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utf5u

Where has all the money in the world gone?

Honest question. Where is all the money? I hear nothing but bad news about financial crisis all over the world, and it seems that there is a shortage of cash - like it is some sort of natural resource. People haven't stopped buying stuff. They still need food, clothing, medicine, shelter. Taxes are still collected. Fines are still levied. So where is all the money? I mean, labor has been produced to make things and wages paid to the laborers. The things are purchased by other laborers, who were paid for producing goods or services, etc. It's a closed loop, right? Can someone explain it like I'm five or something?

finance

(relix already hit on some of this) It's hard to explain this to a five-year-old, because there are some fairly abstract concepts involved, but here goes... All actual "money" is debt. All of it, including monetary gold, etc. (Don't argue with me yet, I'll get to that.) Imagine a pretend world with no money, some kind of primitive villiage or something. Now let's invent paper money. You can't just print a bunch of paper that says people have to give you stuff, because nobody would honor it. But you *could* print IOUs. Let's walk through this... - Let's say you're an apple-farmer and I'm a hunter. You want some meat but haven't harvested your crops yet. You say to me, "hey, go hunt me some meat and I'll give you 1/10th of my apple harvest in the fall". Fair enough, I give you meat, you owe me apples. There's probably a lot of this kind of stuff going on, in addition to normal barter. In time, standard "prices" start to emerge: a deer haunch is worth a bushel of apples, or whatever. - Now, let's say a week later, I realize that my kid needs a new pair of shoes more than I need a bushel of apples. I come back to you and say, "Hey remember that bushel of apples you owe me? Could you write a marker, redeemable for one bushel of apples, that I can give to the shoemaker in trade for a pair of shoes?" You say okay, and we have invented a *transferable note*, something a lot like money. - In time, our little villiage starts to figure out that a note redeemable for a bushel of apples can be swapped for all kinds of things. The fisherman who doesn't even like apples will accept apple-certificates in trade for fish, because he knows he can trade them to boat-builder who loves apples. In time, you can even start to hire farm-workers without giving them anything except a note promising a cut of the future harvest. Now, you are issuing *debt*: a promise to provide apples. The "money" is a transferable IOU-- your workers get a promise to provide value equal to a day of farm-work, or whatever, and it's transferrable, so they can use it to buy whatever they want. The worker gets fish from the fisherman, not in exchange for doing any work or giving him anything he can use, but in exchange for an IOU that the fisherman can redeem anywhere. So far so good. But there are a couple of forks in the road here, on the way to a realistic monetary system, that we'll address separately: - What happens if your apple orchard is destroyed in a wildfire? Suddenly all the notes that everyone has been trading are basically wiped out. It didn't "go" anywhere, it's just gone, it doesn't exist. Real value was genuinely destroyed. There is no thermodynamic law of the conservation of monetary value-- just as you and I created it by creating transferable debt, it can also be genuinely destroyed. (We'll get back to this in a minute, it gets interesting). - The second issue is that, in all probability, the whole town is not *just* trading apple-certificates. I could also issue promises to catch deer, the fisherman could issue promises of fish, and so on. This could get pretty messy, especially if you got the notion to issue more apple-certificates than you can grow: you could buy all kinds of stuff with self-issued debt that you could never repay, and the town wouldn't find out until harvest-time comes. Once again, value has been "destroyed" people worked and made stuff and gave you stuff in exchange for something that doesn't exist, and will never exist. All that stuff they made is gone, you consumed it, and there is nothing to show for it. The above two concerns are likely to become manifest in our village sooner or later, and probably sooner. This leads to the question of *credit*, which is, at its most basic, a measure of *credibility*. Every time you issue an apple-certificate, you are *borrowing*, with a promise to repay from future apple-harvests. After the first couple of town scandals, people will start taking a closer look at the credibility of the issuer. Let's say the town potato-farmer comes up with a scheme where his potato-certificates are actually issued by some credible third-party, say the town priest or whatever, who starts every growing season with a book of numbered certificates equal to the typical crop-yield and no more, and keeps half of the certificate on file, issuing the other half. Now there is an audit trail and a very credible system that is likely to earn the potato-grower a lot of credit, compared to other farmers in town. That means that the potato-grower can probably issue more notes at a better exchange rate than some murkier system. Similarly, the town drunk probably won't get much value for his certificates promising a ship of gold. Now we have something like a credit market emerging, and the potato-farmer is issuing something closer to what we might call a modern "bond"... (continued in a reply to this post...)

m3g13g

Is there a better sub where comments aren’t hidden 99.9% of the time?

So often someone will ask an amazing question, something I’m really interested in getting a good answer to, or even someone’s opinion, but I always just see that message explaining that comments need to be approved. 99.9% is an exaggeration, but not many people are going to come back to look at a post to see if any comments have been approved.

AskEconomics

I someone were to make a good alternative then I'd be very happy about it. It can take ages moderating this sub. I'm sure lots of the other mods think the same. The fundamental problem is though that loads of people who don't know about economic write replies. All sorts of bullshit gets written. The problem then is you'd have to know about economics to distinguish the bullshit from the truth. If someone can think of a good way of solving this I'd be very happy.

c84bp

How real-world corruption works.

This is a throwaway account (I'm a longtime redditor under another login). /r/economics might not be the correct place to put this, but it was the best I could think of. I'm a mid-career guy in a business that does a lot of work with governmental and quasi-governmental agencies. I've never ripped anyone off personally, but I have seen and occasionally been an incidental beneficiary of quite a bit of patronage, insider dealing, nepotism, misuse of taxpayer money, and outright corruption. While I have always been honest in my own dealings on a case-by-case basis, I have refrained from many opportunities to be a "whistleblower". A lot of stuff on reddit misunderstands the relationships between wealth, power, and influence. For starters, all the above three are always and have always been inter-related, and probably always will be. And that might not always be a bad thing: those who have risen to high levels of wealth are often pretty smart, and surprisingly often exceptionally honest. Those who rise to high levels of influence usually have some pretty good insight and talent in their area of expertise. Those who have acquired a lot of power tend to be good at accomplishing things that lots of people want to see happen. None of which is purely democratic, nor even purely meritocratic, but there is a certain dose of both kind of baked into the cake: stuff like wealth or family connections only gets you so far in modern, developed, and relatively open and transparent societies such as the US. And while that can be pretty far by normal standards, at some point sunlight does shine through any crack, and outright robbery or complete incompetence is difficult to sustain indefinitely. But there is an awful lot of low-level waste, patronage, and corruption that happens both in the private and in the public sector. Without going ideological, the private sector in a free-ish market has a more immediate system of checks and balances if only because you have to actually persuade the end users to keep buying your stuff for the price you're charging: if it's no good, or if you are grossly over-charging, your customers will tend to catch on sooner or later. But in the public sector, the "consumer" often has little choice... so-called "market discipline" is a lot more diffuse when you have a former-schoolteacher-or-real-estate-broker-turned city councilman whose job it is to disburse a multi-million-dollar street-paving contract or whatever. And neither the schoolteacher nor the real-estate broker has any clue how to write or evaluate a road-paving contract... Let's say that there are three credible bidders for that street-paving contract: * Bidder 1 is "Paver Joe", a local guy with a driveway-paving company and three trucks who sees this as a big opportunity to expand his business and get the city to pay for five new trucks. He puts in a dirt-cheap bid that he wrote up himself with the help of his estate attorney. The cost to taxpayers is very low, but the certainty that he will complete it on schedule and as specified is a little iffy. Paver Joe plans to work overtime and bust his tail on the job, not for profits, but to grow his business. He's offering the taxpayers a great deal, but a slightly risky one. * Bidder 2 is "Muni Paver Inc", a company who has the experience and expertise to do the job, who knows what's involved and who has done this work before. They already have the trucks, their workers are all unionized and paid "prevailing wage", everything will be done by the book, all their EPA certifications are in place, etc... The bid is a lot more expensive than Paver Joe, but it's credible and reliable. They are offering the taxpayers a degree of certainty and confidence that Paver Joe cannot match. * Bidder 3 is me, "Corruptocorp". Instead of Paver Joe's 2-page contract with typos, or Muni-Paving's 20-page contract, I'm offering the city council a full package of videos, brochures, and a 40-page contract with a price just a tad higher than Paver Joe (my quoted price is meaningless, as we will see). Moreover, I'm inviting the city council to Corruptocorp-owned suites in a golf resort near my headquarters to give my presentation (all expenses paid, of course, and of course, bring your spouses). There the city council members will, after the first day of golf, dinner, dancing, and cocktails, see a slideshow and chorus-line of smiling multi-ethnic faces and working mothers talking about how much Corruptocorp's paving improved their town and their lives. I'll then stand up and tell a self-effacing joke about being one of those corporate guys trying to get their money, and then I'll wax a bit emotional about my small-town roots and how Corruptocorp was started by a man with a simple dream to make life better for everyone, and to do well by doing good in local communities, and that we actually plan to hire local contractors such as Joe's Paving to do the work, backed our economies of scale and reliability. I'll mention that paragraph 32 subsection B of our proposal mandates twice-yearly performance reviews by the city council, to of course be held at the golf resort, at Corruptocorp's expense, ("so I hope to see you all back here every February and August!"), and of course I make sure that each of them has my "personal" cell phone and home numbers in case they have any questions.... So needless to say I get the bid, and six months later it's time for our review at the golf resort. After dinner and cocktails I step up to the podium and announce that there is both good news and bad news: *"The bad news is that our subcontractor has found over 1,000 rocks in the road. And as I'm sure you know, paragraph 339 subsection D.12 specifies that any necessary rock removal will be done at prevailing wages, currently $1,500 per rock, for a total cost overrun of $1.5 million. But the good news is (and believe me, I had to fight long and hard for this with the board of directors), Corruptocorp has agreed to remove those rocks for only $1,000 apiece! So even though there have been some cost overruns, your smart decisions have saved your taxpayers **half a million dollars**! Give yourselves a round of applause!"* *"Now, the other situation is that there has been some 'difficult terrain' as described in subsection 238b, which I'm sure you're all familiar with. And as you know, 'difficult terrain' is not covered by the contract, which is for paving, not for turning mountains into flat roads... (wistful chuckle). Now, technically, according to the contract, we should be charging your town prevailing rates for these sections, but I've worked it so that you will be allowed to re-bid them, if you wish, since our contract doesn't specifically include terrain as described in subsection 238b."* Now the contract price has doubled, and Corruptocorp has completely sidestepped all of the difficult and costly work, taking profits only on the easy stuff. The city council members can either admit that they were duped and bought (political suicide), or can simply feed corruptocorp's line to the voters. Which do you think will happen? And it gets even worse on smaller scales: look up your local building or electrical inspector. Ten-to-one he is a relative, friend, or campaign donor to the mayor or city council. What's in it for him? Every single construction or home improvement project not only has to pay him a fee, it also has to pass his inspection. Guess which contractors are most likely to pass his inspection? His brothers, friends, family... or the cheapest guy who for some reason has a hard time finding work in this town? Guess how the local inspector feels about homeowner self-improvements: does he think they are a great way for regular people to improve their wealth with a little elbow grease, or does he see them as stealing work from his friends and family? The US military is by far the most wasteful customer I've ever had. I'll talk about that if this topic gets any interest. edit: as promised, here's the post about military spending: http://www.reddit.com/r/Economics/comments/c84bp/how_realworld_corruption_works/c0qrt6i

Economics

So I said I would talk about the US Military if this got any interest. Here goes: The US Department of Defense (hereafter DOD) has put in place a ton of procedural protections to stave off corruption. And God knows they need protection: only in the DOD can you find a 20-something purchasing officer who knows nothing about the stuff he's buying, who makes around $30k per year, and who is in charge of a half-billion-dollar budget. For starters, low-paid people with large purchasing budgets are the easiest to corrupt outright. Find someone makes $30,000 per year but who has a $10m budget, and you have struck gold: it doesn't even require outright bribery. Just show up at their office and mention that you might have some product for them to take a look at... "Can you spare some time this weekend? I have tickets to the playoffs if you're free... Whoa!? You're a fisherman? Let's forget about business: why not have the family come by the beach house? I just got a new boat and the stripers are running... we'll talk business later..." Take a guy living in a military-base trailer out fishing on a yacht or to courtside seats, take him on a golf weekend, or to front-row seats at an A-list concert, hell, even just take him and his lady to a swank restaurant, and you've made a new best friend. And if he happens to be in charge of a $10m budget, that lavish night might be about to pay for itself 100,000 times over. And all that assumes that you did not actually have a stripper with a cell-phone camera waiting in the car after the concert... we haven't even talked about blackmail, so why bring it up? Especially considering that these days, you don't even have to blackmail someone to blackmail them-- just linking your pics to their facebook, or setting up a "my party with Joe Blow" web page can ruin their life without malice or legal consequence... We're just posting our own party pics! The DOD grades proposals with a color-grading system that is basically equivalent to letter grades. The way it works is: the purchasing officer or whomever writes the spec ("request for quote"-- in normal business this called a "request for proposal" or "RFP". The DOD calls it an "RFQ". Whatever.). The spec is written as numbered sentences/paragraphs. Companies write bids that answer each number, with a bottom-line price. A technical review committee sees the proposals with the price and supplier blacked out, and "grades" each proposal based on how well it meets the spec. The purchasing officer then sees the "grades" from the technical review, with the prices alongside (but not the complete proposals). Depending on his instructions, he may be required to either sign for the best overall value, highest overall grade, lowest acceptable cost, etc. All of this seems very official and corruption-proof, until you realize that the original request for proposal came from, say, a 65-year-old Naval Admiral who knows everything about Oceanic warfare but nothing at all about computers, who assigned his 20-something first mate to write the spec and request for funding, who knows nothing about purchasing and who in turn wrote a spec (two years ago) that required Core2duo computers with 2GB ram and Windows XP and who required computers that meet the spec... By the time Congress approves the funding, the spec is obsolete, and it costs far *more* to buy a bunch of obsolete Core2Duo machines with 2GB RAM than it would have cost to buy more-powerful computers at Costco. The over-technicality and protectiveness of the DOD actually makes it one of the most vulnerable purchasing systems anywhere. As a technical officer who was interested in my product told me: "Don't worry about the review process, we'll just let you guys write the spec". If the military wants a Mercedes, they just issue a spec that requires a hood ornament with three lines trisecting a circle, and see whichever car company meets the spec at the best price-- surprise! They get the contract. Which means that the DOD is probably the only buyer in the world paying sticker price.

l6x130

CLASS ACTION AGAINST ROBINHOOD. Allowing people to only sell is the definition of market manipulation. A class action must be started, Robinhood has made plenty of money off selling info about our trades to the hedge funds to be able to pay out a little for causing people to loose money now

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.

wallstreetbets

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

l6i4t3

Wallstreet Bets Set to Private Megathread

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.

Wallstreetbetsnew

You there. Yeah you. The person reading this comment. Calm the fuck down. Seriously. You already know what you have to do. Hold that dang line. Wall Street is pulling out all the stops to make us wanna bail and sell our shares. Don’t give into them. Hold $GME. Don’t let them off the hook. We are in this together and it only works if we are TOGETHER. Don’t worry about the server or the discord. This was honestly to be expected. It’s a good sign not a bad sign. We are breaking the system lol and soon we will be paid for it. Obligatory 🚀

l6u6d5

Trading212 restricts the purchase of certain stocks under guise of “mitigating risk”

EDIT: T212 ALLEGEDLY SELLING STOCKS WITHOUT USER PERMISSION [tweet](https://twitter.com/able_adam/status/1355174529665028100?s=21) [tweet](https://twitter.com/zzywest/status/1355176988122750978?s=21) EDIT: Mirror stocks on other EU exchanges now blocked too 1/28 EDIT2: Straight up BUY RESTRICTIONS! - "Mitigating Risk" no longer named a reason 1/28 EDIT3: [UK TRUST PILOT REVIEW](https://uk.trustpilot.com/review/trading212.com) EDIT4: BUY restrictions Appear removed as of 1/29 - Will update when $NYSE opens EDIT5: T212 Restricts new signups to App and forum. On a Thread deleting & Banning Spree of people who are complaining there I think you know which stocks they are. Now, say what you want about meme stocks/wsb etc does this for anyone else not shed a light on this industry as a whole? Or is there actually a case for preventing people piling into this stock? Beyond usual toc on signup which are frankly quite blasé, Ive never had any platform warn or restrict a *particular* stock, especially not under the auspice of protecting me from risk. Was 2008 not an unprecedented market environment? Was the start of covid not? This is an extremely worrying precedent for me and last time ill be using t212. Edit: I listened to reasonable arguments but this stinks. Its fine if you dont like wsb or the current meme stocks. But look at this precedent and just wait til you spend months on DD and get fucked over anyway, this will continue NOTE 1: As perT212 app “In the interest of mitigating risk for our clients, we have temporarily placed (meme stock) in reduce only mode as highly unusual volumes have led to an unprecedented market environment. New positions cannot be opened, existing ones can be reduced or closed” NOTE 2: Due to BUY restrictions placed by our intermediary and ever major execution venue worldwide, GameStop will be placed in close-only mode. New BUY positions can't be initiated, existing ones can be reduced or closed

UKInvesting

- email them with a complaint - they have 8 weeks to respond - if they dont contact the Finanical Ombudsman or the FCA with evidence (screenshots etc) The more of us that do it, the higher likelyhood something will be done

ul3oqg

Why were American, minimally-skilled, workers able to afford single family homes in the 1960s and 1970s, but now they can barely afford apartments for rent?

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.

AskEconomics

There are lots of misconceptions around this topic. Home ownership rates in general are higher now than in the 70's. https://fred.stlouisfed.org/series/RHORUSQ156N The cost of a house is also not really the plain cost of a house, it's the financing cost. And in that regard, people spend less of their disposable income on mortgages than they did at any prior point in the last 40 years. https://fred.stlouisfed.org/series/MDSP That doesn't mean houses haven't become more expensive, but that perception is in large parts fueled by the fact that they have become a *lot* more expensive in the most desirable places, the big cities that offer high salaries and a high standard of living. People talk about San Francisco, not Casper, Wyoming. Another thing to note is that people became wealthier and in turn bought bigger houses. Houses cost more, houses *per square foot* have fluctuated, but not gone up so drastically. https://www.aei.org/wp-content/uploads/2014/02/houses2.jpg?x91208 Two trends are worth noting however. People on average go to college more often, spend more time on their education, and start working later. They also get married later. This means that even if they ultimately earn the same or more, this happens later in life. Also, inequality pushes ownership rates down for the lower half and up for the upper half. For more details, see: https://equitablegrowth.org/a-generational-perspective-on-recent-u-s-homeownership-divergence-by-income-and-race/ So, from a broad perspective, ownership hasn't changed, but who can afford what and where has changed.

l6x130

CLASS ACTION AGAINST ROBINHOOD. Allowing people to only sell is the definition of market manipulation. A class action must be started, Robinhood has made plenty of money off selling info about our trades to the hedge funds to be able to pay out a little for causing people to loose money now

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.

wallstreetbets

[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.

l807am

"Wealthsimple Inc., a commission-free Canadian online brokerage with more than 350,000 clients, is warning traders about the risks of investing in certain highly speculative stocks, but isn’t planning to halt trading in those shares."

(Bloomberg) -- Wealthsimple Inc., a commission-free Canadian online brokerage with more than 350,000 clients, is warning traders about the risks of investing in certain highly speculative stocks, but isn’t planning to halt trading in those shares. Wealthsimple, whose motto is “get rich slow,” doesn’t offer riskier investment choices such as options trading or margin accounts, and has sent clients emails reminding them about the dangers of speculation, Chief Executive Officer Mike Katchen said in an interview with BNN Bloomberg Television Friday. It also embedded in-app notifications for users looking at certain stocks. The firm doesn’t plan to restrict trading on those shares the way Robinhood Markets Inc. and other brokerages have done in recent days, Katchen said. “If people are taking calculated risks and want to join in on the fun, but are doing it in a responsible way with an amount of their portfolio that they can effectively lose if and when these stock prices do come down, that’s OK,” Katchen said. “But we want to make sure that people are being responsible, and we’re trying to be as proactive as we can about that messaging.” The recent frenzy of retail trading has spurred a surge in interest even in the tamer platform of Wealthsimple, which touts passive investing in ETFs and is building out cash, checking, insurance and mortgage products. The company, owned by Power Corp. of Canada financial conglomerate, saw sign-ups increase more than 50% from a week earlier and daily volume more than double, Katchen said. That surge in interest could be a good thing if handled properly, he said. ‘Fine Line’ “We have to walk that fine line of using this opportunity to bring more and more people into the capital markets and into the opportunity of investing,” he said. “But let’s also remember that investment carries risks, and it does require thoughtfulness and long-term thinking.” Katchen would like to see investors use individual stock-picking and cryptocurrencies such as Bitcoin, which his firm does allow trading in, as part of a “play money” account on the margins of their larger, core, long-term investing strategy. He also doesn’t see options and margin accounts as inherently wrong, but said they can be dangerous when used by new investors who don’t understand them. “The gamification of these highly risky tools is problematic and could result in some very bad outcomes for people, and we don’t want to be a part of that,” Katchen said. https://www.bnnbloomberg.ca/canada-s-answer-to-robinhood-warns-traders-but-won-t-halt-stocks-1.1556216

CanadianInvestor

This is how it should be This morning I saw a post from somebody saying “How do I trade stocks? I don’t even know where to begin but I opened a Wealthsimple account cuz a bitch don’t like being broke” These people are more than likely going to be the ones left holding the bag and it’s not good. There needs to be every effort to educate these people who don’t even know that the Canadian and US stock markets are different. Of course it’s their money and they should 100% be able to do what they want with it but please at least try to educate them first on what they’re about to do. I’m all for assumption of risk but it’s only fair if they get a breakdown from something other than the nightly news

lghevq

First Time Investors - If you don't know what to do -- READ This

Hi all beginners, I was once like you, had no idea what I was doing, no idea what an option was, and had no idea how to even buy a stock. Now, you could say I'm an "experienced" trader (Whatever the f%&\* that means), and I see a decent amount of posts "totally new - what should I invest in". From all the smooth brains that have been doing this for awhile - that's really annoying and no one wants to help you for the most part. Instead, do you own research first - I mean, you literally have Google, it is so simple. Im really not trying to bash on anyone, but Google is amazing and if you just take the 15 minutes to read an article or watch the ENTIRE youtube video, you will be so much further ahead. people are so obsessed with the known and dont want to work. It has taken me about 3-4 years to finally understand the market, charts, DD, and more about stocks and I still lose money on trades, and if u see someone saying they never loss money its a scam and stay away. Anyways, what im trying to preface this with is stocks take time to understand do you DD. For those complete beginners that dont even have brokerage app installed yet, here are some good places to start: [https://www.investopedia.com/articles/basics/06/invest1000.asp](https://www.investopedia.com/articles/basics/06/invest1000.asp) (investopedia in general is amazing for learning) [https://www.thebalance.com/stock-trading-101-358115](https://www.thebalance.com/stock-trading-101-358115) Those are two good articles to start reading, giving you a basic understanding. I know most of you wont read that so for complete beginners here is the TL;DR: FIND A BROKEAGE LIKE ROBINHOOD,WEBULL ETC, DEPOSIT MONEY, THEN ONCE THE MONEY HITS START RESEARCHING STOCKS YOU WANT TO BUY. So now that you have a brokerage app installed on your phone, or you can access it via your laptop, doesnt matter, and you have some money in there, you can actually start buying the stocks. Depending on what brokerage you are using all the UIs look different so buying and selling will look different but buying and selling is the same. If you buy a stock you get shares, and when you sell the stock you lose those shares and "collect" your money, whether thats a profit or loss. Anyways, you have a brokerage now with some money in it, how do you find stocks to buy. There are a million difference ways you can decide. The first way I recommend you find stocks to buy is through create a "stock screener". [Finviz.com](https://finviz.com/) has a great free tool that alot of people use for this, and there are a ton of youtube videos on how to create your own screener..here are some of my favorite screeners: [https://www.youtube.com/watch?v=M8sNMhPJINU&t=2s](https://www.youtube.com/watch?v=M8sNMhPJINU&t=2s) [https://www.youtube.com/watch?v=bWpe30R2VnM](https://www.youtube.com/watch?v=bWpe30R2VnM) [https://www.youtube.com/watch?v=7xKOo6vNaq8](https://www.youtube.com/watch?v=7xKOo6vNaq8) Each morning, you can run these scans premarket and have some stock ideas on what you want to trade. But don't just base your screener off of the stocks you are going to buy, you have to make sure they are a good stock with potential because just because its in your screener doesn't mean it is a stock you want to trade. So go through technical chart analysis (will cover that further down), read up on the stock, look at the price target, with analysts think it is a good buy or if you should sell, you can look at the fundamentals, and much more. The good news is all of that can be found on Finviz as well. Before we get into the meat of breaking down your pre-market screener stocks, there are some other ways you can check out stocks to buy. There are way to many accounts to count on twitter that provide great advise and tweet about what stocks they are watching and buying into - this is complete free. Another great place you can go is right here - REDDIT. People are always posting stock ideas, so instead of posting "what should I buy" take that time to look through subreddits of what people are buying, what they are looking at or some of the DDs, those can be super helpful. Now that you have an idea on how to find the stocks, the next part is determining if you should actually buy the stock or not. The first step I like is the technical chart analysis. If this is a swing trade, a stock you plan on holding for more than a day but less than a year, technical analysis is super important in my opinion. If you are LONG on a stock and are going to hold it for more than a year or even 10+ years then it is more about the company and the direction you think they will be going which is more fundamental trading, but I focus on more of the swing trading, and sometimes day trading but I dont really do that. Here are some good videos to understand technical analysis of a stock chart: [https://www.youtube.com/watch?v=rlZRtQkfK04](https://www.youtube.com/watch?v=rlZRtQkfK04) [https://www.youtube.com/watch?v=o6hZma0bajE](https://www.youtube.com/watch?v=o6hZma0bajE) [https://www.youtube.com/watch?v=ItacPNRujiU](https://www.youtube.com/watch?v=ItacPNRujiU) Those are some great videos that should get you started and really will teach you what all the stuff on the charts mean so you can start to break down charts on your own and know if those stocks from your screener are worth buying or not. The next analysis that is popular is called funamental, I dont do this style but here are 2 videos that cover it in good detail: [https://www.youtube.com/watch?v=a63yvv4vjDE](https://www.youtube.com/watch?v=a63yvv4vjDE) [https://www.youtube.com/watch?v=baAzH5ZfNbs](https://www.youtube.com/watch?v=baAzH5ZfNbs) There you have it. Now you can sign up for a broker to get money into an account, deposit money in, start screening for stocks that you may want to buy, and then review their chart to see if you want to buy the stock. If it still seems confusing go back to what confuses you and re-read the article or find another video that may explain it better than the videos I found. Its all about just doing the process over and over again and you will see what works and what doesnt. That is the honest truth, like i said it took me about 3 years to find what works for me and what doesnt. And what works for me may not work for you, the biggest part of understanding a stock or the market in general is having your own way so you are confident when you invest in a stock. Pro-tip, when you buy your stocks, set a stop loss order for the stock. This means that if the stock doesnt go up and starts falling, once it hits a certain price it will automatically sell. This is very important for managing your risk, especially as a beginner. check out this video on stop losses: [https://www.youtube.com/watch?v=VW7P22B\_99A](https://www.youtube.com/watch?v=VW7P22B_99A) I hope you beginners learned something from this, if not no problem. drop your questions below I will try to answer, but again im now financal advisor or millionaire.

StocksAndTrading

Not gonna lie I just started last August and pretty much full sent and went with some companies I knew who were do for a good year like Sony especially with a new system coming out and so far on about 2k invested I'm up 1200 in about 6 months which makes me feel good lol. Have missed out on good opportunities on the way which happens though.

o0scoy

The Bigger Short. How 2008 is repeating, at a much greater magnitude, and COVID ignited the fuse. GME is not the reason for the market crash. GME was the fatal flaw of Wall Street in their infinite money cheat that they did not expect.

​ # 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 ​ 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. ​ [Inside Job \(2010\) Promotional](https://preview.redd.it/vvdd32qkei571.png?width=776&format=png&auto=webp&s=982445a99f17af054bd351990017e364b137cf02) ​ # 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 \(2010\) - % 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. # ​ # 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) ​ ​ ​ # 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.

Superstonk

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!

l6xpjg

Trading212 banning people from buying GME and AMC. This is unacceptable!

I don't have any GME/AMC, I'm not riding this hype train, but I find it ridiculous that a broker is basically prohibiting people to invest in whatever they want. It's their money, not yours, T212. Great thing I abandoned them! https://i.imgur.com/h6HMchO.png

eupersonalfinance

Just to be fair, GME/AMC is not a hype train (at least not anymore) in terms of profits. It's a war between everyday people and huge hedge funds. And clearly you can see which side the brokers are taking.

mvk5dv

A House of Cards - Part 1

**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.** \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ​ [**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. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ​ 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) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ​ **And another:** ​ [https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/rsrondeau052003.txt](https://preview.redd.it/953v7l47feu61.png?width=884&format=png&auto=webp&s=83c2d1998b3c111da7cb31b183b83c62abbe353b) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ​ **AAAAAAAAAAND another:** ​ [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) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ​ **Two** ​ [https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/srdtc200302-81.pdf](https://preview.redd.it/ouwx18qmteu61.png?width=692&format=png&auto=webp&s=39dcaabcc228e60ba5e472353285aa330c13ea0a) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ​ **Three** ​ [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.. ​ 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*** ​ ​ ***to be continued.*** **DIAMOND.F\*CKING.HANDS**

Superstonk

So they built a broken system on top of a system that didn’t work as well as they’d hoped and then regulated the system in favor of the people breaking the system? And the whole thing got exposed because of overconfident shorts and an insane yolo. Holy moly.

