Model: phamkinhquoc2002/bge-base-financial-matryoshka
Author: phamkinhquoc2002
Pipeline: sentence-similarity
Library: sentence-transformers
Tags: sentence-transformers, safetensors, bert, sentence-similarity, feature-extraction, generated_from_trainer, dataset_size:29132, loss:MatryoshkaLoss, loss:MultipleNegativesRankingLoss, dataset_size:100, arxiv:1908.10084, arxiv:2205.13147, arxiv:1705.00652, base_model:BAAI/bge-base-en-v1.5, base_model:finetune:BAAI/bge-base-en-v1.5, model-index, text-embeddings-inference, endpoints_compatible, region:us
Base models (finetune): id: BAAI/bge-base-en-v1.5
Card metadata: library_name: sentence-transformers
tags: sentence-transformers, sentence-similarity, feature-extraction, generated_from_trainer, dataset_size:29132, loss:MatryoshkaLoss, loss:MultipleNegativesRankingLoss, dataset_size:100
base_model: BAAI/bge-base-en-v1.5
metrics: cosine_accuracy@1, cosine_accuracy@3, cosine_accuracy@5, cosine_accuracy@10, cosine_precision@1, cosine_precision@3, cosine_precision@5, cosine_precision@10, cosine_recall@1, cosine_recall@3, cosine_recall@5, cosine_recall@10, cosine_ndcg@10, cosine_mrr@10, cosine_map@100
widget: source_sentence: [Click Here]( https://www.sec.gov/oiea/Complaint.html ) to file a complaint with the SEC.

[Click Here]( https://www.finra.org/investors/have-problem/file-complaint/complaint-center ) to file a complaint wit with FINRA.

[Click Here]( https://robinhood.com/contact ) to file a complaint with Robinhood directly.

Robinhood Financial LLC 85 Willow Road Menlo Park, CA 94025 United States

This morning I, and millions of other retail investors, were blocked from purchasing (entering new buy orders) on the Robinhood platform, without notice. This clear example of market manipulation has forced the stock down from over $500 in after-hours to less than $300 as of this writing. Meanwhile, hedge fund interests are NOT blocked from buying the shares being traded and the lower price obviously benefits them.

We retail investors have followed all the rules and finally stood to gain a LITTLE bit from Wall St and they suddenly change the rules "to protect" us. I am requesting you use your subpoena power and regulatory authority to examine whether Robinhood colluded illegally with any other actors who may have held short positions on these stocks to reduce the number of buyers for $GME and therefore deflate the price. This is market manipulation.

info for form:
Robinhood Financial LLC

Address: 
85 Willow Road
Menlo Park, CA 94025
United States

Edit: Fellow Regarded, please buy more GME and Hold 💎🤚🏾 the rewards helps with visibility but it’s better spent there.

Edit 2: 
I’m getting a lot of questions regarding the same things so I’ll try my best to answer them. 
- For FINRA online complaint, scroll down to the section reading “Problems addressed by FINRA” under it click the Orange button that reads “FILE ONLINE COMPLAINT” 
- FINRA CRD NUMBER: 165998 [ Thanks u/Mattcwh ]
- User [R] pointed out that Robinhood is owned by Citedal, a hedge fund that along side with Point72 injected ~$3B into Melvin. Standing to lose a shitton of money to us degenerates. This further points out why Robinhood is trying to manipulate the market to help out the suits at Wall St. 
- Lots of questions concerning the Security type. If it’s for GME you put it under CLASS A OR D Securities.

Edit 3: Thanks for all the people who filed what they could.
sentences: \*\*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) 


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ayy islain dogges to the moooon... to the moon.. to the moon..

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$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\*\*: 
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[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, 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?, 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., source_sentence: Chapman Albin is an investors rights firm that my buddy works at. Just got off the phone w him. He is going to post a press release regarding the case they are filing. 
Let me know if you need help finding a lawyer. 
Disclaimer: I’m not getting anything out of this
sentences: 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., \*\*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\*\*, 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., source_sentence: GO WATCH INSIDE JOB. I'll be back later. I need a break after typing this up. CYA LATER APES.

Edit: \*\*Please understand that the majority of this post is a summary of that film (section 1) with paraphrasing and direct quotes\*\*. I take no credit for the amazing work that they've done! I've left a note in the post as well.

The remainder of the post (sections 2-3) is pulling from other sources to tie everything together with the current market conditions, the SLR requirement expiration, the mortgage default protections expiring, and the DTC, ICC, OCC rules.

[https://en.wikipedia.org/wiki/Inside\\_Job\\_(2010\\_film)](https://en.wikipedia.org/wiki/Inside\_Job\_(2010\_film))

Edit: Free on youtube [https://youtu.be/T2IaJwkqgPk](https://youtu.be/T2IaJwkqgPk) thanks to /u/dcarmona!
sentences: 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., &#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.

# 

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# 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)

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# 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., &#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., source_sentence: That's it. Contact the Securities and Exchange Commission in the United States. This is your money and they aren't giving it back. They have an online complaint form. Also ask for \*\*upvote\*\*s for visibility. This has to be one of the worst Poloniex stories I've heard so far. 
sentences: 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., 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., 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., source_sentence: Start with a billion, and invest it poorly. 

Seriously though, just invest as much as you can into total market index funds. Start with tax advantaged accounts, and work your way up from there. I started investing about 8 years ago, when my wife and I made a combine maybe $60k a year. We've worked our way up to to around $150k a year. Current net worth is around $400k and growing. Compound interest is the most powerful force on earth.
sentences: 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., 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?, 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
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Created: 2024-06-10 15:47:35