Canadian Broadcast Company). Hell, we even had a possible connection to a US Senator lol. We haven’t done anything with them other than some initial back and forth to find out what they want. It’s not our place to speak on behalf of the Apes. We do not represent Apes, we do not speak for Apes, and we sure as hell aren’t gonna try. + +Recently, we’ve had an uptick in outside agencies reaching out and if we’re honest, we think SuperStonk and the Apes are gonna be dealing with a lot more of the press/politicians as we get closer to MOASS. As such, the Mods have felt we need to collaborate with you guys on a game plan for dealing with these agencies, together as a community, because it’s gonna be a bumpy ride. + +[\(for real, don’t try this at home\)](https://i.redd.it/mvexvi9u3k381.gif) + +So here’s what we know: We received modmail with requests for interviews, we asked about what, some have responded, some have not, and here we are. One of them had a focus on why we were so adamant about Computershare and what changes we’ve noticed since moving our shares into our names. We expect that soon, others will reach out and want us to say something. Especially when we start seeing the stock price add some commas 😉. Until the subreddit figures out how to proceed, we’re gonna leave them on “Read.” + +How do you guys think we should proceed with the news? Should we engage? If so, how? Do you want to directly talk to them? Or should we tell them to fuck off? We want to hear your thoughts and ideas. The Mods do have an option to manually approve reporters if you wish to invite them to the subreddit to ask their questions. It’s a lot of ground we need to cover. And because of how open ended this situation is, the Mods would like to pitch an idea to you. + +[\(this can be tried at home\)](https://preview.redd.it/x2xfnf8v3k381.jpg?width=1908&format=pjpg&auto=webp&s=0eef10eaf8d09cc19d9488f625b7f5867435f091) + +…is band together and use the combined skills of the community to develop and create the first Superstonk Official Communications Kit (S.O.C.K.) to give to reporters when they come knocking. + +[CODE NAME: S.O.C.K.](https://preview.redd.it/qnno9yzv3k381.png?width=504&format=png&auto=webp&s=94681587b08248abc9f427cae7769413ab5a99b3) + +[\(definitely don’t try this at home\)](https://preview.redd.it/nr368rkw3k381.jpg?width=432&format=pjpg&auto=webp&s=b5a79f3ca1844f2ab911c94d87d4375242fa87e4) + +[\(you’ve already tried this at home\)](https://preview.redd.it/yxrzwv0x3k381.jpg?width=480&format=pjpg&auto=webp&s=5dbbe80c241e4005bf1685271235729e0791ea6f) + +The SOCK would ideally have some basic stuff that says who we are and what we’re about. What do we like? What do we not like? Something to give the MSM a clear picture of what it means to be an Ape of Superstonk. It would need to be a polished document that is fact checked and peer reviewed and yes, it needs to look “presentable” to the outside world. + +Or you can just say fuck that idea lmao. It totally doesn’t matter. The Mods are putting the power of our representation to the world in your diamond hands. However you guys want to decide this, whether it be a committee, or an election, or whatever, you guys just come up with the idea and the Mods will watch and support you beautiful Apes along the way (we will still moderate the subreddit lmayo you can’t break rules for this). + +I’m a firm believer that when enough critical thinkers get together, then any problem can be solved and we just so happen to have an entire network of people asking the right questions. We don’t speak on your behalf, so we present you with this mission, and *should you choose to accept it*, we will let you go and do your thing. We want this to be a community driven effort. By the Apes, For the Apes. + +Some pointers up front: you guys are gonna figure out how tricky it is to maneuver this size of a group. Sometimes it’ll be a delicate dance with a rope and floor and gravity. + +[\(I'd be impressed if you could try this at home, but don't try this at home\)](https://i.redd.it/2u15f92y3k381.gif) + +You’ll need to use your wrinkles and your wits. And don’t go full smoothbrain 😂 + +\- - OH WAIT IT’S PROBABLY MORE LIKE THIS - - + +[\(SAFELY try this at home and make a Superstonk meme lol\)](https://i.redd.it/3uolo1jy3k381.gif) + +So now you guys know basically what we know and I’m fascinated to see how you’re going to react. From here, the Mods will liaison and support where necessary. Ball’s in your court. Godspeed, Ape. + +THIS MESSAGE WILL SELF DESTRUCT IN 5…4…3…2…1… + +[\(can you even try this at home? lol please don’t try\)](https://i.redd.it/gjcihmez3k381.gif) + +lol jk there’s no destruction + +# XOXO the Superstonk Mods 🦍💎✋🚀🌕🐳🚽🦙🐸🍦 + +&#x200B; + +# TA;DR: The mod team is seeing an uptick in inquiries from MSM outlets requesting interviews and questions. The mod team does not speak for you. So, this is your chance. Do you want us to tell them to fuck off? Or do you want to talk to them? Or maybe, as a community, you could put together the S.O.C.K. (Superstonk Official Communications Kit) to give to reporters? You decide! Time to speak up! +I love my parents. But they were absent for most of the major decisions I made. I started working under the table at 12 to help make ends meet and have been working ever since. I’ve never gotten any help from them financially. They never taught me how to budget or look for jobs. I don’t blame them and never expected this from them. + +But I can see the opposite for a lot of my friends. I worked for someone who is lauded as a business owner, but if you hear the full story, you find that her mom funded and helped with her business, and her parents bought her a house to live in so she didn’t have to pay rent when she first started her business. + +I have many friends who have the jobs they have, the cars they have, the house they have, because their parents knew someone or their parents bought it for them or paid for a down payment. I know this because they have told me. + +Anyway, I’m just venting. But I can’t help but wonder how my life would be different if I had been blessed with parents who had money or degrees or nice jobs, or even who just didn’t have severe depression and could have taught me more about how to succeed in life. + +Editing to add: I’m not saying your success is based on your parents. You can have awesome parents and still manage to fuck up your life and you can have bad parents and get out of it. But at the same time, I used to think there was something inherently wrong with me because others I knew were successful or had things I didn’t. But as I get older, it’s easier for me to see that not everyone who I assumed was just better at life than me are really that way, some have had a lot of help that I’ve never had. And that’s okay. If anything, it makes me feel less like a loser because I’ve figured things out on my own instead of consistently having help from family. But still doesn’t mean I could potentially be better off had I had support growing up. +This really got me confused unless I understood him incorrectly. The guy in the video ([https://www.youtube.com/watch?v=egjfIuvy6Uw&](https://www.youtube.com/watch?v=egjfIuvy6Uw&)) who is a quant developer says that future prices/direction cannot be predicted using historical data because it's random. He's essentially saying all prices are random walks which means you can't apply any of our mathematical tools to predict future prices. What do you guys think of this quant developer and his statement (starts at around 4:55 in the video)? + +I personally believe prices are not random walks and you can apply mathematical tools to predict the direction of prices since trends do exist, even for short periods (e.g., up to one to two weeks). +Title says it all. + +The amount of comments and posts I've had to remove over the last few days that were just telling people to buy random low liquidity ticker symbols or meme stocks is silly. + +Be warned, we are not WSB. If you post something off-topic to algo trading, such as pumping a MEME stock, you will be perma-banned. +Successful Project always has a purpose to reach. these points can be read easily on a roadmap to track every progress will be through on the project. easily shown on the roadmap to track the progress of the project. As you can see following below, the Roadmap of SWACHHCOIN projects looks very clear and informing. the team has planned in detail the big amount of tasks to be done and to be through. just looks the roadmap truly promising. +Hi all. + +* I wrote a **simple guide for novice value investors**. It takes things step-by-step so you don't get lost: [http://lucid-finance.com/2021/07/17/a-complete-guide-to-value-investing-for-novice-investors/](http://lucid-finance.com/2021/07/17/a-complete-guide-to-value-investing-for-novice-investors/) +* **Want quick, digestible summaries of market news + occasional value picks?** Go to [https://johanlunau.substack.com](https://johanlunau.substack.com). 560+ subscribers. + +I hope these help you on your journey. This community is fantastic if you avoid the hive mind, and feel free to get in touch! +The shares plummeted as low as 271p within the first 20 minutes of trading, according to Refinitiv data. + +The company had on Tuesday set its opening share price at the bottom of its target range at 390p, citing choppy market conditions and following a backlash from some large British investors over corporate governance. The initial public offering had given Deliveroo an opening valuation of around £7.6bn, the highest in London since resources group Glencore’s 2011 IPO, according to Dealogic data. + +Deliveroo sold shares worth £1.5bn in the offering, raising gross proceeds of around £1bn for the company to invest in new growth initiatives such as its Editions network of delivery kitchens, while existing investors will cash in to the tune of £500m. + +https://www.ft.com/content/5028437e-accf-4624-8ecd-2b502d04743d + **Mods do not delete, this is important to me, please read** + +&#x200B; + +I was in my early teens during the '08 crisis. I vividly remember the enormous repercussions that the reckless actions by those on Wall Street had in my personal life, and the lives of those close to me. I was fortunate - my parents were prudent and a little paranoid, and they had some food storage saved up. When that crisis hit our family, we were able to keep our little house, but we lived off of pancake mix, and powdered milk, and beans and rice for a year. Ever since then, my parents have kept a food storage, and they keep it updated and fresh. + +Those close to me, my friends and extended family, were not nearly as fortunate. My aunt moved in with us and paid what little rent she could to my family while she tried to find any sort of work. Do you know what tomato soup made out of school cafeteria ketchup packets taste like? My friends got to find out. Almost a year after the crisis' low, my dad had stabilized our income stream and to help out others, he was hiring my friends' dads for odd house work. One of them built a new closet in our guest room. Another one did some landscaping in our backyard. I will forever be so proud of my parents, because in a time of need, even when I have no doubt money was still tight, they had the mindfulness and compassion to help out those who absolutely needed it. + +To Melvin Capital: you stand for everything that I hated during that time. You're a firm who makes money off of exploiting a company and manipulating markets and media to your advantage. Your continued existence is a sharp reminder that the ones in charge of so much hardship during the '08 crisis were not punished. And your blatant disregard for the law, made obvious months ago through your (for the Melvin lawyers out there: alleged) illegal naked short selling and more recently your obscene market manipulation after hours shows that you haven't learned a single thing since '08. And why would you? Your ilk were bailed out and rewarded for terrible and illegal financial decisions that negatively changed the lives of millions. I bought shares a few days ago. I dumped my savings into GME, paid my rent for this month with my credit card, and dumped my rent money into more GME (which for the people here at WSB, I would not recommend). And I'm holding. This is personal for me, and millions of others. You can drop the price of GME after hours $120, I'm not going anywhere. You can pay for thousands of reddit bots, I'm holding. You can get every mainstream media outlet to demonize us, I don't care. I'm making this as painful as I can for you. + +To CNBC: you must realize your short term gains through promoting institutions' agenda is just that - short term. Your staple audience will soon become too old to care, and the millions of us, not just at WSB but every person affected by the '08 crash that's now paying attention to GME, are going to remember how you stuck up for the firms that ruined so many of us, and tried to tear down the little guys. I know for sure I'll remember this. In response, here is a [list of CNBC sponsors and partners](https://www.cnbcevents.com/sponsors/). They include, but are not limited to, **IBM**, **Cisco**, **TMobile**, **JPMorgan**, **Oracle**, and **ZipRecruiter**. Their parent company is [NBCUniversal](https://en.wikipedia.org/wiki/NBCUniversal), owned by **Comcast** and **GE**. + +To the boomers, and/or people close to that age, just now paying attention to these "millennial blog posts": you realize that, even if you weren't adversely effected by the '08 crash, your children and perhaps grandchildren most likely were? *We're not enemies, we're on the same side*. Stop listening to the media that's making us out to be market destroyers, and start rooting for us, because we have a once in a lifetime opportunity to punish the sort of people who caused so much pain and stress a decade ago, and we're taking that opportunity. Your children, your grandchildren, might have suffered as I described because of the institutions that we're fighting against. You really want to choose them, over your own family and friends? We're not asking you to risk your 401k or retirement fund on a single GME bet. We're just asking you to be understanding, supportive, and to not support the people that caused so much suffering a decade ago. + +To WSB: you all are amazing. I imagine that I'm not the only one that this is personal for. I've read myself so many posts on what you guys went through during the '08 crash. Whether you're here for the gains, to stick it to the man as I am, or just to be part of a potentially market changing movement - thank you. Each and every one of you are the reason that we have this chance. I've never felt this optimistic about the future before. This is life changing amounts of money for so many of you, and to be part of a rare instance of a wealth distribution from the rich to the poor is just incredible. I love you all. + +&#x200B; + +&#x200B; + +Note: I can't seem to get a hold of mods and they keep fucking removing the post. I have no idea how to get this to stick and its important to me that the people I'm addressing read it. +Tiny tiny apartment, 1bed $525pw in inner city Sydney. Lift had already made a few trips up, about 30 more people upstairs... I guess this was undervalued by about $75-100. +Honest question. + +Where is all the money? I hear nothing but bad news about financial crisis all over the world, and it seems that there is a shortage of cash - like it is some sort of natural resource. + +People haven't stopped buying stuff. They still need food, clothing, medicine, shelter. Taxes are still collected. Fines are still levied. + +So where is all the money? I mean, labor has been produced to make things and wages paid to the laborers. The things are purchased by other laborers, who were paid for producing goods or services, etc. It's a closed loop, right? + +Can someone explain it like I'm five or something? +I honestly didn't know how to answer the question (despite my family from being from there). I had a couple go to answers such as corruption, exploitation, and bad leaders. But why is it that countries with a lot of resources and donations can perpetually be poor? +I hang with you guys, not the YOLO's at r/WSB, but I'm reading tonight and they're all convinced that the crazy run on GME is just starting (they're also high on BB). + +Maybe I'm just feeling a little FOMO, but I have some FU money and thinking about throwing some money at GME and BB next week just for the rush. Anyone else thinking about it? +Feel free to check your area's Living wage; this is the same [calculator](https://livingwage.mit.edu/) used in "The Fight for $15", which started in 2012. [CHECK RENTS HERE](https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2022_code/select_Geography.odn) \*\* + +Adjusting for [inflation](https://www.bls.gov/data/inflation_calculator.htm) in 2012, $15 is about $19.40 today. However, the cost of housing and other expenses has outpaced inflation and wage growth. [Productivity](https://fred.stlouisfed.org/series/OPHNFB) has tripled since 1970, yet we have lower living standards, and the [birth rate is plummeting as a result](https://en.wikipedia.org/wiki/Demographics_of_the_United_States). + +[Living Wage Calculation for New York-Newark-Jersey City, NY](https://livingwage.mit.edu/metros/35620) \- I live in Manhattan, so the $26 is the minimum for me, but in an area with over 15 million people, it is still well above $20/hr + +[Living Wage Calculation for Bronx County, New York](https://livingwage.mit.edu/counties/36005) \- I grew up here, In one of the poorest areas in the united states; a one-bedroom now costs $2,000/mo. Without social safety nets, an individual can't support oneself or live within a two-hour commute of the city center. How is this economic model sustainable? If you use the inflation [calculator](https://www.bls.gov/data/inflation_calculator.htm) and this [data](https://www.huduser.gov/portal/datasets/fmr/fmrs/histsummary.odb?inputname=5600.0*New+York%2C+NY+PMSA) and compare it with [this](https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2022_code/select_Geography.odn), you can see rent has outpaced inflation. + +MIT Research states explicitly: + +>[The living wage model does not allow for what many consider the basic necessities enjoyed by many Americans. It does not budget funds for pre-prepared meals or those eaten in restaurants. It does not include money for unpaid vacations or holidays. Nor does it provide money income to cover unexpected expenses such as a sudden illness, a major car repair, or the purchase of a household appliance such as a refrigerator. Lastly, it does not provide a financial means for planning for the future through savings and investment or for the purchase of capital assets (e.g. provisions for retirement or home purchases).](https://livingwage.mit.edu/resources/Living-Wage-Users-Guide-Technical-Documentation-2022-05-10.pdf) + +This is literally only enough money to not be homeless, starve or die from preventable disease. The barest of the bare minimums. +Tiny tiny apartment, 1bed $525pw in inner city Sydney. Lift had already made a few trips up, about 30 more people upstairs... I guess this was undervalued by about $75-100. +***Trigger warning: This will likely be the "deepest" post ever in /CryptoMoonShots*** + +I fully expect to get /rekt and flamed for posting this here, but I like to think there are some intelligent people here trying to make $$ + +This project has been talked a lot about over the past week (website here: [https://beyond.link](https://beyond.link/)). They claim to be able to use blockchain to make hacks "probabilistically impossible," and from there, allow us to feel comfortable about allowing our devices to "open up." Developers can then build never-before-possible apps on top of the growing universe of newly opened devices. The App Store gave us Uber and Instacart. Beyond Protocol's Mega App Store will give us a world of use cases we would never have thought to create. If their claims are legitimate, they are truly stewarding us to technological singularity. + +In their Telegram group last night, a community member named Alex posed a question about why the project bills itself as the "ethical language of machines." He mentioned how a puppy or child has more of a sense of morality than the smartest AI, so how could machines be ethical? Here's what Jonathan Manzi, Beyond Protocol's CEO, said (\*epiphany moment\*): + +>We often think about how distributed ledger technology is a perfect defense against dystopian/rogue AI. Blockchain would allow for a consensus to be reached before AI takes a destructive developmental turn. + +So what do you think? Is this the most meaningful application of blockchain technology yet? It was asked on this subreddit whether Beyond Protocol would be the next top 3 coin. I wonder, will this be the loom which weaves together the new world. +Braille Battery is a battery-manufacturing and energy storage company that I believe is overlooked and undervalued. + +**BACKGROUND** + +* The company offers battery storage solutions to various industries including, but not limited to, motorsport, transportation and UAVs. +* The leader in ultra-lightweight Lithium-Ion high-performance batteries. +* Sold the world’s first and only AGM carbon fibre race batteries. The entire