9mfd5g

Megathread: 2019 Nobel Prize in Economics awarded to William Nordhaus and Paul Romer

### "The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2018 was divided equally between William D. Nordhaus "for integrating climate change into long-run macroeconomic analysis" and Paul M. Romer "for integrating technological innovations into long-run macroeconomic analysis."" Nobel Prize Committee * [Summary](https://www.nobelprize.org/prizes/economics/2018/summary/) * [Popular Science Background: "Integrating nature and knowledge into economics"](https://www.nobelprize.org/uploads/2018/10/popular-economicsciencesprize2018.pdf) * [Scientific Background: "Economic Growth, Technological Change, And Climate Change"](https://www.nobelprize.org/uploads/2018/10/advanced-economicsciencesprize2018.pdf) * [Press Release](https://www.nobelprize.org/uploads/2018/10/press-economicsciences2018.pdf) #### News Coverage * [NYT: "2018 Nobel in Economics Is Awarded to William Nordhaus and Paul Romer"](https://www.nytimes.com/2018/10/08/business/economic-science-nobel-prize.html) * [Guardian: "Nobel prize in economics won by Nordhaus and Romer for work on climate change and growth"](https://www.theguardian.com/business/live/2018/oct/08/nobel-prize-2018-sveriges-riksbank-in-economic-sciences-awarded-live-updates) * [Washington Post: "William Nordhaus and Paul Romer win Nobel Prize in economics"](https://www.washingtonpost.com/business/2018/10/08/two-americans-win-nobel-prize-economics/?noredirect=on&utm_term=.7d9b0c9f12be) * [FT: "Economics Nobel recognises work on climate change and innovation"](https://www.ft.com/content/b08807de-cae0-11e8-9fe5-24ad351828ab) * [BBC: "Economists win Nobel for work on climate and growth"](https://www.bbc.com/news/business-45785222) * [WSJ: "Two Top U.S. Economists Win Nobel for Work on Growth and Climate"](https://www.wsj.com/articles/nobel-in-economics-goes-to-american-pair-1538992672) * [PBS: "William Nordhaus and Paul Romer win economics Nobel for climate change, technological innovation models"](https://www.pbs.org/newshour/economy/making-sense/william-nordhaus-and-paul-romer-win-economics-nobel-for-climate-change-technological-innovation-models) This page will be expanded with additional news coverage and commentary as the day progresses. Please direct all Nobel discussion here.

Economics

> “Climate change is a result of the greatest market failure the world has seen.” Amen - the lack of accounting for external costs has been a colossal failure. So how do we start to address this? Carbon taxes is one way (preferred by many) On the carbon tax side, the analysis of what is necessary to main temperatures according to various models is really depressing. The costs are so high I don’t see how we’ll get there without being literally forced (as in the climate impacts are so obvious and severe they can no longer be ignored by climate deniers). And by this point the damage will be severe. As a reference point, I’m in BC Canada and we have a carbon tax. Currently our tax is $35/tonne. The tax rate will increase each year by $5 per tonne until it reaches $50 per tonne in 2021. The models proposed in the research are: 1. Baseline: no climate-change policies are adopted, over and above the limited policies already adopted in 2015. 2. Optimal: paths for climate-change policies are chosen to maximize aggregate (weighted) welfare within the model from 2015 forward. 3. Temperature-limited: optimal policy paths are chosen, subject to the further constraint that the global temperature does not exceed 2.5 ◦C above the 1900 average. 4. Stern discounting: optimal policy paths are chosen for a subjective discount rate set to 0.1% per year, as suggested in the influential Stern Review (Stern 2007). Here are the costs for those ( sorry for poor iPhone formatting) Carbon taxes 2010 US Dollars 2015 2020 2025 2030 2050 Optimal (3.5C by 2100) 29.5 35.3 49.1 64.0 153.5 Temperature Limit <2.5C 184.1 229.0 284.0 351.0 1008.4 Stern discounting at 0.1% 256.5 299.6 340.7 381.7 615.6 If we compare the costs to keep <2.5C, BC's current taxes are 5X too low! And BC is one of the most progressive provinces, other Canadian provinces are moving away from carbon taxes. The Federal government still has plans for a federal tax but it is looking politically more risky as we go. This does not bode well.

nlwqyv

House of Cards - Part 3

***Prerequisite DD:*** 1. [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) 2. [The EVERYTHING Short](https://www.reddit.com/r/GME/comments/mgucv2/the_everything_short/) 3. [The House of Cards – Part 1](https://www.reddit.com/r/Superstonk/comments/mvk5dv/a_house_of_cards_part_1/) 4. [The House of Cards - Part 2](https://www.reddit.com/r/Superstonk/comments/nlwaxv/house_of_cards_part_2/) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ **TL;DR-** **No freaking way I can do that.** **\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** **Continuing from HOC Part II...** **4.** **Slimy…** If you watched the [AMA with Wes Christian](https://www.youtube.com/watch?v=2rJujnpKiqM), he talks about the number of occurrences where the actual short interest is severely understated based on the data his firm obtained for legal proceedings. According to his numbers, in most cases the short interest is 50% - 150% **MORE** than what is reported by the SEC *(starting at 14:30).* The objective isn’t to address the issue: it’s to keep the issue hidden. Firms that underreport their short interest are gaming the system by taking advantage of how the short interest calculation is done. When the SEC relies on reports that broker-dealers provide, and FINRA takes YEARS to reveal the lies within those reports, the broker-dealer can lie without immediately facing the consequences. It allows these firms to operate in a high-risk environment without exposing just HOW big their risk-appetite is. Another example that Wes mentioned was [Merrill Lynch](https://www.sec.gov/news/pressrelease/2016-128.html). Merrill was fined [$415,000,000](https://files.brokercheck.finra.org/firm/firm_16139.pdf) *(violation 3)* in 2016 for using securities held in their customer’s accounts to cover their own trades. Check out this screenshot I took from that case: https://preview.redd.it/v9625j8wek171.jpg?width=1115&format=pjpg&auto=webp&s=85d43bc351fbda75e347bd33a1a550b67dda970e Remember when we mentioned [SEA 15c3-3](https://www.finra.org/sites/default/files/SEA.Rule_.15c3-3.pdf) in the case with Apex? They were asking customers to book short positions to either a cash account or a short margin account. [SEA 15c3-3](https://www.finra.org/sites/default/files/SEA.Rule_.15c3-3.pdf) protects those customers from allowing brokers to lend out the securities within their cash accounts… Well Merrill Lynch knocked that one right out of the f\*cking park… ​ https://preview.redd.it/s3zok5wyek171.jpg?width=1129&format=pjpg&auto=webp&s=815e5344912234ceba846dc0d45c8b8b488b82c4 Merrill made it seem like the required deposit in their customer reserve account was much lower than it truly was. They wouldn’t have been able to use that cash if it reduced the amount below the minimum capital requirement, so they found a way to fudge the numbers. In doing so, they managed to prevent a CODE RED while reaping the benefits of a high-risk ‘opportunity’. Should Merrill have filed bankruptcy during that time, those customers would have been completely blindsided. In the case of short selling, the *true* exposure of short interest is unknown… and I’m not just talking about the short sale indicator. When a firm fails to deliver securities that were sold short, there’s a pretty good indication that they’ve exposed themselves to a bit of a problem.. Now imagine a case where the FTDs start piling up and they STILL continue to short sell that same security.. think I’m joking? Check out the [Royal Bank of Canada](https://files.brokercheck.finra.org/firm/firm_31194.pdf): https://preview.redd.it/u6yl6tj2fk171.png?width=812&format=png&auto=webp&s=1e44cc507247db1e28c00a213f90054b9abdaa6a Again… I was pretty shocked at that one. However, nothing rang-the-bell quite like this one from [Goldman Sachs](https://files.brokercheck.finra.org/firm/firm_361.pdf): https://preview.redd.it/5f408er6fk171.png?width=1031&format=png&auto=webp&s=38b9ad83d2a07360af5b5cd99d834a8771b66c93 Goldman had 68 occasions in 4 months where they didn’t close a failure-to-deliver… In 45 occasions, they CONTINUED to accept customer short sale orders in securities which it had an active failure-to-deliver… When a firm is really starting to sweat, they pull certain tricks out of their ass to quell the situation. Again, this is nothing but smoke and mirrors because that’s all they can really do. Just as Merrill Lynch artificially lowered their customer reserve deposit, other firms make it look like they cover their short positions. One of the ways they do this is by short selling a SH\*T load of shares right before a buy-in… Since we’re talking about Goldman Sachs, this seems like a great time to showcase their experience with this.. https://preview.redd.it/zhf1hr1afk171.png?width=1049&format=png&auto=webp&s=f704c3722ae287480057ce3e01c561a28b77cf4c I promise… It really is as dumb as it sounds… So the perception here is when Goldman’s client has a FTD and they find out a buy-in is coming, the required buy-in would obviously be too extreme for the client to handle.. So they begin to buy those shares while simultaneously shorting AT LEAST the same amount they were required to purchase… Have you ever failed to repay a loan so you went to another bank and got a loan to cover the first one? Well that’s exactly what this is… I know what you’re probably thinking… “didn’t that just kick the can down the road?”. The answer is YES: it didn’t actually solve anything.. There’s still one more citation that Goldman received which truly represents the pinnacle of *no-sh\*ts-given.* After I cover this, I don’t know how anyone could argue the systematic risks that exist within the securities lending business.. Check it out: https://preview.redd.it/0md200bdfk171.png?width=940&format=png&auto=webp&s=cf5e8310fbcbd73699e3593b2ab5dab418055ab0 For 5 years, Goldman relied on a team of 10-12 individuals to locate shares to be used by its clients for short selling. This group was known as the “demand team”. Naturally, as the number of requests coming in the door started to increase, it became difficult for the team to properly document all of them. The volume peaked at 20,000 requests PER DAY, but the number of individuals that handled this job stayed the same. Obviously, this became too much for them to handle so they opted out of the manual process and found another solution- the F3 key…. Yes- the F3 key… This button activated an autofill system which completed **98% of Goldman’s orders to locate shares** https://preview.redd.it/exqzge3gfk171.png?width=964&format=png&auto=webp&s=ed9c8b740974dad01db69460332c56df81a8d768 The problem with Goldman’s autofill system was that it used the number of shares available to borrow at the beginning of that day, which had already been accounted for. After using the auto-locate feature, the demand team didn’t even verify the accuracy of the autofill feature or document which method was used to locate the shares for each order… and this happened for 5 years.. Just goes to show how dedicated firms like Goldman Sachs truly are to the smallest of details, you know? Great f\*cking work, guys. By the way, I have to show one of Goldman’s short sale indicator violations… It’s too good to pass up. https://preview.redd.it/5iuhlkcjfk171.png?width=1082&format=png&auto=webp&s=f4e2fa1f106e78b9d282b60c3cee9944e919ea82 At some point, you just have to laugh at these ass clowns… I mean seriously… one violation for a 4 year period involving over 380,000,000 short interest positions… they have plenty of other short interest violations, I just laughed at how the magnitude of this one was summarized by FINRA with 10 lines and roughly 4 minutes... whoever wrote that one must have been late for lunch.. The last thing I’d like to note here is the way in which short sellers use options to “cover” their positions. Wes gave a great overview of this in the AMA *(starting at 6:25)*. Basically, one group will buy puts and another group buys calls. This creates a synthetic share that is only provided if the option is activated. Regardless, short sellers will use that synthetic share to cover their short position and the regulators actually accept it… However, as Wes points out, most of those options expire without being activated which means the share is never delivered. This expiration can be set months down the road and allows the short seller to keep kicking the can. I doubt I need to say this, but we all remember the wild options activity that was happening shortly after GameStop spiked in January. u/HeyItsPixel was one of the first to point this out. While a lot of that activity was on the retail front, I suspect a lot of it was done by short sellers to cover those positions. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ **5.** **Hedgies are f\*cked…** I’m officially +20 pages deep and there’s still so much I’d like to say. It’s best saved for another time and another post, I suppose. So I guess I’ll wrap all of this up with some of the best news I can possibly provide… It all started with a [73 page PDF](https://www.sec.gov/comments/s7-08-08/s70808-318.pdf) that was published in 2005 by a silverback named John D. Finnerty. John was a Professor of Finance at Fordham University when he published *“short selling, death spiral convertibles, and the profitability of stock manipulation”*. The document is loaded with sh\*t that’s incredibly relevant today, especially when it comes to naked short selling. He dives into the exact formula that short sellers use, which is far beyond what my wrinkled brain can interpret, alone… ..However, when firms are naked shorting a company with the goal of bankrupting them, they leave footprints which are only explained by this event. The proof is in the pudding, so to speak.. https://preview.redd.it/ax7u0r4wfk171.jpg?width=1072&format=pjpg&auto=webp&s=1828755bfe49c47ca178d960f91dfd21d8b0d680 Any of this sound familiar?? *“The manipulator can not drive the share price close to zero unless he can naked short an extraordinary number of shares…* *this form of manipulation would result in… unusually heavy trading volume, and unusually large and persistent fails to deliver at the NSCC”.* Anyone else remember the volume in GME during the run-up in January? The total volume traded between **1/31/2021 and 2/5/2021 was 1,508,793,439** **shares**, or an average daily trade volume of **88,752,555 shares.** On 1/22/2021, the volume reached 197,157,946… that’s roughly 3x the number of shares that exist.. if this doesn’t sound like unusual volume then I’m not sure what is. Furthermore, the FTD report on GameStop was through the roof during this time: ​ https://preview.redd.it/brz98nbzfk171.jpg?width=1625&format=pjpg&auto=webp&s=83ae877853acd2ec65fa73f57216f00b708a7eab ​ https://preview.redd.it/zlla3ak0gk171.jpg?width=1038&format=pjpg&auto=webp&s=c5d4a1331f8c9d97b5338cc55a37310a95c9559b Notice the statement where the manipulator will be relieved of its obligation to cover **IF** the firm’s shares are cancelled in bankruptcy? Did you happen to see footnotes 65 & 66 in the first screenshot of his PDF? It references a company that he used for his analysis… https://preview.redd.it/zdp3at43gk171.jpg?width=997&format=pjpg&auto=webp&s=8508c9d0c869544f0ccd3a15477abfd64d38897c Charter Communications had a whopping **241.8% short float in 2005**… **The ONLY way the manipulator could have escaped this was by bankrupting the company and relieving the obligation to repurchase those shares…** Guess what happened to Charter? They filed for [bankruptcy](https://abcnews.go.com/Business/story?id=7189668&page=1) in 2009… However, unlike John’s example where naked short sellers were driving down the price without opposition, GameStop had extremely high demand from retail investors to counter this activity. As I have discussed with Dr. T and Carl Hagberg, the run-up in volume during January and February was largely conducted by naked short sellers in an attempt to suppress the share price. As I have shown in the example with Goldman Sachs, firms will short sell during a buy-in for the same exact reason. To stabilize the price, you must stabilize supply and demand. …You know what Charter didn’t have? AN ARMY OF APES TO HODL THE STONK ​ DIAMOND. F\*CKING. HANDS

Superstonk

So in short; The current short interest reported by FINRA from fund data on stocks is absolute bull, and always has been. This is because funds have been found guilty of violating short interest report rules for decades, especially when their short positions were clearly illegal (i.e. naked shorting obvious). We can also see through the ridiculous volatility and volume levels of GameStop that shorts indeed have not covered and that they're still holding unspeakable levels of short positions on the stock. And now because the vast majority of GameStop share owners and buying and holding their shares (and if they continue to do so), the true short interest will inevitably reveal itself and we'll be in for the short squeeze of our lives.

9nhbhu

Quick warning to any single women looking to cut costs by getting a roommate.

Ask for women only. I initially had my ad open for everyone because I didn't want to narrow the window too much. As long as you're a professional around my age and aren't a sleazeball, I didn't mind. It only took about two days for the messages from thirsty men asking if I would be open to living with them rent free in exchange for sex. Which was always phrased as "help around the house/cleaning" or "companionship". I ignored most, but one guy called me directly. Now someone did ask me if "a blowjob a week was really that bad in exchange for free rent". From a pragmatic standpoint, no. From a "personal morals, safety, and mental health" standpoint, YES. Don't EVER feel like under the table prostitution is your only option. Do NOT let someone coerce you into doing it no matter how much you need the money. If sex work is something you want to do, that's perfectly fine. Just...don't start through these guys. And even if it started out as a BJ a week, these guys will never stop asking for more. And no one needs their life controlled by the sexual whims of some dickhead who thinks he's entitled to your body in exchange for a roof over your head. I'm sorry it got a bit ranty towards the end there, but that was a disgusting couple of days and I'm now working on getting a part time job instead of a roommate. Would rather have some extra expenses than have to deal with so many creeps.

povertyfinance

If anyone reading this is thinking 'Well I probably wouldn't mind exchanging a bj for a roof over my head' please also think about the legal implications. You won't be on the lease, and there's no contract to protect you. So maybe it started as a bj and then he ups the ante.. you're trapped and have no wiggle room. Please don't put yourself in that situation if you can help it.

xxt9k4

Asda has announced it is offering over 60’s unlimited hot drinks, hot soup and a roll for just £1 through November and December.

Asda has announced all of its own in-store cafe’s will be offering over 60’s a roll, hot soup and hot drinks through November and December for £1 to help with the cost of living crisis. This isn’t strictly personal finance related but I’m sure there’s plenty of people over this age or with family over this age that may see this post and benefit from it, so I though it’d be worth posting for awareness.

UKPersonalFinance

I know this isn’t strictly personal finance related but before you get downvoted and moaned at, I just want to say this is really helpful info and my grandparents and their pals will be making the most of this. Cheers.

mvk5dv

A House of Cards - Part 1

**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.** \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ​ [**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. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ​ 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) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ​ **And another:** ​ [https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/rsrondeau052003.txt](https://preview.redd.it/953v7l47feu61.png?width=884&format=png&auto=webp&s=83c2d1998b3c111da7cb31b183b83c62abbe353b) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ​ **AAAAAAAAAAND another:** ​ [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) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ​ **Two** ​ [https:\/\/www.sec.gov\/rules\/sro\/dtc200302\/srdtc200302-81.pdf](https://preview.redd.it/ouwx18qmteu61.png?width=692&format=png&auto=webp&s=39dcaabcc228e60ba5e472353285aa330c13ea0a) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ​ **Three** ​ [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.. ​ 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*** ​ ​ ***to be continued.*** **DIAMOND.F\*CKING.HANDS**

Superstonk

It’s a Ponzi scheme, the whole stock market is a series of IOUs of IOUs. Even if you buy the shares in cash and have them in your account under your name, you still don’t actually own them, a conglomerate of private financial institutions that can do whatever the hell they like with them has the master copy, and I own a financial instrument based on it? What the actual fuck. Follow up: Appreciate all the replies, clearly a lot of apes feeling the same way about peeking behind the curtain thanks to u/atobitt. The system is clearly broken, fraudulent to its core and built upon promises from entities that have proven themselves to be completely untrustworthy. I think the real question from all of this is why anyone would want to participate in such a flawed system at all in the future? I hope by being exposed for what it really is, Gary Gensler and the upcoming SEC rule changes will actually go some way to fixing it. And probably the only way to proceed in future is with blockchain as u/PandoraMarx has highlighted below. But for now this Gamestop situation is so unique and exciting, I’m holding because it feels like every single GME shareholder is playing a game that they can actually win, even with it being deliberately stacked against them from the start. This really is a once in a lifetime opportunity, in the immediate present for all the tendies but also for more lasting changes that level the playing field for everyone who wants the opportunity to participate in a fair market.

9hetkt

Introducing Delta Relay, a 0x based relayer with an emphasis on community governance.

https://i.redd.it/5yrn4p51xdn11.png We are excited to announce the launch of [deltarelay.com](https://deltarelay.com/), a 0x based relayer with an emphasis on community governance. Specifically, Delta Relay will focus on providing 1. **A free, autonomous token listing process driven by community voting** 2. **Technology specifically designed to support potentially millions of tokens one day** 3. **A market without middleman cost. 0% trading fee — forever** See more on [https://medium.com/@deltarelay/introducing-delta-relay-2cacaa6e6fbb](https://medium.com/@deltarelay/introducing-delta-relay-2cacaa6e6fbb) **Delta Relay is the decentralized exchange of the community, by the community, for community.** Join our community and be one of us! Website：[https://deltarelay.com](https://deltarelay.com/) Twitter：[https://twitter.com/RelayDelta](https://twitter.com/RelayDelta) Reddit：[https://www.reddit.com/r/DeltaRelay](https://www.reddit.com/r/DeltaRelay)

CryptoCurrencyTrading

I'm a bot, *bleep*, *bloop*. Someone has linked to this thread from another place on reddit: - [/r/u_ahmetyilmaz80] [Introducing Delta Relay, a 0x based relayer with an emphasis on community governance.](https://www.reddit.com/r/u_ahmetyilmaz80/comments/9jlf1h/introducing_delta_relay_a_0x_based_relayer_with/) - [/r/u_andrey18445169] [Introducing Delta Relay, a 0x based relayer with an emphasis on community governance.](https://www.reddit.com/r/u_Andrey18445169/comments/9jmdqx/introducing_delta_relay_a_0x_based_relayer_with/) - [/r/u_baserozgur] [Introducing Delta Relay, a 0x based relayer with an emphasis on community governance.](https://www.reddit.com/r/u_baserozgur/comments/9jcf4p/introducing_delta_relay_a_0x_based_relayer_with/) - [/r/u_congkhanh0412] [Introducing Delta Relay, a 0x based relayer with an emphasis on community governance.](https://www.reddit.com/r/u_congkhanh0412/comments/9jtgax/introducing_delta_relay_a_0x_based_relayer_with/) - [/r/u_dharminder123] [Introducing Delta Relay, a 0x based relayer with an emphasis on community governance.](https://www.reddit.com/r/u_dharminder123/comments/9jj1x9/introducing_delta_relay_a_0x_based_relayer_with/) - [/r/u_mirvlad1978] [Introducing Delta Relay, a 0x based relayer with an emphasis on community governance.](https://www.reddit.com/r/u_Mirvlad1978/comments/9jvcyv/introducing_delta_relay_a_0x_based_relayer_with/) - [/r/u_syrius1501] [Introducing Delta Relay, a 0x based relayer with an emphasis on community governance.](https://www.reddit.com/r/u_Syrius1501/comments/9jf52d/introducing_delta_relay_a_0x_based_relayer_with/) - [/r/u_thailuan1] [Introducing Delta Relay, a 0x based relayer with an emphasis on community governance.](https://www.reddit.com/r/u_thailuan1/comments/9jkwtj/introducing_delta_relay_a_0x_based_relayer_with/) - [/r/u_thuytran82] [Introducing Delta Relay, a 0x based relayer with an emphasis on community governance.](https://www.reddit.com/r/u_thuytran82/comments/9jx330/introducing_delta_relay_a_0x_based_relayer_with/) - [/r/u_tienvy] [Go](https://www.reddit.com/r/u_tienvy/comments/9jwj5w/go/) - [/r/u_vietprox] [@@](https://www.reddit.com/r/u_vietprox/comments/9jocjc/_/)  *^(If you follow any of the above links, please respect the rules of reddit and don't vote in the other threads.) ^\([Info](/r/TotesMessenger) ^/ ^[Contact](/message/compose?to=/r/TotesMessenger))*

l6i4t3

Wallstreet Bets Set to Private Megathread

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.

Wallstreetbetsnew

Honestly, if WSB is really permanently deleted, the world is just a fucked up place. Imagine average people making money can annoy so many powerful people. Greedy scumbags. Edit: HOLD GME. DONT LET THEM WIN. LETS SQUEZZE EVERY CENT OUT OF THEM EDIT 2: IF SO, I WILL PERSONNALLY TAKE A PLANE FROM DENMARK ALLL THEY WAY TO NEW YORK ONLY TO SLIDE TACKLE WALL-STREET-PEOPLE ON THEIR WAY TO WORK.

l6x130

CLASS ACTION AGAINST ROBINHOOD. Allowing people to only sell is the definition of market manipulation. A class action must be started, Robinhood has made plenty of money off selling info about our trades to the hedge funds to be able to pay out a little for causing people to loose money now

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.

wallstreetbets

This is unbelievable. They’re shitting themselves right now and pulling out all the stops. They’d rather a class action than allow us to trade. EDIT: to everyone replying to me that a class action lawsuit would be cheaper for them, *yes, I know.* I didn’t think I’d have to spell that out but I’ll do it anyway. The situation is so dire for them that opening up the possibility of class action would be a cheaper and preferable path in order to stop more trades happening today. But I won’t be intimidated. Hopefully you won’t be either.

6clkan

[ETH Daily Discussion] - 22/May/2017

Welcome to the **/r/EthTrader** Daily Discussion thread. *** The thread guidelines are as follows: - All sub rules apply here. Please review our **[rules page](https://www.reddit.com/r/ethtrader/about/rules)** to become familiar with them. The rules page is also linked in the announcement bar above. - General discussion topics include, but are not limited to, events of the day, technical analysis, alternative Ethereum projects, or minor questions. - Breaking news or other important content should be submitted as a separate post. - In-depth altcoin discussions should be referred to the /r/CryptoCurrency discussion thread. To view the thread, [follow this link](https://www.reddit.com/r/CryptoCurrency/search?q=%5BMonthly+General+Discussion%5D&restrict_sr=on&sort=new&t=all) and choose the latest entry on the search page. - Pumping, venting, trolling, or any other similar behavior should be redirected to the /r/CryptoMarkets trollbox thread. To view the thread, [follow this link](https://www.reddit.com/r/CryptoMarkets/search?q=Trollbox+Thread&sort=new&restrict_sr=on&t=all) and choose the latest entry on the search page. *** **[EXPERIMENTAL]** - To view live streaming comments for this thread, [click here](https://reddit-stream.com/comments/auto). Account permissions are required to post comments through Reddit-Stream.com. *** Thank you in advance for your participation. Enjoy!

ethtrader

Anyone checking this out from /all: Ethereum is a decentralized platform based on Blockchain technology. Basically it's the technological answer to the hierarchical structure of systems that have long made up a large part of our world. There is not one person or organization that owns the system. The system us based on a open sourcecode. Anyone can build apps on the system. We're all very excited today because a large number of organizations have publicly stated to back the ethereum ecosystem. This has had a very positive impact on the long term confidence and has made the price rise quite substantially. By using ethereum you can make contracts between people without the use of middleman. Those contracts are then enforced by a global computer. This has huge impact on how organizations will function, how people can trust the organizations that are running the world. Going from hundreds of years of using a pyramid model of power to a flat, transparent and secure trust-able model is something we really need in the world right now. The people in this thread are traders of the so called ether that fuels the system. We've all been here for different reasons. Since it's a traders sub, speculation and profit making is one of the reasons. But i'd like to think we all feel a certain pull towards the platform because we feel this can really impact the world in a positive way. Congrats to the holders and feel free to add info to people new to the concept of decentralized systems. Also, ask away if you need more info to grasp these idea's. This community is very helpful. One can also visit https://www.reddit.com/r/ethereumnoobies/ to start your path in the digital rabithole.

sr16d8

I tried to post in the Ontario Reddit that inflation was under reported and I got downvoted through the floor

I recently posted something saying that Canadian inflation was likely closer to 8–10% rather than the number they gave of 4.8% and I just got downvoted like crazy. I tried to explain they don’t report many increases, and referenced used cars and I think I had one person agreeing and 20 downvoting me and sending me every stupid ctv news article saying it was only 4.8%. I tried to use basic logic also, like how is it possibly that US is 7.5% and ours is only 4.8%. And eventually they removed my post for misinformation.

CanadianInvestor

The reason you got downvoted is that you made up your own basket of goods which showed higher numbers and then compared it to the official calculation. As another person pointed out, that doesn’t mean inflation is under reported but it may not be representative of what specific individuals are spending money on. It is not under reported in relation to the previous levels of inflation as it uses the same methodology. I mean, you could use a loblaw’s sales flier and compare the items to the previous month’s prices and say inflation is down. Your approach is simply meaningless as a comparison to the official numbers. All the government calculations are readily available if you want to see how the individual sub items that you’re interested in are increasing.

vbk3m2

My thoughts on the organized smear campaign being waged against me

EDIT: I've spoken with u/Blanderson_Snooper and we've had a good conversation. I believe their post about me was authentic, though flawed, and they've edited it significantly to remove the inaccuracies, which I appreciate. I still believe that there is some group working on various "hit" pieces, and which is clearly trolling my comments and automatically downvoting them. But I respect Blanderson for being intellectually honest when I cleared up various misconceptions and misunderstandings, and I'd much rather just move on from all of this and continue to focus on market structure reforms. I've unblocked them and will continue to engage constructively to answer any questions. Hi - over the past few months there has been an organized smear campaign being run against me. While there have always been people questioning my motives (despite a decade of actions to the contrary), since forming We The Investors, this movement has become more organized. I noticed a significant uptick following my meeting with the SEC Chair. I'm happy to answer any questions from this sub - I'm as transparent as I possibly can be. I haven't responded to the ridiculous and absurd allegations though because I do not believe that this smear campaign cares about the truth - it has one goal, and that goal is make you question my motives and actions. I invite you to judge everything for yourself - my track record is perfectly clear and consistent. This is flowing through a user I had blocked a couple of months ago for their repeated trolling of me, and accusations that had no basis in truth. The so-called "DD into Urvin LLC"  which is nothing but a stream of random google search results strung together to paint a narrative. This is confirmation bias at its best - look for a series of dots, and connect them in such a way to strengthen whatever argument it was that you wanted to make. For example - there are not 2 CEOs of Urvin. There are actually 3 Urvin entities, and Urvin LLC has absolutely nothing to do with Urvin Finance Inc.! This is the kind of thing that is very easy to clear up when someone is interested in the truth, but ignored or dismissed when they have a different motive. I've never scrubbed my social media, and never disguised or hidden the truth of the entities I'm involved with. It's all been on LinkedIn this entire time! The very idea that I would be in any way associated with Citadel at any time since I left in 2009 is so absurd that I don't even know how to respond. It's been a constant accusation against me, including in the halls of Congress in 2012, and on this sub repeatedly since I began engaging. If I were motivated by money, I can assure you I would have never left HFT, let alone chosen the path that I did. But all of these claims are from people who have clearly no idea what they're talking about, and clearly have never even read a privacy policy before. They call me out for things that are in both GME's and Computershare's privacy policies (in fact ours is much stronger than theirs), and are standard in any privacy policy you can find on the internet. They said that a relationship with S3 or Apex is not in question - but there are absolutely no relationships whatsoever with either of those companies. They are mis-reading, misunderstanding, or most likely purposefully misrepresenting innocuous connections or statements. There are so many instances of this in the so-called DD, that it's impossible to address them all. Nearly everything in that post is factually incorrect. Once again, it is not surprising that this smear campaign has accelerated since our meetings with the SEC. I am happy to answer any question in this thread in terms of my business practices - I'm an open book, and there is absolutely no data or benefit flowing to any other company, and especially not to Citadel, S3, Apex or anyone else. But I'm only interested in engaging in good faith - not with those who are simply out to smear me - because there is no amount of truth or fact that will change their minds. If there was, they would have answered their questions with some simple google searches and been on their way. There's nothing hidden or insidious happening here at all.

Superstonk

That post reminded me of when DRS was first trying to gain traction. I weeded through so many comments and posts that were concluding that "Computershare is Evil" because "Computershare has connections to Citadel/Virtu/Wells Fargo" Same thing seems to be happening here. I didn't find anything concrete - just leaps in logic. It felt like a post that only served to shake the beehive. Which is annoying, given how much you have dedicated and given to retail. While most of us have just been sitting here typing posts, you've been active and helping push for change for longer than superstonk has been around. Thanks for being open Dave.

p1jb09

My grandparents have given me 20 lakh rupees, How should I invest?

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.

IndiaInvestments

Ten Lakhs in a Nifty tracking index fund. 5 year average annualised returns of 14.5%. Five lakhs in an S&P500 tracking index fund. Annualised returns of 10%. Two lakhs in the latest issue of Sovereign gold bonds. Always good to have some gold in your portfolio. One lakh as playing in the stock market money. Use this to buy and sell shares. Start with blue chips like Reliance, Infosys, Tata etc.. One lakh and fifty thousand in an FD as a liquid fund for emergencies. Fifty thousand as pocket money. Buy a good phone (though if you are the kind whose grandparents gifted 20 lakhs to, you'd already have a great phone), or invest in a good library. You are 18 years old and you are already wealthy beyond most people's dreams in India. For reference, the ransom amount in the film *Hera Pheri* was Rs 20 Lakhs. Use the money to improve yourself. Eat healthy, do not smoke or drink and exercise everyday. Within 20 years, you will realise the benefit of all three. When you are in the late 30s and start hearing news of your friends being diagnosed with diabetes and other lifestyle diseases, you will thank your 18 year old self.

fk7ncs

Why don’t we just let major airlines collapse?

Hear me out. The airline industry has asked for $50bn in support to avoid bankrupty. Meanwhile these same companies have spend 80-98% of their free cash buying back their own company stock over the last 10 years. American Airlines alone has spent $12.5bn to buy back stocks. This of course is done to reduce overall divident costs and increase the share price. On top of that, under the new US corporate tax code all of these companies have lowered their tax bills by billions of dollars. The idea of the tax bill was that this money would be used for investment in technology/R&D and go to employees. Again a lot of this money ended up being used to buy back stocks. Individuals are expected to save up 3-6 months of emergency funds but yet these giant corporations can’t whether any storm. Let them fold and in a free market the void left in supply will be filled by somebody else.

AskEconomics

It is cheaper for the government to give them the bankruptcy security than it is to deal with the crippling effects that the unemployment of their employees would cause. It's important to remember that when we talk about large corporations, we are talking about profit margins of 1-2% per year for the extremely successful ones. Their billions of dollars is not sitting in a vault where dudes in top hats and monocles are bathing in it; ita tied up in assets, investments, and people. That is to say, the company is one of the tools through which money is distributed into the economy, and this tool works as a value multiplier. Losing a 50bn chunk of the economy by allowing the companies to collapse would possibly 500bn or more in damage to the public. We'd have to pay unemployment to their employees, we'd have to wash all debt for them, meaning lenders have less money and wont invest as confidently elsewhere, we'd have to store or destroy their fleets (who's gonna buy all the planes?), regional government will lose income from property tax on office buildings, etc. The list goes on. So its not as simple as "well they're gonna go out of business, sucks for them". The collateral damage would be extensive.

lghevq

First Time Investors - If you don't know what to do -- READ This

Hi all beginners, I was once like you, had no idea what I was doing, no idea what an option was, and had no idea how to even buy a stock. Now, you could say I'm an "experienced" trader (Whatever the f%&\* that means), and I see a decent amount of posts "totally new - what should I invest in". From all the smooth brains that have been doing this for awhile - that's really annoying and no one wants to help you for the most part. Instead, do you own research first - I mean, you literally have Google, it is so simple. Im really not trying to bash on anyone, but Google is amazing and if you just take the 15 minutes to read an article or watch the ENTIRE youtube video, you will be so much further ahead. people are so obsessed with the known and dont want to work. It has taken me about 3-4 years to finally understand the market, charts, DD, and more about stocks and I still lose money on trades, and if u see someone saying they never loss money its a scam and stay away. Anyways, what im trying to preface this with is stocks take time to understand do you DD. For those complete beginners that dont even have brokerage app installed yet, here are some good places to start: [https://www.investopedia.com/articles/basics/06/invest1000.asp](https://www.investopedia.com/articles/basics/06/invest1000.asp) (investopedia in general is amazing for learning) [https://www.thebalance.com/stock-trading-101-358115](https://www.thebalance.com/stock-trading-101-358115) Those are two good articles to start reading, giving you a basic understanding. I know most of you wont read that so for complete beginners here is the TL;DR: FIND A BROKEAGE LIKE ROBINHOOD,WEBULL ETC, DEPOSIT MONEY, THEN ONCE THE MONEY HITS START RESEARCHING STOCKS YOU WANT TO BUY. So now that you have a brokerage app installed on your phone, or you can access it via your laptop, doesnt matter, and you have some money in there, you can actually start buying the stocks. Depending on what brokerage you are using all the UIs look different so buying and selling will look different but buying and selling is the same. If you buy a stock you get shares, and when you sell the stock you lose those shares and "collect" your money, whether thats a profit or loss. Anyways, you have a brokerage now with some money in it, how do you find stocks to buy. There are a million difference ways you can decide. The first way I recommend you find stocks to buy is through create a "stock screener". [Finviz.com](https://finviz.com/) has a great free tool that alot of people use for this, and there are a ton of youtube videos on how to create your own screener..here are some of my favorite screeners: [https://www.youtube.com/watch?v=M8sNMhPJINU&t=2s](https://www.youtube.com/watch?v=M8sNMhPJINU&t=2s) [https://www.youtube.com/watch?v=bWpe30R2VnM](https://www.youtube.com/watch?v=bWpe30R2VnM) [https://www.youtube.com/watch?v=7xKOo6vNaq8](https://www.youtube.com/watch?v=7xKOo6vNaq8) Each morning, you can run these scans premarket and have some stock ideas on what you want to trade. But don't just base your screener off of the stocks you are going to buy, you have to make sure they are a good stock with potential because just because its in your screener doesn't mean it is a stock you want to trade. So go through technical chart analysis (will cover that further down), read up on the stock, look at the price target, with analysts think it is a good buy or if you should sell, you can look at the fundamentals, and much more. The good news is all of that can be found on Finviz as well. Before we get into the meat of breaking down your pre-market screener stocks, there are some other ways you can check out stocks to buy. There are way to many accounts to count on twitter that provide great advise and tweet about what stocks they are watching and buying into - this is complete free. Another great place you can go is right here - REDDIT. People are always posting stock ideas, so instead of posting "what should I buy" take that time to look through subreddits of what people are buying, what they are looking at or some of the DDs, those can be super helpful. Now that you have an idea on how to find the stocks, the next part is determining if you should actually buy the stock or not. The first step I like is the technical chart analysis. If this is a swing trade, a stock you plan on holding for more than a day but less than a year, technical analysis is super important in my opinion. If you are LONG on a stock and are going to hold it for more than a year or even 10+ years then it is more about the company and the direction you think they will be going which is more fundamental trading, but I focus on more of the swing trading, and sometimes day trading but I dont really do that. Here are some good videos to understand technical analysis of a stock chart: [https://www.youtube.com/watch?v=rlZRtQkfK04](https://www.youtube.com/watch?v=rlZRtQkfK04) [https://www.youtube.com/watch?v=o6hZma0bajE](https://www.youtube.com/watch?v=o6hZma0bajE) [https://www.youtube.com/watch?v=ItacPNRujiU](https://www.youtube.com/watch?v=ItacPNRujiU) Those are some great videos that should get you started and really will teach you what all the stuff on the charts mean so you can start to break down charts on your own and know if those stocks from your screener are worth buying or not. The next analysis that is popular is called funamental, I dont do this style but here are 2 videos that cover it in good detail: [https://www.youtube.com/watch?v=a63yvv4vjDE](https://www.youtube.com/watch?v=a63yvv4vjDE) [https://www.youtube.com/watch?v=baAzH5ZfNbs](https://www.youtube.com/watch?v=baAzH5ZfNbs) There you have it. Now you can sign up for a broker to get money into an account, deposit money in, start screening for stocks that you may want to buy, and then review their chart to see if you want to buy the stock. If it still seems confusing go back to what confuses you and re-read the article or find another video that may explain it better than the videos I found. Its all about just doing the process over and over again and you will see what works and what doesnt. That is the honest truth, like i said it took me about 3 years to find what works for me and what doesnt. And what works for me may not work for you, the biggest part of understanding a stock or the market in general is having your own way so you are confident when you invest in a stock. Pro-tip, when you buy your stocks, set a stop loss order for the stock. This means that if the stock doesnt go up and starts falling, once it hits a certain price it will automatically sell. This is very important for managing your risk, especially as a beginner. check out this video on stop losses: [https://www.youtube.com/watch?v=VW7P22B\_99A](https://www.youtube.com/watch?v=VW7P22B_99A) I hope you beginners learned something from this, if not no problem. drop your questions below I will try to answer, but again im now financal advisor or millionaire.

StocksAndTrading

Hey great article! I heard a fast blurb on the radio that Reddit itself is looking for some trader like you to be scouring these stock subs for potential gains makers.. I won't swear it was them, but it was a blurb on my local radio station. At any rate.. that could be YOU. You may have other great employment, but.. look into it if you want.

6clkan

[ETH Daily Discussion] - 22/May/2017

Welcome to the **/r/EthTrader** Daily Discussion thread. *** The thread guidelines are as follows: - All sub rules apply here. Please review our **[rules page](https://www.reddit.com/r/ethtrader/about/rules)** to become familiar with them. The rules page is also linked in the announcement bar above. - General discussion topics include, but are not limited to, events of the day, technical analysis, alternative Ethereum projects, or minor questions. - Breaking news or other important content should be submitted as a separate post. - In-depth altcoin discussions should be referred to the /r/CryptoCurrency discussion thread. To view the thread, [follow this link](https://www.reddit.com/r/CryptoCurrency/search?q=%5BMonthly+General+Discussion%5D&restrict_sr=on&sort=new&t=all) and choose the latest entry on the search page. - Pumping, venting, trolling, or any other similar behavior should be redirected to the /r/CryptoMarkets trollbox thread. To view the thread, [follow this link](https://www.reddit.com/r/CryptoMarkets/search?q=Trollbox+Thread&sort=new&restrict_sr=on&t=all) and choose the latest entry on the search page. *** **[EXPERIMENTAL]** - To view live streaming comments for this thread, [click here](https://reddit-stream.com/comments/auto). Account permissions are required to post comments through Reddit-Stream.com. *** Thank you in advance for your participation. Enjoy!

ethtrader

I hope this doesn't get lost in the middle of all the moon comments and excitement, but here's a slightly more serious post. Food for thought: - Stop being so greedy. Remember that this is a fairly risky investment (it doesn't feel like it because we are in a super bull market). Are you okay with losing 50% of your investment? Are you okay with losing 80% of it? Even if you think so, know that people vastly overestimate their ability to handle downturns. No matter what you do, make sure that there will still be food on the table if eth goes to 0. - Stop watching the damn charts and hold Get out there and enjoy life. I'm a hypocrite because I spent more time on this sub than I've spent at work today, but the price will swing up or down whether you watch the charts or not. I bet most of you aren't actually trading - but you're glued to the charts due to all the excitement from eth taking off--but hey, you and I both knew it would take off. LASTLY, and by far the most important... - Family, friends, loved ones should be the top priority in your life. If you're neglecting them and prioritizing staring at the price of ether, your priorities are should be recalibrated. Nothing matters more than those who give meaning to your life. Sob story saved for another daily. Thanks for reading.

slp0q1

How do I make a million dollars?

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

Money

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.

nfgk3e

Buffett on Stop Losses

It “has always struck me as like having a house that you like, and you’re living in, and, you know, it’s worth $100,000 and you tell your broker, ‘You know, if anybody ever comes along and offers $90 \[thousand\], you want to sell it,’” Buffett joked to the audience at the 1994 meeting. “It doesn’t make any sense to me.”

ValueInvesting

Stop losses are more for trading in the short term and buffet practices investing in the long term through market cycles. Comparing apples to oranges a bit here, stop losses have their place in specific strategies.

w4kfwj

'Big Short' Investor Michael Burry Says Nancy Pelosi's Chip Stock Buy Should Be Illegal

“Big Short” fame investor Michael Burry said U.S. House Of Representatives Speaker **Nancy Pelosi** “made a bundle” on semiconductor stocks she recently purchased because she knew a key bill would make it through the Senate. https://preview.redd.it/d5eockv91yc91.png?width=658&format=png&auto=webp&s=6f00a037cd1ebf54a6bd6f8e250a4bdda685479a What Happened: Burry made his comments on Twitter on Wednesday. He said tagging the Democrat politician, “So Speaker Pelosi made a bundle on semiconductor stocks bought recently. Should be illegal.” Burry also shared a news report on the Senate passing a bipartisan bill, which would subsidize domestic semiconductor production with a $52 billion support. Source: [https://www.benzinga.com/news/22/07/28145000/big-short-fame-investor-michael-burry-says-nancy-pelosis-semiconductor-stock-buy-shouldnt-be-legal](https://www.benzinga.com/news/22/07/28145000/big-short-fame-investor-michael-burry-says-nancy-pelosis-semiconductor-stock-buy-shouldnt-be-legal) The Big Short’s Michael Burry says members of congress should be banned from trading single stocks. He quoted the recent purchase of 20,000 NVIDIA (NVDA) shares by Paul Pelosi before Nancy Pelosi supported the CHIPS Plus bill, a $52 billion semiconductor bill. Do you agree?

StockMarket

So easy to mitigate something like this: * You and your spouse cannot purchase individual stocks or options while you are serving in Congress. Only index funds. * Term limits. There shouldn't be a reason for career politicians. If you can do the job, you don't need 30+ years to prove so. * After your term limit, you are prevented from owning individual stocks for a one-year period. These three simple things would prevent the majority of abuse. You won't prevent them all as Nancy can easily gossip to her wealthier friends but something like that would be impossible to forcibly prevent. If you're a politician who is 'serving the public', investing in stocks shouldn't be a priority for you as it has been for Nancy.

pmj9yk

I found the entire naked shorting game plan playbook posted on a forum in 2004. They called it "Cellar Boxing". + Yahoo / Morningstar censoring GME data depending on your IP. It's not a glitch.

Hello beautiful apes! I have 2 points to show you. First is that Yahoo is showing completely different values depending on your IP. Try using a VPN with a different country and you'll see. Second is that I stumbled upon the ***ENTIRE FUCKING GAME PLAN*** of the naked shorting scheme. I guess an insider spilled the beans anonymously on some forum in 2004. What is going on with GME over the last 9 months is a game plan called "Cellar Boxing". **The link is at the end of this post. If you don't give a FUCK about the Yahoo data, then just skip to the end and read that. Seriously EVERYONE NEEDS TO READ THAT POST. It is like the holy grail. I got emotional reading it as it confirmed all of our combined DD about naked shorting, rule exemptions, dividends, zombies, even talks about shills.....EVERYTHING... in one fell swoop.** I wrote all this Yahoo stuff before I found that link and I just had to stop and stare at the wall for a bit.. This was going to be a much longer post, but I decided to just stick to the facts without speculative walls of text so you're not overwhelmed. Because trust me, reading that post from 2004 is going to blow your fucking mind. It blew mine and everyone I showed it to. Okay so first point: Here's the Yahoo data from my IP in the USA ​ ​ https://preview.redd.it/0v9ody3ujxm71.png?width=546&format=png&auto=webp&s=99ce6f08beff4e7d7ad75923efb9e0dbc1f29c92 ​ Here's the data from a European VPN ​ https://preview.redd.it/z4qg2kkwjxm71.png?width=831&format=png&auto=webp&s=93ca4f7615b0ced4f26f2eae9ce1d20f6c4eb209 First thing that stands out to me is Enterprise Value. According to [https://www.investopedia.com/ask/answers/111414/whats-difference-between-enterprise-value-and-market-capitalization.asp](https://www.investopedia.com/ask/answers/111414/whats-difference-between-enterprise-value-and-market-capitalization.asp) Market capitalization is the sum total of all the outstanding shares of a company. **Enterprise value takes into account** the debt that the company has taken on. Enterprise value, therefore, can identify strengths or weaknesses that market cap cannot. And [https://www.arborinvestmentplanner.com/enterprise-value-ev-calculating-enterprise-value-ratios/](https://www.arborinvestmentplanner.com/enterprise-value-ev-calculating-enterprise-value-ratios/) **A company with more debt than cash will have** an enterprise value greater than its market capitalization. Companies with identical market capitalizations can have radically different enterprise values. \----------------------------------------------- I had thought perhaps they're doing some kind of fuckery with convertible preferred shares, or convertible bonds. Which they very well may be, but I can't prove that right this second. So I leave this idea in speculation land. But let's hand it off to u/semerien for the actual reason for this discrepancy: **Total cash per share is 5.64** **Cash at 1.72 billion** **Which means Yahoo thinks there is just over 300 million shares** **Enterprise value is using that share count at current price** **57 billion for ev using 304 million shares at 190 price, cash at 1.7B and debt at 0.7 billion** ***I may have rounded every single number cuz I'm lazy but what's a few 100 million in rounding errors*** \---------------------------------------------------Okay ok gimme my mic back lmao So.. No speculation. Mathematical Fact: Yahoo's calculating on 300M\~ shares for outside USA when factoring Enterprise Value. Where does Yahoo get this data? [https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en\_US](https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en_US) * Financial statements, valuation ratios, market cap and shares outstanding data provided by Morningstar. Okay so Yahoo gets this specific data from Morningstar. Who does Morningstar get it's data from? [https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178\_28k.htm](https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178_28k.htm) \--------------------------------------------------- *We collect most of our data from original source documents that are publicly available, such as regulatory filings and fund company documents. This is the main source of operations data for securities in our open-end, closed-end, exchange-traded fund, and variable annuity databases, as well as for financial statement data in our equity database. This information is available at no cost.* ***For performance-related information (including total returns, net asset values, dividends, and capital gains), we receive daily electronic updates from individual fund companies, transfer agents, and custodians.*** *We don’t need to pay any fees to obtain this performance data. In some markets we supplement this information with a standard market feed such as Nasdaq for daily net asset values, which we use for quality assurance and filling in any gaps in fund-specific performance data. We also receive most of the details on underlying portfolio holdings for mutual funds, closed-end funds, exchange-traded funds, and variable annuities electronically from fund companies, custodians, and transfer agents.* \--------------------------------------------------- So that answers the question as to why the float changed from **126M to 248M** in the same day. This is not a glitch. One way or the other, the data got pushed "***from individual fund companies, transfer agents, and custodians"*** *to Morningstar, to Yahoo.* Intraday. Why Morningstar shows different than Yahoo? I won't speculate. But it can't be a glitch. Just based on the source and how it's updated. Speculate on why or how they're censoring it, not on it being a glitch. These different values I believe are important because they paint a picture of intent to hide the true data. It's bits of the real data slipping through the cracks. Let's look at the numbers: \--------------------------------------------------- **Enterprise Value in USA = 14.22B** **Forward P/E in USA = 36.67** **--** **Enterprise Value in other countries = 57.07B** **Forward P/E in other countries = $6,347.00** \--------------------------------------------------- EV is calculated on 300 ish million shares. People say "Yahoo's data is always screwy". I don't think that's true. I think it's the opposite. The market is always being FUCKED with. As you'll see in the post I'm going to link to. And Yahoo just has a hard time cleaning it up and censoring it. Because of SO MUCH FUCKERY. And sometimes shit slips through unintentionally. Forward P/E.. What the fuck is forward P/E some of you might be wondering? *(Side note: Yahoo gets this data from a data analytics company called Refinitiv.)* \--------------------------------------------------- [*https://www.investopedia.com/terms/f/forwardpe.asp*](https://www.investopedia.com/terms/f/forwardpe.asp) *Forward price-to-earnings (forward P/E) is a version of the ratio of* *price-to-earnings* *(P/E) that uses forecasted earnings for the P/E calculation.* [*https://www.investopedia.com/ask/answers/050515/what-does-forward-pe-indicate-about-company.asp*](https://www.investopedia.com/ask/answers/050515/what-does-forward-pe-indicate-about-company.asp) *A company with a higher forward P/E ratio than the industry or market average indicates* ***an expectation the company is likely to experience a significant amount of growth***\*. ... Ultimately, the P/E ratio is a metric that allows investors to determine how valuable a stock is, more so than the market price alone.\* \--------------------------------------------------- Here's an example for Tesla: [https://finbox.com/NASDAQGS:TSLA/explorer/pe\_ltm](https://finbox.com/NASDAQGS:TSLA/explorer/pe_ltm) *"Tesla's p/e ratio for fiscal years ending December 2016 to 2020 averaged 211.2x. Tesla's operated at median p/e ratio of -37.2x from fiscal years ending December 2016 to 2020. Looking back at the last five years, Tesla's p/e ratio peaked in December 2020 at 1,255.0x."* So we all know what happened with Tesla. The P/E ratio seems to be pretty good at calculating the growth. The higher the number, the bigger the growth. A number in the thousands is basically **"Oh shit we got a winner".** Thing is, you get the number by calculating the share price divided by the estimated future earnings per share. *"For example, assume that a company has a current share price of $50 and this year’s earnings per share are $5. Analysts estimate that the company's earnings will grow by 10% over the next fiscal year. The company has a current P/E ratio of $50 / 5 = 10x. "* Well Gamestop's at 190, let's say for what ever crazy fucking reason we're expecting future earnings per share to be at 5 dollars per share. We're currently expecting around 1 dollar in January but for sake of argument let's pretend it's $5. $190 / 5 = 38. Okay interesting so far that makes sense for the USA calculation roughly. But HOW THE FUCK DO WE GET **$6,347?** It's impossible. Unless.. wait a sec.. $31,735 / 5 = **$6,347** Could it be the true value of GME is actually $31,735 right now? I mean even if we use the 1 dollar per share earning thing from January, that's still assuming CURRENT VALUE = **$6,347 per share....** It is my belief that based on these two numbers, the fact that they **change** depending on **your IP** \+ the float being at **248M**, as well as **THE MIND BLOWING INFORMATION** contained within the post I'm about to link to in a second... That the Yahoo thing isn't a glitch. It's a hole in the fuckery veil they're trying to place upon our eyes. It's to hide the fact that the float is shorted at LEAST 3x verifiably. *(I believe it to be 50x by now)* And also to stop us from deducing the actual share price in what ever dark pool of death the shorts are hiding in using these numbers. They're hiding the company's fucking growth from us. In comparison for shits and giggles, I checked movie stock in the VPN and Yahoo's changing that data too. But not to hide the shorts or hide growth. Instead to hide a decline. Movie Stock's Forward P/E is N/A for USA but for other countries it's **-68.71** \--------------------------------------------------- [https://www.investopedia.com/ask/answers/05/negativeeps.asp](https://www.investopedia.com/ask/answers/05/negativeeps.asp) *"A negative P/E ratio means* ***the company has negative earnings or is losing money***\*. ... Investors buying stock in a company with a negative P/E should be aware that they are buying shares of an unprofitable company and be mindful of the associated risks."\* \--------------------------------------------------- If I'm right about this whole thing, then this by itself is proof that GME is the MOASS and whoever's doing it, either Yahoo, or Morningstar, whoever doesn't want us to know that movie stock is obviously not the MOASS. Now........ Whether you agree with me or not, you MUST read this post: Archived in case it gets deleted [https://archive.is/KSS6m](https://archive.is/KSS6m) ​ You know what, just in case you're too lazy to click it, I'll copy and paste the whole thing. You can click the link to verify. It's that important to read. \--------------------------------------------------- Sunday, 03/07/04 07:56:25 PM "Cellar Boxing" There’s a form of the securities fraud known as naked short selling that is becoming very popular and lucrative to the market makers that practice it. It is known as “CELLAR BOXING” and it has to do with the fact that the NASD and the SEC had to arbitrarily set a minimum level at which a stock can trade. This level was set at $.0001 or one-one hundredth of a penny. This level is appropriately referred to as “the CELLAR”. This $.0001 level can be used as a "backstop" for all kinds of market maker and naked short selling manipulations. “CELLAR BOXING” has been one of the security frauds du jour since 1999 when the market went to a “decimalization” basis. In the pre-decimalization days the minimum market spread for most stocks was set at 1/8th of a dollar and the market makers were guaranteed a healthy “spread”. Since decimalization came into effect, those one-eighth of a dollar spreads now are often only a penny as you can see in Microsoft’s quote throughout the day. Where did the unscrupulous MMs go to make up for all of this lost income? They headed "south" to the OTCBB and Pink Sheets where the protective effects from naked short selling like Rule 10-a, and NASD Rules 3350, 3360, and 3370 are nonexistent. The unique aspect of needing an arbitrary “CELLAR” level is that the lowest possible incremental gain above this CELLAR level represents a 100% spread available to MMs making a market in these securities. When compared to the typical spread in Microsoft of perhaps four-tenths of 1%, this is pretty tempting territory. In fact, when the market is no bid to $.0001 offer there is theoretically an infinite spread. In order to participate in “CELLAR BOXING”, the MMs first need to pummel the **price** per share down to these levels. The lower they can force the share price, the larger are the percentage spreads to feed off of. This is easily done via garden variety naked short selling. In fact if the MM is large enough and has enough visibility of buy and sell orders as well as order flow, he can simultaneously be acting as the conduit for the sale of nonexistent shares through Canadian co-conspiring broker/dealers and their associates with his right hand at the same time that his left hand is naked short selling into every buy order that appears through its own proprietary accounts. The key here is to be a dominant enough of a MM to have visibility of these buy orders. This is referred to as "broker/dealer internalization" or naked short selling via "desking" which refers to the market makers trading desk. While the right hand is busy flooding the victim company's market with "counterfeit" shares that can be sold at any instant in time the left hand is nullifying any upward pressure in share price by neutralizing the demand for the securities. The net effect becomes no demonstrable demand for shares and a huge oversupply of shares which induces a downward spiral in share price. In fact, until the "beefed up" version of Rule 3370 (Affirmative determination in writing of "borrowability" by settlement date) becomes effective, U.S. MMs have been "legally" processing naked short sale orders out of Canada and other offshore locations even though they and the clearing firms involved knew by history that these shares were in no way going to be delivered. The question that then begs to be asked is how "the system" can allow these obviously bogus sell orders to clear and settle. To find the answer to this one need look no further than to Addendum "C" to the Rules and Regulations of the NSCC subdivision of the DTCC. This gaping loophole allows the DTCC, which is basically the 11,000 b/ds and banks that we refer to as "Wall Street”, to borrow shares from those investors naive enough to hold these shares in "street name" at their brokerage firm. This amounts to about 95% of us. Theoretically, this “borrow” was designed to allow trades to clear and settle that involved LEGITIMATE 1 OR 2 DAY delays in delivery. This "borrow" is done unbeknownst to the investor that purchased the shares in question and amounts to probably the largest "conflict of interest" known to mankind. The question becomes would these investors knowingly loan, without compensation, their shares to those whose intent is to bankrupt their investment if they knew that the loan process was the key mechanism needed for the naked short sellers to effect their goal? Another question that arises is should the investor's b/d who just earned a commission and therefore owes its client a fiduciary duty of care, be acting as the intermediary in this loan process keeping in mind that this b/d is being paid the cash value of the shares being loaned as a means of collateralizing the loan, all unbeknownst to his client the purchaser. An interesting phenomenon occurs at these "CELLAR" levels. Since NASD Rule 3370 allows MMs to legally naked short sell into markets characterized by a plethora of buy orders at a time when few sell orders are in existence, a MM can theoretically "legally" sit at the $.0001 level and sell nonexistent shares all day long because at no bid and $.0001 ask there is obviously a huge disparity between buy orders and sell orders. What tends to happen is that every time the share price tries to get off of the CELLAR floor and onto the first step of the stairway at $.0001 there is somebody there to step on the hands of the victim corporation's market. Once a given micro cap corporation is “boxed in the CELLAR” it doesn’t have a whole lot of options to climb its way out of the CELLAR. One obvious option would be for it to reverse split its way out of the CELLAR but history has shown that these are counter-productive as the market capitalization typically gets hammered and the post split share price level starts heading back to its original pre-split level. Another option would be to organize a sustained buying effort and muscle your way out of the CELLAR but typically there will, as if by magic, be a naked short sell order there to meet each and every buy order. Sometimes the shareholder base can muster up enough buying pressure to put the market at $.0001 bid and $.0002 offer for a limited amount of time. Later the market makers will typically pound the $.0001 bids with a blitzkrieg of selling to wipe out all of the bids and the market goes back to no bid and $.0001 offer. When the weak-kneed shareholders see this a few times they usually make up their mind to sell their shares the next time that a $.0001 bid appears and to get the heck out of Dodge. This phenomenon is referred to as “shaking the tree” for weak-kneed investors and it is very effective. At times the market will go to $.0001 bid and $.0003 offer. This sets up a juicy 200% spread for the MMs and tends to dissuade any buyers from reaching up to the "lofty" level of $.0003. If a $.0002 bid should appear from a MM not "playing ball" with the unscrupulous MMs, it will be hit so quickly that Level 2 will never reveal the existence of the bid. The $.0001 bid at $.0003 offer market sets up a "stalemate" wherein market makers can leisurely enjoy the huge spreads while the victim company slowly dilutes itself to death by paying the monthly bills with "real" shares sold at incredibly low levels. Since all of these development-stage corporations have to pay their monthly bills, time becomes on the side of the naked short sellers. At times it almost seems that the unscrupulous market makers are not actively trying to kill the victim corporation but instead want to milk the situation for as long of a period of time as possible and let the corporation die a slow death by dilution. The reality is that it is extremely easy to strip away 99% of a victim company’s share price or market cap and to keep the victim corporation “boxed“ in the CELLAR, but it really is difficult to kill a corporation especially after management and the shareholder base have figured out the game that is being played at their expense. As the weeks and months go by the market makers make a fortune with these huge percentage spreads but the net aggregate naked short positions become astronomical from all of this activity. This leads to some apprehension amongst the co-conspiring MMs. The predicament they find themselves in is that they can’t even stop naked short selling into every buy order that appears because if they do the share price will gap and this will put tremendous pressures on net capital reserves for the MMs and margin maintenance requirements for the co-conspiring hedge funds and others operating out of the more than 13,000 naked short selling margin accounts set up in Canada. And of course covering the naked short position is out of the question since they can’t even stop the day-to-day naked short selling in the first place and you can't be covering at the same time you continue to naked short sell. What typically happens in these situations is that the victim company has to massively dilute its share structure from the constant paying of the monthly burn rate with money received from the selling of “real” shares at artificially low levels. Then the goal of the naked short sellers is to point out to the investors, usually via paid “Internet bashers”, that with the, let’s say, 50 billion shares currently issued and outstanding, that this lousy company is not worth the $5 million market cap it is trading at, especially if it is just a shell company whose primary business plan was wiped out by the naked short sellers’ tortuous interference earlier on. The truth of the matter is that the single biggest asset of these victim companies often becomes the astronomically large aggregate naked short position that has accumulated throughout the initial “bear raid” and also during the “CELLAR BOXING” phase. The goal of the victim company now becomes to avoid the 3 main goals of the naked short sellers, namely: bankruptcy, a reverse split, or the forced signing of a death spiral convertible debenture out of desperation. As long as the victim company can continue to pay the monthly burn rate, then the game plan becomes to make some of the strategic moves that hundreds of victim companies have been forced into doing which includes name changes, CUSIP # changes, cancel/reissue procedures, dividend distributions, amending of by-laws and Articles of Corporation, etc. Nevada domiciled companies usually cancel all of their shares in the system, both real and fake, and force shareholders and their b/ds to PROVE the ownership of the old “real” shares before they get a new “real” share. Many also file their civil suits at this time also. This indirect forcing of hundreds of U.S. micro cap corporations to go through all of these extraneous hoops and hurdles as a means to survive, whether it be due to regulatory apathy or lack of resources, is probably one of the biggest black eyes the U.S. financial systems have ever sustained. In a perfect world it would be the regulators that periodically audit the “C” and “D” sub-accounts at the DTCC, the proprietary accounts of the MMs, clearing firms, and Canadian b/ds, and force the buy-in of counterfeit shares, many of which are hiding behind altered CUSIP #s, that are detected above the Rule 11830 guidelines for allowable “failed deliveries” of one half of 1% of the shares issued. U.S. micro cap corporations should not have to periodically “purge” their share structure of counterfeit electronic book entries but if the regulators will not do it then management has a fiduciary duty to do it. A lot of management teams become overwhelmed with grief and guilt in regards to the huge increase in the number of shares issued and outstanding that have accumulated during their “watch”. The truth however is that as long as management made the proper corporate governance moves throughout this ordeal then a huge number of resultant shares issued and outstanding is unavoidable and often indicative of an astronomically high naked short position and is nothing to be ashamed of. These massive naked short positions need to be looked upon as huge assets that need to be developed. Hopefully the regulators will come to grips with the reality of naked short selling and tactics like "CELLAR BOXING" and quickly address this fraud that has decimated thousands of U.S. micro cap corporations and the tens of millions of U.S. investors therein. \--------------------------------------------------- HO....LEEEEEE......FUQ Bruh.. This was written in 2004. I really don't have anything more to say. (Last minute about to finish this post and u/Hopeless_Dreams713 showed me a patent found by u/Toxsic99 [https://patents.google.com/patent/US7904377B2/en](https://patents.google.com/patent/US7904377B2/en) which I THINK is a fucking patent for ladder attacks but I have no more brain power to spend after reading/writing this. So I include it as a bonus for any wrinkles with extra brain power to decipher.) ​ **TL;DR Yahoo changes data depending on the IP. Seems like only USA gets censored data. Based on the forward P/E of the uncensored data, it's possible GME is anywhere between 6k to 31k per share on some dark side of the fence. And "Cellar Boxing" is the game plan shorts use to destroy America.** Edit 2: https://preview.redd.it/yrs92ane7zm71.png?width=1124&format=png&auto=webp&s=fc09b8bdce8e0539f483100a1f07412e0a0dc96a Edit 3: Smart ape found reply in the post basically confirming that us requesting the share certificates is fucking them up the bum bum [https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hciatum/](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hciatum/) ​ Edit 4: ​ https://preview.redd.it/doc7rcishzm71.png?width=1188&format=png&auto=webp&s=32154766400b459f78986ec66cf8660e8c9971cc [https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hcifuez?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hcifuez?utm_source=share&utm_medium=web2x&context=3) ​ Edit 5: ​ [Can't just be a Yahoo glitch. Impossible.](https://preview.redd.it/d64gr6lzizm71.png?width=1068&format=png&auto=webp&s=80a85ab0b5f590a1f81d4a577168adb0e1dc0920) ​ [https://www.nasdaq.com/market-activity/stocks/gme](https://www.nasdaq.com/market-activity/stocks/gme) Edit 6: Bruh, we literally got onto the top 15 of Popular of all of Reddit with this. We're breaking the simulation. LFGOOOOOO. And also if you're new here from the rest of the Reddit and don't know about Superstonk, we love you and this post is undeniable that the stock market is rigged and GME about to blow. And I'm so happy that this information has a chance to be seen by more people. These hedgefunds have been destroying America for decades. Stunting our growth as a species. What kind of medical advances could we have made by now? Science? Technology? All shorted to hell because of some greedy hedge fund pricks. Please share this with everyone you know so that more people can be aware of their tactics. It is important that they know they lost. And when we are in the financial position of power, we must be better human beings. And invest into technology and medicine and help the world become what it could have been. This is our one chance at changing the world for the better. ​ Edit 7: ​ https://preview.redd.it/c91hnnptg0n71.png?width=1166&format=png&auto=webp&s=93967bedc4274d5555fe12028a4bbdd267700b7b [https://www.youtube.com/watch?v=IL1QznrSwWw](https://www.youtube.com/watch?v=IL1QznrSwWw) ​ Edit 8: WE MADE TOP 5 of r/all holy shit. \*insert another emotional speech\* Also: ​ https://preview.redd.it/37w6299bq0n71.png?width=1194&format=png&auto=webp&s=eca37cf73123bd9ee10656eebb60ba625d1eda4e [https://www.dtcc.com/about/leadership/board/david-goone](https://www.dtcc.com/about/leadership/board/david-goone) ​ Edit 9: Letter to the SEC from 2008 mentioning all this. [https://www.sec.gov/comments/s7-08-08/s70808-144.htm](https://www.sec.gov/comments/s7-08-08/s70808-144.htm) ​ Edit 10: SUPER SMOOTH BRAIN EXPLANATION for those who have NO idea what is going on: **When you buy a stock, you're betting that it's going up.** **But if you feel it's going to go down, then there's a bet for that.** **It's called a short bet. It's pretty simple.** **Imagine your friend has a watch priced at $100. And you think tomorrow it's going to be worth $50. You say to your friend "Hey lemme borrow dat real quick" and you go and pawn it at a pawn shop for $100.** **What happened? So far you have a contract to buy back the watch to give back to your friend, but you also have $100.** **Tomorrow comes, and the price is $50. You go and buy the watch back for $50. You keep the $50 left over. Give the friend back is watch + like 5% interest and everyone's happy.** **But what if that watch increased in price instead of decreased?** **You go to buy the watch back, and it's $200?? Uh oh.. You now have a contract to buy the watch, and you'll have to pay $100 out of pocket to buy it back. So you lost money.** **You wait and figure it'll go back down. To your surprise, the watch price just keeps increasing. $300, $500, $1,000 to $10,000 to $100,000 to $10,000,000** **You owe your friend that watch at any price. No matter what. But you can keep waiting by simply paying him a fee every day to borrow. It's called a borrow fee, oddly enough.** **Unfortunately you only have limited assets. So sooner or later you won't have enough money to pay the borrow fee. And then you're forced to go bankrupt and sell all your assets and your house, and your car, and your boat, and your planes to pay for the watch.** **So that's what's going on with GME. But instead of 1 watch, it's billions and billions of shares. And they're making fake copies of shares that they don't even have.** **Sooner or later, they must buy back the shares. And at any cost. And they will be forced to sell everything they own to do it.** **Up until now we've only reverse engineered the idea and processes behind "HOW" they're doing it. This post from 2004 detailed every step of the way. And it is very emotional to us because we were right. And they tried gaslighting us for 9 months that we were wrong.** ​ Edit 11: This question gets popped up alot. So if you're wondering about how it affects movie stock, look at this comment chain: [https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hcjjw5o?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hcjjw5o?utm_source=share&utm_medium=web2x&context=3) ​ Edit 12: Some people are saying Cellar Boxing doesn't apply to GME because it's not at sub penny levels. BUT YOU GUYS ARE MISSING THE FACT THAT GME WAS AT 3 DOLLARS A SHARE. In order to CELLAR BOX the stock, they would have to first NAKED SHORT IT TO HELL. They short it from 3 dollars hoping for it to go to below a dollar and then get it into that cellar range. BUT THEY FAILED. That's what those people saying it's not relevant to GME are missing. It IS relevant to GME. Because CELLAR BOXING was the GAME PLAN. Imagine you have a playbook with strategies on how to play a game. THATS CELLAR BOXING. Naked shorting is a PART OF the CELLAR BOXING PLAYBOOK. The funny thing is ppl who are saying to "stop talking about Cellar boxing" are also talking about movie stock. So ..... ​ Edit 13: Bruh.. SEC deleted the letter from Edit 9 of this post. Here's the archived of the file they deleted after this post blew up: [https://web.archive.org/web/20210912094334/https://www.sec.gov/comments/s7-08-08/s70808-144.htm](https://web.archive.org/web/20210912094334/https://www.sec.gov/comments/s7-08-08/s70808-144.htm) ​ Edit 14: Reached 40k character limit. Number 5 explanation: [https://www.reddit.com/r/Superstonk/comments/pn0b30/one\_clarification\_to\_uthabats\_post\_634700\_forward/hcnkbh4?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pn0b30/one_clarification_to_uthabats_post_634700_forward/hcnkbh4?utm_source=share&utm_medium=web2x&context=3) ​ Edit 15: https://preview.redd.it/kiipketnh7n71.png?width=1467&format=png&auto=webp&s=babb84b5efaf58e9d1dc6a02e7d1e40b11014c2a ​ Edit 1: Promised link at end of the post, even though the whole post is contained within this msg lol [https://archive.is/KSS6m](https://archive.is/KSS6m)