selection is also part of their “Green Start” line of Eco-minded batteries. +* Used exclusively in Indycar, DTM and more. They also are a supplier to top teams in NASCAR, Formula 1, etc. +* The products are available through a variety of online distributors in the U.S., overseas and at some specialty retail outlets. Shop now: [https://braillebattery.com/](https://braillebattery.com/) + +**THE NUMBERS** + +* Current price: 0.3650 +* 47.76M shares outstanding +* Market cap: 17.3M +* Announced on February 3 that the company has entered into debt settlement agreements. +* Announced today the grant of 3,000,000 incentive stock options to its directors, officers, and consultants at an exercise price of $0.23625 per share and expire on February 8, 2026. +* 2020 fiscal was their best year with a 85% improvement in their bottomline and 20% increased revenues with margins projected to grow in 2021. + +**CATALYST** + +* Rumoured that there will be a TESLA partnership. +* Personally, I believe they will be powering the future. + +The company wants to expand into a wider range of market segments with its industry-leading products which I think will set them apart from their competitors —which in my opinion, they have none—. As well, they already have an impressive list of clients and distributors. All of this will be reflected in their share price and I'm excited to see what will happen. Let me know what you guys think but this is a long-term hold for me. + +**SOURCE:** [http://www.brailleenergysystemsinc.com/index.html](http://www.brailleenergysystemsinc.com/index.html) + +**EDIT:** 1,428 shares @ 0.35 +Hey guys, I’ve had a few comments on reddit and instagram to explain the ATH (all time high) breakout trades I take on a daily basis and so here it is. + +I’m a full time trader and I hope you guys find this helpful. + +To explain this in great detail would take hours upon hours however I’ve wrote up a simplified description to make it digestible. + +“We do not trade ideas we trade set ups” + +As professional traders you should not be trading ideas, you should be trading sets ups. Something that you can measure, replicate, improve upon and learn from. Not random events. + +Here’s an example of how a novice traders mind may work: + +You see an article pop up about a Tesla car that was on auto pilot and crashed into a stationary car causing injury to both the driver and the passenger. Your instant thoughts are “This could effect Tesla’s stock price” and you put it on your watchlist for the day. Now the issue with this is this the specific event Is not measurable. The way in which the stock reacts will be random and you won’t be able to use the stats for any other trades. Making the event a coin flip and therefore a gamble. + +Focus on set ups not ideas. It’s ok to have an idea for the set up but the set up HAS TO BE THERE. + +Now lets get straight to it. + +What is an all time high breakout? + +1. The answer is simple. This is when a stock breaks out into a new ATH. + +Why is this such a good set up to take? + +1. Because everybody who’s EVER brought the stock is now in the GREEN “no reason to sell” and everybody who’s shorting the stock is now red “May look to cover” + +Here’s how it works: + +A lot of professional traders, myself included, love the all time high break outs for many reasons. The main being the explosive moves it can often provide. Due to this a lot of day traders, swing traders, investors, funds and algorithms will monitor the market for these potential plays. Meaning they’re often on the buying side. This is why you can see what appears to be a stock doing very little yet the moment it trickles over it’s previous ATH high it can rally for days. + +It’s called “buying the breakout” + +You see the market is run on mostly Human emotion, we know this but very few understand how that works. + +The reason most people lose money in the market is they are untrained and do not have the discipline to handle their own barbaric emotions. + +Here’s why that’s important. + +For this example we’ll call the company $STONKS it’s been on the market for 3 years and it’s current all time high is $10. Some bad news comes out and the stock gaps down to $8 causing people to panic sell and the stock to drop even further. Over the next 12 months it drops to a low of $5 until finally reclaiming to today at $9.90. It’s been consolidating between $9 and $9.90 for 10 days. + +For the past year there has been a lot of people bag holding. Those who brought at the previous all time high have seen their investment drop by 50% and slowly recover. In between this time a lot of people have cut their loses, some have averaged down, new investors have “brought the dip” and we’re now back to where we was a year ago. + +Now we have a few things at play here. + +1. Those who rode through the entire year, the 50% drop and who haven’t sold now at break even clearly have no intention to sell. +2. Out of those who brought the dip some will have sold and some and still holding onto their shares even though the price has been stagment the past 10 days. +3. For the past 10 days people have been buying consistently and have been paying $9 or above for the stock. Showing a growing interest and price acceptance at these prices. +4. People who shorted the stock are now either at break even or at a loss. +5. Anybody new who wants to purchase some shares has currently got to pay all time high prices. + +The longer we consolidate at these price the more powerful the move can become, why you ask? + +Because it has more chance of the float being rotated. Understand that the first time $STONKS went up to $10 1 year ago the average price paid by an investor may have been $3 which meant a lot of profit taking occurred. When the bad news hit a lot of those investors jumped ship. Causing more supply than demand and therefore the price to drop. + +Fast forward to today and the longer it consolidates above $9 the high the AVG price held will be. When this happens the buyers are literally sitting on basically no loss nor no gain giving them no reason to sell. + +For those unaware, if you short a stock the only way to get out for a loss is to cover your position. This in turn means “buying the stock”. Creating more buying pressure. Short positions will often risk in this scenario the all time high. Meaning if it breaks they start to cover. If they start to cover it increases buying pressure and with buying pressure increasing the stock moves up (extremely simple explanation). + +So we as traders recognise the stock is setting up for an ATH breakout and here’s what we do. + +We decide we want to risk $2,000 in the stock. + +We buy $500 worth at 9.20 known as a starter position and we wait. + +A week goes by and it’s still chopping between this range. A press release then comes out (a bullish catalyst). The market opens are $STONKS see’s a huge 15 minute candle at open. The largest amount of volume it’s seen in months. On that volume it breaks $10 and instantly jumps to $10.50. + +We managed to get our other $1,500 in at $10.20 bringing our average to roughly $9.90 a share. We move our stop loss to below the previous ATH with some breathing room AKA $9.50/share. + +Everybody who now has shares in this stock prior to today is in the green, they’re estactic. Those who held through the entire past year and refused to sell are now mentioning how they’re in profit on an investment they made to work colleagues. + +Short positions are now aware there’s no resistance and start covering “buying shares”. FOMO buyers who are “trading the news” (not a set up ;) ) are now buying in. Professional swing traders are buying the break out, day traders are buying the opening drive. Everybody is buying.. + +The stock closes at $12 marking a 25% daily gain. Barrons, CNBC, MSN all post above how $STONKS rallied into ATH due to X,Y,Z + +The following morning the stock gaps up. People are hyped, pre market goes wild and opens at $16. + +We instantly sell half… + +The stock is extremely extended as new investors flurry in, we sell them some more. There’s now 25% left of our original investment. + +We move our stop loss under PM support and go to focus on the next set up. The same set up. Something we can measure. Something we take day in day out. + +If the stock goes to 20 then we don’t get annoyed we could have missed out on further profits as it wasn’t our trade. + +The stock taps 20, massive selling occurs and settles around 14. Where it stays for months, consolidationg. Meanwhile, we’re just waiting for it to once again set up. + +So how do I find these trades? + +I use trading view, I create a list of sectors such as EVs, Solar, Tech, AI etc etc and I scan through each day. Literally just flick through. Is the stock near it’s ATH? If not, I go to the next and the next. + +My indicators are as follows. + +Volume Profile, RSI (for the daily only) + +That’s it. + +If you master just this single set up you can make money consistently. Why? Because it’s measurable, you can improve upon it. You can learn from each event but most importantly you have a set plan where the market is in your favour for the outcome to work. Never under estimate human emotion. + +I post all my trades on Instagram at the moment but I’ll look into posting my watchlist here too if it’ll help you guys. + +Feel free to ask questions. +I am a 33 years old female. Unfortunately, lost my father in 2010 and my mother in Sept this year. Both died unexpectedly.  + +While the focus in general when someone dies is on "emotional grieving", I cannot explain how much "financial grieving" we have had to go through to just get the claims processed. + + +My father was 58, was working as a senior manager in a Govt organization. Unfortunately, all the assets were in single name, no nominee. We had just got a house on loan (that had no insurance, in single name). My mother's name in Pension nominee was not correct. Our accounts were frozen, plus pension amounts were not released till a year. I can describe in detail how much running around we had to do, but long story short, we could got everything sorted only after 1-2 years and after going through Hiership process. + + +My mother and I learnt from the mistakes, and ensured everything had a nominee or was in joint account. After my mother passed away, I was like - "it will be better than what we faced during my father's time". But, no - I was wrong.  + +Even though things have moved online, so many of the processes remain same.  + +One would not believe, but my mother's favourite bank (India nationalized bank ofcourse), has not processed the claim since last 2 months despite me being the nominee for the accounts. Their response is - "The bank account has more than 2 lakhs, so you need to get indemity, affidavit, my brother (legal heirs' pan and aadhar). And what they have done is to freeze all the accounts (including the ones that are joint). So, I cannot even get the money from the joint accounts.  + + +I can go on and on for each bank, insurance company, mutual fund, pension office, demat and trading account but I hope you all are getting the point.  + + +Why am I writing this? + +1. My parents were both scientists, and I am an MBA+Engineer by profession. We have had fairly decent understanding of finance, but we still suffered. After going through the same churn twice, I realized I would not be alone. There should be so many others going through the same cycle without questioning the hardships or the processes. + + +2. I feel I am lucky enough to be in the "net positive" zone that I do not really need the money immediately. What about others who would be needing the money but they would be in so much distress? Especially after Covid. + + +3. All these fancy new apps like - Groww, Scripbox etc, just focus on the account opening and getting the money. And there is no concept of Nominee (or at least I could not find it out there on the app). There would be so many people (like me) who have invested, but when they pass away, their relatives would be in distress. And I am not even talking about cryptocurrency here. + + +What I think should be done? + +1. Death Claim processes should be easier, faster and online. Point blank. This should be across banks, Insurance corporations, Property, mutual funds, demat and trading accounts etc. + + +We can get food in 30 min in India, but a death claim takes more than a month typically. And in my case, it has taken 1-2 years for my father's assets to get sorted. + + +2. There needs to be a directive from RBI to make sure banks follow a common and simple procedure (and not harass people). RBI should mention the list of documents in case of nominee, no nominee cases. It should not be bank/financial institution dependent. While I saw a RBI directive, it was a 2005 directive - and I do not see it being actioned well. Reserve Bank of India - Notifications (rbi.org.in) + + +3. Nominee should be made compulsory across banks, Insurance corporations, Property, mutual funds, demat and trading accounts etc. Just like PAN to Aadhar linkage :) + + +4. The whole process for hiership certificate and 6-8 months long period should be shortened. + + +5. Financial planning should also involve education about death claim process. + + +Suggestions are most welcome on how can we solve this. Beyond doubt, I cannot do this alone, and I am looking for help for the broader community.   + + +Lastly, for youngsters and for oldies who are reading this - I want to make sure that my grief helps you in some way. Please get your finances fixed. It is okay for the money to grow at 4%, but not okay if your family cannot access it after you are gone.   + +This is a 4 am rant so if you do not find it useful, please ignore. + +thanks +You hear about the kid who put in $500 into a memecoin and made 100k, but you don't hear about the hundreds who put $1000 and are left with $0.1 + +You also don't hear about the guys who put $10,000 but cant cash out because these memecoins have no liquidity. + +Don't beat yourself up for missing out. + +Survivorship bias is a dangerous thing. +I hold an RBL Bank Credit Card along with a couple of others. + + +Today, I got a call from a mobile number 6391504865. The person was speaking fluent English and claimed to be from the RBL Bank. He asked me - at the time of getting the card whether I was told if this card is lifetime free or there will be a joining fee. Then he asked if I was actually given the credit limit which I was told. Till this point, I answered the questions. + +Then he told me that the bank is offering me a credit limit increase of 1 lakh if I want. And then asked - "Please confirm if the PAN number I am telling is correct." Then he told me my correct PAN number. He further proceeded saying that he was sending an OTP which should be shared with him for authorisation of this limit increase. Here comes the scary part. I received an OTP from the legit RBL messaging service (VK-RBLBNK) from which I usually receive the transaction messages. The content of this SMS was as following: + +“234567 is OTP (one time password) for updating your RBL Bank Credit Card settings.” + +Just to ensure that this is indeed a fraud, I asked him to tell me my existing card limit before I share the OTP. He couldn't answer it well and started beating around the bush. I told him unless the SMS mentions that this OTP is for credit card limit increase, I will not share the OTP. I asked him to send me an email from his RBL email id about this. He said yes and hung up the phone. +*** +From my personal experience of credit cards in the past, whenever there is credit limit increase offer, the banks usually let you know this by + +1) SMS - Then they ask us to send YES/NO in some format to a specified number to accept/reject the offer. + +2) The net banking/mobile banking account displays the alert about the offer. Then you yourself accept or reject the offer. + +3) If you yourself call the customer support helpline for some issue and you get to know that there is an offer for credit limit increase. Even on the phone if they have never asked for an OTP. + +Till date, I have never needed to share an OTP for a credit card limit increase. + +To further confirm that it was a fraud, I called the RBL Customer Support and connected with the fraud department. They told me that there is no offer on your card and the call which I received was definitely a fraud call. + +So this caller was a sophisticated caller/hacker who had access to my RBL Bank Credit Card data by which he was able to tell me the correct PAN and able to generate the OTP -possibly for a fraudulent withdrawal transaction from my card. Truecaller showed the number’s location as Uttar Pradesh. + +On extensive googling around this, I was able to locate this article which elaborates the exact same fraud which I experienced. The victim was also an RBL card holder. + +[Chandigarh cyber cell arrests 2 hackers for stealing credit card details](https://nationnews.in/chandigarh-cyber-cell-arrests-2-hackers-from-delhi-ncr-for-stealing-credit-card-details-credit-card-and-payment-gateway-recovered-from-their-possession/) +*** +Please beware of the calls you receive from people claiming from banks. Reverse check with the caller by asking them if they know your additional details. If they are unable to answer it, then it’s definitely a fraud. + +The best safety is to never share any kind of OTP with anyone. + +P.S. + +1) There is a series called [Jamtara](https://www.youtube.com/watch?v=GoXd_sESBBI) on Netflix which explored such scamming and phishing which takes place in India. + +Jamtara is a city from Jharhand. It is nicknamed the phishing capital of India. It got this title because there were numerous incidents of phishing across country whose centre point was this small town. + +2) **Just to ensure full safety and peace of mind, when I was talking to the fraud department of the customer support, with their help, I immediately blocked the credit card and requested a replacement.** + **Mods do not delete, this is important to me, please read** + +&#x200B; + +I was in my early teens during the '08 crisis. I vividly remember the enormous repercussions that the reckless actions by those on Wall Street had in my personal life, and the lives of those close to me. I was fortunate - my parents were prudent and a little paranoid, and they had some food storage saved up. When that crisis hit our family, we were able to keep our little house, but we lived off of pancake mix, and powdered milk, and beans and rice for a year. Ever since then, my parents have kept a food storage, and they keep it updated and fresh. + +Those close to me, my friends and extended family, were not nearly as fortunate. My aunt moved in with us and paid what little rent she could to my family while she tried to find any sort of work. Do you know what tomato soup made out of school cafeteria ketchup packets taste like? My friends got to find out. Almost a year after the crisis' low, my dad had stabilized our income stream and to help out others, he was hiring my friends' dads for odd house work. One of them built a new closet in our guest room. Another one did some landscaping in our backyard. I will forever be so proud of my parents, because in a time of need, even when I have no doubt money was still tight, they had the mindfulness and compassion to help out those who absolutely needed it. + +To Melvin Capital: you stand for everything that I hated during that time. You're a firm who makes money off of exploiting a company and manipulating markets and media to your advantage. Your continued existence is a sharp reminder that the ones in charge of so much hardship during the '08 crisis were not punished. And your blatant disregard for the law, made obvious months ago through your (for the Melvin lawyers out there: alleged) illegal naked short selling and more recently your obscene market manipulation after hours shows that you haven't learned a single thing since '08. And why would you? Your ilk were bailed out and rewarded for terrible and illegal financial decisions that negatively changed the lives of millions. I bought shares a few days ago. I dumped my savings into GME, paid my rent for this month with my credit card, and dumped my rent money into more GME (which for the people here at WSB, I would not recommend). And I'm holding. This is personal for me, and millions of others. You can drop the price of GME after hours $120, I'm not going anywhere. You can pay for thousands of reddit bots, I'm holding. You can get every mainstream media outlet to demonize us, I don't care. I'm making this as painful as I can for you. + +To CNBC: you must realize your short term gains through promoting institutions' agenda is just that - short term. Your staple audience will soon become too old to care, and the millions of us, not just at WSB but every person affected by the '08 crash that's now paying attention to GME, are going to remember how you stuck up for the firms that ruined so many of us, and tried to tear down the little guys. I know for sure I'll remember this. In response, here is a [list of CNBC sponsors and partners](https://www.cnbcevents.com/sponsors/). They include, but are not limited to, **IBM**, **Cisco**, **TMobile**, **JPMorgan**, **Oracle**, and **ZipRecruiter**. Their parent company is [NBCUniversal](https://en.wikipedia.org/wiki/NBCUniversal), owned by **Comcast** and **GE**. + +To the boomers, and/or people close to that age, just now paying attention to these "millennial blog posts": you realize that, even if you weren't adversely effected by the '08 crash, your children and perhaps grandchildren most likely were? *We're not enemies, we're on the same side*. Stop listening to the media that's making us out to be market destroyers, and start rooting for us, because we have a once in a lifetime opportunity to punish the sort of people who caused so much pain and stress a decade ago, and we're taking that opportunity. Your children, your grandchildren, might have suffered as I described because of the institutions that we're fighting against. You really want to choose them, over your own family and friends? We're not asking you to risk your 401k or retirement fund on a single GME bet. We're just asking you to be understanding, supportive, and to not support the people that caused so much suffering a decade ago. + +To WSB: you all are amazing. I imagine that I'm not the only one that this is personal for. I've read myself so many posts on what you guys went through during the '08 crash. Whether you're here for the gains, to stick it to the man as I am, or just to be part of a potentially market changing movement - thank you. Each and every one of you are the reason that we have this chance. I've never felt this optimistic about the future before. This is life changing amounts of money for so many of you, and to be part of a rare instance of a wealth distribution from the rich to the poor is just incredible. I love you all. + +&#x200B; + +&#x200B; + +Note: I can't seem to get a hold of mods and they keep fucking removing the post. I have no idea how to get this to stick and its important to me that the people I'm addressing read it. +So Daron Acemoglu (and 2 other economists) wrote a paper titled "Can't We All Be More Like Scandinavia" in which they argued that countries with "cuddly capitalism" (countries with generous welfare states) free ride on countries with "cutthroat capitalism" (countries that don't have very generous welfare states) because the latter has longer working hours and more incentives for innovation while the former has less. + +They essentially say that innovation from "cutthroat capitalist" countries has a positive externality that benefits "cuddly capitalist" countries. + +Their answer to the question overall is no, because (according to them) if everyone became like Scandinavia, then global growth rates would decrease due to less innovation. + +Here's their paper: https://scholar.harvard.edu/files/jrobinson/files/varieties_of_capitalism_april_9_2013.pdf + +Is this true? + +From what I know, voxeu responded to this paper and argued that Scandinavian countries may actually be MORE innovative when measuring triadic patents and other metrics like R&D, venture capital, researchers per 1000 people employed, etc. + +Here's their response: https://voxeu.org/article/nordic-innovation-cuddly-capitalism-really-less-innovative + +But if I'm being blunt, I'm a layman when it comes to economics and thus im not very smart in this field. I felt way out of my depth reading these 2. + +So I was hoping for your guys' insight because I'm not sure what the consensus is. Thank you very much ! :)) +Obligatory: This is not to brag, but more a gratitude post for all the help over the years from people in this sub, and other mentors. Also, there are very few people in my circle outside of my wife and a few core friends that I'm able to share this with. + +Five years ago (2016), at the age of 23, I got my first taste of real estate. I purchased a single family home. A little 1300 sq. ft. house, with 4 bedrooms, and 2 bathrooms. I lived in the master suite, and rented out the three extra bedrooms to my buddies. I lived completely for free, which was a miracle as I was living paycheck-to-paycheck, and had a net worth of -$50k (student loans, CCs, and car loan). Little did I know that this even had a coined term -- "house hacking". + +Two years later, my life had changed quite a bit. I was getting married, and rather than keeping that home as a rental, my wife and I decided that we would kick out the roommates, and sell the house to pay off debt, and move into her home. When my house sold, I stood in awe, holding a check for $40k -- the same amount as my entire year's salary. Not only did I get to live completely for free for two years, I made $40k. I thought to myself, "I've got to do this again." + +That $40k paid off all of my remaining student loans, and all of my credit cards. With the money we had leftover ($25k), we rolled the remaining into our first rental property. We started attending our local REIA, networked, and made connections. + +The first rental rolled into a duplex. And then the duplex rolled into a fourplex. Then we snagged another single family property. We did our first BRRRR deal. Then we found a great deal on a commercial property. We tried GC'ing a home on our own. And then we tried an AirBnb. We've used every type of financing under the sun: FHA, Conventional, HELOC, Seller Financing, 401k Loans, Hard Money, and Cash-out Refi's. Little by little, just with consistency and patience, we've been able to build a nice little portfolio of 9 properties and 20 units. + +Our current NW consists of: + +Cash - $37k +RE Equity - $889k +Vehicles/Toys - $112k + +It's a really cool feeling to be able to say "I'm a millionaire." It's a fun milestone to hit, yet at the same time, feels very small now when I look at other investors with insane net worths. Regardless, I'm really pleased and grateful with what we've been able to achieve in just a few short years. We're on track to hit $1.2M or $1.3M by the end of the year. + +Of course, a lot of the credit goes to being privileged, as well. I realize that I won the lottery by being born into a white, middle-class family, in America. I never grew up hungry, and both of my parents were well-educated with college degrees. I'm grateful for my upbringing and know that this absolutely has attributed to our success. + +Anyway, I think the whole point of this post is to say that it's easy to look at others and compare and see what they have. But it's amazing how 4-5 years of consistency and hard work with laser focus can truly change your life. + +I have SO much to learn, but finally feel that I sort of have a decent "hang" of it. I love RE. I still work a 9-5 (mostly because it's easier to qualify for loans with a W2), but have a goal to quit by my 30th birthday. Onto the next million! +⚠️⚠️⚠️ ***DON'T BUY SILVER, IT'S A TRAP***⚠️⚠️⚠️ + +They're talking on CNBC as if people on Reddit are actually squeezing silver. It's fucking absurd, they're practically encouraging it. + +They're like, "Wow, these redditors are squeezing silver, how cool" actually fucking encouraging it. + +Literally scum + +Edit: Should have mentioned, it's literally fucking impossible to squeeze silver. It's not shorted at all. Hedge funds and Citadel hold lots of Long positions in it, not shorts. Buying it would be playing right into their hands. + +Buying silver will make you likely lose money and absolutely give it to the hedge funds and Citadel. + +By Silver, I mean $SLV, *I know nothing about phisical silver*. For anybody confused + +Edit 2: If you bought $SLV months or years ago and made a profit, that's fantastic. This post is just saying that you should not buy silver right now. + +This isn't financial advice, I am mentally challenged +What? What if anything do I do about this? Honestly would’ve rather had the money stay in my check rather than frivolously spending 100 dollars I though was extra. Wtf? Not sure if this is the right sub but any suggestions on how I handle this would be appreciated. +Obligatory: This is not to brag, but more a gratitude post for all the help over the years from people in this sub, and other mentors. Also, there are very few people in my circle outside of my wife and a few core friends that I'm able to share this with. + +Five years ago (2016), at the age of 23, I got my first taste of real estate. I purchased a single family home. A little 1300 sq. ft. house, with 4 bedrooms, and 2 bathrooms. I lived in the master suite, and rented out the three extra bedrooms to my buddies. I lived completely for free, which was a miracle as I was living paycheck-to-paycheck, and had a net worth of -$50k (student loans, CCs, and car loan). Little did I know that this even had a coined term -- "house hacking". + +Two years later, my life had changed quite a bit. I was getting married, and rather than keeping that home as a rental, my wife and I decided that we would kick out the roommates, and sell the house to pay off debt, and move into her home. When my house sold, I stood in awe, holding a check for $40k -- the same amount as my entire year's salary. Not only did I get to live completely for free for two years, I made $40k. I thought to myself, "I've got to do this again." + +That $40k paid off all of my remaining student loans, and all of my credit cards. With the money we had leftover ($25k), we rolled the remaining into our first rental property. We started attending our local REIA, networked, and made connections. + +The first rental rolled into a duplex. And then the duplex rolled into a fourplex. Then we snagged another single family property. We did our first BRRRR deal. Then we found a great deal on a commercial property. We tried GC'ing a home on our own. And then we tried an AirBnb. We've used every type of financing under the sun: FHA, Conventional, HELOC, Seller Financing, 401k Loans, Hard Money, and Cash-out Refi's. Little by little, just with consistency and patience, we've been able to build a nice little portfolio of 9 properties and 20 units. + +Our current NW consists of: + +Cash - $37k +RE Equity - $889k +Vehicles/Toys - $112k + +It's a really cool feeling to be able to say "I'm a millionaire." It's a fun milestone to hit, yet at the same time, feels very small now when I look at other investors with insane net worths. Regardless, I'm really pleased and grateful with what we've been able to achieve in just a few short years. We're on track to hit $1.2M or $1.3M by the end of the year. + +Of course, a lot of the credit goes to being privileged, as well. I realize that I won the lottery by being born into a white, middle-class family, in America. I never grew up hungry, and both of my parents were well-educated with college degrees. I'm grateful for my upbringing and know that this absolutely has attributed to our success. + +Anyway, I think the whole point of this post is to say that it's easy to look at others and compare and see what they have. But it's amazing how 4-5 years of consistency and hard work with laser focus can truly change your life. + +I have SO much to learn, but finally feel that I sort of have a decent "hang" of it. I love RE. I still work a 9-5 (mostly because it's easier to qualify for loans with a W2), but have a goal to quit by my 30th birthday. Onto the next million! +Hi all. + +* I wrote a **simple guide for novice value investors**. It takes things step-by-step so you don't get lost: [http://lucid-finance.com/2021/07/17/a-complete-guide-to-value-investing-for-novice-investors/](http://lucid-finance.com/2021/07/17/a-complete-guide-to-value-investing-for-novice-investors/) +* **Want quick, digestible summaries of market news + occasional value picks?** Go to [https://johanlunau.substack.com](https://johanlunau.substack.com). 560+ subscribers. + +I hope these help you on your journey. This community is fantastic if you avoid the hive mind, and feel free to get in touch! +⚠️⚠️⚠️ ***DON'T BUY SILVER, IT'S A TRAP***⚠️⚠️⚠️ + +They're talking on CNBC as if people on Reddit are actually squeezing silver. It's fucking absurd, they're practically encouraging it. + +They're like, "Wow, these redditors are squeezing silver, how cool" actually fucking encouraging it. + +Literally scum + +Edit: Should have mentioned, it's literally fucking impossible to squeeze silver. It's not shorted at all. Hedge funds and Citadel hold lots of Long positions in it, not shorts. Buying it would be playing right into their hands. + +Buying silver will make you likely lose money and absolutely give it to the hedge funds and Citadel. + +By Silver, I mean $SLV, *I know nothing about phisical silver*. For anybody confused + +Edit 2: If you bought $SLV months or years ago and made a profit, that's fantastic. This post is just saying that you should not buy silver right now. + +This isn't financial advice, I am mentally challenged +Hi guys, + +I have been using reddit for years in my personal life (not trading!) and wanted to give something back in an area where i am an expert. + +I worked at an investment bank for seven years and joined them as a graduate FX trader so have lots of professional experience, by which i mean I was trained and paid by a big institution to trade on their behalf. This is very different to being a full-time home trader, although that is not to discredit those guys, who can accumulate a good amount of experience/wisdom through self learning. + +When I get time I'm going to write a mid-length posts on each topic for you guys along the lines of how i was trained. I guess there would be 15-20 topics in total so about 50-60 posts. Feel free to comment or ask questions. + +**The first topic is Risk Management and we'll cover it in three parts** + +**Part I** + +* Why it matters +* Position sizing +* Kelly +* Using stops sensibly +* Picking a clear level + +# Why it matters + +The first rule of making money through trading is to ensure you do not **lose** money. Look at any serious hedge fund’s website and they’ll talk about their first priority being “preservation of investor capital.”  + +You have to keep it before you grow it. + +Strangely, if you look at retail trading websites, for every one article on risk management there are probably fifty on trade selection. This is completely the wrong way around. + +The great news is that this stuff is pretty simple and process-driven. Anyone can learn and follow best practices. + +Seriously, avoiding mistakes is one of the most important things: there's not some holy grail system for finding winning trades, rather a routine and fairly boring set of processes that ensure that you are profitable, despite having plenty of losing trades alongside the winners. + +# Capital and position sizing + +The first thing you have to know is how much capital you are working with. Let’s say you have $100,000 deposited. This is your maximum trading capital. Your trading capital is not the leveraged amount. It is the amount of money you have deposited and can withdraw or lose. + +Position sizing is what ensures that a losing streak does not take you out of the market. + +A rule of thumb is that one should risk no more than 2% of one’s account balance on an individual trade and no more than 8% of one’s account balance on a specific theme. We’ll look at why that’s a rule of thumb later. For now let’s just accept those numbers and look at examples. + +So we have $100,000 in our account. And we wish to buy EURUSD. We should therefore not be risking more than 2% which $2,000.  + +We look at a technical chart and decide to leave a stop below the monthly low, which is 55 pips below market. We’ll come back to this in a bit. So what should our position size be?  + +We go to the calculator page, select Position Size and enter our details. There are many such calculators online - just google "Pip calculator". + +&#x200B; + +https://preview.redd.it/y38zb666e5h51.jpg?width=1200&format=pjpg&auto=webp&s=26e4fe569dc5c1f43ce4c746230c49b138691d14 + +So the appropriate size is a buy position of 363,636 EURUSD. If it reaches our stop level we know we’ll lose precisely $2,000 or 2% of our capital.  + +You should be using this calculator (or something similar) on every single trade so that you know your risk. + +Now imagine that we have similar bets on EURJPY and EURGBP, which have also broken above moving averages. Clearly this EUR-momentum is a theme. If it works all three bets are likely to pay off. But if it goes wrong we are likely to lose on all three at once. We are going to look at this concept of correlation in more detail later. + +The total amount of risk in our portfolio - if all of the trades on this EUR-momentum theme were to hit their stops - should not exceed $8,000 or 8% of total capital. This allows us to go big on themes we like without going bust when the theme does not work.  + +As we’ll see later, many traders only win on 40-60% of trades. So you have to accept losing trades will be common and ensure you size trades so they cannot ruin you. + +Similarly, like poker players, we should risk more on trades we feel confident about and less on trades that seem less compelling. However, this should always be subject to overall position sizing constraints. + +For example before you put on each trade you might rate the strength of your conviction in the trade and allocate a position size accordingly: + +&#x200B; + +https://preview.redd.it/q2ea6rgae5h51.png?width=1200&format=png&auto=webp&s=4332cb8d0bbbc3d8db972c1f28e8189105393e5b + +To keep yourself disciplined you should try to ensure that no more than one in twenty trades are graded exceptional and allocated 5% of account balance risk. It really should be a rare moment when all the stars align for you.  + +Notice that the nice thing about dealing in percentages is that it scales. Say you start out with $100,000 but end the year up 50% at $150,000. Now a 1% bet will risk $1,500 rather than $1,000. That makes sense as your capital has grown. + +It is extremely common for retail accounts to blow-up by making only 4-5 losing trades because they are leveraged at 50:1 and have taken on far too large a position, relative to their account balance.  + +Consider that GBPUSD tends to move 1% each day. If you have an account balance of $10k then it would be crazy to take a position of $500k (50:1 leveraged). A 1% move on $500k is $5k.  + +Two perfectly regular down days in a row — or a single day’s move of 2% — and you will receive a margin call from the broker, have the account closed out, and have lost all your money.  + +Do not let this happen to you. Use position sizing discipline to protect yourself. + +&#x200B; + +# Kelly Criterion + +If you’re wondering - why “about 2%” per trade? - that’s a fair question. Why not 0.5% or 10% or any other number? + +The Kelly Criterion is a formula that was adapted for use in casinos. If you know the odds of winning and the expected pay-off, it tells you how much you should bet in each round. + +This is harder than it sounds. Let’s say you could bet on a weighted coin flip, where it lands on heads 60% of the time and tails 40% of the time. The payout is $2 per $1 bet. + +Well, absolutely you should bet. The odds are in your favour. But if you have, say, $100 it is less obvious how much you should bet to avoid ruin.  + +Say you bet $50, the odds that it could land on tails twice in a row are 16%. You could easily be out after the first two flips.  + +Equally, betting $1 is not going to maximise your advantage. The odds are 60/40 in your favour so only betting $1 is likely too conservative. The Kelly Criterion is a formula that produces the long-run optimal bet size, given the odds. + +Applying the formula to forex trading looks like this: + +*Position size % = Winning trade % - ( (1- Winning trade %) / Risk-reward ratio* + +If you have recorded hundreds of trades in your journal - see next chapter - you can calculate what this outputs for you specifically. + +If you don't have hundreds of trades then let’s assume some realistic defaults of **Winning trade %** being 30% and **Risk-reward ratio** being 3. The 3 implies your TP is 3x the distance of your stop from entry e.g. 300 pips take profit and 100 pips stop loss. + +So that’s  0.3 - (1 - 0.3) / 3 = 6.6%. + +Hold on a second. 6.6% of your account probably feels like a LOT to risk per trade.This is the main observation people have on Kelly: whilst it may optimise the long-run results it doesn’t take into account the pain of drawdowns. It is better thought of as the rational maximum limit. You needn’t go right up to the limit! + +With a 30% winning trade ratio, the odds of you losing on four trades in a row is nearly one in four. That would result in a drawdown of nearly a quarter of your starting account balance. Could you really stomach that and put on the fifth trade, cool as ice? Most of us could not. + +Accordingly people tend to reduce the bet size. For example, let’s say you know you would feel emotionally affected by losing 25% of your account. + +Well, the simplest way is to divide the Kelly output by four. You have effectively hidden 75% of your account balance from Kelly and it is now optimised to avoid a total wipeout of just the 25% it can see. + +This gives 6.6% / 4 = 1.65%. Of course different trading approaches and different risk appetites will provide different optimal bet sizes but as a rule of thumb something between 1-2% is appropriate for the style and risk appetite of most retail traders. + +Incidentally be very wary of systems or traders who claim high winning trade % like 80%. Invariably these don’t pass a basic sense-check: + +* How many live trades have you done? *Often they’ll have done only a handful of real trades and the rest are simulated backtests, which are overfitted. The model will soon die.