Superstonk

Jesus how much money has been drained from the market, how many companies ruined and jobs lost. This is the misery playbook. Its a significant part as to why the likes of China has grown so much over the last 20 years whilst the US has lagged. It's bordering on treason. US regulators and public officials should hang their heads with shame, by not only allowing this to develop but more so for turning a blind eye at every opportunity to stop it. Despite the misery of 2008 this has continued for no other reason than pure greed at every level, they all take their cut of the American life blood...rating agencies, insurance companies, HFs, banks, brokers, auditors, politicians, regulators, MSM, exchanges. Lawyers, dealers, institutions and more. Topped off with a huge slap in the face to every tax payer by bailing these criminals out!! To read this turns my stomach, its outrageous. This has to end, its now or never! The opportunity for the powerless to over throw the powerful is upon us. Grab it with both hand and hodl like your life depends on it! People are depending on this community....they just don't know it yet...but they will

mrwmvg

The Missing Link of Next Investors: Why you should know what Amplicat is before you purchase ANY shares held by Next Investors.

#Disclaimer The following post contains strictly public information that I have gathered from my own independent research. This information concerns the operations of S3 Consortiums, who I call "Next Investors", and the publicly listed companies they operate with. All further analysis built on top of this is my own, meaning both my subjective opinion and independent calculations, and is prone to error. I am not a financial adviser, and this is not financial advice. I strongly condemn any brigading that results from this post, all information regarding individuals has been sourced from publicly available profiles on the web. #Intro Alright cunts, I'm back from my self-imposed exile after falling flat on my face putting a number on the returns from the Next Investor emails. This post again is focused on the Next Investors, but taking a different angle. Over the past few days, I've had some messages from individuals asking about my analysis, and the possibility of predicting when they appear. Based on my independent analysis, I believe this is possible, but I won't be discussing that today. Today I will be discussing something that came up in those conversations, which I believe to be a bigger story about who and what the Next Investors really are. Everything below is based on my independent research, with a few helping hands. #Who and what Next Investors claim to be. Next Investors claim to be an "investment group" that does research on companies looking for buying opportunities. When they find such an opportunity, they send out an email to their readers. This has a [Well Documented](https://imgur.com/a/i95GieK) pumping effect on the price when the email is sent, which you can read about further in depth [here](https://old.reddit.com/user/Mutated_Cunt/comments/moqm5e/the_next_pump_a_comprehensive_analysis_of_the/). They do claim that they do not engage in any trading activities for a given stock within 72 hours either side of sending an email which I am inclined to believe. I don't think even ASIC would let something that blatant past them. One thing a lot of people have noticed is that Next Investors have a real lack of transparency about who they are. No email they have ever sent has had an author attached. If you go to their [website](https://www.nextinvestors.com/) nothing immediate is available. On the front page, you get a standard spiel about how they look for small cap opportunities they are dying to share with their readers. Their explicitly stated business model is the following: [**What is our business model: We only make money when our portfolio increases in value. We don’t charge subscription fees or management fees - everything here is free.**](https://imgur.com/a/NurrTuK) But this tells us nothing about who they are. If we go to their [about page](https://www.nextinvestors.com/lp/about-us/), we get more of a standard spiel about how expert and incredibly helpful they are. Absolutely nothing about the people behind this group, and proof of their expertise. The only proof they show is their claimed returns on their portfolio. Way down the bottom of the page, hiding in the [smallest fucking text on a grey background](https://imgur.com/a/Frvxhls), they disclose something about S3 Consortium Pty Ltd. This is their parent, and the next breadcrumb of the trail. #S3 Consortium Pty Ltd (Stocks Digital), the Bigger picture A lot of you already know this, but Next Investors is one of three "promotion groups", the other two being [Catalyst Hunter](https://catalysthunter.com/) and [Wise Owl](https://wise-owl.com/), that fall under the umbrella of Stocks Digital. This is something that [confused me at first](https://old.reddit.com/r/ASX_Bets/comments/mlx7qd/premarket_thread_for_general_trading_and_plans/gtqwncq/?context=3), but makes a little sense according to their "philosophy". Catalyst hunter is for their short term, Next Investors for mid term, and Wise Owl for long term plays. All three of these have email lists you can sign up for, that have a notable pumping effect on the stock when sent. From here, I was able to find the first person with a face I could connect, the twitter page of **their founder [Damian Hajda](https://twitter.com/dhajda).** I have no idea why, but I could not find his name mentioned anywhere on any website run by Stocks Digital. Maybe he prefers anonymity. Personally, I believe it is unethical to hide who you are if you are actively promoting public companies. I had to stalk the people Next Investors follows on twitter to find him. In my dig, I didn't find too much about his background. He started Next Investors around late 2018 / early 2019. He is also the founder of another startup [Socialsuite](https://www.smartcompany.com.au/startupsmart/news/socialsuite-wins-128000-prize-money-at-salesforce-pitch-comp/#.Wp89iLjcdxI.linkedin) which aims to help charities be more effective through data analysis, which appears to be doing [quite nicely](https://www.theaustralian.com.au/business/technology/twitter-again-targets-trump/news-story/bdc98d20179d568e45d9826e980668c5) in more recent times. Their website is [here](https://socialsuitehq.com/). Digging through articles posted on Next Investors website, I was only able to find two names attached to articles, [Jonathan Jackson](https://www.nexttechstock.com/immediate-upside-whk-reveals-future-revenue-growth/) and [Meagan Evans](https://www.nexttechstock.com/whk-secures-a21m-us-government-contract-extension/). Remember the first one. According to Stocks Digital, the following is their Investment process, which is found directly on their homepage. #Our Investment Process - Our network introduces us to pre screened investment opportunities. - Our trusted advisors and sector experts help us assess the investment. - We conduct regular meetings with management to build trust and a relationship. - Our inhouse team of analysts conduct due diligence and analysis - The investment committee makes the final investment decision. - We announce the investment to our followers and update them as the company progresses - We aim to increase position as the company delivers over time. - We aim for free carry within 24 months of investing. Now I will focus on that very first step, on what "Our network introduces us to pre screened investment opportunities" really means. #How Next Investors Really Make Money They are reasonably transparent about the basics of this process on their Stocks Digital website, but not the specifics. Next Investors do not "find" their stocks by doing their own research digging deep, they get approached by the companies. If Next Investors like what they see, they work out an arrangement, and "purchase" the shares in the company and begin "promoting" it under one of their three groups. Lets have a look at this process in detail with an example, their recent pickup of ONE. #ONE Case Study, The Devil is in the Details. On the 12th of March 2021, ONE released a price sensitive announcement stating that they had [entered an agreement](https://imgur.com/a/T6XxLPk) with Stocks Digital. The previous day, the price closed at $0.08. [Here are the details of this agreement](https://imgur.com/a/VDxEcHP). Translated to English, this means the following: - After some haggling, ONE has agreed to pay Next Investors 6.25 million shares instead of a $375,000 cash sum, which is the equivalent of $500,000 in stock, for the **"Services"** of Next Investors. - In addition to this, Next Investors agrees to pay $1m in cash for 16,666,666 shares, at an average price of $0.06. However, if you look at the net effect of this, according to this agreement Next Investors have acquired (16,666,666+6,250,000)\*0.08 = **$1.83 MILLION** worth of **ONE** shares according to the previous market close, for only **$1 MILLION DOLLARS.** - This means that Next Investors paid an effective **$0.044 per share**, representing a **45%** discount to the previous closing price. So why are ONE practically donating their shares away for only $1m? The key here is the "services" they are acquiring. Immediately after this announcement was made at 10:23am, the Next Investor email was sent at 10:25 am. This [caused the price](https://ibb.co/2PsTJqz) to **open at $0.14**, a **75% increase** on the closing price of the previous day, to a **maximum of $0.20**, and finally a **closing price of $0.16.** Unfortunately, my free intraday data isn't working for this date, so I cannot show you the instant price movements. Clearly, we can see the backing of Next Investors has a powerful effect, especially since this was their very first email announcing their partnership with ONE, claiming it as their [2021 Tech Pick of the Year](https://www.nexttechstock.com/our-new-2021-tech-pick-year/). What am I trying to say with all this? In my opinion, they appear to be an advertising company that masquerades as the retail investor's best friend. I bet that my returns would be pretty fucking great if I could "buy" at a 45% discount. When Next Investors talk about their next "great opportunity", they're already well in the money. They paid $1m for $1.83m of stock, an instant $830k return. At the close of the day, their net assets doubled in value, to $3.66m. **In the space of a day, they "earned" $2.66m on paper.** That's a fucking solid racket if I've ever seen one. Another dishonest aspect behind this purchase is that they advertise their [entry price](https://imgur.com/a/sYiSKkO) as $0.08 proudly on their home page. This is highly misleading, and has also been [picked up by another journalist](https://arichlife.com.au/s3-consortium-publishing-misleading-returns-about-oneview-asxone/) who apparently gets paid to do this shit unlike yours truly. However, I think this journalist ended his story too soon, because he didn't mention another tidbit hiding inside that announcement which really shines the spotlight on how their "services" work, and I am sure is of great interest to retail investors. From the announcement, they state their intent to ["further increase awareness"](https://imgur.com/a/Pb3iJJ9) of the company ONE through their digital publisher network amplicat.com. Okay I lied a little there for the narrative, the first time I became aware of Amplicat was thanks to the legend /u/Darebottle, who discovered that Next Investor's website accesses an API hosted on the Amplicat.com domain. Weaponised autism is powerful. He wanted to know if there was a link because what was on there was very confusing. The ONE announcement confirms that Amplicat and Next Investors are indeed one and the same company operating under different personas. From my understanding, Next Investors is the **face they present to retail**, and Amplicat is the **face they present to companies they wish to do business with.** This connection is the headshot, and the most egregious, disgusting part of this post that motivated me to write. #Amplicat, what the fuck is that? Amplicat is yet **ANOTHER** component of the behemoth that is Stocks Digital, and as far as I have searched, is advertised fucking **NOWHERE**. In not a SINGLE PLACE is this website named in ANY of Next Investors websites that I can find. I challenge you to prove me wrong. If I do a google search for news of their name, I get [**9 results**](https://imgur.com/a/xeUfSWW) in a fucking foreign language with no relation. These guys are off the map. Lets take a dive into [their website](https://www.amplicat.com/) and see why they're keeping such a low profile to retail. Remember, this website is run and OWNED by Stocks Digital. I have taken screenshots of everything, because I suspect that once retail discovers this page, it will be vanished quickly. If I had to guess, I believe Amplicat is a concatenation of "Amplify Catalyst", which is a very generous wording. Amplicat is what I consider the **TRUE PRODUCT** of Next Investors. When companies trade their shares at enormous discounts to Next Investors, they are buying the services of Amplicat. Their home page advertises themselves as a provider of [GUARANTEED MEDIA COVERAGE](https://imgur.com/a/gJ6rsjT). The business model is simple, you provide shares of your company to Next Investors at a discount, and they will provide a sophisticated, coordinated online marketing campaign for your company. They are mercenaries for hire. [Here is a very helpful explainer](https://imgur.com/a/wZLlLRd) from their home page on how it works. For a suitable payment, Next Investors will publish articles/send emails within their own network, and create sponsored content for you. Like a smorgasbord, you get to choose what online publications you want these guys to publish "positive news" about your company in. You can get good news about your company straight onto [Yahoo finance]( https://au.finance.yahoo.com/news/pursuit-minerals-pursues-european-nickel-targets-to-meet-growing-battery-metal-demand-062832688.html), [bloomberg financial](https://sponsored.bloomberg.com/news/sponsors/features/the-next-oil-rush/88energy/?adv=25442&prx_t=FnYFAwbU-At_sQA) or [news.com.au](https://www.news.com.au/sponsored/wWGLmt5IPjDyNhO0XhLC/the-untapped-potential-of-alaskan-energy/) if you please. This is powerful. Lets have a look at the way they describe these articles. One thing I noticed in my original Next Investor analysis was that an awful lot of emails that they sent coincided with a major company announcement. This is no coincidence, it is an [explicitly stated TIMING strategy](https://imgur.com/a/br49hy3) that they employ. They love a good excuse to "promote", and know this is an effective strategy. [Here are some companies](https://imgur.com/a/tIgZaoM) that they advertise as having used their services. You may recognize some names (cough cough **RAC** cough cough). Now we are up to the **shameful** section, where by my interpretation Next Investors appear to "**boast**" about their ability to increase a share price. On their website, they have a section of [case studies](https://www.amplicat.com/case-studies.html), where they "brag" about their past performance as "promoters" to attract future clients. #CASE STUDY 1: Pursuit Minerals' (PUR) Norwegian Nickel Exploration FEBRUARY 2020 In this example, Next Investors take credit for ["drawing investor attention to their Norwegian nickel project to improve liquidity in ahead of a capital raising."](https://imgur.com/a/CH8Bax9) TRANSLATION: THEY P****** THE STOCK UP SO PUR COULD GET $$$$ FROM A CR. [Here is the image](https://imgur.com/a/rYEKsP9) from their website showing how over the month of February 2020, their shilling media campaign TRIPLED the stock price from $0.004 to a high of $0.012, a **~~300%~~ 200% INCREASE**(fuck I'm bad at math). One thing awfully dodgy about this is where their chart cuts off, its awfully convenient. It does coincide with about the time a certain virus you may have heard of made its presence known. [HERE IS THE FULL PRICE CHART](https://imgur.com/a/2ApQjW6) for PUR including the months after the purported media campaign. Following their "Successful Cap Raise" the price has PLUMMETED down to $0.002! To be fair, they got fucked pretty hard by external factors, Mar-2020 was a scary time for the entire economy. Allow me to do my best to construct the timeline of PUR's Activities straight from their announcements. I might fuck this up because I have absolutely zero qualifications, but feel free to fact check me by reading the announcements on PUR's page. #PUR NICKEL VIKING SAGA TIMELINE - **Oct 2019** (Share price ~$0.009) : PUR is primarily a [Vanadium exploration company in Scandinavia](https://imgur.com/a/cs27KBl) with 5 projects in Finland, 8 projects in Sweden, and 3 projects in Queensland. [They undergo a Capital Raise of ~$1.2m.](https://imgur.com/a/IZrkfDg) - **Jan 2020:** [Progress continues](https://imgur.com/a/KldThQw) on these projects, share price hits an [absolute low of $0.0037!](https://imgur.com/a/lwuvBLB) - **Start of Feb 2020:** By my understanding of what Amplicat has put on their website, this is when [Next Investors claims to have started contact with PUR](https://imgur.com/a/rYEKsP9) about "promoting" them at the same time PUR wants to perform a Capital Raise to fund a new Norwegian Nickel exploration project. This time period was not highlighted by me, this was highlighted by them and publicly advertised on their [Amplicat website](https://www.amplicat.com/case-studies.html). The Norwegian project is not yet public information. - **Feb 11th 2020:** No public announcement has been made. Next Investors has not published any articles that I can find or sent any emails. The price of PUR has increased to a high of 0.0085. At 12:16pm, their [trading is halted](https://imgur.com/a/q8QmCOa) pending an announcement. - **Feb 13th 2020:** PUR undergoes a ["voluntary suspension"](https://imgur.com/a/oIWOkhd) because they love ASIC so much and can't wait to explain why their stock price has doubled under no news prior to this trading halt. - **Feb 17th 2020:** PUR is reinstated, and announces their new plans to enter an Option/Purchase agreement for [three Nickel Exploration Projects in Norway.](https://imgur.com/a/kqZxl0U). The next day, they announce another [Capital Raise](https://imgur.com/a/Z3OQ5Ch) of ~23m shares at $0.0073 = $170k to fund this. - **Feb 20-21 2020:** Next Investors post a [series of 5 articles](https://imgur.com/a/EWTM4PB), two articles on their own websites, three articles that are sponsored content published to financial sites such as Yahoo Finance. This pushes the price to an intra day high of $0.0125. A certain virus is starting to make itself known. - **Mar 24 2020:** PUR admits defeat to the [Wuhan flu](https://imgur.com/a/cUVy9HS), and ceases all exploration activities in Scandinavia. Their share price reaches a low of $0.002. - **Skip a few months** they start pursuing exploration activities in other regions, [a gold mine in Arizona](https://www.nextminingboom.com/pursuit-1moz-gold-high-grade-usa-alluvial-project/), and eventually land an exploration license in the [infamous Julimar region](https://www.nextminingboom.com/1600-gain-sparks-julimar-explorer-race-we-just-found-cheapest/), where every new prospector is trying to copy the astronomical rise of Chalice Mines (CHN). - Jan 20th 2021: The Viking saga ends, PUR effectively [sells all 18 of their Scandinavian assets for a total of $3m](https://imgur.com/a/ojKvpx2), or $60k per project. The market however is liking their new direction with their company, the share price is $0.032. What we can learn from this case study? If you had followed Next Investors and held, you would be making money but for what I believe to be the wrong reason. The Next Investor promotion was explicitly focused on the Scandinavian projects to support a Cap Raise, and they were paid by PUR to do this. If you had bought shares of PUR believing in the success of the Nickel project, you most likely would have sold at a great loss following the White Swan event of COVID-19 closing their exploration. **Obviously, I don't blame Next Investors for this crash**, but I find it very disingenuous that the stated purpose of their promotional campaign was to support an upcoming Capital Raise, and is touted as a success. #CASE STUDY 2: The Golden Child VUL, Feb 2020 In this example, Next Investors take credit for ["a significant rise in liquidity and share price movement immediately after Amplicat promotion."](https://imgur.com/a/QhiXCF2). Again, they pull the same trick of cutting off the COVID crash following their ["promotion"](https://imgur.com/a/NUaPzP7). They claim credit for [20 articles posted](https://imgur.com/a/opMnrrb) in the month of February, two of them to their own websites, and EIGHTEEN sponsored articles. The share price rose from a [low of $0.185, to a peak of $0.38](https://imgur.com/a/o896VAp), before again it hit the same problem as PUR where they got fucked by COVID back down to a low of $0.15. Again, VUL follows an awfully familiar pattern. Next Investor's chart highlights the beginning of Feb-2020 as the start of their "arrangement". On Feb 11th, they go into trading halt. On Feb 15th, they announce their Positive Pre-feasibility study. On Feb 20th, they say "trust us bro" when ASX asks them about the suspicious price movements before that announcement. From Feb 21st to Feb 24th, Next Investors start "promoting" VUL throughout their network. This coincides with the official announcement on the 21st of February for the Positive Scoping study of their project. The share price reaches an intra-day high of $0.38 on the 24th of Feb. Again, March 2020 arrives and tanks the share price down to $0.15, along with the rest of the market. Ultimately, what can we learn from this case study? The current share of VUL is $7.430 as of my typing this. This was a scenario where everybody won. If you bought at the peak price of this "promotion", your return is ~1700%. Short term, investors may have gotten fucked by covid, but long term this is a winner. Congratulations Next Investors. #CASE STUDY 3: An Awfully Familiar Story Along with SGC/XST, one of the most spectacular loss porn events of this year was with 88E, which plummeted from a peak of $0.097 to its current price of ~$0.022, following their failed drilling results. Here are some articles about the lead up to this story. [Exhibit A](https://www.nextoilrush.com/88-energy-edge-closer-spud-date-one-biggest-oil-wells-2020/#_ga=2.60745130.600602532.1585875991-103860279.1584488176) [Exhibit B](https://sponsored.bloomberg.com/news/sponsors/features/the-next-oil-rush/88energy/?adv=25442&prx_t=FnYFAwbU-At_sQA) [Exhibit C](https://www.news.com.au/sponsored/wWGLmt5IPjDyNhO0XhLC/the-untapped-potential-of-alaskan-energy/) [Exhibit D](https://www.sharecafe.com.au/2019/11/19/88-energys-north-slope-well-could-be-one-of-the-biggest-in-2020/) Wait, is there an error? Those articles say "88 Energy’s North Slope Well Could Be One Of The Biggest In 2020"? Nope you're reading it right, this is something they pulled not once, but TWICE, and **IN MY COMPLETELY SUBJECTIVE OPINION** they are [BRAGGING ABOUT IT](https://ibb.co/kyT0kXp). "88 Energy (ASX: 88E | AIM: 88E) engaged Amplicat(Next Investors) to generate investor interest in the company ahead of its upcoming drilling program scheduled that was anticipated to commence in months’ time." This happened in 2020, and it happened again in 2021, WITH NEXT INVESTORS ACTIVELY PROMOTING BOTH TIMES! From Nov-2019 to Jan-2020, [Next Investors take credit](https://ibb.co/CHn5Th5) for "Amplifying" the price of 88E from $0.014 to $0.026 in the lead up for their drill campaign. They achieved this [with 22 articles](https://ibb.co/0CDnCZV), 6 of them posted on their own website, and 16 sponsored articles. Here is a [pastebin of 10 of these articles](https://pastebin.com/BhQxBMyr) for your viewing displeasure. Here is an [article from earlier this year](https://www.nextoilrush.com/oil-strikes-back-88e-leveraged-exploration-success-coming-weeks/) by Next Investors that makes ZERO MENTION of this previous failure, and ZERO MENTION of their previous involvement "promoting" this dog of a company. How can Next Investors claim to have a team of sophisticated investors with an eager eye for early opportunities when they pull something like this? #The Next Investors Media Network. Now I will do a mini summary behind the mechanisms of how Next Investors spread their news today, but you may have already picked up on this. [This is what I imagine I look like by now](https://i.imgflip.com/55r9e7.jpg) They have three primary methods of distribution - **News Articles posted on their own websites [Next Investors](https://www.nextinvestors.com/latest-articles/), [Wise Owl](https://wise-owl.com/commentaries/) [Catalyst Hunter](https://catalysthunter.com/), and most importantly [FinFeed](https://finfeed.com/)** You cannot find a direct link to FinFeed from the Next Investor website, but you can find direct links to Next Investors from Finfeed, so its not as "hidden" as they make Amplicat. Finfeed is the primary website where they post articles about companies they are involved with. For articles of all three email producers, Catalyst Hunter, Wise Owl, and Next Investors, corresponding articles are congregated here. From Finfeed, we can actually dig into who the fuck is writing these articles. There is no direct page for you to view their authors, but again thanks to the magic of the legendary /u/darebottle , I can give you a [pastebin of all 80 unique authors](https://pastebin.com/rne8z2WD). The majority of these authors have only posted 1 or 2 articles, so it is misleading to say they are all affiliated closely with Next Investors. However, I would like to bring attention to two authors. This is all public information, [Trevor Hoey](https://finfeed.com/author/trevor-hoey) [Jonathan Jackson](https://finfeed.com/author/jonathan-jackson) These two authors are responsible for the majority of articles written on Finfeed. Jonathan Jackson is the "Managing Editor at Stocks Digital", which I would creatively describe as "Leader of the Ministry of Propaganda" for Next Investors. Trevor Hoey is a former senior writer for AFR who now works for Next Investors. As a sample, today I clicked on the front page of Finfeed, and 7/9 featured articles were written by these two individuals. This holds all the way back to 2019. It is my imperfect suspicion that I cannot prove that the majority of content produced by Next Investors is written by these two people. This is all public information which I simply want to make transparent, as Next Investors provides virtually zero information on their main websites about who is producing their content. Another writer that appeared often historically was [Meagan Evans](https://finfeed.com/author/meagan-evans), ~~but as of late she has not posted anything since [Oct 16, 2020](https://finfeed.com/small-caps/technology/retail-isnt-all-dead-which-corner-of-the-market-is-booming/). I believe it is safe to say she is no longer involved prominently with Next Investors.~~ EDIT: Based on more research, I have found [this article](https://catalysthunter.com/technology/fgl/tiny-retail-analytics-stock-fgl-signs-deal-34bn-wholesale-giant-metcash/) posted to Catalyst hunters on the 10th of March 2021. It is now safe to say she is still in the game. - **Sponsored Articles posted on Prominent websites** In the case studies, I've provided examples of these Sponsored articles. Next Investors gets their writers to copy paste the "promotions" from their own website onto financial news websites online, for a price. In every sponsored content article I have linked in those case studies, the author was one of the three individuals I have mentioned. If you are reading news about a Next Investor company, look for the author name to discover if you are being shilled. - **Emails sent directly to Retail Investors** This is the obvious one everyone knows about, people sign up to the newsletter, they send the email, the price shoots up. This is a modern development, in the early days of their case studies Next Investors did not send emails, only posted articles. I believe that they have discovered the email method of distribution to be much more powerful in pumping prices up than articles. We can see instant ~20% increases from the minute the email is sent on a candlestick chart. I believe the emails are written by the same people writing the articles, as you can easily correlate the emails sent with named articles written and posted by the individuals on finfeed. #A Fourth Frontier? Astroturfing Social Media This section is pure speculation, but I believe the next stage in Next Investor's promotional evolution will be astroturfing social media websites like our very own shitposting haven. They are well aware that we exist, and [exploit us to promote their companies](https://ibb.co/3Cf8GzM), and have hired individuals in our demographic to work for them [making memes](https://ibb.co/mD4cXgL) referencing us. What a fucking time to be alive. Because of the effectiveness of their promotional emails/articles, the rising stock prices naturally creates people posting about the Next Investor stocks going up. However, we need to be on red alert for astroturfing shills, remember **POSITIONS OR BAN**. #Conclusion I believe the business model of Next Investors is highly predatory on retail investors. Companies approach them, and I believe there is evidence to suggest that they make Next Investors aware of non-public information about upcoming announcements for the company. They do this so that Next Investors can co-ordinate emails/articles that are specifically co-ordinated with their announcements. This "timing feature" is an explicitly stated service that Next Investors provide under the name Amplicat. In their dealings, they acquire shares in companies at a huge discount to the fair market price, and begin to "actively promote" them across a vast media network. Short term, this causes a significant price increase, and for mining explorers it is for the purpose of justifying Capital Raises at elevated prices. This creates unhealthy market cycles, where prices for their stocks surge violently upwards. When you combine this with their media propaganda empire, this causes retail investors (the retards on here) to FOMO into peak prices, and short term become left holding the bag. There are cases such as VUL where everybody wins, and I do not believe a company being associated with Next Investors makes it inherently bad. However, their relationship with 88E disgusts me on a personal level. If you are going to promote a company that has failed previously under your promotion, I believe you have the moral obligation to be transparent about this history. I will not tell another person to buy PEN without letting them know about some of the problems they're having with their In Situ chemistry. Ultimately, the long term price of these companies makes no difference substantial difference, because they have already been paid for their promotional services. Remember the Silicon Valley maxim, if you are getting something for free, you are not a customer, **YOU ARE THE PRODUCT**. #Open Letter to Next Investors Finally, I leave a series of questions that I would like Next Investors to answer, even if this a longshot. I think leaving these questions unanswered speaks louder anyway. Here goes #1. Who are the so called "experts" behind your "investment decisions" and what are their credentials? There is zero transparency offered on any of your affiliated websites about the "team" involved. There have been clear winners like VUL, but also complete dogs like 88E that you have shilled not once, but twice, leaving retail investors holding the bag. At most, I have been able to link five people to your group, but that is all. Why should we not assume you are a marketing company that helps public companies make money by selling shares, not selling a product? #2. Why is the entry price on your [website](https://www.nextinvestors.com/portfolio/) misleading for PUR, and are there any other listed entry prices that are similarly misleading? From my previously calculation, we know that you effectively purchased 22,916,666 shares of ONE at an average price of $0.044, yet your website states your entry price as $0.08. In this scenario, why have you chosen to use the market price of the closing day prior to your investment as your entry price instead of the actual effective price you paid? Also the fact that you highlight the "Highest Return" in green on your website is pretty fucking cringe #3. Why are the Entry Dates on your website misleading with regards to your relationships with these companies? From the Case Studies page of Amplicat, we know you have been affiliated/doing business with PUR since at least Feb-2020, and 88E since at least Nov-2019, yet you list your "entry date" for these companies as Dec-2020 and Jun-2020 respectively. I believe the first time, they may have only paid you cash instead of shares, but I still find this to be an incredibly dishonest way to operate. #4. Why is it so hard to find Amplicat? The services offered by your other website "Amplicat" are not advertised anywhere on any of the "retail investor webpages". On this website, you boast about your ability to "improve liquidity in ahead of a capital raising" and create "significant share price movement". Is this conflict of interest not something the retail investors you advertise towards should be aware of? #5. How is it possible to "time" emails regarding price sensitive announcements using only public information? Your Amplicat website advertises your ability for "Swift & synchronised publication to coincide with material news announcements and macro-economic events". I have identified [five separate occasions](https://ibb.co/WHwvXSL) where the email you sent was less than 60 minutes after the announcement was officially made on the ASX. Are you simply that amazing and awesome at processing announcement information and churning it into an email in record speeds, or are you aware of certain things the public is not? #6. Do you think your behaviour under Amplicat is befitting of someone holding an Australian Financial Services License? I'm no lawyer, but I think there's something to be said about a "conflict of interest" that is hidden away inside the Amplicat division that you do not advertise on your main websites. and finally, the one question I really hope they answer #7. Why is the [official Twitter account of Amplicat](https://twitter.com/amplicat) suspended for violating Twitter's policies? I followed the link to your social media on your website, and as of writing this, [the linked Amplicat twitter account is banned.](https://ibb.co/98qZYbP) Does Jack Dorsey have stricter standards than ASIC? 🤡 🤡 🤡 🤡 (**UPDATE** Amplicat's twitter account is now unbanned) Congrats if you made it all the way through this post in one go. Love you all, lets keep this place special. #Update I don't know why, but google has decided to show me an actual news article instead of foreign languages when I search for Amplicat now. [Here are the details of their agreement to promote EMN](https://www.globenewswire.com/news-release/2020/08/25/2083606/0/en/Euro-Manganese-Inc-Appoints-Digital-Investor-Relations-Firm.html)