*  +* What is your risk-reward ratio on each trade? *If you have a take profit $3 away and a stop loss $100 away, of course most trades will be winners. You will not be making money, however!* In general most traders should trade smaller position sizes and less frequently than they do. If you are going to bias one way or the other, far better to start off too small. + +# How to use stop losses sensibly + +Stop losses have a bad reputation amongst the retail community but are absolutely essential to risk management. No serious discretionary trader can operate without them.  + +A stop loss is a resting order, left with the broker, to automatically close your position if it reaches a certain price. For a recap on the various order types visit this chapter. + +The valid concern with stop losses is that disreputable brokers look for a concentration of stops and then, when the market is close, whipsaw the price through the stop levels so that the clients ‘stop out’ and sell to the broker at a low rate before the market naturally comes back higher. This is referred to as ‘stop hunting’. + +This would be extremely immoral behaviour and the way to guard against it is to use a highly reputable top-tier broker in a well regulated region such as the UK. + +Why are stop losses so important? Well, there is no other way to manage risk with certainty. + +You should always have a pre-determined stop loss before you put on a trade. Not having one is a recipe for disaster: you will find yourself emotionally attached to the trade as it goes against you and it will be extremely hard to cut the loss. This is a well known behavioural bias that we’ll explore in a later chapter. + +Learning to take a loss and move on rationally is a key lesson for new traders. + +*A common mistake is to think of the market as a personal nemesis. The market, of course, is totally impersonal; it doesn’t care whether you make money or not.* + +*Bruce Kovner, founder of the hedge fund Caxton Associates* + +There is an old saying amongst bank traders which is “losers average losers”. + +It is tempting, having bought EURUSD and seeing it go lower, to buy more. Your average price will improve if you keep buying as it goes lower. If it was cheap before it *must* be a bargain now, right? Wrong. + +Where does that end? Always have a pre-determined cut-off point which limits your risk. A level where you know the reason for the trade was proved ‘wrong’ ... and stick to it strictly. If you trade using discretion, use stops. + +# Picking a clear level + +Where you leave your stop loss is key.  + +Typically traders will leave them at big technical levels such as recent highs or lows. For example if EURUSD is trading at 1.1250 and the recent month’s low is 1.1205 then leaving it just below at 1.1200 seems sensible.  + +&#x200B; + +[If you were going long, just below the double bottom support zone seems like a sensible area to leave a stop](https://preview.redd.it/y7cs0cn1f5h51.png?width=1200&format=png&auto=webp&s=81639093b28c5ed778f293f6ab47c25c7aa7d139) + +You want to give it a bit of breathing room as we know support zones often get challenged before the price rallies. This is because lots of traders identify the same zones. You won’t be the only one selling around 1.1200.  + +The “weak hands” who leave their sell stop order at exactly the level are likely to get taken out as the market tests the support. Those who leave it ten or fifteen pips below the level have more breathing room and will survive a quick test of the level before a resumed run-up. + +Your timeframe and trading style clearly play a part. Here’s a candlestick chart (one candle is one day) for GBPUSD. + +&#x200B; + +https://preview.redd.it/moyngdy4f5h51.png?width=1200&format=png&auto=webp&s=91af88da00dd3a09e202880d8029b0ddf04fb802 + +If you are putting on a trend-following trade you expect to hold for weeks then you need to have a stop loss that can withstand the daily noise. Look at the downtrend on the chart. There were plenty of days in which the price rallied 60 pips or more during the wider downtrend.  + +So having a really tight stop of, say, 25 pips that gets chopped up in noisy short-term moves is not going to work for this kind of trade. You need to use a wider stop and take a smaller position size, determined by the stop level. + +There are several tools you can use to help you estimate what is a safe distance and we’ll look at those in the next section. + +There are of course exceptions. For example, if you are doing range-break style trading you might have a really tight stop, set just below the previous range high.  + +&#x200B; + +https://preview.redd.it/ygy0tko7f5h51.png?width=1200&format=png&auto=webp&s=34af49da61c911befdc0db26af66f6c313556c81 + +Clearly then where you set stops will depend on your trading style as well as your holding horizons and the volatility of each instrument.  + +Here are some guidelines that can help: + +1. Use technical analysis to pick important levels (support, resistance, previous high/lows, moving averages etc.) as these provide clear exit and entry points on a trade. +2. Ensure that the stop gives your trade enough room to breathe and reflects your timeframe and typical volatility of each pair. See next section. +3. Always pick your stop level first. Then use a calculator to determine the appropriate lot size for the position, based on the % of your account balance you wish to risk on the trade. + +So far we have talked about price-based stops. There is another sort which is more of a fundamental stop, used alongside - not instead of - price stops. If either breaks you’re out. + +For example if you stop understanding why a product is going up or down and your fundamental thesis has been confirmed wrong, get out. For example, if you are long because you think the central bank is turning hawkish and AUDUSD is going to play catch up with rates … then you hear dovish noises from the central bank and the bond yields retrace lower and back in line with the currency - close your AUDUSD position. You already know your thesis was wrong. No need to give away more money to the market. + +# Coming up in part II + +[EDIT: part II here](https://www.reddit.com/r/Forex/comments/ibd24i/former_investment_bank_fx_trader_risk_management/) + +Letting stops breathe + +When to change a stop + +Entering and exiting winning positions + +Risk:reward ratios + +Risk-adjusted returns + +# Coming up in part III + +Squeezes and other risks + +Market positioning + +Bet correlation + +Crap trades, timeouts and monthly limits + +&#x200B; + +\*\*\* + +*Disclaimer:This content is not investment advice and you should not place any reliance on it. The views expressed are the author's own and should not be attributed to any other person, including their employer.* +You hear about the kid who put in $500 into a memecoin and made 100k, but you don't hear about the hundreds who put $1000 and are left with $0.1 + +You also don't hear about the guys who put $10,000 but cant cash out because these memecoins have no liquidity. + +Don't beat yourself up for missing out. + +Survivorship bias is a dangerous thing. +Doesn't matter where you go, I'm not going to suggest any brokers. However, there are a number of brokers you can find who didn't stop or limit trading on stocks. Having people post gains on the RH app gives new users a reason to give money to those scum thinking its the preferred app. When they gain new members and you own a stock like GME at a good broker it still fucks you in the end when they limit their clients ability to buy. Allowing RH posts is a negative for everyone, they can manipulate the market more and more the larger they get while knowing full well the SEC won't do a thing. I wasn't in on GME but it's a slippery slope. +Hey guys, I’ve had a few comments on reddit and instagram to explain the ATH (all time high) breakout trades I take on a daily basis and so here it is. + +I’m a full time trader and I hope you guys find this helpful. + +To explain this in great detail would take hours upon hours however I’ve wrote up a simplified description to make it digestible. + +“We do not trade ideas we trade set ups” + +As professional traders you should not be trading ideas, you should be trading sets ups. Something that you can measure, replicate, improve upon and learn from. Not random events. + +Here’s an example of how a novice traders mind may work: + +You see an article pop up about a Tesla car that was on auto pilot and crashed into a stationary car causing injury to both the driver and the passenger. Your instant thoughts are “This could effect Tesla’s stock price” and you put it on your watchlist for the day. Now the issue with this is this the specific event Is not measurable. The way in which the stock reacts will be random and you won’t be able to use the stats for any other trades. Making the event a coin flip and therefore a gamble. + +Focus on set ups not ideas. It’s ok to have an idea for the set up but the set up HAS TO BE THERE. + +Now lets get straight to it. + +What is an all time high breakout? + +1. The answer is simple. This is when a stock breaks out into a new ATH. + +Why is this such a good set up to take? + +1. Because everybody who’s EVER brought the stock is now in the GREEN “no reason to sell” and everybody who’s shorting the stock is now red “May look to cover” + +Here’s how it works: + +A lot of professional traders, myself included, love the all time high break outs for many reasons. The main being the explosive moves it can often provide. Due to this a lot of day traders, swing traders, investors, funds and algorithms will monitor the market for these potential plays. Meaning they’re often on the buying side. This is why you can see what appears to be a stock doing very little yet the moment it trickles over it’s previous ATH high it can rally for days. + +It’s called “buying the breakout” + +You see the market is run on mostly Human emotion, we know this but very few understand how that works. + +The reason most people lose money in the market is they are untrained and do not have the discipline to handle their own barbaric emotions. + +Here’s why that’s important. + +For this example we’ll call the company $STONKS it’s been on the market for 3 years and it’s current all time high is $10. Some bad news comes out and the stock gaps down to $8 causing people to panic sell and the stock to drop even further. Over the next 12 months it drops to a low of $5 until finally reclaiming to today at $9.90. It’s been consolidating between $9 and $9.90 for 10 days. + +For the past year there has been a lot of people bag holding. Those who brought at the previous all time high have seen their investment drop by 50% and slowly recover. In between this time a lot of people have cut their loses, some have averaged down, new investors have “brought the dip” and we’re now back to where we was a year ago. + +Now we have a few things at play here. + +1. Those who rode through the entire year, the 50% drop and who haven’t sold now at break even clearly have no intention to sell. +2. Out of those who brought the dip some will have sold and some and still holding onto their shares even though the price has been stagment the past 10 days. +3. For the past 10 days people have been buying consistently and have been paying $9 or above for the stock. Showing a growing interest and price acceptance at these prices. +4. People who shorted the stock are now either at break even or at a loss. +5. Anybody new who wants to purchase some shares has currently got to pay all time high prices. + +The longer we consolidate at these price the more powerful the move can become, why you ask? + +Because it has more chance of the float being rotated. Understand that the first time $STONKS went up to $10 1 year ago the average price paid by an investor may have been $3 which meant a lot of profit taking occurred. When the bad news hit a lot of those investors jumped ship. Causing more supply than demand and therefore the price to drop. + +Fast forward to today and the longer it consolidates above $9 the high the AVG price held will be. When this happens the buyers are literally sitting on basically no loss nor no gain giving them no reason to sell. + +For those unaware, if you short a stock the only way to get out for a loss is to cover your position. This in turn means “buying the stock”. Creating more buying pressure. Short positions will often risk in this scenario the all time high. Meaning if it breaks they start to cover. If they start to cover it increases buying pressure and with buying pressure increasing the stock moves up (extremely simple explanation). + +So we as traders recognise the stock is setting up for an ATH breakout and here’s what we do. + +We decide we want to risk $2,000 in the stock. + +We buy $500 worth at 9.20 known as a starter position and we wait. + +A week goes by and it’s still chopping between this range. A press release then comes out (a bullish catalyst). The market opens are $STONKS see’s a huge 15 minute candle at open. The largest amount of volume it’s seen in months. On that volume it breaks $10 and instantly jumps to $10.50. + +We managed to get our other $1,500 in at $10.20 bringing our average to roughly $9.90 a share. We move our stop loss to below the previous ATH with some breathing room AKA $9.50/share. + +Everybody who now has shares in this stock prior to today is in the green, they’re estactic. Those who held through the entire past year and refused to sell are now mentioning how they’re in profit on an investment they made to work colleagues. + +Short positions are now aware there’s no resistance and start covering “buying shares”. FOMO buyers who are “trading the news” (not a set up ;) ) are now buying in. Professional swing traders are buying the break out, day traders are buying the opening drive. Everybody is buying.. + +The stock closes at $12 marking a 25% daily gain. Barrons, CNBC, MSN all post above how $STONKS rallied into ATH due to X,Y,Z + +The following morning the stock gaps up. People are hyped, pre market goes wild and opens at $16. + +We instantly sell half… + +The stock is extremely extended as new investors flurry in, we sell them some more. There’s now 25% left of our original investment. + +We move our stop loss under PM support and go to focus on the next set up. The same set up. Something we can measure. Something we take day in day out. + +If the stock goes to 20 then we don’t get annoyed we could have missed out on further profits as it wasn’t our trade. + +The stock taps 20, massive selling occurs and settles around 14. Where it stays for months, consolidationg. Meanwhile, we’re just waiting for it to once again set up. + +So how do I find these trades? + +I use trading view, I create a list of sectors such as EVs, Solar, Tech, AI etc etc and I scan through each day. Literally just flick through. Is the stock near it’s ATH? If not, I go to the next and the next. + +My indicators are as follows. + +Volume Profile, RSI (for the daily only) + +That’s it. + +If you master just this single set up you can make money consistently. Why? Because it’s measurable, you can improve upon it. You can learn from each event but most importantly you have a set plan where the market is in your favour for the outcome to work. Never under estimate human emotion. + +I post all my trades on Instagram at the moment but I’ll look into posting my watchlist here too if it’ll help you guys. + +Feel free to ask questions. +Honest question. + +Where is all the money? I hear nothing but bad news about financial crisis all over the world, and it seems that there is a shortage of cash - like it is some sort of natural resource. + +People haven't stopped buying stuff. They still need food, clothing, medicine, shelter. Taxes are still collected. Fines are still levied. + +So where is all the money? I mean, labor has been produced to make things and wages paid to the laborers. The things are purchased by other laborers, who were paid for producing goods or services, etc. It's a closed loop, right? + +Can someone explain it like I'm five or something? +Hi all. + +* I wrote a **simple guide for novice value investors**. It takes things step-by-step so you don't get lost: [http://lucid-finance.com/2021/07/17/a-complete-guide-to-value-investing-for-novice-investors/](http://lucid-finance.com/2021/07/17/a-complete-guide-to-value-investing-for-novice-investors/) +* **Want quick, digestible summaries of market news + occasional value picks?** Go to [https://johanlunau.substack.com](https://johanlunau.substack.com). 560+ subscribers. + +I hope these help you on your journey. This community is fantastic if you avoid the hive mind, and feel free to get in touch! +Make sure you backtest this baby to learn how it works, but god damn has it improved my winrate drastically. I love retail traders. But to hell with the institutions that manipulate this game in their favor and take advantage of people like us only trying to earn a nice life for our families. Here is my hard-work, and I'm giving it to you all to look out for the little guy, like the stupidly wealthy of society fail and refuse to do. + +[https://www.tradingview.com/script/dBpudiCE-Volume-Strength-Indicator/](https://www.tradingview.com/script/dBpudiCE-Volume-Strength-Indicator/) + +Comment below any questions regarding the use of this indicator and I will try to answer as many as I can. I wish everyone a sincere, honest luck with the markets. May we all master them one day and earn the lives we can only dream of. + +Btw I will be starting a Youtube series to educate people on how to make their own market edge. If that is something there is a lot of interest for, be sure to let me know, and I can get started on it ASAP. + +Thanks and love you guys, + +T. + +EDIT: Due to some overwhelming demand I will be releasing a short tutorial video on YouTube to go over some uses I have found with this unique indicator. I will update with the link when it's live. +***Prerequisite DD:*** + +1. [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) + +2. [The EVERYTHING Short](https://www.reddit.com/r/GME/comments/mgucv2/the_everything_short/) + +3. [The House of Cards – Part 1](https://www.reddit.com/r/Superstonk/comments/mvk5dv/a_house_of_cards_part_1/) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + + **TL;DR-** **No freaking way I can do that.** + +**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** + +**1.** **Pilot** + +I wasn’t looking into GameStop when all of this began. Most of my time was spent researching the pandemic’s impact on the economy. I’m talking about the economic steam engine that employs people and puts food on their tables. Especially the small businesses that were executively steamrolled by COVID lockdowns. It was scary how fast they had to close their doors. + +I spent a lot of time looking at companies like GameStop. Brick-n-mortar businesses were basically running out of bricks to sh\*t. Frankly, GameStop looked a lot like the next Blockbuster and it just seemed like a matter of time before they went under. Had DFV not done his homework, it's possible we wouldn’t have a rocket to HODL or a story to TODL. + +Whoever has/had a short position with GameStop was probably thinking the same thing. The number of shares that can be freely traded on a daily basis is referred to as “the float”. GameStop has 70,000,000 shares outstanding, but 50,000,000 shares represented “the float”. With a small float like this, a [short position of 20% becomes significant](https://bullishbears.com/vw-short-squeeze/). Heck, Volkswagen got squozed with just a [12.8%](https://bullishbears.com/vw-short-squeeze/) short position. So let’s use little numbers to walk through an example of how this works. + +Assume VW has 100 shares outstanding. If 12.8% of the company has been sold short, then 12.8 shares (let’s just say 13) must be available to purchase at a later date (assuming VW doesn’t go bankrupt). However, VW had a float of 45% which meant there was no real strain to cover that 12.8% short position at any moment. However, when Porsche announced they wanted to increase their position in VW, they invested HEAVILY. + +*“The kicker was that Porsche owned 43% of VW shares, 32% in options, and the government owned 20.2%.... In plain terms, it meant that the actual available float went from 45% down to 1% of outstanding shares” (bullishbears.com/vw-short-squeeze/).