ASX_Bets

Great job with this research and write up, I had no idea the problem was this bad. I found it super creepy when both S3 and MF started referencing us, and I think it's highly likely their staff read the sub and try to work out how to manipulate public opinion for the benefit of their customers. Also after trying to time a couple of their pumps I almost got scammed really hard and lost money. That really spooked me, because I generally have reasonable experience and know what I am doing and **I still got sucked into the next pump hype and tried to day trade stocks I barely understood at all time highs.** Please be careful if anyone buys something just because they think it's going to hype, don't wreck yourself like that T2 guy who is now in debt...

6clkan

[ETH Daily Discussion] - 22/May/2017

Welcome to the **/r/EthTrader** Daily Discussion thread. *** The thread guidelines are as follows: - All sub rules apply here. Please review our **[rules page](https://www.reddit.com/r/ethtrader/about/rules)** to become familiar with them. The rules page is also linked in the announcement bar above. - General discussion topics include, but are not limited to, events of the day, technical analysis, alternative Ethereum projects, or minor questions. - Breaking news or other important content should be submitted as a separate post. - In-depth altcoin discussions should be referred to the /r/CryptoCurrency discussion thread. To view the thread, [follow this link](https://www.reddit.com/r/CryptoCurrency/search?q=%5BMonthly+General+Discussion%5D&restrict_sr=on&sort=new&t=all) and choose the latest entry on the search page. - Pumping, venting, trolling, or any other similar behavior should be redirected to the /r/CryptoMarkets trollbox thread. To view the thread, [follow this link](https://www.reddit.com/r/CryptoMarkets/search?q=Trollbox+Thread&sort=new&restrict_sr=on&t=all) and choose the latest entry on the search page. *** **[EXPERIMENTAL]** - To view live streaming comments for this thread, [click here](https://reddit-stream.com/comments/auto). Account permissions are required to post comments through Reddit-Stream.com. *** Thank you in advance for your participation. Enjoy!

ethtrader

In case you're wondering why the daily thread isn't stickied, it was recommended to the mod team yesterday we unsticky the daily thread so it can have a chance to reach r/all. We decided we're going to give it a try. Also, /u/EthTrader_Mod was used instead of the AutoModerator to help eliminate any possibility of not qualifying. We invite you to join the cause! EDIT: wording EDIT2: Sorry for the long delay. For all newcomers, [click here](https://www.reddit.com/r/ethtrader/wiki/education) to access a list of educational resources on Ethereum.

6vglme

PAID OFF MY HOUSE

My life changed because of one silly post that I came across on reddit. It was a pic of someone holding up their paper wallet from a bitcoin atm showing both public and private keys. The picture made me wonder if there were any nearby bitcoin atms, so I did a quick google search and found an atm 10 minutes away from me. I went to the atm and put in $20 just to say that I had some bitcoin. I signed up for /r/bitcoinbeginners and learned about Coinbase. After signing up with Coinbase, I started researching the "other" crypto being offered and learned about /r/ethtrader. I started buying eth at $11 and eventually invested 10% of my net worth in crypto. I stuck with eth when it rose above $400 and when it recently dipped below $200. This month I decided that I wanted to set a baseline on what I would get with my crypto investment. I sold enough eth and bitcoin to pay off the mortgage to my house and compensate for taxes. Today I went to the bank and turned in my final house payment. No matter what happens to crypto from here on out, I have a house. Paying off the house was never a goal for 2017. Hell, it wasn't even a goal for the next decade. Do I think eth will hit above $400 again? Yes, and it might happen tomorrow or next week. I've never doubted the technology. However, getting rid of my mortgage takes an immediate, priceless weight off my shoulders. I work in an industry where layoffs always seem to be on the horizon, and it's hard to get a job when everyone is out of a job. Now I don't have to worry about keeping a roof over my family's head. The relief is euphoric. I'm not completely off the crypto ride. I still have a good amount of eth left. I'm going to invest a small amount per month back into eth and bitcoin to slowly build my stockpile back up, but I'm not in any rush. I'd like to thank this sub as well as many others for all the knowledge, advice, and entertainment. Posting this on a throwaway account so I can continue to post questions on this sub (I probably made two posts here). tl;dr - Paid off my house with cryptocurrency gains. Financial freedom is awesome. Edited to add: I've been getting a lot of private messages asking for advice on how to get started with investing in crypto. The advice I give to all my friends is to start how I did and just buy $20 worth of bitcoin or ether. Think of $20 as payment for an intro lesson to crypto. I suggest Coinbase only because that's what I started with after the atm, and I thought it was pretty simple to understand. Once you have a small amount of crypto, download a wallet app and practice transferring the crypto from Coinbase to your wallet and back to Coinbase. Then just hold (hodl) the crypto and watch how it gains/loses value and check your risk tolerance, and don't invest more than you're willing to lose completely. Subscribe to the subs that you have your crypto in.

ethtrader

Congrats friend. I'm in a similar boat, except I don't currently own a house at all. I'm travelling the world but I intend to cash out enough once I'm home to buy a house outright rather than enter the rental market again. I found out about Ethereum at around cost of $1 while selling some old Dogecoin on Poloniex. ETH was the hype coin in the trollbox at the time, I'd never heard of it. I did some research and decided to convert all my Dogecoin into Ethereum. So all thanks to a memecoin which got me into Crypto I'm looking at buying a house outright at 29 years old without even having a career or degree. Incredible. Thanks Dogecoin.

6iumq5

WARNING: Poloniex is withholding my funds from me

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.

ethtrader

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.

l6u6d5

Trading212 restricts the purchase of certain stocks under guise of “mitigating risk”

EDIT: T212 ALLEGEDLY SELLING STOCKS WITHOUT USER PERMISSION [tweet](https://twitter.com/able_adam/status/1355174529665028100?s=21) [tweet](https://twitter.com/zzywest/status/1355176988122750978?s=21) EDIT: Mirror stocks on other EU exchanges now blocked too 1/28 EDIT2: Straight up BUY RESTRICTIONS! - "Mitigating Risk" no longer named a reason 1/28 EDIT3: [UK TRUST PILOT REVIEW](https://uk.trustpilot.com/review/trading212.com) EDIT4: BUY restrictions Appear removed as of 1/29 - Will update when $NYSE opens EDIT5: T212 Restricts new signups to App and forum. On a Thread deleting & Banning Spree of people who are complaining there I think you know which stocks they are. Now, say what you want about meme stocks/wsb etc does this for anyone else not shed a light on this industry as a whole? Or is there actually a case for preventing people piling into this stock? Beyond usual toc on signup which are frankly quite blasé, Ive never had any platform warn or restrict a *particular* stock, especially not under the auspice of protecting me from risk. Was 2008 not an unprecedented market environment? Was the start of covid not? This is an extremely worrying precedent for me and last time ill be using t212. Edit: I listened to reasonable arguments but this stinks. Its fine if you dont like wsb or the current meme stocks. But look at this precedent and just wait til you spend months on DD and get fucked over anyway, this will continue NOTE 1: As perT212 app “In the interest of mitigating risk for our clients, we have temporarily placed (meme stock) in reduce only mode as highly unusual volumes have led to an unprecedented market environment. New positions cannot be opened, existing ones can be reduced or closed” NOTE 2: Due to BUY restrictions placed by our intermediary and ever major execution venue worldwide, GameStop will be placed in close-only mode. New BUY positions can't be initiated, existing ones can be reduced or closed

UKInvesting

Can't believe this is happening. If I buy it, it's my decision. How dare they tell me what to do with my money. Already taken out my free funds. Will close my account with trading 212 after selling my investment!

vfvpea

This insane housing market

My wife and I just offered 30% OVER asking on a house and got turned down because we didn't waive our right to an inspection. We just can't seem to make a house happen, and we're pretty well off in a low demand area. This society saddens me in ways I can't express. Our governance has failed us. I wouldn't participate, but I won't even be that sad or surprised when the pitchforks come out. I know people desperate enough to be talking about it. It's just sad. Rant done. Edit: We also got turned down because I'm a disabled veteran wanting to use my VA loan instead of a conventional loan. Our real estate agent has been hammering us with the message that we need to switch to conventional and I just refuse to let go of a benefit I've earned. Edit 2: my reply to the comment that this is just a free market in action. "If you think governance, lobbying and private equity law has nothing to do with what's happening in the housing market right now, you need to do more research. Shelter is an essential human need, and families looking for shelter have to compete with massive corporations and PE firms (domestic and international) who buy up massive inventory and drive up rents to make a profit on the investment. Well governed Capitalism is a good system. Poorly governed capitalism is a nightmare for people like us. What about a law limiting the purchase of certain single family residences to single families who are going to live in them so disabled American veterans and other hard working Americans aren't priced out by Wall Street and Chinese investors? Edit 3: My reply to further comments that I'm against a free market: I'm for a well governed free market. Yes. The constitution sought to secure "THE BLESSINGS of liberty", not the blessings and evils.

economy

My wife and I had the same issue during the first housing bubble. Unless you totally 100% need to buy a house just hold off until thr house buying market crashes. That's what we did and we purchased a house below Markey value. Stand firm on having the house inspected. To me a seller asking you to waive the inspection is a big red flag.

ql9yov

Island Doges 🏝 | The Island Boys just released a TikTok freestyle y'all! | The real 1000x oppurtunity compared to the trash that get's posted here.

**Official freestyle = online!** 🏄 **Flyysoulja and KodiyakRedd just released a freestyle, we viral my dawgs** We need all dem island boys to share this around, we having a tropical winter full of gains this year 🏄‍♂️ [https://www.tiktok.com/foryou?is\_copy\_url=1&is\_from\_webapp=v1&item\_id=7025992072108854534&lang=en#/@flyysouljah/video/7025992072108854534](https://www.tiktok.com/foryou?is_copy_url=1&is_from_webapp=v1&item_id=7025992072108854534&lang=en#/@flyysouljah/video/7025992072108854534) 📡**Website**: https://islanddoges.io \_\_\_\_\_\_ 🏝🐕 **ISLAND DOGES**🏝🐕 ayy islain dogges to the moooon... to the moon.. to the moon.. **ABOUT ISLAND DOGES** $ISLAND is an ERC20 Token with absolute meme potential. While other projects rushing things to grab money in a fast way without delivering much, ISLAND DOGES comes around with a fresh-as-fuck-website, strong and smart marketing and the plan to develop the $ISLAND ecosystem by doing an absolute sick NFT drop. $ISLAND is backed by tha Islaaaaand Boyyyys (shout out to our boys - Flyysoulja and Kodiyakredd) and is planning to become one of the strongest communities of any meme coin out there. 🏝 No fucking "dev tokens" (miss me with that bullshiiit) 🏝 No "whitelist" where friend and family can join before you can 🏝 No presale (and no fucking dumps on your head my dawg) 🏝 **100% fair launch** >**Ticker**: $ISLAND (ETH) **Tax**: 3% Marketing 3% Development 1% Redistribution [Website](https://islanddoges.io) **|** [Telegram](https://t.me/IslandDoges) | [Twitter](https://twitter.com/islanddoges) |[Chart](https://www.dextools.io/app/ether/pair-explorer/0x89af5a68cfa436693b1797cc2a41715f4530fa61) 🦄 **Buy on UniSwap**: https://app.uniswap.org/#/swap?outputCurrency=0xa0dc5132c91ea4d94fcf1727c32cc5a303b34cfc

CryptoMoonShots

**OWNERSHIP RENOUNCED:** **https://etherscan.io/tx/0x10a9ddca32041018fd4bb4d6663fadecdb9d7c08d27a0330dc6319f54e34c328** **LP LOCKED:** **https://etherscan.io/tx/0x94c4ec708399b32900021dad367390dd3400084ee378ccaf1ab7827488b43923**

sas36r

It's not a bubble, absolutely not!

​ [https:\/\/betterdwelling.com\/canada-has-the-biggest-gap-between-real-estate-prices-and-incomes-in-the-g7\/](https://preview.redd.it/67n7a099ffd81.png?width=944&format=png&auto=webp&s=bde520a377012e4190ed554d07f33f2c4d203b08) Since 2005, *house price-to-income* ratios across Canada rose by over 67%. Ontario and BC obviously have it even worse. Among the G7 countries, the comparison is outstanding. The second country that worsens its housing affordability is Germany, with a 28% surge from the 2005 baseline. According to any economic metrics, something really dangerous is going on in Canada. And yet, many Canadians believe this is totally normal. Time will tell, I suppose.

CanadianInvestor

I said it before and I'll say it again, I have no idea how young people make it in Toronto and Vancouver. If a house price doubles within the span of a year, there's something seriously wrong. Our policymakers are absolutely clueless.

pmj9yk

I found the entire naked shorting game plan playbook posted on a forum in 2004. They called it "Cellar Boxing". + Yahoo / Morningstar censoring GME data depending on your IP. It's not a glitch.

Hello beautiful apes! I have 2 points to show you. First is that Yahoo is showing completely different values depending on your IP. Try using a VPN with a different country and you'll see. Second is that I stumbled upon the ***ENTIRE FUCKING GAME PLAN*** of the naked shorting scheme. I guess an insider spilled the beans anonymously on some forum in 2004. What is going on with GME over the last 9 months is a game plan called "Cellar Boxing". **The link is at the end of this post. If you don't give a FUCK about the Yahoo data, then just skip to the end and read that. Seriously EVERYONE NEEDS TO READ THAT POST. It is like the holy grail. I got emotional reading it as it confirmed all of our combined DD about naked shorting, rule exemptions, dividends, zombies, even talks about shills.....EVERYTHING... in one fell swoop.** I wrote all this Yahoo stuff before I found that link and I just had to stop and stare at the wall for a bit.. This was going to be a much longer post, but I decided to just stick to the facts without speculative walls of text so you're not overwhelmed. Because trust me, reading that post from 2004 is going to blow your fucking mind. It blew mine and everyone I showed it to. Okay so first point: Here's the Yahoo data from my IP in the USA ​ ​ https://preview.redd.it/0v9ody3ujxm71.png?width=546&format=png&auto=webp&s=99ce6f08beff4e7d7ad75923efb9e0dbc1f29c92 ​ Here's the data from a European VPN ​ https://preview.redd.it/z4qg2kkwjxm71.png?width=831&format=png&auto=webp&s=93ca4f7615b0ced4f26f2eae9ce1d20f6c4eb209 First thing that stands out to me is Enterprise Value. According to [https://www.investopedia.com/ask/answers/111414/whats-difference-between-enterprise-value-and-market-capitalization.asp](https://www.investopedia.com/ask/answers/111414/whats-difference-between-enterprise-value-and-market-capitalization.asp) Market capitalization is the sum total of all the outstanding shares of a company. **Enterprise value takes into account** the debt that the company has taken on. Enterprise value, therefore, can identify strengths or weaknesses that market cap cannot. And [https://www.arborinvestmentplanner.com/enterprise-value-ev-calculating-enterprise-value-ratios/](https://www.arborinvestmentplanner.com/enterprise-value-ev-calculating-enterprise-value-ratios/) **A company with more debt than cash will have** an enterprise value greater than its market capitalization. Companies with identical market capitalizations can have radically different enterprise values. \----------------------------------------------- I had thought perhaps they're doing some kind of fuckery with convertible preferred shares, or convertible bonds. Which they very well may be, but I can't prove that right this second. So I leave this idea in speculation land. But let's hand it off to u/semerien for the actual reason for this discrepancy: **Total cash per share is 5.64** **Cash at 1.72 billion** **Which means Yahoo thinks there is just over 300 million shares** **Enterprise value is using that share count at current price** **57 billion for ev using 304 million shares at 190 price, cash at 1.7B and debt at 0.7 billion** ***I may have rounded every single number cuz I'm lazy but what's a few 100 million in rounding errors*** \---------------------------------------------------Okay ok gimme my mic back lmao So.. No speculation. Mathematical Fact: Yahoo's calculating on 300M\~ shares for outside USA when factoring Enterprise Value. Where does Yahoo get this data? [https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en\_US](https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en_US) * Financial statements, valuation ratios, market cap and shares outstanding data provided by Morningstar. Okay so Yahoo gets this specific data from Morningstar. Who does Morningstar get it's data from? [https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178\_28k.htm](https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178_28k.htm) \--------------------------------------------------- *We collect most of our data from original source documents that are publicly available, such as regulatory filings and fund company documents. This is the main source of operations data for securities in our open-end, closed-end, exchange-traded fund, and variable annuity databases, as well as for financial statement data in our equity database. This information is available at no cost.* ***For performance-related information (including total returns, net asset values, dividends, and capital gains), we receive daily electronic updates from individual fund companies, transfer agents, and custodians.*** *We don’t need to pay any fees to obtain this performance data. In some markets we supplement this information with a standard market feed such as Nasdaq for daily net asset values, which we use for quality assurance and filling in any gaps in fund-specific performance data. We also receive most of the details on underlying portfolio holdings for mutual funds, closed-end funds, exchange-traded funds, and variable annuities electronically from fund companies, custodians, and transfer agents.* \--------------------------------------------------- So that answers the question as to why the float changed from **126M to 248M** in the same day. This is not a glitch. One way or the other, the data got pushed "***from individual fund companies, transfer agents, and custodians"*** *to Morningstar, to Yahoo.* Intraday. Why Morningstar shows different than Yahoo? I won't speculate. But it can't be a glitch. Just based on the source and how it's updated. Speculate on why or how they're censoring it, not on it being a glitch. These different values I believe are important because they paint a picture of intent to hide the true data. It's bits of the real data slipping through the cracks. Let's look at the numbers: \--------------------------------------------------- **Enterprise Value in USA = 14.22B** **Forward P/E in USA = 36.67** **--** **Enterprise Value in other countries = 57.07B** **Forward P/E in other countries = $6,347.00** \--------------------------------------------------- EV is calculated on 300 ish million shares. People say "Yahoo's data is always screwy". I don't think that's true. I think it's the opposite. The market is always being FUCKED with. As you'll see in the post I'm going to link to. And Yahoo just has a hard time cleaning it up and censoring it. Because of SO MUCH FUCKERY. And sometimes shit slips through unintentionally. Forward P/E.. What the fuck is forward P/E some of you might be wondering? *(Side note: Yahoo gets this data from a data analytics company called Refinitiv.)* \--------------------------------------------------- [*https://www.investopedia.com/terms/f/forwardpe.asp*](https://www.investopedia.com/terms/f/forwardpe.asp) *Forward price-to-earnings (forward P/E) is a version of the ratio of* *price-to-earnings* *(P/E) that uses forecasted earnings for the P/E calculation.* [*https://www.investopedia.com/ask/answers/050515/what-does-forward-pe-indicate-about-company.asp*](https://www.investopedia.com/ask/answers/050515/what-does-forward-pe-indicate-about-company.asp) *A company with a higher forward P/E ratio than the industry or market average indicates* ***an expectation the company is likely to experience a significant amount of growth***\*. ... Ultimately, the P/E ratio is a metric that allows investors to determine how valuable a stock is, more so than the market price alone.\* \--------------------------------------------------- Here's an example for Tesla: [https://finbox.com/NASDAQGS:TSLA/explorer/pe\_ltm](https://finbox.com/NASDAQGS:TSLA/explorer/pe_ltm) *"Tesla's p/e ratio for fiscal years ending December 2016 to 2020 averaged 211.2x. Tesla's operated at median p/e ratio of -37.2x from fiscal years ending December 2016 to 2020. Looking back at the last five years, Tesla's p/e ratio peaked in December 2020 at 1,255.0x."* So we all know what happened with Tesla. The P/E ratio seems to be pretty good at calculating the growth. The higher the number, the bigger the growth. A number in the thousands is basically **"Oh shit we got a winner".** Thing is, you get the number by calculating the share price divided by the estimated future earnings per share. *"For example, assume that a company has a current share price of $50 and this year’s earnings per share are $5. Analysts estimate that the company's earnings will grow by 10% over the next fiscal year. The company has a current P/E ratio of $50 / 5 = 10x. "* Well Gamestop's at 190, let's say for what ever crazy fucking reason we're expecting future earnings per share to be at 5 dollars per share. We're currently expecting around 1 dollar in January but for sake of argument let's pretend it's $5. $190 / 5 = 38. Okay interesting so far that makes sense for the USA calculation roughly. But HOW THE FUCK DO WE GET **$6,347?** It's impossible. Unless.. wait a sec.. $31,735 / 5 = **$6,347** Could it be the true value of GME is actually $31,735 right now? I mean even if we use the 1 dollar per share earning thing from January, that's still assuming CURRENT VALUE = **$6,347 per share....** It is my belief that based on these two numbers, the fact that they **change** depending on **your IP** \+ the float being at **248M**, as well as **THE MIND BLOWING INFORMATION** contained within the post I'm about to link to in a second... That the Yahoo thing isn't a glitch. It's a hole in the fuckery veil they're trying to place upon our eyes. It's to hide the fact that the float is shorted at LEAST 3x verifiably. *(I believe it to be 50x by now)* And also to stop us from deducing the actual share price in what ever dark pool of death the shorts are hiding in using these numbers. They're hiding the company's fucking growth from us. In comparison for shits and giggles, I checked movie stock in the VPN and Yahoo's changing that data too. But not to hide the shorts or hide growth. Instead to hide a decline. Movie Stock's Forward P/E is N/A for USA but for other countries it's **-68.71** \--------------------------------------------------- [https://www.investopedia.com/ask/answers/05/negativeeps.asp](https://www.investopedia.com/ask/answers/05/negativeeps.asp) *"A negative P/E ratio means* ***the company has negative earnings or is losing money***\*. ... Investors buying stock in a company with a negative P/E should be aware that they are buying shares of an unprofitable company and be mindful of the associated risks."\* \--------------------------------------------------- If I'm right about this whole thing, then this by itself is proof that GME is the MOASS and whoever's doing it, either Yahoo, or Morningstar, whoever doesn't want us to know that movie stock is obviously not the MOASS. Now........ Whether you agree with me or not, you MUST read this post: Archived in case it gets deleted [https://archive.is/KSS6m](https://archive.is/KSS6m) ​ You know what, just in case you're too lazy to click it, I'll copy and paste the whole thing. You can click the link to verify. It's that important to read. \--------------------------------------------------- Sunday, 03/07/04 07:56:25 PM "Cellar Boxing" There’s a form of the securities fraud known as naked short selling that is becoming very popular and lucrative to the market makers that practice it. It is known as “CELLAR BOXING” and it has to do with the fact that the NASD and the SEC had to arbitrarily set a minimum level at which a stock can trade. This level was set at $.0001 or one-one hundredth of a penny. This level is appropriately referred to as “the CELLAR”. This $.0001 level can be used as a "backstop" for all kinds of market maker and naked short selling manipulations. “CELLAR BOXING” has been one of the security frauds du jour since 1999 when the market went to a “decimalization” basis. In the pre-decimalization days the minimum market spread for most stocks was set at 1/8th of a dollar and the market makers were guaranteed a healthy “spread”. Since decimalization came into effect, those one-eighth of a dollar spreads now are often only a penny as you can see in Microsoft’s quote throughout the day. Where did the unscrupulous MMs go to make up for all of this lost income? They headed "south" to the OTCBB and Pink Sheets where the protective effects from naked short selling like Rule 10-a, and NASD Rules 3350, 3360, and 3370 are nonexistent. The unique aspect of needing an arbitrary “CELLAR” level is that the lowest possible incremental gain above this CELLAR level represents a 100% spread available to MMs making a market in these securities. When compared to the typical spread in Microsoft of perhaps four-tenths of 1%, this is pretty tempting territory. In fact, when the market is no bid to $.0001 offer there is theoretically an infinite spread. In order to participate in “CELLAR BOXING”, the MMs first need to pummel the **price** per share down to these levels. The lower they can force the share price, the larger are the percentage spreads to feed off of. This is easily done via garden variety naked short selling. In fact if the MM is large enough and has enough visibility of buy and sell orders as well as order flow, he can simultaneously be acting as the conduit for the sale of nonexistent shares through Canadian co-conspiring broker/dealers and their associates with his right hand at the same time that his left hand is naked short selling into every buy order that appears through its own proprietary accounts. The key here is to be a dominant enough of a MM to have visibility of these buy orders. This is referred to as "broker/dealer internalization" or naked short selling via "desking" which refers to the market makers trading desk. While the right hand is busy flooding the victim company's market with "counterfeit" shares that can be sold at any instant in time the left hand is nullifying any upward pressure in share price by neutralizing the demand for the securities. The net effect becomes no demonstrable demand for shares and a huge oversupply of shares which induces a downward spiral in share price. In fact, until the "beefed up" version of Rule 3370 (Affirmative determination in writing of "borrowability" by settlement date) becomes effective, U.S. MMs have been "legally" processing naked short sale orders out of Canada and other offshore locations even though they and the clearing firms involved knew by history that these shares were in no way going to be delivered. The question that then begs to be asked is how "the system" can allow these obviously bogus sell orders to clear and settle. To find the answer to this one need look no further than to Addendum "C" to the Rules and Regulations of the NSCC subdivision of the DTCC. This gaping loophole allows the DTCC, which is basically the 11,000 b/ds and banks that we refer to as "Wall Street”, to borrow shares from those investors naive enough to hold these shares in "street name" at their brokerage firm. This amounts to about 95% of us. Theoretically, this “borrow” was designed to allow trades to clear and settle that involved LEGITIMATE 1 OR 2 DAY delays in delivery. This "borrow" is done unbeknownst to the investor that purchased the shares in question and amounts to probably the largest "conflict of interest" known to mankind. The question becomes would these investors knowingly loan, without compensation, their shares to those whose intent is to bankrupt their investment if they knew that the loan process was the key mechanism needed for the naked short sellers to effect their goal? Another question that arises is should the investor's b/d who just earned a commission and therefore owes its client a fiduciary duty of care, be acting as the intermediary in this loan process keeping in mind that this b/d is being paid the cash value of the shares being loaned as a means of collateralizing the loan, all unbeknownst to his client the purchaser. An interesting phenomenon occurs at these "CELLAR" levels. Since NASD Rule 3370 allows MMs to legally naked short sell into markets characterized by a plethora of buy orders at a time when few sell orders are in existence, a MM can theoretically "legally" sit at the $.0001 level and sell nonexistent shares all day long because at no bid and $.0001 ask there is obviously a huge disparity between buy orders and sell orders. What tends to happen is that every time the share price tries to get off of the CELLAR floor and onto the first step of the stairway at $.0001 there is somebody there to step on the hands of the victim corporation's market. Once a given micro cap corporation is “boxed in the CELLAR” it doesn’t have a whole lot of options to climb its way out of the CELLAR. One obvious option would be for it to reverse split its way out of the CELLAR but history has shown that these are counter-productive as the market capitalization typically gets hammered and the post split share price level starts heading back to its original pre-split level. Another option would be to organize a sustained buying effort and muscle your way out of the CELLAR but typically there will, as if by magic, be a naked short sell order there to meet each and every buy order. Sometimes the shareholder base can muster up enough buying pressure to put the market at $.0001 bid and $.0002 offer for a limited amount of time. Later the market makers will typically pound the $.0001 bids with a blitzkrieg of selling to wipe out all of the bids and the market goes back to no bid and $.0001 offer. When the weak-kneed shareholders see this a few times they usually make up their mind to sell their shares the next time that a $.0001 bid appears and to get the heck out of Dodge. This phenomenon is referred to as “shaking the tree” for weak-kneed investors and it is very effective. At times the market will go to $.0001 bid and $.0003 offer. This sets up a juicy 200% spread for the MMs and tends to dissuade any buyers from reaching up to the "lofty" level of $.0003. If a $.0002 bid should appear from a MM not "playing ball" with the unscrupulous MMs, it will be hit so quickly that Level 2 will never reveal the existence of the bid. The $.0001 bid at $.0003 offer market sets up a "stalemate" wherein market makers can leisurely enjoy the huge spreads while the victim company slowly dilutes itself to death by paying the monthly bills with "real" shares sold at incredibly low levels. Since all of these development-stage corporations have to pay their monthly bills, time becomes on the side of the naked short sellers. At times it almost seems that the unscrupulous market makers are not actively trying to kill the victim corporation but instead want to milk the situation for as long of a period of time as possible and let the corporation die a slow death by dilution. The reality is that it is extremely easy to strip away 99% of a victim company’s share price or market cap and to keep the victim corporation “boxed“ in the CELLAR, but it really is difficult to kill a corporation especially after management and the shareholder base have figured out the game that is being played at their expense. As the weeks and months go by the market makers make a fortune with these huge percentage spreads but the net aggregate naked short positions become astronomical from all of this activity. This leads to some apprehension amongst the co-conspiring MMs. The predicament they find themselves in is that they can’t even stop naked short selling into every buy order that appears because if they do the share price will gap and this will put tremendous pressures on net capital reserves for the MMs and margin maintenance requirements for the co-conspiring hedge funds and others operating out of the more than 13,000 naked short selling margin accounts set up in Canada. And of course covering the naked short position is out of the question since they can’t even stop the day-to-day naked short selling in the first place and you can't be covering at the same time you continue to naked short sell. What typically happens in these situations is that the victim company has to massively dilute its share structure from the constant paying of the monthly burn rate with money received from the selling of “real” shares at artificially low levels. Then the goal of the naked short sellers is to point out to the investors, usually via paid “Internet bashers”, that with the, let’s say, 50 billion shares currently issued and outstanding, that this lousy company is not worth the $5 million market cap it is trading at, especially if it is just a shell company whose primary business plan was wiped out by the naked short sellers’ tortuous interference earlier on. The truth of the matter is that the single biggest asset of these victim companies often becomes the astronomically large aggregate naked short position that has accumulated throughout the initial “bear raid” and also during the “CELLAR BOXING” phase. The goal of the victim company now becomes to avoid the 3 main goals of the naked short sellers, namely: bankruptcy, a reverse split, or the forced signing of a death spiral convertible debenture out of desperation. As long as the victim company can continue to pay the monthly burn rate, then the game plan becomes to make some of the strategic moves that hundreds of victim companies have been forced into doing which includes name changes, CUSIP # changes, cancel/reissue procedures, dividend distributions, amending of by-laws and Articles of Corporation, etc. Nevada domiciled companies usually cancel all of their shares in the system, both real and fake, and force shareholders and their b/ds to PROVE the ownership of the old “real” shares before they get a new “real” share. Many also file their civil suits at this time also. This indirect forcing of hundreds of U.S. micro cap corporations to go through all of these extraneous hoops and hurdles as a means to survive, whether it be due to regulatory apathy or lack of resources, is probably one of the biggest black eyes the U.S. financial systems have ever sustained. In a perfect world it would be the regulators that periodically audit the “C” and “D” sub-accounts at the DTCC, the proprietary accounts of the MMs, clearing firms, and Canadian b/ds, and force the buy-in of counterfeit shares, many of which are hiding behind altered CUSIP #s, that are detected above the Rule 11830 guidelines for allowable “failed deliveries” of one half of 1% of the shares issued. U.S. micro cap corporations should not have to periodically “purge” their share structure of counterfeit electronic book entries but if the regulators will not do it then management has a fiduciary duty to do it. A lot of management teams become overwhelmed with grief and guilt in regards to the huge increase in the number of shares issued and outstanding that have accumulated during their “watch”. The truth however is that as long as management made the proper corporate governance moves throughout this ordeal then a huge number of resultant shares issued and outstanding is unavoidable and often indicative of an astronomically high naked short position and is nothing to be ashamed of. These massive naked short positions need to be looked upon as huge assets that need to be developed. Hopefully the regulators will come to grips with the reality of naked short selling and tactics like "CELLAR BOXING" and quickly address this fraud that has decimated thousands of U.S. micro cap corporations and the tens of millions of U.S. investors therein. \--------------------------------------------------- HO....LEEEEEE......FUQ Bruh.. This was written in 2004. I really don't have anything more to say. (Last minute about to finish this post and u/Hopeless_Dreams713 showed me a patent found by u/Toxsic99 [https://patents.google.com/patent/US7904377B2/en](https://patents.google.com/patent/US7904377B2/en) which I THINK is a fucking patent for ladder attacks but I have no more brain power to spend after reading/writing this. So I include it as a bonus for any wrinkles with extra brain power to decipher.) ​ **TL;DR Yahoo changes data depending on the IP. Seems like only USA gets censored data. Based on the forward P/E of the uncensored data, it's possible GME is anywhere between 6k to 31k per share on some dark side of the fence. And "Cellar Boxing" is the game plan shorts use to destroy America.** Edit 2: https://preview.redd.it/yrs92ane7zm71.png?width=1124&format=png&auto=webp&s=fc09b8bdce8e0539f483100a1f07412e0a0dc96a Edit 3: Smart ape found reply in the post basically confirming that us requesting the share certificates is fucking them up the bum bum [https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hciatum/](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hciatum/) ​ Edit 4: ​ https://preview.redd.it/doc7rcishzm71.png?width=1188&format=png&auto=webp&s=32154766400b459f78986ec66cf8660e8c9971cc [https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hcifuez?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hcifuez?utm_source=share&utm_medium=web2x&context=3) ​ Edit 5: ​ [Can't just be a Yahoo glitch. Impossible.](https://preview.redd.it/d64gr6lzizm71.png?width=1068&format=png&auto=webp&s=80a85ab0b5f590a1f81d4a577168adb0e1dc0920) ​ [https://www.nasdaq.com/market-activity/stocks/gme](https://www.nasdaq.com/market-activity/stocks/gme) Edit 6: Bruh, we literally got onto the top 15 of Popular of all of Reddit with this. We're breaking the simulation. LFGOOOOOO. And also if you're new here from the rest of the Reddit and don't know about Superstonk, we love you and this post is undeniable that the stock market is rigged and GME about to blow. And I'm so happy that this information has a chance to be seen by more people. These hedgefunds have been destroying America for decades. Stunting our growth as a species. What kind of medical advances could we have made by now? Science? Technology? All shorted to hell because of some greedy hedge fund pricks. Please share this with everyone you know so that more people can be aware of their tactics. It is important that they know they lost. And when we are in the financial position of power, we must be better human beings. And invest into technology and medicine and help the world become what it could have been. This is our one chance at changing the world for the better. ​ Edit 7: ​ https://preview.redd.it/c91hnnptg0n71.png?width=1166&format=png&auto=webp&s=93967bedc4274d5555fe12028a4bbdd267700b7b [https://www.youtube.com/watch?v=IL1QznrSwWw](https://www.youtube.com/watch?v=IL1QznrSwWw) ​ Edit 8: WE MADE TOP 5 of r/all holy shit. \*insert another emotional speech\* Also: ​ https://preview.redd.it/37w6299bq0n71.png?width=1194&format=png&auto=webp&s=eca37cf73123bd9ee10656eebb60ba625d1eda4e [https://www.dtcc.com/about/leadership/board/david-goone](https://www.dtcc.com/about/leadership/board/david-goone) ​ Edit 9: Letter to the SEC from 2008 mentioning all this. [https://www.sec.gov/comments/s7-08-08/s70808-144.htm](https://www.sec.gov/comments/s7-08-08/s70808-144.htm) ​ Edit 10: SUPER SMOOTH BRAIN EXPLANATION for those who have NO idea what is going on: **When you buy a stock, you're betting that it's going up.** **But if you feel it's going to go down, then there's a bet for that.** **It's called a short bet. It's pretty simple.** **Imagine your friend has a watch priced at $100. And you think tomorrow it's going to be worth $50. You say to your friend "Hey lemme borrow dat real quick" and you go and pawn it at a pawn shop for $100.** **What happened? So far you have a contract to buy back the watch to give back to your friend, but you also have $100.** **Tomorrow comes, and the price is $50. You go and buy the watch back for $50. You keep the $50 left over. Give the friend back is watch + like 5% interest and everyone's happy.** **But what if that watch increased in price instead of decreased?** **You go to buy the watch back, and it's $200?? Uh oh.. You now have a contract to buy the watch, and you'll have to pay $100 out of pocket to buy it back. So you lost money.** **You wait and figure it'll go back down. To your surprise, the watch price just keeps increasing. $300, $500, $1,000 to $10,000 to $100,000 to $10,000,000** **You owe your friend that watch at any price. No matter what. But you can keep waiting by simply paying him a fee every day to borrow. It's called a borrow fee, oddly enough.** **Unfortunately you only have limited assets. So sooner or later you won't have enough money to pay the borrow fee. And then you're forced to go bankrupt and sell all your assets and your house, and your car, and your boat, and your planes to pay for the watch.** **So that's what's going on with GME. But instead of 1 watch, it's billions and billions of shares. And they're making fake copies of shares that they don't even have.** **Sooner or later, they must buy back the shares. And at any cost. And they will be forced to sell everything they own to do it.** **Up until now we've only reverse engineered the idea and processes behind "HOW" they're doing it. This post from 2004 detailed every step of the way. And it is very emotional to us because we were right. And they tried gaslighting us for 9 months that we were wrong.** ​ Edit 11: This question gets popped up alot. So if you're wondering about how it affects movie stock, look at this comment chain: [https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hcjjw5o?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hcjjw5o?utm_source=share&utm_medium=web2x&context=3) ​ Edit 12: Some people are saying Cellar Boxing doesn't apply to GME because it's not at sub penny levels. BUT YOU GUYS ARE MISSING THE FACT THAT GME WAS AT 3 DOLLARS A SHARE. In order to CELLAR BOX the stock, they would have to first NAKED SHORT IT TO HELL. They short it from 3 dollars hoping for it to go to below a dollar and then get it into that cellar range. BUT THEY FAILED. That's what those people saying it's not relevant to GME are missing. It IS relevant to GME. Because CELLAR BOXING was the GAME PLAN. Imagine you have a playbook with strategies on how to play a game. THATS CELLAR BOXING. Naked shorting is a PART OF the CELLAR BOXING PLAYBOOK. The funny thing is ppl who are saying to "stop talking about Cellar boxing" are also talking about movie stock. So ..... ​ Edit 13: Bruh.. SEC deleted the letter from Edit 9 of this post. Here's the archived of the file they deleted after this post blew up: [https://web.archive.org/web/20210912094334/https://www.sec.gov/comments/s7-08-08/s70808-144.htm](https://web.archive.org/web/20210912094334/https://www.sec.gov/comments/s7-08-08/s70808-144.htm) ​ Edit 14: Reached 40k character limit. Number 5 explanation: [https://www.reddit.com/r/Superstonk/comments/pn0b30/one\_clarification\_to\_uthabats\_post\_634700\_forward/hcnkbh4?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pn0b30/one_clarification_to_uthabats_post_634700_forward/hcnkbh4?utm_source=share&utm_medium=web2x&context=3) ​ Edit 15: https://preview.redd.it/kiipketnh7n71.png?width=1467&format=png&auto=webp&s=babb84b5efaf58e9d1dc6a02e7d1e40b11014c2a ​ Edit 1: Promised link at end of the post, even though the whole post is contained within this msg lol [https://archive.is/KSS6m](https://archive.is/KSS6m)

Superstonk

here’s another article from the same guy talking about the damage naked short selling does on your average trader. He also stated the names of two execs from a company that fell victim to this and pledged to fight it. I wonder if we should track them down and try to get some further insight [https://investorshub.advfn.com/boards/read_msg.aspx?message_id=2538936](https://investorshub.advfn.com/boards/read_msg.aspx?message_id=2538936) OMG!!!! Read this: With the above groundwork laid, let me try to explain how market makers get short even if they like the Company; Lets say that a stock (shell) has been lying quietly at $.25 bid $.50 offered. A limit order comes into one of the MM's to Buy at $.50 for a thousand shares. Prior to this trade that MM may be "flat" (neither long or short any shares). He fills the order and is now short 1,000 shares. He may raise his bid hoping to find a seller to "flatten" out his position. But before he realizes it a wave of buyers have come in and cleared out all the $.50 offers. Now the stock is $.50 bid .75 offered. Here comes that "Big" firm he just sold the 1,000 shares to at .50 with another bid for 1000 at .75. He makes this print. Now he is short 2,000 at an average of .625. The market keeps moving and now its .75 bid 1.00 offered. Now he has to make a decision. Just like investors, MM Hate to take a loss. So 9 times out of 10 he will now sell 2000 at 1.00 making him short 4000 but with an average .81. At this time he would love to see a seller at .75 so he can cover his short and make a few bucks. But instead the market keeps moving up. Now it is 1.00 to 1.25 and here comes the buyer again at 1.25. He doesn't want to lose the call so now he needs to sell 4,000 at 1.25 to keep his break even point above the bid. Now he is short 8,000. Market moves up to 1.25 bid 1.50 offer here comes the buyer now he feels he must sell 8000 here because "stocks don't go up forever". Now he is short 16,000. And so on and so on. If the stock keeps moving up, before he realizes it he could be short 50k or 100k shares (depending how big his bank is). _________________________ Finally the market closes for the day and on paper he may look all right in that his "break even" price may be around the closing price. But now he has to figure out how to entice sellers so he can cover this short. It is important to note that if this happened to one MM it has probably happened to most all of them. Some ways MM's entice sellers; Run the stock up with a "tight spread" in a fast market, then "open" up the spread to slow down the buying interest. After it has "cooled off" for a little while lower the offer below the last trade right after a small piece trades on the offer then tighten the spread so that the sellers feel they can take a "quick profit" by "hitting the bid" on the tight spread. Once the selling starts the MM's will walk it down quickly by only making small prints on the way down with the tight spread. Another way is by running the stock up in the morning, averaging up their short then use the above technique to walk it down in the afternoon. Hopefully after doing this for several days, it will demoralize the buyers. The volume will dry up and the sellers will materialize thinking that the game is over. Contrary to popular opinion, MM usually Do Not Cover in Fast moving markets either Up or Down if they are short. They Short More. They usually try to cover after the frenzy is out of the market. There are many other techniques they use but the above are the most popular. This technique works about 9 times out of 10 particularly in a BB market. However that is because 9 out of 10 BB stocks are BS. Remember what I said above. Most MM's don't have a clue as to the value of a Company until they get trapped. If the Company has solid fundamentals and a bright future. Then the stock will do very well. And the activity that caused the situation will prove to even help the future stock activity because it created an audience." WE’RE THE 1/10 I realized this was discovered about a week ago and shared on another sub. Just want to make sure credit is given where credit is due: https://www.reddit.com/r/DDintoGME/comments/pidpdw/found_on_another_sub_confessions_of_a_market_maker/?utm_source=share&utm_medium=ios_app&utm_name=iossmf

lp8czt

The "Director Crims Paradise" laws and the Unholy Alliance of /r/ASX_bets, /r/ausfinance and FB stock groups.

It has come to the attention of the Moderators of [/r/ASX\_Bets](https://www.reddit.com/r/ASX_Bets) and [/r/Ausfinance](https://www.reddit.com/r/Ausfinance), the FB "ASX Stock tips" and other members of the Australia Investor community that there has been discussion within the Coalition government of Australia (contrary to the advice of the apparently non corrupt regulators) of permanent changes in the legal structures of Australian public company disclosure laws. [These laws, hereafter referred to as "The let financial criminals avoid punishment" laws, or "Director Crims paradise", have the objective of reducing the requirement and liability of company directors in event that meaningful disclosure of news does not occur in a timely manner to the investing public.](https://www.abc.net.au/news/2021-02-18/continuous-disclosure-laws-watered-down-permanently/13163854) Effectively turning what is already extremely weak enforcement against financial criminals to become almost impossible to enforce. ​ ​ While some relaxation of laws during the COVID-19 pandemic were reasonable on practicality reasons, the "Director crims paradise" laws appears to exclusively be oriented around allowing and encouraging criminal behaviour, which is not acceptable from a government enforcing law and order. Insider trading is already seen as a chronic issue within Australian securities by many people, including the retail investor community (Mums, Dads and 22 yr old idiots alike). Creating an inside and an outside, often sorted by existing wealth, not investor ability. [The inside are able to obtain information prior to it being made publicly available. This is either by personal and business contacts, or by the corrupt practice of providing early knowledge to larger investors, on the basis that this will provide outside returns to these individuals.](https://www.anu.edu.au/news/all-news/study-exposes-insider-trading-on-australian-stock-market) ​ ​ If none of the above practices are present, then why are the laws being relaxed? Even the /r/ASX_bets autist can work out that one of the easiest ways to make prosecuting the guilty harder is to take away the already flimsy laws that require them to act in a slightly less dodgy manner. If permitting more corruption is not the aimed objective of the Government, then why is liability being reduced? Why pass the "Director crims paradise" to allow criminals that steal money from citizens of Australia and be held non accountable? It is not ideal that we are currently dependent on the private sector as the main enforcers of fraud protection, but given the extremely suspicious reduction in funding for ASIC over the last decade (i.e the "Defund the police of the rich" concept) that is all that is left. ​ ​ The major function of company directors is to provide guidance to the company on behalf of it's owners, the shareholders. Described by the Australian Financial Review as " Handsomely paid directors, stewarding vast amounts of capital ", the directors also have a responsibly to provide information to the shareholders they represent, their bosses. Directors are well paid individuals, in exchange they are held to a significant legal liability in order to ensure that they act in a sound manner and to ensure that those under their direction act in a sound manner. While there are exceptional circumstances in which these individuals, who hold themselves as highly skilled professional may make errors, they should be held to account when it moves outside of a true error into "conveniant error" which is expected to happen in future. If they leak, provide information or quietly sit on disclosure so "those in the know" have the ability to exit or enter their positions, they should be held accountable. The burden to prove that delays were not malicious should be made harder, not softer. Otherwise the rot in the capital markets will continue and the respect of the markets will weaken. Some say this is due to rising director insurance costs. We ask if an increase in the price of fire insurance would lead to a ban on firefighting, or if it might be better to ban making houses out of cardboard and gunpowder. [Similar moves to reduce the insurance burden on those who hurt others have ended in disaster.](https://www.dmagazine.com/publications/d-magazine/2016/november/christopher-duntsch-dr-death/) ​ ​ It is suggested that members of [/r/ASX\_bets](https://www.reddit.com/r/ASX_bets) , [/r/Ausfinance](https://www.reddit.com/r/Ausfinance) and our investing compatriots together begin to make it clear that allowing and encouraging criminals should not be policy of a government in this country. Make this an issue on your non reddit Social media. Contact your Federal member of Parliament (it does work, just ask a boomer with 4 investment properties) and your senators. Do it by phone, by letter and by email. If corruption is not the goal, then don't make rules stopping corruption weaker. If you are a member of the Liberal Party, ask your local branch why crooks are being allowed to fleece party members with the allowance of your leadership, behaviour that will surely cost them votes. Don't pretend this is something about one side of politics or the other, this is bad policy that excessively helps the guilty, nothing more. ​ ​ This isn't a political group, we'd rather spend our time looking at good Stonks, too bad that will be harder with these changes. This group is focused on the market and wants to know that others have as much information as us. We don't understand why the government started this. ​ ​ TLDR. Your rockets are at risk. It might be time to fight.

ASX_Bets

Seeing as Labor is already opposed to it, should we be exclusively directing ire at our local LNP candidate, assuming they can take a small break from sexually assaulting their staffers to pick up the phone or return emails.

lbqzep

Michael Burry's Investment Strategy

This will be long....Sorry in advance. I decided I'd like to research Michael Burry since I've seen so many people talking about him on here and this is just what I've discovered about him and his methods. **Quick Facts:** * Founder of hedge fund Scion Capital 2000-2008. Closed to focus on personal investments * Best known for seeing the subprime mortgage crisis (2007-2010) and profiting from it * Investment style is built upon Benjamin Graham and David Dodd’s 1934 book Security Analysis: "All my stock picking is 100% based on the concept of a margin of safety." **Strategy:** * Michael Burry's strategy as he states is not very complex. He tries to buy shares of unpopular companies when the look like roadkill, and sell them when they've been cleaned up a bit. Lets take a look at his Q2 2020 Positions, top buys, and top sells. There are a few that are not big surprises but check it out. |Stock|Shares|Market Value|% of Portfolio| |:-|:-|:-|:-| |GOOG / Alphabet Inc Class C (CALL)|80,000 | $113,089,000 | 35.87 | | FB / Facebook Inc (CALL) | 93,200 | $21,163,000 | 6.71 | | BKNG / Booking Holdings Inc (CALL) | 11,600 | $18,471,000 | 5.86 | | GS / Goldman Sachs Group (CALL) | 73,600 | $14,545,000 | 4.61 | | GME / Gamestop Corp | 2,750,000 | $11,935,000 | 3.79 | | WDC / Western Digital Inc (CALL) | 270,000 | $11,921,000 | 3.78 | | BBBY / Bed Bath & Beyond Inc | 1,000,000 | $10,600,000 | 3.36 | | DISCA / Discovery Inc | 500,000 | $10,550,000 | 3.35 | | TCOM / Trip.com Inc | 325,000 | $8,424,000 | 2.67 | | QRVO / Qorvo Inc | 75,000 | $8,290,000 | 2.63 | * **Top Buys** * GOOG / Alphabet Inc Class C (CALL) * FB / Facebook Inc (CALL) * BKNG / Booking Holdings Inc (CALL) * GS / Goldman Sachs Group (CALL) * WDC / Western Digital Inc (CALL) * **Top Sells** * Jack / Jack In The Box Inc * FB / Facebook Inc * BA / Boeing Inc * MAXR / Maxar Technologies Ltd * QRVO / Qorvo Inc Mr. Burry's weapon of choice is his **research** and that it's critical for him to understand a company's value before laying down a dime and that 100% of his stock picking is based on the concept of margin of safety introduced in the book "Security Analysis" which I am reading through right now and dang is it huge lol. He also states that he has his own version of their technique, but that the net is that he wants to protect his downside to prevent permanent loss of capital. Specific, known catalyst are not necessary. Sheer, outrageous value is enough. He cares little about the level of the general market and puts few restrictions on potential investments. They can be large-cap stocks, small cap, mid cap, micro cap, tech or non-tech and finds out-of-favor industries a particularly fertile ground for best-of-breed shares at **steep discounts**. **How does he determine the discount?** * Focuses on free cash flow and enterprise value (Market capitalization less cash plus debt) * Screen companies by look at enterprise value/EBITDA ratio. Accepted ratio varies with the industry and it position in the economic cycle * If stock passes loose screen, looks harder to determine specific price and value of a company * Takes into account off-balance sheet items and true free cash flow * Ignores price-earning ratios * Return of equity is deceptive and dangerous * Prefers minimal debt * Adjust book value to a realistic number * Invest in rare birds - asset plays, and to a lesser extent, arbitrage opportunities and companies selling at less than two-thirds of net value * Will mix in with companies favored by Warren Buffet **IF** they become available at good prices. Deserving of longer holding periods. **How many Stocks does he hold?** * Likes to hold 12 to 18 stocks diversified among various depressed industries, and tends to be fully invested. Provides enough room for his best ideas and helps with volatility. * Feels volatility is no relation to risk. **Tax Implications** * Not concerned much about tax. Know his portfolio turnover will generally exceed 50% annually, and at 20% the long-term tax benefits of low-turnover pretty much disappear. **When he buys** * He mixes barebones technical analysis into his strategy. * Prefers to buy within 10% to 15% of a 52-week low that has shown itself to offer some price support. If a stock other than a rare bird breaks a new low, in most cases he cuts the loss. * Balances the fact that he is turning his back on potentially greater value with the fact that since implementing this rule he hasn't had a single misfortunate blow up his entire portfolio ​ >In the end, investing is neither a science nor an art - it is a scientific art. ​ **Works Cited** [https://acquirersmultiple.com/2020/08/michael-burrys-top-10-holdings-q2-2020-plus-top-buys-sells/](https://acquirersmultiple.com/2020/08/michael-burrys-top-10-holdings-q2-2020-plus-top-buys-sells/) [https://acquirersmultiple.com/2017/11/michael-burry-search-for-unpopular-companies-that-look-like-road-kill/](https://acquirersmultiple.com/2017/11/michael-burry-search-for-unpopular-companies-that-look-like-road-kill/) [https://en.wikipedia.org/wiki/Michael\_Burry](https://en.wikipedia.org/wiki/Michael_Burry)

ValueInvesting

Yeah Dr. Burry put gme on my radar back in 2019. I knew it was a speculative position, however as Peter Lynch said “its difficult for the company to go bankrupt if it has no debt” so I opened a small position Edit: gme had a debt but I thought it was manageable

q20fr4

The Ford Model T sold for $260 in 1925, which is $4,056 in 2021 dollars. Today, the cheapest car on the market is the Chevrolet Spark LS at $15,695. Even if today's cars are way better, why haven't efficiency increases and automation, brought car prices more in line with the Model T's?

**Also worth noting:** Model T parts were engineered well, and many model Ts that have been maintained well are still operable with the original parts. How many modern cars will last as long?

AskEconomics

In my opinion, two aspects of your question are wrong. First, Model T's are not nearly as long-lasting as modern cars (given the needs of modern drivers). Model T's were engineered well for their time, had top speeds around 40 MPH, and could last as many as 20,000 miles before the engine needed a rebuild (not to mention its wooden wheels!). That said, a Model T does not have a fuel pump, water pump, oil pump, fuel filter, oil filter, distributor or single ignition coil among other parts that commonly fail in modern cars. Second, modern motorized vehicles with similar capabilities to the Model T can be purchased for less than $4,000. Examples include buggies/go-carts, UTV/ATVs, motor scooters/motorcycles, and maybe kit cars. ​ Sources: Cole, GeraldS, Leslie Bartosiewicz, and Floyd E. Alberts. "Automotive Materials and Their Characterization: 1916 to 1991." In Metallography: Past, Present, and Future (75th Anniversary Volume). ASTM International, 1993. Forums of the Model T Ford Club of America ([mtfca.com](https://mtfca.com)), particularly: [http://www.mtfca.com/discus/messages/506218/584565.html?1446865692](http://www.mtfca.com/discus/messages/506218/584565.html?1446865692) and [http://www.mtfca.com/discus/messages/118802/136322.html?1271643399](http://www.mtfca.com/discus/messages/118802/136322.html?1271643399)

w899um

Stop listening to Dave Ramsey likes he’s a guru. Our generation needs better advice than that of this man and Jim Cramer

I see more and more people that “swear” by this guy and his advice. Did you know he filed for bankruptcy? If everyone could pay for everything with cash, the whole world would be millionaires. Rather than listen to this clown’s basic advice you should have gotten in elementary school, go read “The Richest Man in Babylon” https://www.reddit.com/r/personalfinance/comments/19wsz5/how_do_you_guys_feel_about_dave_ramsey/?utm_source=share&utm_medium=ios_app&utm_name=iossmf

Money

Most of these people are fake gurus that started giving typical financial advice with no background in the field. Graham Stephan, Dave Ramsey, Andrei Jikh etc. They are all just normal people that started to talk about money on video and got an audience. They figured out they could get rich by teaching others how to get rich. Grahams Stephan is now worth something like $30 million after only a few years of youtubing. His background was a very short career as a real estate agent. There is nothing special about these guys, they simply repackage existing financial advice into a new format and get super rich from it.

m1nzwj

Why not just Vanguard it all?