* + +Let’s revisit our scenario. With 100 shares outstanding and 13 shares sold short, what happens if only 1 share was available to cover instead of 45? + +Well….. THIS: + +&#x200B; + +https://preview.redd.it/c1n24ypq5k171.jpg?width=348&format=pjpg&auto=webp&s=2401d50c3ec1197e08564be1ffbd643558e52b6a + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +GameStop is/was the victim of price suppression through short selling. I discussed this topic with [Dr. T](https://www.youtube.com/watch?v=fGVY2Kco8ng) and [Carl Hagberg](https://www.youtube.com/watch?v=KHnpPfWdf78) in [our AMAs.](https://www.youtube.com/watch?v=KHnpPfWdf78) Every transaction has two sides- a buy and a sell. Short selling artificially increases the *supply* of shares and causes the price to decline. When this happens, the price can only increase if *demand* exceeds the increase in supply. + +I started looking closely at GameStop after confirming their reported short position of [140%](https://www.reuters.com/article/us-retail-trading-congress-shorting/short-selling-under-spotlight-in-gamestop-hearing-idUSKBN2AJ026). It’s important for me explain this why this is so much different than the VW example… + +140% of GameStop’s FLOAT was sold short. There were 50,000,000 shares in that float, so 140% of this was equal to the 70,000,000 shares the company has outstanding. This means AT LEAST 100% of their outstanding shares has been sold short. Now compare that to VW where the short position was only 12.8%... Simply put, it is mathematically impossible to cover more than 100% of a company’s outstanding stock. + +The *peak* of the VW squeeze was reached when the demand for shares became surpassed by the supply of those shares. Here, demand represents 12.8% of their stock which must be available to close the short position. With only 1% of shares available, this guaranteed a squeeze until the number of shares available to trade could satisfy the remaining short interest. + +When a company has a short position with more than 100% of total shares outstanding, the preceding argument is thrown out the window. Supply cannot surpass demand because the company can only issue 100% of itself at any given time. Therefore, the additional 40% could only be explained by multiple people claiming ownership of the same share... Surely this is a mistake.. right? I thought this level of short selling was impossible.. + +..Until I saw the number of short selling violations issued by FINRA.. + +As we go through these FINRA reports, there are a few things to keep in mind: + +1. **FINRA is not a part of the government.** FINRA is a non-profit entity with [regulatory powers set by congress](https://www.finra.org/about). This makes FINRA the largest self-regulatory organization (SRO) in the United States. The SEC is responsible for setting rules which protect individual investors; FINRA is responsible for overseeing most of the brokers (collectively referred to as members) in the US. As an SRO, FINRA sets the rules by which their members must comply- **they are not directly regulated by the SEC** + +2. FINRA investigates cases at their own pace. When looking at the “*Date Initiated”* on their reports, it is not synonymous with “*date of occurrence”.* Many times, FINRA will not say when a problem occurred, just resolved. It can be YEARS after the initial occurrence. The [DTC participant report](https://www.dtcc.com/-/media/Files/Downloads/client-center/DTC/alpha.pdf) is littered with cases that were initiated in 2019 but occurred in 2015, etc. Many of the violations occurring today will take years to discover + +3. FINRA can issue a violation for each occurrence using a 1:1 format. When it comes to violations like short selling, however, these “occurrences” can last months or even years. When this happens, FINRA issues a violation for multiple occurrences using a 1:MANY format. I discussed this event in [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) where one violation represented FOUR YEARS of market f\*ckery. What’s sh\*tty is that FINRA doesn’t tell you which violations are which. You have to read each line and see if they mention a date range of occurrence within each record. If they don’t, you must assume it was for one event… BRUTAL + +4. FINRA’s investment portfolio is held by the same entities they are issuing violations to… Let that sink in for a minute + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +**2.** **State your case…** + +Can you think of a reason why short sellers would want to understate their short positions? Put yourself in their situation and imagine you’re running a hedge fund… + +You operate in a self-regulated (SRO) environment and your records are basically private. If the SEC asks you to justify suspicious behavior, you really don’t have to provide it. The worst that could happen is a slap on the wrist. I wrote about this EXACT same thing in [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/). They received a cease-and-desist order from the SEC on 12/10/2018 for failing to submit complete and accurate records. This ‘occurred’ from November 2012 through April 2016 and contained deficient information for over 80,000,000 trades. Their punishment… $3,500,000… So why even bother keeping an honest ledger? + +Now, suppose you short a bunch of shares into the market. When you report this to FINRA, they require you to mark the transaction with a short sale indicator. In doing so, FINRA builds a paper trail to your short selling activity. + +However… if you omit this indicator, FINRA can’t distinguish that transaction from a long sale. Who else would there be to hold you accountable for covering your position? This is especially true for self-clearing organizations like Citadel because there are less parties involved to hold you accountable with recordkeeping. If FINRA thinks you physically owned those shares and sold them (long sale), they have no reason to revisit that transaction in the future… You could literally pocket the cash and dump the commitment to cover. + +Another very important advantage is that it allows short sellers to artificially increase the supply of shares while understating the outstanding short interest on that security. The supply of shares being sold will drive down the price, while the short interest on the stock remains the same. + +So.. aside from paying a fine, how could you possibly lose by “forgetting” to mark that trade with a short sale indicator? It would seem the system almost incentivizes this type of behavior. + +I combed through the [DTC participant report](https://www.dtcc.com/-/media/Files/Downloads/client-center/DTC/alpha.pdf) and found enough dirt to fill the empty chasm that is Ken Griffin’s soul. Take a guess at what their most common short selling violation is.. I’m going to assume you said **“FAILING TO PROPERLY MARK A SHORT SALE TRANSACTION”.** + +For the record, I just want to say I called this in March when I wrote [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/). Citadel has one of the highest concentrations of short selling violations in their FINRA report. At the time, I didn’t fully understand the consequences of this violation… After seeing how many participants received the same penalty, it finally made sense. + +There are roughly 240 participant account names on the DTC’s list. Sh\*t you not, I looked at every short selling violation that was published on [Brokercheck.finra.org](https://brokercheck.finra.org/). To be fair, I eliminated participants with only 1 or 2 violations related to short selling. There were PLENTY of bigger fish to fry. + +I literally picked the first participant at the top of the list and found three violations for short selling. + +\*cracks knuckles\* + +[ABN AMRO Clearing Chicago LLC](https://files.brokercheck.finra.org/firm/firm_14020.pdf) (AACC) is the 3rd largest bank in the Netherlands. They got popped for three short selling violations, one of which included a failure-to-deliver. In total, they have 78 violations from FINRA. Several of these are severe compared to their violations for short selling. However, the short selling violations revealed a MUCH bigger story: + +https://preview.redd.it/3t5ylyfz5k171.jpg?width=1055&format=pjpg&auto=webp&s=f961999d09eeee7fbe42364700cbc727869f9e3f + +So… ABN AMRO submitted an inaccurate short interest position to the NYSE and FINRA and lacked the proper supervisory systems to comply with… practically everything… + +In 2014, AMRO forked over $95,000 to settle this and didn’t even say they were sorry. + +In these situations, it’s easy to think *“meh, could have been a fluke event”*. So I took a closer look and found violations by the same participants which made it much harder to argue their case of sheer negligence. Here are a couple for AMRO: + +https://preview.redd.it/vir299076k171.jpg?width=1079&format=pjpg&auto=webp&s=e17e6ceff040a4be0113c1bc4e435f29fb5ce0a6 + +ABN AMRO got slapped with a $1,000,000 fine for understating capital requirements, failing to maintain accurate books, and failing to supervise employees. If you mess up once or twice but end up fixing the problem- GREAT. When your primary business is to clear trades and you fail THIS bad, there is a much bigger problem going on. It gets hard to defend this as an accident when every stage of the trade recording process is fundamentally flawed. The following screenshot came from the same violation: + +https://preview.redd.it/mnpm2gz96k171.jpg?width=733&format=pjpg&auto=webp&s=7e5c66293566b7ca2329f20bcdb634c35395943f + + [Warehouse receipts](https://www.investopedia.com/terms/w/warehousereceipt.asp#:~:text=A%20warehouse%20receipt%20is%20used,well%20as%20provide%20inventory%20management.) are like the receipts you get after buying lumber online. You can print these out and take them to Home-Depot, where you exchange them for the ACTUAL lumber in the store. Instead of trading the actual goods, you can trade a warehouse receipt instead… so yeah… since this ONE record allowed AMRO to meet their customer’s margin requirement, it seems EXTREMELY suspicious that they didn’t appropriately remove it once they were withdrawn. + +Do I think this was an accident? F\*ck no. Because FINRA reported them 8 years later for doing the SAME F\*CKING THING: + +https://preview.redd.it/sv0v5igw6k171.jpg?width=1071&format=pjpg&auto=webp&s=02f17082135c702fad6bbc064073ae031151cee7 + + + +Once again, AMRO got caught understating their margin requirements. Last time, they used the value of withdrawn warehouse receipts to meet their margin requirements. Here, they’re using securities which weren’t eligible for margin to meet their margin requirements.. + +You can paint apple orange, but it’s still an apple.. + +The bullsh\*t I read about in these reports doesn’t really shock me anymore. It’s actually the opposite.. You begin to *expect* bigger fines as they set higher benchmarks for misconduct. When I find a case like AMRO, I’ll usually put more time into it because certain citations represent puzzle pieces. Once you find enough pieces, you can see the bigger picture. So believe me when I say I was genuinely shocked by the [detail report](https://www.finra.org/sites/default/files/fda_documents/2016049875801%20ABN%20AMRO%20Clearing%20Chicago%20LLC%20CRD%2014020%20AWC%20va%20%282019-1572740384682%29.pdf) on this case… + +https://preview.redd.it/4lgyti547k171.jpg?width=844&format=pjpg&auto=webp&s=633a928d28caef8cc6719873532aef60f271cefb + +**This has been going on for 8 F\*CKING YEARS!?** + +Without a doubt, this is a great example of a violation where the misconduct supposedly *ended* in 2015 but took another 4 years for FINRA to publish the d\*mn report. If my math is correct, the 8 year “relevant period” plus the 4 years FINRA spent… I don’t know… reviewing?... yields a total of 12 years. In other words, from the time this problem started to the time it was publicized by FINRA, the kids in 1st grade had graduated high school… + +Does anyone else think these self-regulatory organizations (SROs) are doing a terrible job self-regulating…? How we can trust these situations are appropriately monitored if it takes 12 years for a sh\*t blossom to bloom? + +…OH! I almost forgot… After understating their margin requirements in 22 accounts for over 8 years, ABN AMRO paid a $150,000 fine to settle the dust… + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +I know that was a sh\*t load of information so let me summarize it for you: + +One of the most common citations occurs when a firm “accidently” marks a short sale as long, or misreports short interest positions to FINRA. When a short sale occurs, that transaction should be marked with a short sale indicator. Despite this, many participants do it to avoid the borrow requirements set by Regulation SHO. If they mark a short sale as long, they are not required to locate a borrow because FINRA doesn’t know it’s a short sale. + +This is why so many of these FINRA violations include a statement about the broker failing to locate a borrow along with the failure to mark a short sale indicator on the transaction. It literally means the broker was naked short selling a stock and telling FINRA they physically owned that share.. + +Suddenly, a “small” violation had much bigger implications. The number of short shares that have been excluded from the short interest calculation is directly related to these violations… and there are HUNDREDS of them. Who knows how many companies have under reported short interest positions.. + +To be clear, I did NOT choose them based on the amount of ‘dirt’ they had. AMRO’s violations were like grains of sand on a beach and It’s going to take A LOT of dirt to fill the bottomless pit that is Ken Griffin’s soul. Frankly, ABN AMRO wouldn’t get us there with 10,000 FINRA violations. So without further ado, let’s get dirty.. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +**2.** **Call em’ out…** + +When FINRA publishes one of their reports, the granular details like numbers and dates are often left out. This makes it impossible to determine how systematic a particular issue might be. + +For example, if you know that *“XYZ failed to comply with FINRA’s short interest reporting requirements”* your only conclusion is that the violation occurred. However, if you know that *“XYZ failed to comply with FINRA’s short interest reporting requirements on 15,000 transactions during 2020”* you can start investigating the magnitude of that violation. If XYZ only completed 100,000 transactions in 2020, it means 15% of their transactions failed to meet requirements. This represents a major systematic risk to XYZ and the parties it conducts business with. + +I spent some time analyzing [Apex Clearing Corporation](https://files.brokercheck.finra.org/firm/firm_13071.pdf) after I left ABN AMRO. Apex is 8th on the list and the 2nd participant I found with an evident short selling problem. + +In 2019, FINRA initiated a case against Apex for doing the same sh\*t as ABN AMRO. However, the magnitude of this violation really put things into perspective: I got a small taste of how f\*cked this house of cards truly is.. + +https://preview.redd.it/u1b4zh6m7k171.jpg?width=1076&format=pjpg&auto=webp&s=0f14f5fa49e73dad79ff605464fc1c64fa73f5bd + +This is practically a template of the first ABN AMRO violation we discussed. To see the difference, we need to look at their [letter of Acceptance, Waiver and Consent](https://www.finra.org/sites/default/files/fda_documents/2016049448301%20Apex%20Clearing%20Corporation%20CRD%2013071%20AWC%20va%20%282019-1573777189509%29.pdf) (AWC).. + +https://preview.redd.it/zaiywobp7k171.jpg?width=938&format=pjpg&auto=webp&s=7fe2d2323e757efcdedf2ab22aa1ff34e10d7d55 + +Let’s break this down step-by-step… + +Apex had an issue for 47 months where certain customers recorded their short positions in an account which was NOT being sent to FINRA. It only takes a few wrinkles on the brain to realize this is a problem. The sample data tells us just how bad that problem is.. + +When you see the term “*settlement days”,* think “[T+2](https://www.schwab.com/resource-center/insights/content/stock-settlement-why-you-need-to-understand-t2-timeline#:~:text=the%20seller's%20account.-,When%20does%20settlement%20occur%3F,would%20typically%20settle%20on%20Wednesday.)”. Apex follows the T+2 settlement period for both [cash accounts and margin accounts](https://www.apexclearing.com/wp-content/uploads/2020/01/Apex-Customer-Information-Brochure-2019.pdf) which means the trade *should* clear 2 days after the original trade date. When you buy stock on a Monday, it should settle by Wednesday. + +Ok.. quick maff… + +There are roughly [252 trading days](https://therobusttrader.com/how-many-trading-days-are-there-in-a-year/) in one year after removing weekends and holidays. Throughout the 47 month “review period”, we can safely assume that **Apex had roughly 987** ((252/ 12) \* 47) **settlement dates**… + +**In other words: 256 misstated reports over 47 months is more than 1 misstatement / week for nearly 4 years.** Tell me again how this is *trivial?* + +The wording of the “sample settlement” section is a bit ambiguous… It doesn’t clarify if those were the only 2 settlement dates they sampled, or if they were the only settlement dates with reportable issues. Honestly, I would be shocked if it was the latter because auditors don’t examine every record, but I can’t be certain… + +Anyway… FINRA discovered 256 short interest positions, consisting of 481,195 shares, were *incorrectly* excluded from their short interest report. In addition, they understated the share count by 879,321 in 130 separate short interest positions. Together, this makes 1,360,516 shares that were excluded from the short interest calculation. When you realize nearly 1.5 million ‘excluded’ shares were discovered in just 2 settlement periods and there were almost 1,000 dates to choose from, it seriously dilates the imagination… + +Once again… FINRA wiped the slate clean for just $140,000… + +I want to talk about one last thing before we jump to the next section. Did you happen to notice the different account types that Apex discussed in their [letter of Acceptance, Waiver and Consent](https://www.finra.org/sites/default/files/fda_documents/2016049448301%20Apex%20Clearing%20Corporation%20CRD%2013071%20AWC%20va%20%282019-1573777189509%29.pdf) ? They specifically instructed their customers to book short positions into a TYPE 1 (CASH) account, or TYPE 5 (SHORT MARGIN) account. A short margin account is just a margin account that holds short positions. The margin requirement for short positions are more strict than regular margin accounts, so I can see the advantage in separating them. + +In the [AMA with Wes Christian](https://www.youtube.com/watch?v=2rJujnpKiqM) *(starting at 7:30)*, he specifically discussed how a broker-dealer’s margin account is used to locate shares for short sellers. However, the margin account contains shares that were previously pledged to another party. Given the lack of oversight in securities lending, the problem keeps compounding each time a new borrower claims ownership of that share. + +Now think back to the situation with Apex.. + +They asked their customers to book short positions to a short-margin account or a cash account. The user agreement with a margin account allows Apex to continue lending those securities at any time. As discussed with Dr. T and Carl Hagberg, the broker collects interest for lending your margin shares and doesn’t pay you anything in return. When multiple locates are authorized for the same share, the broker collects multiple lending fees on the same share. + +In contrast, the cash account falls under the protection of [SEA 15c3-3](https://www.finra.org/sites/default/files/SEA.Rule_.15c3-3.pdf) and consists of shares that have not been leveraged- or lent- like the margin-short account. According to Wes *(starting at 8:30)*, these shares are segregated and cannot be touched. The broker cannot encumber-or restrict- them in any way. However, according to Wes, this is currently happening. He also explained how Canada has legalized this and currently allows broker-dealers to short sell your cash account shares against you. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +Alright…. I’ll stop beating the dead horse regarding short sale indicators & inaccurate submissions of short interest positions. Given the volume of citations we haven’t discussed, I’ll summarize some of my findings, below. + +Keep in mind these are ONLY for **“FAILURE TO REPORT SHORT INTEREST POSITIONS”** or **“FAILURE TO INDICATE A SHORT SALE MODIFIER”**. If the violations contain additional information, it’s because that citation actually listed additional information. **It does NOT represent an all-inclusive list of short selling violations for these participants.** + +…You wanted to know how systematic this problem is, so here you go... *(EACH BROKER-DEALER NAME IS HYPERLINKED TO THEIR FINRA REPORT)* + +1. [Barclays](https://files.brokercheck.finra.org/firm/firm_19714.pdf) | Disclosure 36 – “SUBMITTED 86 SHORT INTEREST POSITIONS TOTALING 41,100,154 SHARES WHEN THE ACTUAL SHORT INTEREST POSITION WAS 44,535,151 SHARES.. FAILED TO REPORT 8 SHORT INTEREST POSITIONS TOTALING 1,110,420 SHARES” + +a. $10,000 FINE + +2. [Barclays](https://files.brokercheck.finra.org/firm/firm_19714.pdf) | Disclosure 54 – “SUBMITTED AN INACCURATE SHORT INTEREST POSITION TO FINRA AND FAILED TO REPORT ITS SHORT INTEREST POSITIONS IN 835 POSITIONS TOTALING 87,562,328 SHARES” + +a. $155,000 FINE + +3. [BMO Capital Markets Corp](https://files.brokercheck.finra.org/firm/firm_16686.pdf) | Disclosure 23 – “SUBMITTED SHORT INTEREST POSITIONS TO FINRA THAT WERE INCORRECT AND FAILED TO REPORT TO FINRA ITS SHORT INTEREST POSITIONS TOTALING OVER 72 MILLION SHARES FOR 11 MONTHS” + +a. $90,000 FINE + +4. [BNP Paribas Securities Corp](https://files.brokercheck.finra.org/firm/firm_15794.pdf) | Disclosure 53 – “FAILED TO REPORT TO FINRA ITS SHORT INTEREST IN 2,509 POSITIONS TOTALING 6,051,974 SHARES” + +a. $30,000 FINE + +5. [BNP Paribas Securities Corp](https://files.brokercheck.finra.org/firm/firm_15794.pdf) | Disclosure 9 – “ON 35 OCCASIONS OVER A FOUR-MONTH PERIOD, A HEDGE FUND SUBMITTED SALE ORDERS MARKED “LONG” TO BNP FOR CLEARING. FOR EACH OF THOSE “LONG” SALES, ON THE MORNING OF SETTLEMENT, THE HEDGE FUND DID NOT HAVE THE SHARES IN IT’S BNP ACCOUNT TO COVER THE SALE ORDER. IN ADDITION, BNP WAS ROUTINELY NOTIFIED THAT THE HEDGE FUND WOULD NOT BE ABLE TO COVER. NEVERTHELESS, WHEN EACH SETTLEMENT DATE ARRIVED AND THE HEDGE FUND WAS UNABLE TO COVER, BNP LOANED THE SHARES TO THE HEDGE FUND. IN TOTAL, BNP LOANED MORE THAN 8,000,000 SHARES TO COVER THESE PURPORTED “LONG” SALES” + +a. $250,000 FINE + +6. [Cantor Fitzgerald & Co](https://files.brokercheck.finra.org/firm/firm_134.pdf) | Disclosure 1 - (literally came out on 5/6/2021) – “THE FIRM SUBMITTED INACCURATE SHORT INTEREST POSITIONS TO FINRA. THE FIRM OVERREPORTED NEARLY [55,000,000 SHORT SHARES](https://www.finra.org/sites/default/files/fda_documents/2018059464001%20Cantor%20Fitzgerald%20%26%20Co.%20CRD%20134%20AWC%20va.pdf) WHICH WERE CUSTODIED WITH AND ALREADY REPORTED BY ITS CLEARING FIRM, WITH WHICH CANTOR MAINTAINS A FULLY DISCLOSED CLEARING AGREEMENT” + +a. $250,000 FINE + +7. [Cantor Fitzgerald & Co](https://files.brokercheck.finra.org/firm/firm_134.pdf) | Disclosure 31 - “…THE FIRM EXECUTED NUMEROUS SHORT SALE ORDERS AND FAILED TO PROPERLY MARK THE ORDERS AS SHORT… THE FIRM, ON NUMEROUS OCCASIONS, ACCEPTED SHORT SALE ORDERS IN AN EQUITY SECURITY FROM ANOTHER PERSON, OR EFFECTED A SHORT SALE FROM ITS OWN ACCOUNT WITHOUT BORROWING THE SECURITY…” + +a. $53,500 FINE + +8. [Cantor Fitzgerald & Co](https://files.brokercheck.finra.org/firm/firm_134.pdf) | Disclosure 33 - “…EXECUTED SHORT SALE ORDERS AND FAILED TO PROPERLY MARK THE ORDERS AS SHORT. THE FIRM HAD FAIL-TO-DELIVER POSITIONS AT A REGISTERED CLEARING AGENCY IN THRESHOLD SECURITIES FOR 13 CONSECUTIVE SETTLEMENT DAYS… FAILED TO IMMEDIATELY CLOSE OUT FTD POSITIONS… ACCEPTED SHORT SALE ORDERS FROM ANOTHER PERSON, OR EFFECTED A SHORT SALE FROM ITS OWN ACCOUNT, WITHOUT BORROWING THE SECURITY OR HAVING REASONABLE GROUNDS TO BELIEVE THAT THE SECURITY COULD BE BORROWED…” + +a. $125,000 FINE + +9. [Canaccord Genuity Corp](https://files.brokercheck.finra.org/firm/firm_1020.pdf) | Disclosure 17 - “THE FIRM EXECUTED SALE TRANSACTIONS AND FAILED TO REPORT EACH OF THESE TRANSACTIONS TO THE FINRA/NASDAQ TRADE REPORTING FACILITY AS SHORT” + +a. $57,500 FINE + +10. [Canaccord Genuity Corp](https://files.brokercheck.finra.org/firm/firm_1020.pdf) | Disclosure 20 - “THE FIRM EXECUTED SHORT SALE ORDERS AND FAILED TO PROPERLY MARK THE ORDERS AS SHORT” + +a. $27,500 FINE + +11. [Canaccord Genuity Corp](https://files.brokercheck.finra.org/firm/firm_1020.pdf) | Disclosure 31 - “…SUBMITTED TO NASD MONTHLY SHORT INTEREST POSITION REPORTS THAT WERE INACCURATE” + +a. $85,000 FINE + +12. Citadel Securities LLC | [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) – LITERALLY ALL I TALK ABOUT IN THAT POST. GO READ IT + +13. [Citigroup Global Markets](https://files.brokercheck.finra.org/firm/firm_7059.pdf) | Disclosure 10 – “THE FIRMS TRADING PLATFORM FAILED TO RECOGNIZE THAT THE FIRM WAS SELLING SHORT WHEN IT WAS ACTING AS THE CONTRA PARTY TO A CUSTOMER TRADE. AS A RESULT, THE FIRM ERRONEOUSLY REPORTED SHORT SALES TO A FINRA TRADE REPORTING FACILITY AS LONG SALES… EFFECTING SHORT SALES FROM ITS OWN ACCOUNT WITHOUT BORROWING THE SECURITY…” + +a. $225,000 FINE + +14. [Citigroup Global Markets](https://files.brokercheck.finra.org/firm/firm_7059.pdf) | Disclosure 59 – “…THE FIRM RECORDED 203,653 SHORT SALE EXECUTIONS ON ITS BOOKS AND RECORDS AS LONG SALES, SUBMITTED INACCURATE ORDER ORIGINATION CODES AND ACCOUNT TYPE CODES TO THE AUDIT TRAIL SYSTEM FOR APPROXIMATELY 2,775,338 ORDERS… “ + +a. $300,000 FINE + +15. [Citigroup Global Markets](https://files.brokercheck.finra.org/firm/firm_7059.pdf) | Disclosure 76 – “…FAILED TO PROPERLY MARK APPROXIMATELY 9,717,875 SALE ORDERS AS SHORT SALES… FINDINGS ALSO ESTIMATED THAT THE FIRM ENTERED **55 MILLION ORDERS** INTO THE NASDAQ MARKET CENTER THAT IT FAILED TO CORRECTLY INDICATE AS SHORT SALES…” + +a. $2,250,000 FINE + +16. [Cowen and Company LLC](https://files.brokercheck.finra.org/firm/firm_7616.pdf) | Several Disclosures – almost every other disclosure is for failing to mark a sale with the appropriate indicator, including short AND long sale indicators + +17. [Credit Suisse Securities LLC](https://files.brokercheck.finra.org/firm/firm_816.pdf) | Disclosure 34 – “NEW ORDER REPORTS WERE INACCURATELY ENTERED INTO ORDER AUDIT TRAIL SYSTEM (OATS) AS LONG SALES BUT WERE TRADE REPORTED WITH A SHORT SALE INDICATOR” + +a. $50,000 FINE + +18. [Credit Suisse Securities LLC](https://files.brokercheck.finra.org/firm/firm_816.pdf) | Disclosure 95 – “BETWEEN SEPTEMBER 2006 AND JUNE 2008, CREDIT SUISSE FAILED TO SUBMIT ACCURATE PERIODIC REPORTS WITH RESPECT TO SHORT POSITIONS…” + +a. $40,000 FINE + +19. [Deutsche Bank Securities INC.](https://files.brokercheck.finra.org/firm/firm_2525.pdf) | Disclosure 50 – “THE FIRM FAILED TO REPORT SHORT INTEREST POSITIONS IN DUALLY-LISTED SECURITIES” + +a. $200,000 FINE + +20. [Deutsche Bank Securities INC.](https://files.brokercheck.finra.org/firm/firm_2525.pdf) | Disclosure 52 – “THE FIRM… EXPERIENCED MULTIPLE PROBLEMS WITH ITS BLUE SHEET SYSTEM THAT CAUSED IT TO SUBMIT INACCURATE BLUE SHEETS TO THE SEC AND FINRA… INCORRECTLY REPORTED LONG ON ITS BLUE SHEET TRANSACTIONS WHEN CERTAIN TRANSACTIONS SHOULD HAVE BEEN MARKED SHORT” + +a. $6,000,000 FINE (SEVERAL OTHER ISSUES REPORTED IN ADDITION TO SHORTS) + +21. [Deutsche Bank Securities INC.](https://files.brokercheck.finra.org/firm/firm_2525.pdf) | Disclosure 58 – “BETWEEN JANUARY 2005 AND CONTINUING THROUGH NOVEMBER 2015, THE FIRM IMPROPERLY INCLUDED THE AGGREGATION OF NET POSITIONS IN CERTAIN SECURITIES OF A NON-US BROKER AFFILIATE… IN ADDITION… DURING THE PERIOD BETWEEN APRIL 2004 AND SEPTEMBER 2012, THE FIRM INAPPROPRIATELY REPORTED CERTAIN SHORT INTEREST POSITIONS ON A NET, INSTEAD OF GROSS, BASIS..” + +a. $1,400,000 FINE + +22. [Goldman Sachs & Co. LLC](https://files.brokercheck.finra.org/firm/firm_361.pdf) | Disclosure 32 – “THE FIRM REPORTED SHORT SALE TRANSACTIONS TO FINRA TRADE REPORTING FACILITY WITHOUT THE REQUIRED SHORT SALE MODIFIER” + +a. $260,000 FINE (SEVERAL OTHER ISSUES REPORTED IN ADDITION TO SHORTS) + +23. [Goldman Sachs & Co. LLC](https://files.brokercheck.finra.org/firm/firm_361.pdf) | Disclosure 54 – “FAILED TO ACCURATELY APPEND THE SHORT SALE INDICATOR TO FINRA/NASDAQ TRADE REPORTING FACILITY REPORTS… INACCURATELY MARKED SELL TRANSACTIONS ON ITS TRADING LEDGER” + +a. $55,000 FINE + +24. [Goldman Sachs & Co. LLC](https://files.brokercheck.finra.org/firm/firm_361.pdf) | Disclosure 63 – “…SUBMITTED TO FINRA AND THE SEC BLUE SHEETS THAT INACCURATELY REPORTED CERTAIN SHORT SALE TRANSACTIONS AS LONG SALE TRANSACTIONS WITH RESPECT TO THE FIRM SIDE OF CUSTOMER FACILITATION TRADES… THE FIRM REPORTED SHORT SALES AS LONG SALES ON ITS BLUE SHEETS WHEN THE TRADING DESK USED A PARTICULAR MIDDLE OFFICE SYSTEM…” + +a. $1,000,000 FINE + +25. [Goldman Sachs & Co. LLC](https://files.brokercheck.finra.org/firm/firm_361.pdf) | Disclosure 150 – “GOLDMAN SACHS & CO. FAILED TO REPORT SHORT INTEREST POSITIONS FOR FOREIGN SECURITIES AND NUMEROUS SHARES ONE MONTH… THE FIRM REPORTED SHORT INTEREST POSITIONS IN SECURITIES TOTALING SEVERAL MILLION SHARES EACH TIME WHEN THE ACTUAL SHORT INTEREST POSITIONS IN THE SECURITIES WERE ZERO SHARES… ACCEPTING A SHORT SALE ORDER IN AN EQUITY SECURITY FROM ANOTHER PERSON, OR EFFECTED A SHORT SALE FROM ITS OWN ACCOUNT, WITHOUT BORROWING THE SECURITY OR BELIEVING THE SECURITY COULD BE BORROWED ON THE DATE OF DELIVERY…” + +a. $120,000 FINE + +26. [Goldman Sachs & Co. LLC](https://files.brokercheck.finra.org/firm/firm_361.pdf) | Disclosure 167 – “…THE FIRM FAILED TO REPORT TO THE NMC THE CORRECT SYMBOL INDICATING THAT THE TRANSACTION WAS A SHORT SALE FOR TRANSACTIONS IN REPORTABLE SECURITIES…” + +a. $600,000 FINE (SEVERAL OTHER ISSUES REPORTED IN ADDITION TO SHORTS) + +27. [HSBC Securities (USA) INC.](https://files.brokercheck.finra.org/firm/firm_19585.pdf) | Disclosure 26 – “FIRM EXECUTED SHORT SALE TRANSACTIONS AND FAILED TO MARK THEM AS SHORT… HSBC SECURITIES HAD A FAIL-TO-DELIVER SECURITY FOR 13 CONSECUTIVE SETTLEMENT DAYS AND FAILED TO IMMEDIATELY CLOSE OUT THE FTD POSITION… THE FIRM CONTINUED TO HAVE A FTD IN THE SECURITY AT A CLEARING AGENCY ON 79 ADDITIONAL SETTLEMENT DAYS…” + +a. $65,000 FINE + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +I’m going to stop at ‘H’ because I’m tired of writing. Hopefully, you all understand the point so far. We’re only 8 letters into the alphabet and have successfully buried Ken to his waist. + +The system that is used to mark the proper transaction type (sell, buy, short sell, short sell exempt, etc.) is obviously broken… There, I said it.. the system is INDUBITABLY, UNDOUBTEDLY, INEVITABLY F\*CKED.. + +Regardless of the cause- fraud or negligence- there are too many firms failing to accomplish a seemingly simple task. The consequences of which are creating far more shares than we can imagine. It’s a gigantic domino effect. If you fail to properly mark 1,000,000 short shares and a year goes by without catching the problem, it’s already too late. They’re like the f\*cking replicators from Stargate.. + +In each of the examples listed above, the short interest on the stock was understated by the number of shares excluded… and that was just a handful.. + +Knowing this, how can someone look at the evidence and say it’s *trivial….?* + +No one really knows HOW systematic this issue is because it is so deeply incorporated in the market that it has BECOME the system itself. Therefore, there is obviously something much deeper going on, here.. How does one argue against the severity of these problems after reading this? There are FAR too many things that don’t make sense and FAR too many people turning a blind eye.. + +The only conclusion I keep coming back to is that the people with money know what’s going on and are desperately trying to keep it under wraps.. + +..So…. In an effort to prove this, I looked for violations that showed their desperation to protect this f\*cked up system. + +..Buckle up.. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + + ***HOUSE OF CARDS - PART 3 (I'm uploading it now; will link ASAP)*** +I understand it sucks to see people losing their life savings, but we have been telling you not to sell naked calls on meme stocks FOR 6 FUCKING MONTHS. That’s more than enough time to grasp the fact that the premium on meme stock options are high for a reason. I have absolutely no sympathy for any of you. To the ones who sold covered calls, I also have no sympathy. You made max profit. Stop bitching about missed gains because it could have just as easily gone the opposite way. Be grateful and move your capital to another stock + +Edit: why is this doing numbers? It’s a shitpost. Thank you for the awards though lmao + The Pigzbe DApp is designed to have an extremely limited attack surface. It will support high scalability to meet the demands of a consumer-facing product. A family’s Wollo tokens are always stored in the public, distributed ledger and are not accessible by the Pigzbe organisation, and they can can be transferred or exchanged without the use of the Pigzbe app by using existing wallet software. +When I (27M) was growing up my father made about 100k/ year working in a mine. He had multiple houses big boats. I have always tried to follow in his footsteps by always being the hardest working, and taking hard jobs most won’t do that will pay more but it isn’t enough. Now people are getting wealthy from the easiest jobs like sitting on your computer or whatever. I would really appreciate some advice because I honestly don’t know what to do at this point. I have had a family for a couple years and we are barely getting by. I make 26 an hour right now but with inflation I had to get sent money for gas just to get to work today. I have been full time at my job for 2 years. I try to budget and I can’t remember the last time I actually got myself anything. I feel like a failure to my family and I’m doing the best I can. I need to learn modern ways of making money, this is not how I want to spend my life. + +TLDR: old ways of making money are dead please show me the way. +http://www.marketwatch.com/story/uniteds-stock-is-set-to-fall-5-and-wipe-1-billion-off-the-airlines-market-cap-2017-04-11 + +UAL is set to lose over 1 billion in market capitalization after violently dragging a passenger off its airplane. + +Edit: United Airlines recovered most of its early losses later on into the day, posing a daily loss of just over one percent but trailing behind other major airlines that were mostly green. +31 yo/ here. 100% in equity. 50% etfs & 50% blue chips. This sub seems to be have a alarming amount of people with high risk, highly speculative portfolios. I get the feeling that some of these people feel this market rally will never come to an end. Suddenly a portfolio that is not heavy with US tech or speculative small caps is suddenly a "boomer" portfolio. I get enough US tech exposure through my s&p500 etf. I dont believe getting greedy or going "all in" on high risk bets is a sustainable investing strategy. + +Call me old fashioned but I still think a globally diversified portfolio is the best way to get stable, & sustainable returns. +***Prerequisite DD:*** + +1. [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) + +2. [The EVERYTHING Short](https://www.reddit.com/r/GME/comments/mgucv2/the_everything_short/) + +3. [The House of Cards – Part 1](https://www.reddit.com/r/Superstonk/comments/mvk5dv/a_house_of_cards_part_1/) + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + + **TL;DR-** **No freaking way I can do that.** + +**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** + +**1.** **Pilot** + +I wasn’t looking into GameStop when all of this began. Most of my time was spent researching the pandemic’s impact on the economy. I’m talking about the economic steam engine that employs people and puts food on their tables. Especially the small businesses that were executively steamrolled by COVID lockdowns. It was scary how fast they had to close their doors. + +I spent a lot of time looking at companies like GameStop. Brick-n-mortar businesses were basically running out of bricks to sh\*t. Frankly, GameStop looked a lot like the next Blockbuster and it just seemed like a matter of time before they went under. Had DFV not done his homework, it's possible we wouldn’t have a rocket to HODL or a story to TODL. + +Whoever has/had a short position with GameStop was probably thinking the same thing. The number of shares that can be freely traded on a daily basis is referred to as “the float”. GameStop has 70,000,000 shares outstanding, but 50,000,000 shares represented “the float”. With a small float like this, a [short position of 20% becomes significant](https://bullishbears.com/vw-short-squeeze/). Heck, Volkswagen got squozed with just a [12.8%](https://bullishbears.com/vw-short-squeeze/) short position. So let’s use little numbers to walk through an example of how this works. + +Assume VW has 100 shares outstanding. If 12.8% of the company has been sold short, then 12.8 shares (let’s just say 13) must be available to purchase at a later date (assuming VW doesn’t go bankrupt). However, VW had a float of 45% which meant there was no real strain to cover that 12.8% short position at any moment. However, when Porsche announced they wanted to increase their position in VW, they invested HEAVILY. + +*“The kicker was that Porsche owned 43% of VW shares, 32% in options, and the government owned 20.2%.... In plain terms, it meant that the actual available float went from 45% down to 1% of outstanding shares” (bullishbears.com/vw-short-squeeze/).* + +Let’s revisit our scenario. With 100 shares outstanding and 13 shares sold short, what happens if only 1 share was available to cover instead of 45? + +Well….. THIS: + +&#x200B; + +https://preview.redd.it/c1n24ypq5k171.jpg?width=348&format=pjpg&auto=webp&s=2401d50c3ec1197e08564be1ffbd643558e52b6a + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +GameStop is/was the victim of price suppression through short selling. I discussed this topic with [Dr. T](https://www.youtube.com/watch?v=fGVY2Kco8ng) and [Carl Hagberg](https://www.youtube.com/watch?v=KHnpPfWdf78) in [our AMAs.](https://www.youtube.com/watch?v=KHnpPfWdf78) Every transaction has two sides- a buy and a sell. Short selling artificially increases the *supply* of shares and causes the price to decline. When this happens, the price can only increase if *demand* exceeds the increase in supply. + +I started looking closely at GameStop after confirming their reported short position of [140%](https://www.reuters.com/article/us-retail-trading-congress-shorting/short-selling-under-spotlight-in-gamestop-hearing-idUSKBN2AJ026). It’s important for me explain this why this is so much different than the VW example… + +140% of GameStop’s FLOAT was sold short. There were 50,000,000 shares in that float, so 140% of this was equal to the 70,000,000 shares the company has outstanding. This means AT LEAST 100% of their outstanding shares has been sold short. Now compare that to VW where the short position was only 12.8%... Simply put, it is mathematically impossible to cover more than 100% of a company’s outstanding stock. + +The *peak* of the VW squeeze was reached when the demand for shares became surpassed by the supply of those shares. Here, demand represents 12.8% of their stock which must be available to close the short position. With only 1% of shares available, this guaranteed a squeeze until the number of shares available to trade could satisfy the remaining short interest. + +When a company has a short position with more than 100% of total shares outstanding, the preceding argument is thrown out the window. Supply cannot surpass demand because the company can only issue 100% of itself at any given time. Therefore, the additional 40% could only be explained by multiple people claiming ownership of the same share... Surely this is a mistake.. right? I thought this level of short selling was impossible.. + +..Until I saw the number of short selling violations issued by FINRA.. + +As we go through these FINRA reports, there are a few things to keep in mind: + +1. **FINRA is not a part of the government.** FINRA is a non-profit entity with [regulatory powers set by congress](https://www.finra.org/about). This makes FINRA the largest self-regulatory organization (SRO) in the United States. The SEC is responsible for setting rules which protect individual investors; FINRA is responsible for overseeing most of the brokers (collectively referred to as members) in the US. As an SRO, FINRA sets the rules by which their members must comply- **they are not directly regulated by the SEC** + +2. FINRA investigates cases at their own pace. When looking at the “*Date Initiated”* on their reports, it is not synonymous with “*date of occurrence”.* Many times, FINRA will not say when a problem occurred, just resolved. It can be YEARS after the initial occurrence. The [DTC participant report](https://www.dtcc.com/-/media/Files/Downloads/client-center/DTC/alpha.pdf) is littered with cases that were initiated in 2019 but occurred in 2015, etc. Many of the violations occurring today will take years to discover + +3. FINRA can issue a violation for each occurrence using a 1:1 format. When it comes to violations like short selling, however, these “occurrences” can last months or even years. When this happens, FINRA issues a violation for multiple occurrences using a 1:MANY format. I discussed this event in [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) where one violation represented FOUR YEARS of market f\*ckery. What’s sh\*tty is that FINRA doesn’t tell you which violations are which. You have to read each line and see if they mention a date range of occurrence within each record. If they don’t, you must assume it was for one event… BRUTAL + +4. FINRA’s investment portfolio is held by the same entities they are issuing violations to… Let that sink in for a minute + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +**2.** **State your case…** + +Can you think of a reason why short sellers would want to understate their short positions? Put yourself in their situation and imagine you’re running a hedge fund… + +You operate in a self-regulated (SRO) environment and your records are basically private. If the SEC asks you to justify suspicious behavior, you really don’t have to provide it. The worst that could happen is a slap on the wrist. I wrote about this EXACT same thing in [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/). They received a cease-and-desist order from the SEC on 12/10/2018 for failing to submit complete and accurate records. This ‘occurred’ from November 2012 through April 2016 and contained deficient information for over 80,000,000 trades. Their punishment… $3,500,000… So why even bother keeping an honest ledger? + +Now, suppose you short a bunch of shares into the market. When you report this to FINRA, they require you to mark the transaction with a short sale indicator. In doing so, FINRA builds a paper trail to your short selling activity. + +However… if you omit this indicator, FINRA can’t distinguish that transaction from a long sale. Who else would there be to hold you accountable for covering your position? This is especially true for self-clearing organizations like Citadel because there are less parties involved to hold you accountable with recordkeeping. If FINRA thinks you physically owned those shares and sold them (long sale), they have no reason to revisit that transaction in the future… You could literally pocket the cash and dump the commitment to cover. + +Another very important advantage is that it allows short sellers to artificially increase the supply of shares while understating the outstanding short interest on that security. The supply of shares being sold will drive down the price, while the short interest on the stock remains the same. + +So.. aside from paying a fine, how could you possibly lose by “forgetting” to mark that trade with a short sale indicator? It would seem the system almost incentivizes this type of behavior. + +I combed through the [DTC participant report](https://www.dtcc.com/-/media/Files/Downloads/client-center/DTC/alpha.pdf) and found enough dirt to fill the empty chasm that is Ken Griffin’s soul. Take a guess at what their most common short selling violation is.. I’m going to assume you said **“FAILING TO PROPERLY MARK A SHORT SALE TRANSACTION”.