All the DD I do (DD I do, haha) always leads me back to Vanguard - lowest cost, higher dividends, and have proven the test of time. Why even bother having 10 etfs in one fund? Seems time consuming -

ETFs

It is. And typically isn’t worth it. You’re generally better off just throwing money into an global fund and spending your time trying to either be good at your work so you can improve your income or spending time with your loved ones because time is limited. There’s a whole investment philosophy about this. It’s called /r/bogleheads and I highly recommend it.

tr5t1g

Who the fuck cares about the Twitter? WHY WERE WE HALTED? WHY WERE PEOPLE GETTING ALERTS OVER $500? WHAT HAPPENED THIS MORNING?

WHY WERE WE HALTED? WHY WERE PEOPLE GETTING ALERTS OVER $500? WHAT HAPPENED THIS MORNING?WHY WERE WE HALTED? WHY WERE PEOPLE GETTING ALERTS OVER $500? WHAT HAPPENED THIS MORNING?WHY WERE WE HALTED? WHY WERE PEOPLE GETTING ALERTS OVER $500? WHAT HAPPENED THIS MORNING?WHY WERE WE HALTED? WHY WERE PEOPLE GETTING ALERTS OVER $500? WHAT HAPPENED THIS MORNING?

Superstonk

There is a lot more going on than we are being told 1) Why no halt when Movie Stock was up 14% in 5 minutes. However, halt as soon as GMe and Movie Stock were down 7% (roughly) 2) The Halt was used to do something. We have a) sales of 300 shares at $275 for GME ---> https://old.reddit.com/r/Superstonk/comments/tr5xu5/before_halt_300_shares_sold_for_275_etard_pro/ b) alerts of $500+ price for GME c) both GME and Movie STock with IDENTICAL chart patterns and IDENTICAL halts d) HUGE HUGE gap between bid and ask for GME 0.02 bid and 600,000 ask same for movie stock e) Halts and patterns being identical between two stocks, both about to short squeeze is INSANE. For it to happen on one stock would be ABSURD. for it to happen on two stocks, at exact same time is just crazy it's one thing to say - they are in same basket so price has same pattern. It is BEYOND ABSURD that both were halted at EXACT SAME TIME ***************************************************************** MOASS was imminent. They did something super illegal such as Plunge Protection Team and/or Fed stepping in when they realized it was becoming too obvious, then they did Halt to 'adjust' ***************************************************************************** Today is, in a long stretch of illegal things, BY FAR THE MOST OBVIOUS AND ILLEGAL THING done. Perhaps 2nd only to removing buy button

pmj9yk

I found the entire naked shorting game plan playbook posted on a forum in 2004. They called it "Cellar Boxing". + Yahoo / Morningstar censoring GME data depending on your IP. It's not a glitch.

Hello beautiful apes! I have 2 points to show you. First is that Yahoo is showing completely different values depending on your IP. Try using a VPN with a different country and you'll see. Second is that I stumbled upon the ***ENTIRE FUCKING GAME PLAN*** of the naked shorting scheme. I guess an insider spilled the beans anonymously on some forum in 2004. What is going on with GME over the last 9 months is a game plan called "Cellar Boxing". **The link is at the end of this post. If you don't give a FUCK about the Yahoo data, then just skip to the end and read that. Seriously EVERYONE NEEDS TO READ THAT POST. It is like the holy grail. I got emotional reading it as it confirmed all of our combined DD about naked shorting, rule exemptions, dividends, zombies, even talks about shills.....EVERYTHING... in one fell swoop.** I wrote all this Yahoo stuff before I found that link and I just had to stop and stare at the wall for a bit.. This was going to be a much longer post, but I decided to just stick to the facts without speculative walls of text so you're not overwhelmed. Because trust me, reading that post from 2004 is going to blow your fucking mind. It blew mine and everyone I showed it to. Okay so first point: Here's the Yahoo data from my IP in the USA ​ ​ https://preview.redd.it/0v9ody3ujxm71.png?width=546&format=png&auto=webp&s=99ce6f08beff4e7d7ad75923efb9e0dbc1f29c92 ​ Here's the data from a European VPN ​ https://preview.redd.it/z4qg2kkwjxm71.png?width=831&format=png&auto=webp&s=93ca4f7615b0ced4f26f2eae9ce1d20f6c4eb209 First thing that stands out to me is Enterprise Value. According to [https://www.investopedia.com/ask/answers/111414/whats-difference-between-enterprise-value-and-market-capitalization.asp](https://www.investopedia.com/ask/answers/111414/whats-difference-between-enterprise-value-and-market-capitalization.asp) Market capitalization is the sum total of all the outstanding shares of a company. **Enterprise value takes into account** the debt that the company has taken on. Enterprise value, therefore, can identify strengths or weaknesses that market cap cannot. And [https://www.arborinvestmentplanner.com/enterprise-value-ev-calculating-enterprise-value-ratios/](https://www.arborinvestmentplanner.com/enterprise-value-ev-calculating-enterprise-value-ratios/) **A company with more debt than cash will have** an enterprise value greater than its market capitalization. Companies with identical market capitalizations can have radically different enterprise values. \----------------------------------------------- I had thought perhaps they're doing some kind of fuckery with convertible preferred shares, or convertible bonds. Which they very well may be, but I can't prove that right this second. So I leave this idea in speculation land. But let's hand it off to u/semerien for the actual reason for this discrepancy: **Total cash per share is 5.64** **Cash at 1.72 billion** **Which means Yahoo thinks there is just over 300 million shares** **Enterprise value is using that share count at current price** **57 billion for ev using 304 million shares at 190 price, cash at 1.7B and debt at 0.7 billion** ***I may have rounded every single number cuz I'm lazy but what's a few 100 million in rounding errors*** \---------------------------------------------------Okay ok gimme my mic back lmao So.. No speculation. Mathematical Fact: Yahoo's calculating on 300M\~ shares for outside USA when factoring Enterprise Value. Where does Yahoo get this data? [https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en\_US](https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en_US) * Financial statements, valuation ratios, market cap and shares outstanding data provided by Morningstar. Okay so Yahoo gets this specific data from Morningstar. Who does Morningstar get it's data from? [https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178\_28k.htm](https://www.sec.gov/Archives/edgar/data/1289419/000110465906031591/a06-11178_28k.htm) \--------------------------------------------------- *We collect most of our data from original source documents that are publicly available, such as regulatory filings and fund company documents. This is the main source of operations data for securities in our open-end, closed-end, exchange-traded fund, and variable annuity databases, as well as for financial statement data in our equity database. This information is available at no cost.* ***For performance-related information (including total returns, net asset values, dividends, and capital gains), we receive daily electronic updates from individual fund companies, transfer agents, and custodians.*** *We don’t need to pay any fees to obtain this performance data. In some markets we supplement this information with a standard market feed such as Nasdaq for daily net asset values, which we use for quality assurance and filling in any gaps in fund-specific performance data. We also receive most of the details on underlying portfolio holdings for mutual funds, closed-end funds, exchange-traded funds, and variable annuities electronically from fund companies, custodians, and transfer agents.* \--------------------------------------------------- So that answers the question as to why the float changed from **126M to 248M** in the same day. This is not a glitch. One way or the other, the data got pushed "***from individual fund companies, transfer agents, and custodians"*** *to Morningstar, to Yahoo.* Intraday. Why Morningstar shows different than Yahoo? I won't speculate. But it can't be a glitch. Just based on the source and how it's updated. Speculate on why or how they're censoring it, not on it being a glitch. These different values I believe are important because they paint a picture of intent to hide the true data. It's bits of the real data slipping through the cracks. Let's look at the numbers: \--------------------------------------------------- **Enterprise Value in USA = 14.22B** **Forward P/E in USA = 36.67** **--** **Enterprise Value in other countries = 57.07B** **Forward P/E in other countries = $6,347.00** \--------------------------------------------------- EV is calculated on 300 ish million shares. People say "Yahoo's data is always screwy". I don't think that's true. I think it's the opposite. The market is always being FUCKED with. As you'll see in the post I'm going to link to. And Yahoo just has a hard time cleaning it up and censoring it. Because of SO MUCH FUCKERY. And sometimes shit slips through unintentionally. Forward P/E.. What the fuck is forward P/E some of you might be wondering? *(Side note: Yahoo gets this data from a data analytics company called Refinitiv.)* \--------------------------------------------------- [*https://www.investopedia.com/terms/f/forwardpe.asp*](https://www.investopedia.com/terms/f/forwardpe.asp) *Forward price-to-earnings (forward P/E) is a version of the ratio of* *price-to-earnings* *(P/E) that uses forecasted earnings for the P/E calculation.* [*https://www.investopedia.com/ask/answers/050515/what-does-forward-pe-indicate-about-company.asp*](https://www.investopedia.com/ask/answers/050515/what-does-forward-pe-indicate-about-company.asp) *A company with a higher forward P/E ratio than the industry or market average indicates* ***an expectation the company is likely to experience a significant amount of growth***\*. ... Ultimately, the P/E ratio is a metric that allows investors to determine how valuable a stock is, more so than the market price alone.\* \--------------------------------------------------- Here's an example for Tesla: [https://finbox.com/NASDAQGS:TSLA/explorer/pe\_ltm](https://finbox.com/NASDAQGS:TSLA/explorer/pe_ltm) *"Tesla's p/e ratio for fiscal years ending December 2016 to 2020 averaged 211.2x. Tesla's operated at median p/e ratio of -37.2x from fiscal years ending December 2016 to 2020. Looking back at the last five years, Tesla's p/e ratio peaked in December 2020 at 1,255.0x."* So we all know what happened with Tesla. The P/E ratio seems to be pretty good at calculating the growth. The higher the number, the bigger the growth. A number in the thousands is basically **"Oh shit we got a winner".** Thing is, you get the number by calculating the share price divided by the estimated future earnings per share. *"For example, assume that a company has a current share price of $50 and this year’s earnings per share are $5. Analysts estimate that the company's earnings will grow by 10% over the next fiscal year. The company has a current P/E ratio of $50 / 5 = 10x. "* Well Gamestop's at 190, let's say for what ever crazy fucking reason we're expecting future earnings per share to be at 5 dollars per share. We're currently expecting around 1 dollar in January but for sake of argument let's pretend it's $5. $190 / 5 = 38. Okay interesting so far that makes sense for the USA calculation roughly. But HOW THE FUCK DO WE GET **$6,347?** It's impossible. Unless.. wait a sec.. $31,735 / 5 = **$6,347** Could it be the true value of GME is actually $31,735 right now? I mean even if we use the 1 dollar per share earning thing from January, that's still assuming CURRENT VALUE = **$6,347 per share....** It is my belief that based on these two numbers, the fact that they **change** depending on **your IP** \+ the float being at **248M**, as well as **THE MIND BLOWING INFORMATION** contained within the post I'm about to link to in a second... That the Yahoo thing isn't a glitch. It's a hole in the fuckery veil they're trying to place upon our eyes. It's to hide the fact that the float is shorted at LEAST 3x verifiably. *(I believe it to be 50x by now)* And also to stop us from deducing the actual share price in what ever dark pool of death the shorts are hiding in using these numbers. They're hiding the company's fucking growth from us. In comparison for shits and giggles, I checked movie stock in the VPN and Yahoo's changing that data too. But not to hide the shorts or hide growth. Instead to hide a decline. Movie Stock's Forward P/E is N/A for USA but for other countries it's **-68.71** \--------------------------------------------------- [https://www.investopedia.com/ask/answers/05/negativeeps.asp](https://www.investopedia.com/ask/answers/05/negativeeps.asp) *"A negative P/E ratio means* ***the company has negative earnings or is losing money***\*. ... Investors buying stock in a company with a negative P/E should be aware that they are buying shares of an unprofitable company and be mindful of the associated risks."\* \--------------------------------------------------- If I'm right about this whole thing, then this by itself is proof that GME is the MOASS and whoever's doing it, either Yahoo, or Morningstar, whoever doesn't want us to know that movie stock is obviously not the MOASS. Now........ Whether you agree with me or not, you MUST read this post: Archived in case it gets deleted [https://archive.is/KSS6m](https://archive.is/KSS6m) ​ You know what, just in case you're too lazy to click it, I'll copy and paste the whole thing. You can click the link to verify. It's that important to read. \--------------------------------------------------- Sunday, 03/07/04 07:56:25 PM "Cellar Boxing" There’s a form of the securities fraud known as naked short selling that is becoming very popular and lucrative to the market makers that practice it. It is known as “CELLAR BOXING” and it has to do with the fact that the NASD and the SEC had to arbitrarily set a minimum level at which a stock can trade. This level was set at $.0001 or one-one hundredth of a penny. This level is appropriately referred to as “the CELLAR”. This $.0001 level can be used as a "backstop" for all kinds of market maker and naked short selling manipulations. “CELLAR BOXING” has been one of the security frauds du jour since 1999 when the market went to a “decimalization” basis. In the pre-decimalization days the minimum market spread for most stocks was set at 1/8th of a dollar and the market makers were guaranteed a healthy “spread”. Since decimalization came into effect, those one-eighth of a dollar spreads now are often only a penny as you can see in Microsoft’s quote throughout the day. Where did the unscrupulous MMs go to make up for all of this lost income? They headed "south" to the OTCBB and Pink Sheets where the protective effects from naked short selling like Rule 10-a, and NASD Rules 3350, 3360, and 3370 are nonexistent. The unique aspect of needing an arbitrary “CELLAR” level is that the lowest possible incremental gain above this CELLAR level represents a 100% spread available to MMs making a market in these securities. When compared to the typical spread in Microsoft of perhaps four-tenths of 1%, this is pretty tempting territory. In fact, when the market is no bid to $.0001 offer there is theoretically an infinite spread. In order to participate in “CELLAR BOXING”, the MMs first need to pummel the **price** per share down to these levels. The lower they can force the share price, the larger are the percentage spreads to feed off of. This is easily done via garden variety naked short selling. In fact if the MM is large enough and has enough visibility of buy and sell orders as well as order flow, he can simultaneously be acting as the conduit for the sale of nonexistent shares through Canadian co-conspiring broker/dealers and their associates with his right hand at the same time that his left hand is naked short selling into every buy order that appears through its own proprietary accounts. The key here is to be a dominant enough of a MM to have visibility of these buy orders. This is referred to as "broker/dealer internalization" or naked short selling via "desking" which refers to the market makers trading desk. While the right hand is busy flooding the victim company's market with "counterfeit" shares that can be sold at any instant in time the left hand is nullifying any upward pressure in share price by neutralizing the demand for the securities. The net effect becomes no demonstrable demand for shares and a huge oversupply of shares which induces a downward spiral in share price. In fact, until the "beefed up" version of Rule 3370 (Affirmative determination in writing of "borrowability" by settlement date) becomes effective, U.S. MMs have been "legally" processing naked short sale orders out of Canada and other offshore locations even though they and the clearing firms involved knew by history that these shares were in no way going to be delivered. The question that then begs to be asked is how "the system" can allow these obviously bogus sell orders to clear and settle. To find the answer to this one need look no further than to Addendum "C" to the Rules and Regulations of the NSCC subdivision of the DTCC. This gaping loophole allows the DTCC, which is basically the 11,000 b/ds and banks that we refer to as "Wall Street”, to borrow shares from those investors naive enough to hold these shares in "street name" at their brokerage firm. This amounts to about 95% of us. Theoretically, this “borrow” was designed to allow trades to clear and settle that involved LEGITIMATE 1 OR 2 DAY delays in delivery. This "borrow" is done unbeknownst to the investor that purchased the shares in question and amounts to probably the largest "conflict of interest" known to mankind. The question becomes would these investors knowingly loan, without compensation, their shares to those whose intent is to bankrupt their investment if they knew that the loan process was the key mechanism needed for the naked short sellers to effect their goal? Another question that arises is should the investor's b/d who just earned a commission and therefore owes its client a fiduciary duty of care, be acting as the intermediary in this loan process keeping in mind that this b/d is being paid the cash value of the shares being loaned as a means of collateralizing the loan, all unbeknownst to his client the purchaser. An interesting phenomenon occurs at these "CELLAR" levels. Since NASD Rule 3370 allows MMs to legally naked short sell into markets characterized by a plethora of buy orders at a time when few sell orders are in existence, a MM can theoretically "legally" sit at the $.0001 level and sell nonexistent shares all day long because at no bid and $.0001 ask there is obviously a huge disparity between buy orders and sell orders. What tends to happen is that every time the share price tries to get off of the CELLAR floor and onto the first step of the stairway at $.0001 there is somebody there to step on the hands of the victim corporation's market. Once a given micro cap corporation is “boxed in the CELLAR” it doesn’t have a whole lot of options to climb its way out of the CELLAR. One obvious option would be for it to reverse split its way out of the CELLAR but history has shown that these are counter-productive as the market capitalization typically gets hammered and the post split share price level starts heading back to its original pre-split level. Another option would be to organize a sustained buying effort and muscle your way out of the CELLAR but typically there will, as if by magic, be a naked short sell order there to meet each and every buy order. Sometimes the shareholder base can muster up enough buying pressure to put the market at $.0001 bid and $.0002 offer for a limited amount of time. Later the market makers will typically pound the $.0001 bids with a blitzkrieg of selling to wipe out all of the bids and the market goes back to no bid and $.0001 offer. When the weak-kneed shareholders see this a few times they usually make up their mind to sell their shares the next time that a $.0001 bid appears and to get the heck out of Dodge. This phenomenon is referred to as “shaking the tree” for weak-kneed investors and it is very effective. At times the market will go to $.0001 bid and $.0003 offer. This sets up a juicy 200% spread for the MMs and tends to dissuade any buyers from reaching up to the "lofty" level of $.0003. If a $.0002 bid should appear from a MM not "playing ball" with the unscrupulous MMs, it will be hit so quickly that Level 2 will never reveal the existence of the bid. The $.0001 bid at $.0003 offer market sets up a "stalemate" wherein market makers can leisurely enjoy the huge spreads while the victim company slowly dilutes itself to death by paying the monthly bills with "real" shares sold at incredibly low levels. Since all of these development-stage corporations have to pay their monthly bills, time becomes on the side of the naked short sellers. At times it almost seems that the unscrupulous market makers are not actively trying to kill the victim corporation but instead want to milk the situation for as long of a period of time as possible and let the corporation die a slow death by dilution. The reality is that it is extremely easy to strip away 99% of a victim company’s share price or market cap and to keep the victim corporation “boxed“ in the CELLAR, but it really is difficult to kill a corporation especially after management and the shareholder base have figured out the game that is being played at their expense. As the weeks and months go by the market makers make a fortune with these huge percentage spreads but the net aggregate naked short positions become astronomical from all of this activity. This leads to some apprehension amongst the co-conspiring MMs. The predicament they find themselves in is that they can’t even stop naked short selling into every buy order that appears because if they do the share price will gap and this will put tremendous pressures on net capital reserves for the MMs and margin maintenance requirements for the co-conspiring hedge funds and others operating out of the more than 13,000 naked short selling margin accounts set up in Canada. And of course covering the naked short position is out of the question since they can’t even stop the day-to-day naked short selling in the first place and you can't be covering at the same time you continue to naked short sell. What typically happens in these situations is that the victim company has to massively dilute its share structure from the constant paying of the monthly burn rate with money received from the selling of “real” shares at artificially low levels. Then the goal of the naked short sellers is to point out to the investors, usually via paid “Internet bashers”, that with the, let’s say, 50 billion shares currently issued and outstanding, that this lousy company is not worth the $5 million market cap it is trading at, especially if it is just a shell company whose primary business plan was wiped out by the naked short sellers’ tortuous interference earlier on. The truth of the matter is that the single biggest asset of these victim companies often becomes the astronomically large aggregate naked short position that has accumulated throughout the initial “bear raid” and also during the “CELLAR BOXING” phase. The goal of the victim company now becomes to avoid the 3 main goals of the naked short sellers, namely: bankruptcy, a reverse split, or the forced signing of a death spiral convertible debenture out of desperation. As long as the victim company can continue to pay the monthly burn rate, then the game plan becomes to make some of the strategic moves that hundreds of victim companies have been forced into doing which includes name changes, CUSIP # changes, cancel/reissue procedures, dividend distributions, amending of by-laws and Articles of Corporation, etc. Nevada domiciled companies usually cancel all of their shares in the system, both real and fake, and force shareholders and their b/ds to PROVE the ownership of the old “real” shares before they get a new “real” share. Many also file their civil suits at this time also. This indirect forcing of hundreds of U.S. micro cap corporations to go through all of these extraneous hoops and hurdles as a means to survive, whether it be due to regulatory apathy or lack of resources, is probably one of the biggest black eyes the U.S. financial systems have ever sustained. In a perfect world it would be the regulators that periodically audit the “C” and “D” sub-accounts at the DTCC, the proprietary accounts of the MMs, clearing firms, and Canadian b/ds, and force the buy-in of counterfeit shares, many of which are hiding behind altered CUSIP #s, that are detected above the Rule 11830 guidelines for allowable “failed deliveries” of one half of 1% of the shares issued. U.S. micro cap corporations should not have to periodically “purge” their share structure of counterfeit electronic book entries but if the regulators will not do it then management has a fiduciary duty to do it. A lot of management teams become overwhelmed with grief and guilt in regards to the huge increase in the number of shares issued and outstanding that have accumulated during their “watch”. The truth however is that as long as management made the proper corporate governance moves throughout this ordeal then a huge number of resultant shares issued and outstanding is unavoidable and often indicative of an astronomically high naked short position and is nothing to be ashamed of. These massive naked short positions need to be looked upon as huge assets that need to be developed. Hopefully the regulators will come to grips with the reality of naked short selling and tactics like "CELLAR BOXING" and quickly address this fraud that has decimated thousands of U.S. micro cap corporations and the tens of millions of U.S. investors therein. \--------------------------------------------------- HO....LEEEEEE......FUQ Bruh.. This was written in 2004. I really don't have anything more to say. (Last minute about to finish this post and u/Hopeless_Dreams713 showed me a patent found by u/Toxsic99 [https://patents.google.com/patent/US7904377B2/en](https://patents.google.com/patent/US7904377B2/en) which I THINK is a fucking patent for ladder attacks but I have no more brain power to spend after reading/writing this. So I include it as a bonus for any wrinkles with extra brain power to decipher.) ​ **TL;DR Yahoo changes data depending on the IP. Seems like only USA gets censored data. Based on the forward P/E of the uncensored data, it's possible GME is anywhere between 6k to 31k per share on some dark side of the fence. And "Cellar Boxing" is the game plan shorts use to destroy America.** Edit 2: https://preview.redd.it/yrs92ane7zm71.png?width=1124&format=png&auto=webp&s=fc09b8bdce8e0539f483100a1f07412e0a0dc96a Edit 3: Smart ape found reply in the post basically confirming that us requesting the share certificates is fucking them up the bum bum [https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hciatum/](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hciatum/) ​ Edit 4: ​ https://preview.redd.it/doc7rcishzm71.png?width=1188&format=png&auto=webp&s=32154766400b459f78986ec66cf8660e8c9971cc [https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hcifuez?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hcifuez?utm_source=share&utm_medium=web2x&context=3) ​ Edit 5: ​ [Can't just be a Yahoo glitch. Impossible.](https://preview.redd.it/d64gr6lzizm71.png?width=1068&format=png&auto=webp&s=80a85ab0b5f590a1f81d4a577168adb0e1dc0920) ​ [https://www.nasdaq.com/market-activity/stocks/gme](https://www.nasdaq.com/market-activity/stocks/gme) Edit 6: Bruh, we literally got onto the top 15 of Popular of all of Reddit with this. We're breaking the simulation. LFGOOOOOO. And also if you're new here from the rest of the Reddit and don't know about Superstonk, we love you and this post is undeniable that the stock market is rigged and GME about to blow. And I'm so happy that this information has a chance to be seen by more people. These hedgefunds have been destroying America for decades. Stunting our growth as a species. What kind of medical advances could we have made by now? Science? Technology? All shorted to hell because of some greedy hedge fund pricks. Please share this with everyone you know so that more people can be aware of their tactics. It is important that they know they lost. And when we are in the financial position of power, we must be better human beings. And invest into technology and medicine and help the world become what it could have been. This is our one chance at changing the world for the better. ​ Edit 7: ​ https://preview.redd.it/c91hnnptg0n71.png?width=1166&format=png&auto=webp&s=93967bedc4274d5555fe12028a4bbdd267700b7b [https://www.youtube.com/watch?v=IL1QznrSwWw](https://www.youtube.com/watch?v=IL1QznrSwWw) ​ Edit 8: WE MADE TOP 5 of r/all holy shit. \*insert another emotional speech\* Also: ​ https://preview.redd.it/37w6299bq0n71.png?width=1194&format=png&auto=webp&s=eca37cf73123bd9ee10656eebb60ba625d1eda4e [https://www.dtcc.com/about/leadership/board/david-goone](https://www.dtcc.com/about/leadership/board/david-goone) ​ Edit 9: Letter to the SEC from 2008 mentioning all this. [https://www.sec.gov/comments/s7-08-08/s70808-144.htm](https://www.sec.gov/comments/s7-08-08/s70808-144.htm) ​ Edit 10: SUPER SMOOTH BRAIN EXPLANATION for those who have NO idea what is going on: **When you buy a stock, you're betting that it's going up.** **But if you feel it's going to go down, then there's a bet for that.** **It's called a short bet. It's pretty simple.** **Imagine your friend has a watch priced at $100. And you think tomorrow it's going to be worth $50. You say to your friend "Hey lemme borrow dat real quick" and you go and pawn it at a pawn shop for $100.** **What happened? So far you have a contract to buy back the watch to give back to your friend, but you also have $100.** **Tomorrow comes, and the price is $50. You go and buy the watch back for $50. You keep the $50 left over. Give the friend back is watch + like 5% interest and everyone's happy.** **But what if that watch increased in price instead of decreased?** **You go to buy the watch back, and it's $200?? Uh oh.. You now have a contract to buy the watch, and you'll have to pay $100 out of pocket to buy it back. So you lost money.** **You wait and figure it'll go back down. To your surprise, the watch price just keeps increasing. $300, $500, $1,000 to $10,000 to $100,000 to $10,000,000** **You owe your friend that watch at any price. No matter what. But you can keep waiting by simply paying him a fee every day to borrow. It's called a borrow fee, oddly enough.** **Unfortunately you only have limited assets. So sooner or later you won't have enough money to pay the borrow fee. And then you're forced to go bankrupt and sell all your assets and your house, and your car, and your boat, and your planes to pay for the watch.** **So that's what's going on with GME. But instead of 1 watch, it's billions and billions of shares. And they're making fake copies of shares that they don't even have.** **Sooner or later, they must buy back the shares. And at any cost. And they will be forced to sell everything they own to do it.** **Up until now we've only reverse engineered the idea and processes behind "HOW" they're doing it. This post from 2004 detailed every step of the way. And it is very emotional to us because we were right. And they tried gaslighting us for 9 months that we were wrong.** ​ Edit 11: This question gets popped up alot. So if you're wondering about how it affects movie stock, look at this comment chain: [https://www.reddit.com/r/Superstonk/comments/pmj9yk/i\_found\_the\_entire\_naked\_shorting\_game\_plan/hcjjw5o?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pmj9yk/i_found_the_entire_naked_shorting_game_plan/hcjjw5o?utm_source=share&utm_medium=web2x&context=3) ​ Edit 12: Some people are saying Cellar Boxing doesn't apply to GME because it's not at sub penny levels. BUT YOU GUYS ARE MISSING THE FACT THAT GME WAS AT 3 DOLLARS A SHARE. In order to CELLAR BOX the stock, they would have to first NAKED SHORT IT TO HELL. They short it from 3 dollars hoping for it to go to below a dollar and then get it into that cellar range. BUT THEY FAILED. That's what those people saying it's not relevant to GME are missing. It IS relevant to GME. Because CELLAR BOXING was the GAME PLAN. Imagine you have a playbook with strategies on how to play a game. THATS CELLAR BOXING. Naked shorting is a PART OF the CELLAR BOXING PLAYBOOK. The funny thing is ppl who are saying to "stop talking about Cellar boxing" are also talking about movie stock. So ..... ​ Edit 13: Bruh.. SEC deleted the letter from Edit 9 of this post. Here's the archived of the file they deleted after this post blew up: [https://web.archive.org/web/20210912094334/https://www.sec.gov/comments/s7-08-08/s70808-144.htm](https://web.archive.org/web/20210912094334/https://www.sec.gov/comments/s7-08-08/s70808-144.htm) ​ Edit 14: Reached 40k character limit. Number 5 explanation: [https://www.reddit.com/r/Superstonk/comments/pn0b30/one\_clarification\_to\_uthabats\_post\_634700\_forward/hcnkbh4?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/Superstonk/comments/pn0b30/one_clarification_to_uthabats_post_634700_forward/hcnkbh4?utm_source=share&utm_medium=web2x&context=3) ​ Edit 15: https://preview.redd.it/kiipketnh7n71.png?width=1467&format=png&auto=webp&s=babb84b5efaf58e9d1dc6a02e7d1e40b11014c2a ​ Edit 1: Promised link at end of the post, even though the whole post is contained within this msg lol [https://archive.is/KSS6m](https://archive.is/KSS6m)