** + +For the record, I just want to say I called this in March when I wrote [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/). Citadel has one of the highest concentrations of short selling violations in their FINRA report. At the time, I didn’t fully understand the consequences of this violation… After seeing how many participants received the same penalty, it finally made sense. + +There are roughly 240 participant account names on the DTC’s list. Sh\*t you not, I looked at every short selling violation that was published on [Brokercheck.finra.org](https://brokercheck.finra.org/). To be fair, I eliminated participants with only 1 or 2 violations related to short selling. There were PLENTY of bigger fish to fry. + +I literally picked the first participant at the top of the list and found three violations for short selling. + +\*cracks knuckles\* + +[ABN AMRO Clearing Chicago LLC](https://files.brokercheck.finra.org/firm/firm_14020.pdf) (AACC) is the 3rd largest bank in the Netherlands. They got popped for three short selling violations, one of which included a failure-to-deliver. In total, they have 78 violations from FINRA. Several of these are severe compared to their violations for short selling. However, the short selling violations revealed a MUCH bigger story: + +https://preview.redd.it/3t5ylyfz5k171.jpg?width=1055&format=pjpg&auto=webp&s=f961999d09eeee7fbe42364700cbc727869f9e3f + +So… ABN AMRO submitted an inaccurate short interest position to the NYSE and FINRA and lacked the proper supervisory systems to comply with… practically everything… + +In 2014, AMRO forked over $95,000 to settle this and didn’t even say they were sorry. + +In these situations, it’s easy to think *“meh, could have been a fluke event”*. So I took a closer look and found violations by the same participants which made it much harder to argue their case of sheer negligence. Here are a couple for AMRO: + +https://preview.redd.it/vir299076k171.jpg?width=1079&format=pjpg&auto=webp&s=e17e6ceff040a4be0113c1bc4e435f29fb5ce0a6 + +ABN AMRO got slapped with a $1,000,000 fine for understating capital requirements, failing to maintain accurate books, and failing to supervise employees. If you mess up once or twice but end up fixing the problem- GREAT. When your primary business is to clear trades and you fail THIS bad, there is a much bigger problem going on. It gets hard to defend this as an accident when every stage of the trade recording process is fundamentally flawed. The following screenshot came from the same violation: + +https://preview.redd.it/mnpm2gz96k171.jpg?width=733&format=pjpg&auto=webp&s=7e5c66293566b7ca2329f20bcdb634c35395943f + + [Warehouse receipts](https://www.investopedia.com/terms/w/warehousereceipt.asp#:~:text=A%20warehouse%20receipt%20is%20used,well%20as%20provide%20inventory%20management.) are like the receipts you get after buying lumber online. You can print these out and take them to Home-Depot, where you exchange them for the ACTUAL lumber in the store. Instead of trading the actual goods, you can trade a warehouse receipt instead… so yeah… since this ONE record allowed AMRO to meet their customer’s margin requirement, it seems EXTREMELY suspicious that they didn’t appropriately remove it once they were withdrawn. + +Do I think this was an accident? F\*ck no. Because FINRA reported them 8 years later for doing the SAME F\*CKING THING: + +https://preview.redd.it/sv0v5igw6k171.jpg?width=1071&format=pjpg&auto=webp&s=02f17082135c702fad6bbc064073ae031151cee7 + + + +Once again, AMRO got caught understating their margin requirements. Last time, they used the value of withdrawn warehouse receipts to meet their margin requirements. Here, they’re using securities which weren’t eligible for margin to meet their margin requirements.. + +You can paint apple orange, but it’s still an apple.. + +The bullsh\*t I read about in these reports doesn’t really shock me anymore. It’s actually the opposite.. You begin to *expect* bigger fines as they set higher benchmarks for misconduct. When I find a case like AMRO, I’ll usually put more time into it because certain citations represent puzzle pieces. Once you find enough pieces, you can see the bigger picture. So believe me when I say I was genuinely shocked by the [detail report](https://www.finra.org/sites/default/files/fda_documents/2016049875801%20ABN%20AMRO%20Clearing%20Chicago%20LLC%20CRD%2014020%20AWC%20va%20%282019-1572740384682%29.pdf) on this case… + +https://preview.redd.it/4lgyti547k171.jpg?width=844&format=pjpg&auto=webp&s=633a928d28caef8cc6719873532aef60f271cefb + +**This has been going on for 8 F\*CKING YEARS!?** + +Without a doubt, this is a great example of a violation where the misconduct supposedly *ended* in 2015 but took another 4 years for FINRA to publish the d\*mn report. If my math is correct, the 8 year “relevant period” plus the 4 years FINRA spent… I don’t know… reviewing?... yields a total of 12 years. In other words, from the time this problem started to the time it was publicized by FINRA, the kids in 1st grade had graduated high school… + +Does anyone else think these self-regulatory organizations (SROs) are doing a terrible job self-regulating…? How we can trust these situations are appropriately monitored if it takes 12 years for a sh\*t blossom to bloom? + +…OH! I almost forgot… After understating their margin requirements in 22 accounts for over 8 years, ABN AMRO paid a $150,000 fine to settle the dust… + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +I know that was a sh\*t load of information so let me summarize it for you: + +One of the most common citations occurs when a firm “accidently” marks a short sale as long, or misreports short interest positions to FINRA. When a short sale occurs, that transaction should be marked with a short sale indicator. Despite this, many participants do it to avoid the borrow requirements set by Regulation SHO. If they mark a short sale as long, they are not required to locate a borrow because FINRA doesn’t know it’s a short sale. + +This is why so many of these FINRA violations include a statement about the broker failing to locate a borrow along with the failure to mark a short sale indicator on the transaction. It literally means the broker was naked short selling a stock and telling FINRA they physically owned that share.. + +Suddenly, a “small” violation had much bigger implications. The number of short shares that have been excluded from the short interest calculation is directly related to these violations… and there are HUNDREDS of them. Who knows how many companies have under reported short interest positions.. + +To be clear, I did NOT choose them based on the amount of ‘dirt’ they had. AMRO’s violations were like grains of sand on a beach and It’s going to take A LOT of dirt to fill the bottomless pit that is Ken Griffin’s soul. Frankly, ABN AMRO wouldn’t get us there with 10,000 FINRA violations. So without further ado, let’s get dirty.. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +**2.** **Call em’ out…** + +When FINRA publishes one of their reports, the granular details like numbers and dates are often left out. This makes it impossible to determine how systematic a particular issue might be. + +For example, if you know that *“XYZ failed to comply with FINRA’s short interest reporting requirements”* your only conclusion is that the violation occurred. However, if you know that *“XYZ failed to comply with FINRA’s short interest reporting requirements on 15,000 transactions during 2020”* you can start investigating the magnitude of that violation. If XYZ only completed 100,000 transactions in 2020, it means 15% of their transactions failed to meet requirements. This represents a major systematic risk to XYZ and the parties it conducts business with. + +I spent some time analyzing [Apex Clearing Corporation](https://files.brokercheck.finra.org/firm/firm_13071.pdf) after I left ABN AMRO. Apex is 8th on the list and the 2nd participant I found with an evident short selling problem. + +In 2019, FINRA initiated a case against Apex for doing the same sh\*t as ABN AMRO. However, the magnitude of this violation really put things into perspective: I got a small taste of how f\*cked this house of cards truly is.. + +https://preview.redd.it/u1b4zh6m7k171.jpg?width=1076&format=pjpg&auto=webp&s=0f14f5fa49e73dad79ff605464fc1c64fa73f5bd + +This is practically a template of the first ABN AMRO violation we discussed. To see the difference, we need to look at their [letter of Acceptance, Waiver and Consent](https://www.finra.org/sites/default/files/fda_documents/2016049448301%20Apex%20Clearing%20Corporation%20CRD%2013071%20AWC%20va%20%282019-1573777189509%29.pdf) (AWC).. + +https://preview.redd.it/zaiywobp7k171.jpg?width=938&format=pjpg&auto=webp&s=7fe2d2323e757efcdedf2ab22aa1ff34e10d7d55 + +Let’s break this down step-by-step… + +Apex had an issue for 47 months where certain customers recorded their short positions in an account which was NOT being sent to FINRA. It only takes a few wrinkles on the brain to realize this is a problem. The sample data tells us just how bad that problem is.. + +When you see the term “*settlement days”,* think “[T+2](https://www.schwab.com/resource-center/insights/content/stock-settlement-why-you-need-to-understand-t2-timeline#:~:text=the%20seller's%20account.-,When%20does%20settlement%20occur%3F,would%20typically%20settle%20on%20Wednesday.)”. Apex follows the T+2 settlement period for both [cash accounts and margin accounts](https://www.apexclearing.com/wp-content/uploads/2020/01/Apex-Customer-Information-Brochure-2019.pdf) which means the trade *should* clear 2 days after the original trade date. When you buy stock on a Monday, it should settle by Wednesday. + +Ok.. quick maff… + +There are roughly [252 trading days](https://therobusttrader.com/how-many-trading-days-are-there-in-a-year/) in one year after removing weekends and holidays. Throughout the 47 month “review period”, we can safely assume that **Apex had roughly 987** ((252/ 12) \* 47) **settlement dates**… + +**In other words: 256 misstated reports over 47 months is more than 1 misstatement / week for nearly 4 years.** Tell me again how this is *trivial?* + +The wording of the “sample settlement” section is a bit ambiguous… It doesn’t clarify if those were the only 2 settlement dates they sampled, or if they were the only settlement dates with reportable issues. Honestly, I would be shocked if it was the latter because auditors don’t examine every record, but I can’t be certain… + +Anyway… FINRA discovered 256 short interest positions, consisting of 481,195 shares, were *incorrectly* excluded from their short interest report. In addition, they understated the share count by 879,321 in 130 separate short interest positions. Together, this makes 1,360,516 shares that were excluded from the short interest calculation. When you realize nearly 1.5 million ‘excluded’ shares were discovered in just 2 settlement periods and there were almost 1,000 dates to choose from, it seriously dilates the imagination… + +Once again… FINRA wiped the slate clean for just $140,000… + +I want to talk about one last thing before we jump to the next section. Did you happen to notice the different account types that Apex discussed in their [letter of Acceptance, Waiver and Consent](https://www.finra.org/sites/default/files/fda_documents/2016049448301%20Apex%20Clearing%20Corporation%20CRD%2013071%20AWC%20va%20%282019-1573777189509%29.pdf) ? They specifically instructed their customers to book short positions into a TYPE 1 (CASH) account, or TYPE 5 (SHORT MARGIN) account. A short margin account is just a margin account that holds short positions. The margin requirement for short positions are more strict than regular margin accounts, so I can see the advantage in separating them. + +In the [AMA with Wes Christian](https://www.youtube.com/watch?v=2rJujnpKiqM) *(starting at 7:30)*, he specifically discussed how a broker-dealer’s margin account is used to locate shares for short sellers. However, the margin account contains shares that were previously pledged to another party. Given the lack of oversight in securities lending, the problem keeps compounding each time a new borrower claims ownership of that share. + +Now think back to the situation with Apex.. + +They asked their customers to book short positions to a short-margin account or a cash account. The user agreement with a margin account allows Apex to continue lending those securities at any time. As discussed with Dr. T and Carl Hagberg, the broker collects interest for lending your margin shares and doesn’t pay you anything in return. When multiple locates are authorized for the same share, the broker collects multiple lending fees on the same share. + +In contrast, the cash account falls under the protection of [SEA 15c3-3](https://www.finra.org/sites/default/files/SEA.Rule_.15c3-3.pdf) and consists of shares that have not been leveraged- or lent- like the margin-short account. According to Wes *(starting at 8:30)*, these shares are segregated and cannot be touched. The broker cannot encumber-or restrict- them in any way. However, according to Wes, this is currently happening. He also explained how Canada has legalized this and currently allows broker-dealers to short sell your cash account shares against you. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +Alright…. I’ll stop beating the dead horse regarding short sale indicators & inaccurate submissions of short interest positions. Given the volume of citations we haven’t discussed, I’ll summarize some of my findings, below. + +Keep in mind these are ONLY for **“FAILURE TO REPORT SHORT INTEREST POSITIONS”** or **“FAILURE TO INDICATE A SHORT SALE MODIFIER”**. If the violations contain additional information, it’s because that citation actually listed additional information. **It does NOT represent an all-inclusive list of short selling violations for these participants.** + +…You wanted to know how systematic this problem is, so here you go... *(EACH BROKER-DEALER NAME IS HYPERLINKED TO THEIR FINRA REPORT)* + +1. [Barclays](https://files.brokercheck.finra.org/firm/firm_19714.pdf) | Disclosure 36 – “SUBMITTED 86 SHORT INTEREST POSITIONS TOTALING 41,100,154 SHARES WHEN THE ACTUAL SHORT INTEREST POSITION WAS 44,535,151 SHARES.. FAILED TO REPORT 8 SHORT INTEREST POSITIONS TOTALING 1,110,420 SHARES” + +a. $10,000 FINE + +2. [Barclays](https://files.brokercheck.finra.org/firm/firm_19714.pdf) | Disclosure 54 – “SUBMITTED AN INACCURATE SHORT INTEREST POSITION TO FINRA AND FAILED TO REPORT ITS SHORT INTEREST POSITIONS IN 835 POSITIONS TOTALING 87,562,328 SHARES” + +a. $155,000 FINE + +3. [BMO Capital Markets Corp](https://files.brokercheck.finra.org/firm/firm_16686.pdf) | Disclosure 23 – “SUBMITTED SHORT INTEREST POSITIONS TO FINRA THAT WERE INCORRECT AND FAILED TO REPORT TO FINRA ITS SHORT INTEREST POSITIONS TOTALING OVER 72 MILLION SHARES FOR 11 MONTHS” + +a. $90,000 FINE + +4. [BNP Paribas Securities Corp](https://files.brokercheck.finra.org/firm/firm_15794.pdf) | Disclosure 53 – “FAILED TO REPORT TO FINRA ITS SHORT INTEREST IN 2,509 POSITIONS TOTALING 6,051,974 SHARES” + +a. $30,000 FINE + +5. [BNP Paribas Securities Corp](https://files.brokercheck.finra.org/firm/firm_15794.pdf) | Disclosure 9 – “ON 35 OCCASIONS OVER A FOUR-MONTH PERIOD, A HEDGE FUND SUBMITTED SALE ORDERS MARKED “LONG” TO BNP FOR CLEARING. FOR EACH OF THOSE “LONG” SALES, ON THE MORNING OF SETTLEMENT, THE HEDGE FUND DID NOT HAVE THE SHARES IN IT’S BNP ACCOUNT TO COVER THE SALE ORDER. IN ADDITION, BNP WAS ROUTINELY NOTIFIED THAT THE HEDGE FUND WOULD NOT BE ABLE TO COVER. NEVERTHELESS, WHEN EACH SETTLEMENT DATE ARRIVED AND THE HEDGE FUND WAS UNABLE TO COVER, BNP LOANED THE SHARES TO THE HEDGE FUND. IN TOTAL, BNP LOANED MORE THAN 8,000,000 SHARES TO COVER THESE PURPORTED “LONG” SALES” + +a. $250,000 FINE + +6. [Cantor Fitzgerald & Co](https://files.brokercheck.finra.org/firm/firm_134.pdf) | Disclosure 1 - (literally came out on 5/6/2021) – “THE FIRM SUBMITTED INACCURATE SHORT INTEREST POSITIONS TO FINRA. THE FIRM OVERREPORTED NEARLY [55,000,000 SHORT SHARES](https://www.finra.org/sites/default/files/fda_documents/2018059464001%20Cantor%20Fitzgerald%20%26%20Co.%20CRD%20134%20AWC%20va.pdf) WHICH WERE CUSTODIED WITH AND ALREADY REPORTED BY ITS CLEARING FIRM, WITH WHICH CANTOR MAINTAINS A FULLY DISCLOSED CLEARING AGREEMENT” + +a. $250,000 FINE + +7. [Cantor Fitzgerald & Co](https://files.brokercheck.finra.org/firm/firm_134.pdf) | Disclosure 31 - “…THE FIRM EXECUTED NUMEROUS SHORT SALE ORDERS AND FAILED TO PROPERLY MARK THE ORDERS AS SHORT… THE FIRM, ON NUMEROUS OCCASIONS, ACCEPTED SHORT SALE ORDERS IN AN EQUITY SECURITY FROM ANOTHER PERSON, OR EFFECTED A SHORT SALE FROM ITS OWN ACCOUNT WITHOUT BORROWING THE SECURITY…” + +a. $53,500 FINE + +8. [Cantor Fitzgerald & Co](https://files.brokercheck.finra.org/firm/firm_134.pdf) | Disclosure 33 - “…EXECUTED SHORT SALE ORDERS AND FAILED TO PROPERLY MARK THE ORDERS AS SHORT. THE FIRM HAD FAIL-TO-DELIVER POSITIONS AT A REGISTERED CLEARING AGENCY IN THRESHOLD SECURITIES FOR 13 CONSECUTIVE SETTLEMENT DAYS… FAILED TO IMMEDIATELY CLOSE OUT FTD POSITIONS… ACCEPTED SHORT SALE ORDERS FROM ANOTHER PERSON, OR EFFECTED A SHORT SALE FROM ITS OWN ACCOUNT, WITHOUT BORROWING THE SECURITY OR HAVING REASONABLE GROUNDS TO BELIEVE THAT THE SECURITY COULD BE BORROWED…” + +a. $125,000 FINE + +9. [Canaccord Genuity Corp](https://files.brokercheck.finra.org/firm/firm_1020.pdf) | Disclosure 17 - “THE FIRM EXECUTED SALE TRANSACTIONS AND FAILED TO REPORT EACH OF THESE TRANSACTIONS TO THE FINRA/NASDAQ TRADE REPORTING FACILITY AS SHORT” + +a. $57,500 FINE + +10. [Canaccord Genuity Corp](https://files.brokercheck.finra.org/firm/firm_1020.pdf) | Disclosure 20 - “THE FIRM EXECUTED SHORT SALE ORDERS AND FAILED TO PROPERLY MARK THE ORDERS AS SHORT” + +a. $27,500 FINE + +11. [Canaccord Genuity Corp](https://files.brokercheck.finra.org/firm/firm_1020.pdf) | Disclosure 31 - “…SUBMITTED TO NASD MONTHLY SHORT INTEREST POSITION REPORTS THAT WERE INACCURATE” + +a. $85,000 FINE + +12. Citadel Securities LLC | [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) – LITERALLY ALL I TALK ABOUT IN THAT POST. GO READ IT + +13. [Citigroup Global Markets](https://files.brokercheck.finra.org/firm/firm_7059.pdf) | Disclosure 10 – “THE FIRMS TRADING PLATFORM FAILED TO RECOGNIZE THAT THE FIRM WAS SELLING SHORT WHEN IT WAS ACTING AS THE CONTRA PARTY TO A CUSTOMER TRADE. AS A RESULT, THE FIRM ERRONEOUSLY REPORTED SHORT SALES TO A FINRA TRADE REPORTING FACILITY AS LONG SALES… EFFECTING SHORT SALES FROM ITS OWN ACCOUNT WITHOUT BORROWING THE SECURITY…” + +a. $225,000 FINE + +14. [Citigroup Global Markets](https://files.brokercheck.finra.org/firm/firm_7059.pdf) | Disclosure 59 – “…THE FIRM RECORDED 203,653 SHORT SALE EXECUTIONS ON ITS BOOKS AND RECORDS AS LONG SALES, SUBMITTED INACCURATE ORDER ORIGINATION CODES AND ACCOUNT TYPE CODES TO THE AUDIT TRAIL SYSTEM FOR APPROXIMATELY 2,775,338 ORDERS… “ + +a. $300,000 FINE + +15. [Citigroup Global Markets](https://files.brokercheck.finra.org/firm/firm_7059.pdf) | Disclosure 76 – “…FAILED TO PROPERLY MARK APPROXIMATELY 9,717,875 SALE ORDERS AS SHORT SALES… FINDINGS ALSO ESTIMATED THAT THE FIRM ENTERED **55 MILLION ORDERS** INTO THE NASDAQ MARKET CENTER THAT IT FAILED TO CORRECTLY INDICATE AS SHORT SALES…” + +a. $2,250,000 FINE + +16. [Cowen and Company LLC](https://files.brokercheck.finra.org/firm/firm_7616.pdf) | Several Disclosures – almost every other disclosure is for failing to mark a sale with the appropriate indicator, including short AND long sale indicators + +17. [Credit Suisse Securities LLC](https://files.brokercheck.finra.org/firm/firm_816.pdf) | Disclosure 34 – “NEW ORDER REPORTS WERE INACCURATELY ENTERED INTO ORDER AUDIT TRAIL SYSTEM (OATS) AS LONG SALES BUT WERE TRADE REPORTED WITH A SHORT SALE INDICATOR” + +a. $50,000 FINE + +18. [Credit Suisse Securities LLC](https://files.brokercheck.finra.org/firm/firm_816.pdf) | Disclosure 95 – “BETWEEN SEPTEMBER 2006 AND JUNE 2008, CREDIT SUISSE FAILED TO SUBMIT ACCURATE PERIODIC REPORTS WITH RESPECT TO SHORT POSITIONS…” + +a. $40,000 FINE + +19. [Deutsche Bank Securities INC.](https://files.brokercheck.finra.org/firm/firm_2525.pdf) | Disclosure 50 – “THE FIRM FAILED TO REPORT SHORT INTEREST POSITIONS IN DUALLY-LISTED SECURITIES” + +a. $200,000 FINE + +20. [Deutsche Bank Securities INC.](https://files.brokercheck.finra.org/firm/firm_2525.pdf) | Disclosure 52 – “THE FIRM… EXPERIENCED MULTIPLE PROBLEMS WITH ITS BLUE SHEET SYSTEM THAT CAUSED IT TO SUBMIT INACCURATE BLUE SHEETS TO THE SEC AND FINRA… INCORRECTLY REPORTED LONG ON ITS BLUE SHEET TRANSACTIONS WHEN CERTAIN TRANSACTIONS SHOULD HAVE BEEN MARKED SHORT” + +a. $6,000,000 FINE (SEVERAL OTHER ISSUES REPORTED IN ADDITION TO SHORTS) + +21. [Deutsche Bank Securities INC.](https://files.brokercheck.finra.org/firm/firm_2525.pdf) | Disclosure 58 – “BETWEEN JANUARY 2005 AND CONTINUING THROUGH NOVEMBER 2015, THE FIRM IMPROPERLY INCLUDED THE AGGREGATION OF NET POSITIONS IN CERTAIN SECURITIES OF A NON-US BROKER AFFILIATE… IN ADDITION… DURING THE PERIOD BETWEEN APRIL 2004 AND SEPTEMBER 2012, THE FIRM INAPPROPRIATELY REPORTED CERTAIN SHORT INTEREST POSITIONS ON A NET, INSTEAD OF GROSS, BASIS..” + +a. $1,400,000 FINE + +22. [Goldman Sachs & Co. LLC](https://files.brokercheck.finra.org/firm/firm_361.pdf) | Disclosure 32 – “THE FIRM REPORTED SHORT SALE TRANSACTIONS TO FINRA TRADE REPORTING FACILITY WITHOUT THE REQUIRED SHORT SALE MODIFIER” + +a. $260,000 FINE (SEVERAL OTHER ISSUES REPORTED IN ADDITION TO SHORTS) + +23. [Goldman Sachs & Co. LLC](https://files.brokercheck.finra.org/firm/firm_361.pdf) | Disclosure 54 – “FAILED TO ACCURATELY APPEND THE SHORT SALE INDICATOR TO FINRA/NASDAQ TRADE REPORTING FACILITY REPORTS… INACCURATELY MARKED SELL TRANSACTIONS ON ITS TRADING LEDGER” + +a. $55,000 FINE + +24. [Goldman Sachs & Co. LLC](https://files.brokercheck.finra.org/firm/firm_361.pdf) | Disclosure 63 – “…SUBMITTED TO FINRA AND THE SEC BLUE SHEETS THAT INACCURATELY REPORTED CERTAIN SHORT SALE TRANSACTIONS AS LONG SALE TRANSACTIONS WITH RESPECT TO THE FIRM SIDE OF CUSTOMER FACILITATION TRADES… THE FIRM REPORTED SHORT SALES AS LONG SALES ON ITS BLUE SHEETS WHEN THE TRADING DESK USED A PARTICULAR MIDDLE OFFICE SYSTEM…” + +a. $1,000,000 FINE + +25. [Goldman Sachs & Co. LLC](https://files.brokercheck.finra.org/firm/firm_361.pdf) | Disclosure 150 – “GOLDMAN SACHS & CO. FAILED TO REPORT SHORT INTEREST POSITIONS FOR FOREIGN SECURITIES AND NUMEROUS SHARES ONE MONTH… THE FIRM REPORTED SHORT INTEREST POSITIONS IN SECURITIES TOTALING SEVERAL MILLION SHARES EACH TIME WHEN THE ACTUAL SHORT INTEREST POSITIONS IN THE SECURITIES WERE ZERO SHARES… ACCEPTING A SHORT SALE ORDER IN AN EQUITY SECURITY FROM ANOTHER PERSON, OR EFFECTED A SHORT SALE FROM ITS OWN ACCOUNT, WITHOUT BORROWING THE SECURITY OR BELIEVING THE SECURITY COULD BE BORROWED ON THE DATE OF DELIVERY…” + +a. $120,000 FINE + +26. [Goldman Sachs & Co. LLC](https://files.brokercheck.finra.org/firm/firm_361.pdf) | Disclosure 167 – “…THE FIRM FAILED TO REPORT TO THE NMC THE CORRECT SYMBOL INDICATING THAT THE TRANSACTION WAS A SHORT SALE FOR TRANSACTIONS IN REPORTABLE SECURITIES…” + +a. $600,000 FINE (SEVERAL OTHER ISSUES REPORTED IN ADDITION TO SHORTS) + +27. [HSBC Securities (USA) INC.](https://files.brokercheck.finra.org/firm/firm_19585.pdf) | Disclosure 26 – “FIRM EXECUTED SHORT SALE TRANSACTIONS AND FAILED TO MARK THEM AS SHORT… HSBC SECURITIES HAD A FAIL-TO-DELIVER SECURITY FOR 13 CONSECUTIVE SETTLEMENT DAYS AND FAILED TO IMMEDIATELY CLOSE OUT THE FTD POSITION… THE FIRM CONTINUED TO HAVE A FTD IN THE SECURITY AT A CLEARING AGENCY ON 79 ADDITIONAL SETTLEMENT DAYS…” + +a. $65,000 FINE + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + +I’m going to stop at ‘H’ because I’m tired of writing. Hopefully, you all understand the point so far. We’re only 8 letters into the alphabet and have successfully buried Ken to his waist. + +The system that is used to mark the proper transaction type (sell, buy, short sell, short sell exempt, etc.) is obviously broken… There, I said it.. the system is INDUBITABLY, UNDOUBTEDLY, INEVITABLY F\*CKED.. + +Regardless of the cause- fraud or negligence- there are too many firms failing to accomplish a seemingly simple task. The consequences of which are creating far more shares than we can imagine. It’s a gigantic domino effect. If you fail to properly mark 1,000,000 short shares and a year goes by without catching the problem, it’s already too late. They’re like the f\*cking replicators from Stargate.. + +In each of the examples listed above, the short interest on the stock was understated by the number of shares excluded… and that was just a handful.. + +Knowing this, how can someone look at the evidence and say it’s *trivial….?* + +No one really knows HOW systematic this issue is because it is so deeply incorporated in the market that it has BECOME the system itself. Therefore, there is obviously something much deeper going on, here.. How does one argue against the severity of these problems after reading this? There are FAR too many things that don’t make sense and FAR too many people turning a blind eye.. + +The only conclusion I keep coming back to is that the people with money know what’s going on and are desperately trying to keep it under wraps.. + +..So…. In an effort to prove this, I looked for violations that showed their desperation to protect this f\*cked up system. + +..Buckle up.. + +\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ + + ***HOUSE OF CARDS - PART 3 (I'm uploading it now; will link ASAP)*** +People tend to feel a sense of guilt when it comes to leaving a job like they owe them or their coworkers something. That is because America preaches this "family" culture that we are such a strong team all working together. In reality, if they need to close your entire division, they will do it without hesitation. If they can outsource something cheaper, they will do it. You do not owe them anything and if you see a better opportunity for yourself or your family, please take it and make your own financial future. +The most intense vote in crypto history now has only 20 more hours to go before it finally closes after a week long running vote.[trustnodes.com](https://www.trustnodes.com/2018/04/23/three-million-eth-now-voted-52-restoring-paritys-eth) +We are all on the same team. Everyone wants to make money in the end. It's a zero sum game. The difference is the risk-return tradeoff. +There are many on this sub who use a combination of multiple strategies(buying & selling options). +We all have gotten burned on crazy unexpected moves in several underlyings, when the other side won bigly or vice-versa. +It's like making a good income on a 9-5 job but feeling jealous because someone made it big with the risk they took in their business or laughing at them when their business goes to shit. + +People acting as if their strategies as superior to others. This will just demotivate newcomers from learning +SVRN, which is its own token, has been assigned to be used for voting on projects that are listed on the platform. Thus, it will be valued as it will be able to use its own token more. In addition, the Company will be able to exchange all major crypto currencies such as BTC, ETH, and other major currencies, such as Euro, Dollar and Sterling, without any commissions, and transfer them to the stock exchanges. Payments can also be made in cash, debit cards or cash, so cold and warm wallets can be used together. +I have been trading for 20+ years. I love smallcaps and I am addicted to options trading. + + +I tried to create a side thread with details,, it was deleted? - I dunno,, maybe you pay for that ability..?? + +I don't run pump and dumps,, I use the same name everywhere. + +But twice after posting what I believe to be good stock picks I was verbally trashed instantly. Now i can understand trying to protect your community,, thats cool,,, but some of you need some social skills and patience before you instantly attack anyone. + +As i have noted, I am new to reddit,, but I'm not new to trading or other trader platforms,, so yeah you can actually go look me up. + +I came here because I am sick & tired of Twitter shaving off my followers every freaking week for over a year! I used to trade at thelion,, but got kicked off as well as years of dd about stocks for refusing to participate in what I believed to be a p&d. + +My style is if its a good company & the base is good,, buy it. + +I like penny stocks all the way up to $amzn + +I have an established history of pounding the table on quality stocks,, new traders should not have to start their trading careers buying canned spam when steak and lobster is available! + +Yeah, I am a little annoyed with the instant unwelcome Reddit users have,, for me & likely other traders. + +Technically I would like to find a trader community on a node,, not just "hanging out on the net". + +If anyone finds one,, hit me up at @gmail + + +Anyway,, best of trading to all, and I am sorry about my rant. +So, unfortunate circumstances have made me a millionaire over night at the age of 37. + +I remember stating that if I wasn’t a millionaire by age 40, i would blow my brains out. + +Be it as it may, my grandfather passed away from old age, and unbeknownst to me, he left me his mansion in the sweetest part of town, and a his childhood home which is about 2 hrs away; also in a prime location. + +My aunts and uncles screwed me and my mom out of everything when my grandmother passed away, since she left no will. All certificates were then modified to favor them. + +But now, as hard of a situation this is, the tables turned. + +I will not be selling my homes or any art of jewelry. I am not allowed to anyways, for 5 years. + +I have received 450k cash along with this. + +What’s the best way to work these 450 so I don’t have to sell my homes for millions of dollars. + +Thanks +If my underlying assumption is incorrect, please elucidate me. + +That said, I know of several family members who worked as grocers and retail workers and they were able to buy their homes in the 70s and eventually paid them off. + +I, on the other hand, have a well-paying job, a graduate degree, and I’m also married to a partner with a great job. + +Yet, had it not been for inheriting the equity from my grocer and retail worker relatives, I would never have been able to affordably buy my townhouse. + +In contrast, similarly sized 2 or 3 bedroom apartments for rent in my area are now priced at about $3,500 a month. At $15 an hour, that would equate to 67% of a couple’s pre-tax income on housing alone. +Hi, I’m Chris Blattman from The University of Chicago’s Harris School of Public Policy. My book [Why We Fight: The Roots of War and the Paths to Peace](https://chrisblattman.com/why-we-fight/) publishes tomorrow April 19th. [Proof](https://twitter.com/cblatts/status/1516042751183400965?s=20&t=zThno_trYkiVyn4to4hpxw) + +I’m an economist and political scientist. I’ve worked in civil wars in East & West Africa, and with gangs in Colombia and Chicago. My book looks at fighting of every kind—from civil conflicts and gang wars to ancient Greece and the World Wars, plus the kinds of invasions we are witnessing now in Ukraine. + +[Why We Fight](https://chrisblattman.com/why-we-fight/) walks through the psychological and strategic forces of war, especially the ones we tend to overlook. It’s easy to forget that war shouldn’t happen — and that most of the time it doesn’t. There are millions of hostile rivalries around the globe and yet only a fraction erupt into violence. That's because war is ruinous. + +War is what happens when something keeps rivals from weighing the brutal costs of fighting. The book looks back at decades of social science and shows that there are really just 5 ways this happens: + +1. *Unchecked interests.* When leaders aren't accountable to their people and ignore the costs, or seek private gains +2. *Intangible incentives.* When groups value something ideological or intangible that only war will bring +3. *Misperceptions.* When groups misperceive themselves or their enemy +4. *Uncertainty.* When their opponent's strength and resolve is uncertain +5. *Commitment problems.* When an opponent is expected to grow strong and can't commit not to use that strength in future + +I've also worked on poverty alleviation, cash transfers to the poor, sweatshops, and randomized control trials for poverty and violence reduction. + +Happy to answer questions on and off the topic of conflict. I a longtime [international affairs and development blogger](https://chrisblattman.com/blog/) and happy to cover any topic I write about there: academia, development, or career advice for young people. + +Ask Me Anything! (I'll be collecting questions this morning then start responding midday Central Time.) + +**Edit**: Thank you all, I had a great time answering all your questions. Thanks for participating and you can always ask me anything about econ, politics (or ducks and minecraft) [on Twitter](https://twitter.com/cblatts). You can also [subscribe to blog posts by email](https://chrisblattman.com/blog/). I’ll do my best to come back to some of the unanswered questions if I can later on +Hi, I’m Chris Blattman from The University of Chicago’s Harris School of Public Policy. My book [Why We Fight: The Roots of War and the Paths to Peace](https://chrisblattman.com/why-we-fight/) publishes tomorrow April 19th. [Proof](https://twitter.com/cblatts/status/1516042751183400965?s=20&t=zThno_trYkiVyn4to4hpxw) + +I’m an economist and political scientist. I’ve worked in civil wars in East & West Africa, and with gangs in Colombia and Chicago. My book looks at fighting of every kind—from civil conflicts and gang wars to ancient Greece and the World Wars, plus the kinds of invasions we are witnessing now in Ukraine. + +[Why We Fight](https://chrisblattman.com/why-we-fight/) walks through the psychological and strategic forces of war, especially the ones we tend to overlook. It’s easy to forget that war shouldn’t happen — and that most of the time it doesn’t. There are millions of hostile rivalries around the globe and yet only a fraction erupt into violence. That's because war is ruinous. + +War is what happens when something keeps rivals from weighing the brutal costs of fighting. The book looks back at decades of social science and shows that there are really just 5 ways this happens: + +1. *Unchecked interests.* When leaders aren't accountable to their people and ignore the costs, or seek private gains +2. *Intangible incentives.* When groups value something ideological or intangible that only war will bring +3. *Misperceptions.* When groups misperceive themselves or their enemy +4. *Uncertainty.* When their opponent's strength and resolve is uncertain +5. *Commitment problems.* When an opponent is expected to grow strong and can't commit not to use that strength in future + +I've also worked on poverty alleviation, cash transfers to the poor, sweatshops, and randomized control trials for poverty and violence reduction. + +Happy to answer questions on and off the topic of conflict. I a longtime [international affairs and development blogger](https://chrisblattman.com/blog/) and happy to cover any topic I write about there: academia, development, or career advice for young people. + +Ask Me Anything! (I'll be collecting questions this morning then start responding midday Central Time.) + +**Edit**: Thank you all, I had a great time answering all your questions. Thanks for participating and you can always ask me anything about econ, politics (or ducks and minecraft) [on Twitter](https://twitter.com/cblatts). You can also [subscribe to blog posts by email](https://chrisblattman.com/blog/). I’ll do my best to come back to some of the unanswered questions if I can later on +Those who have been here for a while now will probably relate. We have accumulated significant wealths... yet after a certain point most of us stopped telling everybody about it. For many of us hodlers, we haven't even sold since it was 18$ and no one really knows about our true net worths. + +Who would have though that a small community of 38000 redditors, somewhere, is making 2000-3000% profits on their investments? Hell, nobody will believe you even if you told them. They would probably just say it is a scam, or dismiss your arguments. + +You probably don't even WANT to talk about gains anymore because it is not possible to explain this crazy technology. + +We are all living on mars right now, without the slightest idea of what is gonna happen an how crazy all of this can get. + +If this is the future, let's embrace it while we are at the begging . For most of us, this still feels like an illusion +This probably isn’t the best sub to ask/discuss this topic but how do you justify buying up investment homes/rental properties especially in this scarce market? + +There are plenty of qualified buyers who are renting at the moment because there’s no supply and I feel a bit guilty taking these homes away from them… + +Do you chalk it up as it’s just business- nothing personal? +Holy moly, are we about to go to the moon!!?!!?!! + +THE MOASS IS COMING!!!!! OMFG 😱 + +[https://gamestop.gcs-web.com/node/18846/html](https://gamestop.gcs-web.com/node/18846/html) + +&#x200B; + +Mark on your calendar the following info: + +**Meeting Type:** Annual Meeting of Stockholders + +**Date:** Wednesday, June 09, 2021 + +**Time:** 10:00 AM, Central Daylight Time + +**Place:** 625 Westport Parkway, Grapevine, Texas 76051 + +&#x200B; + +**Letter from our Chief Executive Officer** + +April 22, 2021 + +Fellow Stockholders, + +Thank you for your investment in GameStop. It is my privilege to serve as GameStop’s chief executive officer, working with a group of highly-committed and knowledgeable Board members in stewardship of the long-term interests of all our stockholders. + +As we move forward in 2021, we are focused on transforming GameStop into a customer-obsessed technology company that delights gamers. We are working to create a differentiated customer experience that positions us to access new customers, further engage with existing ones and reactivate former ones, while also focusing on initiatives that drive customer lifetime value. The strategic initiatives that support our goals include: + +&#x200B; + +1. Investing in technology capabilities, including our E-Commerce presence, systems and customer insights gathering. +2. Building a superior customer experience, including by establishing a U.S.-based customer care operation. +3. Expanding our product catalogue and addressable market. Certain emerging categories represent natural extensions that we believe our customers expect from us. +4. Growing our distribution footprint fulfillment operations to improve speed of delivery and service. This will enable us to provide customers convenient, flexible, and competitive delivery options across the entire product spectrum. + +We expect to accelerate these and other elements of our transformation while continuing to capitalize on the new console cycle. We believe the progress we have made over the past two years positions GameStop for long-term growth and to deliver value for stockholders. + +As your fiduciaries, GameStop’s Board remains committed to enhancing value for our stockholders. We appreciate your support of management and the newly refreshed Board as they work to continue to create value for all stockholders. + +Sincerely, + +📷 + +George E. Sherman + +Chief Executive Officer + +&#x200B; + +**Notice of Annual Meeting of Stockholders** + +Dear Stockholder: + +We invite you to attend our Annual Meeting of Stockholders on Wednesday, June 9, 2021 at 10:00 a.m., Central Daylight Time, at our corporate headquarters located at 625 Westport Parkway, Grapevine, Texas 76051. At the annual meeting, you will be asked to: + +**(1)** Elect six directors, each to serve as a member of the Board of Directors until the next annual meeting of stockholders and until such director’s successor is elected and qualified; + +**(2)** Provide an advisory, non-binding vote on the compensation of our named executive officers; + +**(3)** Ratify our Audit Committee’s appointment of Deloitte & Touche LLP as our independent registered public accounting firm for our fiscal year ending January 29, 2022; and + +**(4)** Transact such other business, if any, as may properly come before the annual meeting and at any postponement or adjournment of the annual meeting. + +Only stockholders of record as of the close of business on April 15, 2021 (the “record date”) are entitled to vote at the annual meeting and any postponement or adjournment thereof. Please see pages 9 – 12 for additional information regarding attendance at the meeting and how to vote your shares. This proxy statement provides information that you should consider when you vote your shares. + +Your vote is important. Even if you plan to attend the annual meeting, we request that you vote your shares as soon as possible by following the voting instructions contained in this proxy statement. + +By order of the Board of Directors. + +Sincerely, + +📷 + +April 22, 2021 + +Dan L. Reed + +*Senior Vice President, General Counsel and* + +*Secretary* + +&#x200B; + +&#x200B; + +[Ryan Fucking Cohen!](https://preview.redd.it/g7z50aksrsu61.png?width=1656&format=png&auto=webp&s=056bae5b9219dbf7d17c10a7ce5024e56756c5cf) + +Edit: Second filling 14A-101 + +[https://gamestop.gcs-web.com/node/18841/html](https://gamestop.gcs-web.com/node/18841/html) + +**THE BOARD OF DIRECTORS RECOMMENDS A VOTE:** + +**FOR** ON PROPOSALS 1, 2 AND 3 + +&#x200B; +