Superstonk

did you see the reply? "What a great post! As I read through that, I started to have some thoughts about how the MM's vulnerability might be used to burn them out, but I'm not sure if I've really thought it through enough yet. I guess it's more of a fantasy scenario, but it goes something like this: 1. Company has 100 million shares outstanding, and the "cellar box" tactic begins with no bid/offer .0001. Now, pretending that I'm a stuckholder who happens to have substancial financial resources (I don't but some on these boards might), here's what I might do. 2. First, I figure out that as long as the outstanding shares is equal to 100 million, I can theoretically buy this entire company for $10,000. But not if there is dilution. Gotta head that off at the pass. 3. I visit the company and talk to the board/ceo or whoever I need to in private and say "Look, these MM's are KILLING your company, and they're killing me on other positions I own with these tactics. Let's work together. Don't dilute your share base. Let me buy you out instead under an agreement where I will turn control back over to you at a certain specified date, or if certain conditions are met." 4. They say "But we have to dilute!!! We can't pay the bills this month if we don't." And I say, "Bills Schmills!!! I will personally loan the company the money it needs each month to meet its payroll and bills, and I'll do it at BELOW PRIME!" 5. So in my fantasy world, they agree to this. Then I start buying up shares. $10,000 worth. $20,000. $40,000. $70,000. $100,000!!!!! 6. Wait a second, how can I have so many shares? I've got like a BILLION shares here in my account, yet the company only has 100 million outstanding and available for trading. Well I know perfectly well how I got them; the MM's sold them to me through naked short selling. 7. But the company never diluted, because here I am loaning them the cash to pay their bills. 8. Now I pick up my phone, and call my broker. I ask how many shares I have, and I'm told 1 Billion. With a big smile I say "Thank you. I'd like you to send the certificates to me please...." Now I'm not sure if this makes sense yet because it just kind of occured to me as I read your post. Thoughts anyone? Cap"

ngzzhu

A lot of people on here don't seem to understand the purpose of dividend investing

They'll come on here, talk about some dividend stocks, and then say "but I can get better total return with X stock" (X stock pays almost no dividend, or doesn't pay at all. It's a growth stock.) Dividend investing is a DEFENSIVE strategy. If you think the current bull market is going to last forever. If you foresee uninterrupted growth into the infinite future, there is absolutely zero reason to focus on dividend investing. You'll get better returns just buying high multiple growth stocks. They will completely own the dividend payers. Dividend investing is for people looking at the market with a skeptical eye, as well as for those closer to retirement, who aren't willing to bet all their money on a stock that might tank and stay down for years or decades. Dividend investing is for people who see a bear or flat market ahead after a historic bull run. If you're in your 20s or early 30s with decades of investing ahead of you. You really ought not to worry about dividends. Just go 100% growth equities and DCA for the next 20 years. You'll do great. Just don't buy crypto, unless you're into momentum trading and are good at it. LOL Maybe next time I'll talk about the shortsightedness of "Dividend Growth" investing versus just buying stocks that pay solid and safe yields.

dividends

I think the biggest point that everyone fucking misses is that you don’t need to go all in on one strategy. I have some growth stocks, some dividend stocks, some bonds. Diversifying the portfolio is important.

w899um

Stop listening to Dave Ramsey likes he’s a guru. Our generation needs better advice than that of this man and Jim Cramer

I see more and more people that “swear” by this guy and his advice. Did you know he filed for bankruptcy? If everyone could pay for everything with cash, the whole world would be millionaires. Rather than listen to this clown’s basic advice you should have gotten in elementary school, go read “The Richest Man in Babylon” https://www.reddit.com/r/personalfinance/comments/19wsz5/how_do_you_guys_feel_about_dave_ramsey/?utm_source=share&utm_medium=ios_app&utm_name=iossmf

Money

This is going to sound bad, but Dave Ramsey is great for people who don’t understand a lot about money. There are people who are bad at math and managing money, and have got themselves in tough situations. That is where Dave Ramsey is helpful. For people who want a more advanced approach, he offers very little.

l6uva1

Companies try to prevent people from trading GME and AMC

Not sure about the other trading apps but Trading212 prevents people now from buying shares. Quote: - Warning! In the interest of mitigating risk for our clients, we have temporarily placed GameStop and AMC Entertainment in reduce-only mode as highly unusual volumes have led to an unprecedented market environment. New positions cannot be opened, existing ones can be reduced or closed. - Not sure if they are really concerned about their customers, or they've been lobbied by hedge funds to prevent ordinary people from destroying them. I don't care about GME and AMC, I have no position, but now I am angry for this decision. They always go against the poor individuals and let the billionaires save their asses. No one saves us when we go bankrupt by them. Let that sink in Edit: thank you for all the rewards and comments! What a great community we are!

stocks

They'll let you put your entire account value into options, but they won't let you buy GME? I don't think they are really looking out for you. It's not that GME is too risky, because they don't mind you taking risk at other times.

r5z5c1

Death Claim process experience after losing my parents

I am a 33 years old female. Unfortunately, lost my father in 2010 and my mother in Sept this year. Both died unexpectedly.  While the focus in general when someone dies is on "emotional grieving", I cannot explain how much "financial grieving" we have had to go through to just get the claims processed. My father was 58, was working as a senior manager in a Govt organization. Unfortunately, all the assets were in single name, no nominee. We had just got a house on loan (that had no insurance, in single name). My mother's name in Pension nominee was not correct. Our accounts were frozen, plus pension amounts were not released till a year. I can describe in detail how much running around we had to do, but long story short, we could got everything sorted only after 1-2 years and after going through Hiership process. My mother and I learnt from the mistakes, and ensured everything had a nominee or was in joint account. After my mother passed away, I was like - "it will be better than what we faced during my father's time". But, no - I was wrong.  Even though things have moved online, so many of the processes remain same.  One would not believe, but my mother's favourite bank (India nationalized bank ofcourse), has not processed the claim since last 2 months despite me being the nominee for the accounts. Their response is - "The bank account has more than 2 lakhs, so you need to get indemity, affidavit, my brother (legal heirs' pan and aadhar). And what they have done is to freeze all the accounts (including the ones that are joint). So, I cannot even get the money from the joint accounts.  I can go on and on for each bank, insurance company, mutual fund, pension office, demat and trading account but I hope you all are getting the point.  Why am I writing this? 1. My parents were both scientists, and I am an MBA+Engineer by profession. We have had fairly decent understanding of finance, but we still suffered. After going through the same churn twice, I realized I would not be alone. There should be so many others going through the same cycle without questioning the hardships or the processes. 2. I feel I am lucky enough to be in the "net positive" zone that I do not really need the money immediately. What about others who would be needing the money but they would be in so much distress? Especially after Covid. 3. All these fancy new apps like - Groww, Scripbox etc, just focus on the account opening and getting the money. And there is no concept of Nominee (or at least I could not find it out there on the app). There would be so many people (like me) who have invested, but when they pass away, their relatives would be in distress. And I am not even talking about cryptocurrency here. What I think should be done? 1. Death Claim processes should be easier, faster and online. Point blank. This should be across banks, Insurance corporations, Property, mutual funds, demat and trading accounts etc. We can get food in 30 min in India, but a death claim takes more than a month typically. And in my case, it has taken 1-2 years for my father's assets to get sorted. 2. There needs to be a directive from RBI to make sure banks follow a common and simple procedure (and not harass people). RBI should mention the list of documents in case of nominee, no nominee cases. It should not be bank/financial institution dependent. While I saw a RBI directive, it was a 2005 directive - and I do not see it being actioned well. Reserve Bank of India - Notifications (rbi.org.in) 3. Nominee should be made compulsory across banks, Insurance corporations, Property, mutual funds, demat and trading accounts etc. Just like PAN to Aadhar linkage :) 4. The whole process for hiership certificate and 6-8 months long period should be shortened. 5. Financial planning should also involve education about death claim process. Suggestions are most welcome on how can we solve this. Beyond doubt, I cannot do this alone, and I am looking for help for the broader community.   Lastly, for youngsters and for oldies who are reading this - I want to make sure that my grief helps you in some way. Please get your finances fixed. It is okay for the money to grow at 4%, but not okay if your family cannot access it after you are gone.   This is a 4 am rant so if you do not find it useful, please ignore. thanks

IndiaInvestments

Thanks so much for sharing. And this is no way, even remotely, near a rant. This must be one of the most useful posts in recent times. For others, an industry org that I belong to, started to set up an archive of resources. Please take a look at: [https://aria.org.in/1transfer-of-assets-on-death-of-the-holder/](https://aria.org.in/1transfer-of-assets-on-death-of-the-holder/) and see if the info is helpful. You can also give your feedback and pose questions that are not covered.

vtlw5c

The U.S. is not a democracy anymore, it is an oligarchy

3 people have more money than the bottom 50% of Americans. 3 investment firms control virtually everything: Blackstone, Vanguard, State Street. Most Congress, House, Senators, and even the president are bribed and paid off by big corporations to do their bidding, which usually means fucking over the middle/lower classes in every way including gaming the system so they don’t have to pay any taxes while the middle class carries most of the tax burden. Student loan companies are spending hundreds of millions bribing politicians, hiring lobbyists, flooding mass media with anti-loan forgiveness leaning news articles, to keep student loans high and extremely difficult to pay off so we stay debt slaves for the rest of our life while they live a decadent life of luxury The only way things will change is when all the working poor unite, take over the military from within, and guillotine the top 0.01% multi-billionaires pulling the strings of politicians in their pockets just like the French Revolution in the 1700s

economy

All of society has always been unfair and corrupt, kid. 50% of the money spent on the transcontinental railroad was bribes and graft back in the 1800's. Alexander Hamilton bought a huge chunk of the debt the US owned Britain for pennies on the dollar after the Revolutionary war and then used his position to makes sure American's paid it back to the British and made himself a fortune. The first use of "paper money" goes back to the days of the Sumerians. People deposited their grain with the gov, and got a receipt which they could trade or turn in for their grain back later. Only the gov created more receipts than actually existed and the system collapsed in economic ruin. Human's have no ability to rule themself fairly or successfully.

mkzt1f

I have a secret to share - shhhhh

After first 2-3 millions, a paid off home and a good car, there is no difference In qualify of life between you and Jeff Bezos. Both of you have limited amount of time on earth - you have twice if not more than Jeff, so you are richer than him. A cheese burger is a cheese burger whether a billionaire eats or you do. Money is nothing but a piece of paper or a number in your app. Real life is outdoors. Become financially independent that’s usually 2-3 M. Have good food. Enjoy the relations. Workout and enjoy sex. Sleep well. Call your parents. That’s all there is to life. Greed has no end. Repeat after me. Time is the currency of life. Money is not. Sooner you figure this out, happier you will be. Agree/Disagree ? Edit - CEO of Twitch confirming this mindset. https://youtu.be/yzSeZFa2NF0

fatFIRE

Disagree. You don't understand real wealth if this is your thinking. There's a world of difference between 2-3 million and 200-300 million and 2-3 billion and 20-30 billion. You have no idea what it's like to just drive on the runway and get in your jet and go where ever you want when you. 2-3million? You're still waiting in line at the doctor. You're still waiting for your flight to arrive. Jeff Bezos invests in rocketships. At 2-3 million I'm not sure what you're investing in? Index funds? Not to poo poo index funds I recommend them to everyone who wants to build wealth but c'mon you dont' need an index fund with billions in the bank. You can create a future you want to see. Lastly, this is written so poorly I cannot take you seriously.

l64xvw

GME Dedicated Thread - Breaking: CNBC engages in market manipulation - lies about Melvin Capital having already covered positions

Hello all, We are opening this thread so it can be dedicated to talks about the current GME situation. Feel free to discuss. Other newly created GME posts will be removed. Disclaimer: The title was sorely written by me and does not represent the views of Reddit or the /r/stocks subreddit. **Short Interest Update** [Short interest still very high](https://www.reddit.com/r/wallstreetbets/comments/l642ms/updated_jan_27th_short_interest_data_posted_by_s3/) , confirming that Melvin having covered is a lie.

stocks

Short Interest still at 66M no way in hell Melvin covered yesterday (citron probably did).. the fact a billionaire can go on CNBC and tell lies to manipulate a stock for his own personal agenda is the exact reason people are taking a stand. Fuck the Suits, GME to Pluto.

l8rhy0

I think I'm done with a regular job. I want to day trade full time - advice?

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.

Daytrading

In my opinion, every trader should have these before going full time. 1. At least 6 months of savings covering all expenses. 2. A failure plan. It may sound like a bad mentality but it's better to be prepared. I recommend a max loss. If you hit it, walk away before you lose all your money. My plan is simple - if I have one negative month, I hit the job market. If I miss my goal 3 months in a row, I hit the job market. 3. Make a goal. That can be either daily, weekly or monthly. People that trade on the side have flexibility with their goals but you're going to be trying to replace your income. It's important to know how much you need to make. 4. A real desire to trade for a living. There's no boss and there's no salary. Staying motivated can be difficult if your biggest motivation is not having a real job. 5. A strategy that has worked consistently in live trading. Not paper trading and not back testing. Both of those are important but it's even more important that your strategy holds up when there's real money and real emotions on the line. 6. Profits. Your strategy should already be making you the money you want to make before you go full time. I recommend 2 years of consistent profits to see if your strategy holds up with changing market environments but it should be at least 6 months.

mw7z3w

Burned my account, fully depressed.

I started trading at the end of the bull run Jan-Fab, had a great run as beginner, I had a initial investment of 37k took that up to 52k roughly, when we had that pullback in late Feb things started go sideways with me, took a major loss then my emotions got the best of me, I traded with oversize "weak risk management I'd say" very weak. I went heavy in trades and most of them ended up with a big L, tried to make up for my previous losses one after another till my account is now at 2.6k CRAZY. I can't express how I really feel it's beyond me, now I spend all my day thinking about wtf I did, depressed and feel heavy pressure that I don't know how to get back up, zero confidence. I took this fuck up to the next level of failures. This is really gotten to me mentally and I'm 22yo I feel beaten down and hiding my pain from everyone. I just want your advice how to get through this mentally. Please don't rub it in I'm already down bad. :(

Daytrading

56 year old grandma advice here: Education is expensive. Even though you had a big loss, you likely have learned a lot on the rise up and on the fall. I know it hurts, but try to refocus and see it as paying for the education in trading. Take what you have now and begin again with what you have learned. You have a lot of years for it to grow. You will go through more ups and downs. Don't tie your self worth to money. I've had money and I've been broke. Money doesn't change who you are. It's only a tool.

l6u6d5

Trading212 restricts the purchase of certain stocks under guise of “mitigating risk”

EDIT: T212 ALLEGEDLY SELLING STOCKS WITHOUT USER PERMISSION [tweet](https://twitter.com/able_adam/status/1355174529665028100?s=21) [tweet](https://twitter.com/zzywest/status/1355176988122750978?s=21) EDIT: Mirror stocks on other EU exchanges now blocked too 1/28 EDIT2: Straight up BUY RESTRICTIONS! - "Mitigating Risk" no longer named a reason 1/28 EDIT3: [UK TRUST PILOT REVIEW](https://uk.trustpilot.com/review/trading212.com) EDIT4: BUY restrictions Appear removed as of 1/29 - Will update when $NYSE opens EDIT5: T212 Restricts new signups to App and forum. On a Thread deleting & Banning Spree of people who are complaining there I think you know which stocks they are. Now, say what you want about meme stocks/wsb etc does this for anyone else not shed a light on this industry as a whole? Or is there actually a case for preventing people piling into this stock? Beyond usual toc on signup which are frankly quite blasé, Ive never had any platform warn or restrict a *particular* stock, especially not under the auspice of protecting me from risk. Was 2008 not an unprecedented market environment? Was the start of covid not? This is an extremely worrying precedent for me and last time ill be using t212. Edit: I listened to reasonable arguments but this stinks. Its fine if you dont like wsb or the current meme stocks. But look at this precedent and just wait til you spend months on DD and get fucked over anyway, this will continue NOTE 1: As perT212 app “In the interest of mitigating risk for our clients, we have temporarily placed (meme stock) in reduce only mode as highly unusual volumes have led to an unprecedented market environment. New positions cannot be opened, existing ones can be reduced or closed” NOTE 2: Due to BUY restrictions placed by our intermediary and ever major execution venue worldwide, GameStop will be placed in close-only mode. New BUY positions can't be initiated, existing ones can be reduced or closed

UKInvesting

I've posted a bit on this on the T212 reddit, but: They have a fiduciary responsibility to protect their customers' interests. And yes they can control risk. It's exactly the same reason why they can't offer excess leverage to retail clients and can close out positions. Halting trading for this reason is not new. It has happened across the board with plenty of brokers in the past. The FCA handbooks cover this. They could be liable to FCA sanctions if it transpired they were offering easy access to completely non-qualified investors and they all ended up losing huge sums and made FCA complaints. Say GME dumps at open (which it is completely possible), I feel people won't be complaining. They've said in that notification, this is partly to do with trading volumes (which have been crazy) and their servers will just melt again and people will be stuck in orders when the market potentially dumps this. So T212, a free service, should upgrade all their servers and increase capacity in the space of 2 days, purely because every man and his dog has decided to pile into a handful of stocks the last few days (fuelled by a reddit forum)? This happens, it's happened loads on the past with all brokers across the board and this issue wasn't specific to T212 yesterday. People that have qualified themselves as pro investors, have literally become traders overnight and are complaining 'manipulation' etc... Yes it's really shit to everyone stuck in orders, but what did you expect!!! Experienced investors will have stayed well clear of this and only invested what they can afford to lose, knowing it's a complete gamble! The FOS are going to say T212 looks after the interests of **all** its users and were trying to decrease server volatility whilst literally millions of people were piling into a few names at a time there was also no liquidity. And that the platform isn't just for people trading risky instruments via CFDs. The FCA won't give a monkey's, they regularly issue risk warnings on stuff like this.

lazcak

What $GME has taught me in 36 hours of day trading

Jumped on the $GME bandwagon on Friday, 4 @ \~316. My 36 hours of day trading has already taught me that no matter how this plays out, I will never YOLO on a bubble ever again. The principle seemed straightforward: hedge funds got lazy/greedy, over-shorted their positions, bet against a company that wasn't actually going under, and some astute monkies on reddit caught them and triggered a short squeeze. Even as someone who knows almost nothing about the stock market, the basic premise makes sense. But the devil's in the details, and hype is blinding. First red flag was when I realized [/u/DeepFuckingValue](https://www.reddit.com/u/DeepFuckingValue/) did not bet on the short squeeze, he bet on undervalued stock price *over a year ago*. He has also trimmed his position such that no matter what happens in the squeeze, he walks away with 8 figures. So the people screaming "if he's still in, I'm still in!" and "look at those brass balls, if he can lose $5MM in a day then I can hold" are really living up to the dumb ape meme. He didn't lose $5MM yesterday, he lost $5MM in \*unrealized gains\*, there is a \*huge\* difference. Second red flag was a common sense idea that hedge funds won't go down without a fight, and they have literally billions of dollars and decades of experience. You don't get that without learning how to game the system in complex, subtle ways. So even if they are still heavily shorted (which they might not even be anymore), and even if somehow [r/WSB](https://www.reddit.com/r/WSB/) is holding some kind of meaningful leverage over them, that doesn't rule out the very real possibility they have a dozen ways out of this that people like me have no idea about. But even in the off chance that somehow this turns around, and $GME does go "to the moon," that doesn't change the fact that it's bad long-term strategy to bet on bubbles and jump on bandwagons. They almost certainly fail, and if they don't, they only serve to inflate egos that will fall even harder on the next gamble. I'm still holding my shares but I don't expect to see my \~$1200 ever again. In the off chance I break even or see a profit here, I will count it as dumb luck and use it as seed money to learn how to invest in real long term gains. **Edit:** holy shit RIP my inbox. No way I can read all that. Want to clarify a few things. Not financial advice. **My position:** I knew I was late to the party. I *wanted* to gamble. I knew what I was doing, and (mostly) why I did it. Hindsight showed me it was more based on emotion than I wanted to admit, but still, I'm not surprised by the outcome so far, and I'm totally OK with taking the L and calling it a lesson learned. I don't blame DFV, WSB, or anyone for my choices. I own them, even proudly, because I wanted to step out and take a calculated risk vs. sit on the sidelines out of fear of loss. I'm holding because I already bought my tickets to this ride, want to see this thing play out, and I'm fine with gambling the final $300 on the outside chance things turn around. **Your positions:** brothers, sisters, nonbinary siblings: **you are not your portfolio**. whether up or down, your value is not based on how big or small an imaginary number is. you are a human being on the bleeding edge of 3.5 BILLION years of evolution, you have more actual success in your past and potential success in your future than you'll ever know. 12 years ago I was a penniless alcoholic literally stealing change from my grandpa to get loaded on 211 Steel Reserve. I hit my bottom, joined AA, and now I'm a network engineer, wife, kids, the whole lot. Anything is possible if you don't give up on yourself. But I know it's not that easy, we all need borrowed self-esteem before we can see the real value inside. So if this $GME gamble hit you hard, please reach out to someone. don't give up. Hell, this bubble isn't even over, it might even turn around! But either way, don't give up. **Edit2:** wow, never expected this to go this far. wrote it on my way out the door as a way to cope with the situation. read a ton of replies, probably missed most of them. thanks for all the love and hate and everything inbetween! A few more points: * Agreed that RH deserves to be held accountable. No question they manipulated this. * Agreed it's not over yet. the squeeze could happen. but if it does, **my** main personal takeaway from this experience will stand: I won't speculate on bubbles anymore. This is my position if I lose everything or make $100k. * if you posted gains, that's awesome! so glad for you, I wish you the best! **Edit3 2/3/21:** Full disclosure, I closed my position this morning at a \~$900 realized loss. My gut says the squeeze happened, short interest isn't what I thought it was on Friday, and the stock will return to actual value soon. **Edit4 2/25/21:** **I stand by my decisions, both to buy and to sell. I don't speculate on bubbles. Period. But you can do whatever the fuck you want with your money and you'll never find me shaming you about it.**

stocks

Just a thought: I’m a fairly disciplined investor more akin to r/stocks than WSB. I follow WSB for entertainment value and it never disappoints. However, what happened to these guys was not right. When RH restricted trading, I felt obligated to help carry the water up the hill, so I bought in at $395 and was/is prepared to lose it. Life is a series of moments like this one. I saw ordinary people from tons of different countries, backgrounds and political spectrums unite to try to “stick it to the man”. For me, that was worth more than what I personally have lost monetarily so far.

o0scoy

The Bigger Short. How 2008 is repeating, at a much greater magnitude, and COVID ignited the fuse. GME is not the reason for the market crash. GME was the fatal flaw of Wall Street in their infinite money cheat that they did not expect.

​ # 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 ​ 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. ​ [Inside Job \(2010\) Promotional](https://preview.redd.it/vvdd32qkei571.png?width=776&format=png&auto=webp&s=982445a99f17af054bd351990017e364b137cf02) ​ # 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 \(2010\) - % 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. # ​ # 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) ​ ​ ​ # 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.

Superstonk

u/criand Fannie Mae and Freddy Mac were taken down by naked short selling that prevented them from raising capital. The housing default crisis was bad but manageable with enough capital. The accusation here is the market maker (Goldman) was flooding the market with naked shorts: https://www.sec.gov/comments/s7-08-09/s70809-407a.pdf Take a look at Section H in particular. Despite the ownership being 100% accounted for, the float was traded several times in a very short period. Sound familiar? I do agree that they royally fucked up with GME. It was supposed to be shorted to death and die by the default of its loan, sold off, bankrupted, delisted. Same fate as Fannie and Freddie and many other small companies. Instead, it purged the board and used the sky high stock value to pay off its loan. This is bigger than anyone realizes. The loan was 80% of GME's market cap last year. It's the equivalent of lifting yourself out from under a burning car by flipping it over and then putting out the fire with your own piss. The apes are now on the hunt for the people who set the car on fire.

mq9y72

Why are so many Americans living above their means?

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?

FinancialPlanning

Everyone I know makes about the same amount of money as me and yet they have nicer houses, cars, etc. They're all in massive debt. I knew someone in college who used her loans to buy a brand new car. I just ignore the social media junk that's all fake anyway and keep saving and working hard.

cdu8k5

32, Black Woman, Single Mom, Raised in Hood, Drug Addicted & Absentee Parents, Once Was Homeless & Preggo Just Crossed 100K Net Worth Living in NY

As the title states.... ​ I've been a long time lurker and just crunched the numbers tonight and wanted to share. I am so happy. I did it. Brings tears to my eyes. ​ I'm 32, African American and a single mom of 1 teenager. I was born and raised in a true "hood", long ago, before gentrification came along. My parents were a part of the 80s crack epidemic that wiped out many families, especially African American families. I ended up in foster care and remained there my entire childhood until being emancipated and left to fend for myself in the streets of NYC at 15 years old in the early 2000s. I was a homeless and pregnant teen and immediately became a single mom. ​ Through this turmoil and the crippling depression and feeling of hopelessness that came along with the "humble beginnings" of my life, I was able to graduate school early, find a job, saved just enough money to go to a trade school (it was $700 back then and every single dime that I had.) Through HARD work and insane grit and perseverance, I obtained all of my certifications and began my career at age 19. I've never looked back. ​ I discovered the FIRE and personal finance community nearly 3 years ago and its been a God send. I am rewriting my families wealth tree and I couldn't be prouder. ​ I am navigating the world solo (no biological family besides my son) yet I've found the will to succeed, despite all of the trials, tribulations and abandonments. ​ At 12:15am on 7/16/19, 32 years of age, 13 years into my career, 1 teen son, and a LOT OF PRAYERS along the way....later.. my NET WORTH is $103,408! ​ A MIXTURE of 457, 457 Roth, 401K, 529, smaller investment portfolio and pension. I will be retiring at age 45 with a full pension and God willing a MILLION DOLLAR portfolio. ​ This is the most I'm willing to share. Please don't nit-pick, pry more or be passive aggressive. Just wanted to inspire someone somewhere who may not have as many or ANY resources to succeed. ​ Long Story Short: No one thought I'd make it out from under the shitty hand I was dealt. I did and just surpassed a $100K Net Worth! ​ EDIT #1: Some of you are super triggered. LOL. I don't see this type of responses on other more "traditional" postings. Y'all do know I have thick skin and come from a place where nightmares are made of...right?! I also have worked in a very AGGRESSIVE fast pace career interacting with strangers during their absolute worst moments for 13 yrs +.... read: they are with the shxts and so am I.... LOL....you do know your typed "insults" don't hurt...right?! ​ EDIT #2: If I did not a THING else I would STILL be retiring with a FULL PENSION of nearly 50K + health insurance. Yes, at age 45. 25 years of service and that's it. Not 25 years of service + age requirement. ​ EDIT #3: Yes, a 1 million dollar portfolio is lofty for some and not lofty for others. For me, it's just an idealistic number...really... ​ EDIT #4: 20-30K + investments I'll continue to have yearly for the next 14 years. I am currently at 26K invested this year and we are only in July. I am nearly 3 years in to saving this aggressively at 50%+ (had it at nearly 70% for months and just lowered my percentages. It's not a race.) ​ EDIT #4: I am a Paramedic. I also clean apartments as a side gig. My current career has no overtime cap. I have coworkers making 100% OVER their salary. EDIT #5: I live on 30K in NYC (by choice: frugal minimalist). I invest ALL OF THE REST. I do NOT have to invest this aggressively. God covered me and I made a great choice in trade/career and the medical field knows no recession especially in NYC. I am BLACK AND PROUD of what I am doing, no plans to stop. Thank you for ALL the comments. Positive, neutral and negative. I learned a long time ago that SUCCESS can't be denied. I will surely be back with updates. EDIT #6: WAKANDA FOREVER‼️ EDIT #7: I can’t give clues on this post about my social media (sorry for the rule violation!) Im replying to everyone who’s inboxed me. Im STILL doing my best to reply back to those who were kind enough to write me. Wow so many of you! I’m so appreciative. You all are awesome! Thank you so much!

financialindependence

Besides the fact that you're living a great life, with resources in the bank, you've also put your son on a whole different path in life. You singlehandedly broke a cycle that could've continued for generations. I don't think there are many people who can claim that. You're amazing and I hope you give us more updates.

nb3otq

Am I the only one who hopes Elon stays the hell away from ETH?

Elon is an egotistical asshole who is worshiped by a horde of lunatics who obey his every utterance. I hope he spends time pumping and dumping other crap and not focus on ETH as the ravings of a power mad billionaire are hardly a strong foundation for long term success. One of the attractions of crypto was that it was supposedly going to empower the weak and instead it’s turned into another plaything for the rich and super rich.

ethtrader

Elon musk must be a fucking idiot. Didn’t he know that BTC transaction burned fossil fuel before announcing they’d be used for payments? He just wants to manipulate the shit outta crypto cuz someone like SEC can’t sue em cuz they aren’t a security. I hope his effect decreases as we move forward

p7cc6r

Survived a Credit Card fraud today. Sharing my experience for an educational purpose.

I hold an RBL Bank Credit Card along with a couple of others. Today, I got a call from a mobile number 6391504865. The person was speaking fluent English and claimed to be from the RBL Bank. He asked me - at the time of getting the card whether I was told if this card is lifetime free or there will be a joining fee. Then he asked if I was actually given the credit limit which I was told. Till this point, I answered the questions. Then he told me that the bank is offering me a credit limit increase of 1 lakh if I want. And then asked - "Please confirm if the PAN number I am telling is correct." Then he told me my correct PAN number. He further proceeded saying that he was sending an OTP which should be shared with him for authorisation of this limit increase. Here comes the scary part. I received an OTP from the legit RBL messaging service (VK-RBLBNK) from which I usually receive the transaction messages. The content of this SMS was as following: “234567 is OTP (one time password) for updating your RBL Bank Credit Card settings.” Just to ensure that this is indeed a fraud, I asked him to tell me my existing card limit before I share the OTP. He couldn't answer it well and started beating around the bush. I told him unless the SMS mentions that this OTP is for credit card limit increase, I will not share the OTP. I asked him to send me an email from his RBL email id about this. He said yes and hung up the phone. *** From my personal experience of credit cards in the past, whenever there is credit limit increase offer, the banks usually let you know this by 1) SMS - Then they ask us to send YES/NO in some format to a specified number to accept/reject the offer. 2) The net banking/mobile banking account displays the alert about the offer. Then you yourself accept or reject the offer. 3) If you yourself call the customer support helpline for some issue and you get to know that there is an offer for credit limit increase. Even on the phone if they have never asked for an OTP. Till date, I have never needed to share an OTP for a credit card limit increase. To further confirm that it was a fraud, I called the RBL Customer Support and connected with the fraud department. They told me that there is no offer on your card and the call which I received was definitely a fraud call. So this caller was a sophisticated caller/hacker who had access to my RBL Bank Credit Card data by which he was able to tell me the correct PAN and able to generate the OTP -possibly for a fraudulent withdrawal transaction from my card. Truecaller showed the number’s location as Uttar Pradesh. On extensive googling around this, I was able to locate this article which elaborates the exact same fraud which I experienced. The victim was also an RBL card holder. [Chandigarh cyber cell arrests 2 hackers for stealing credit card details](https://nationnews.in/chandigarh-cyber-cell-arrests-2-hackers-from-delhi-ncr-for-stealing-credit-card-details-credit-card-and-payment-gateway-recovered-from-their-possession/) *** Please beware of the calls you receive from people claiming from banks. Reverse check with the caller by asking them if they know your additional details. If they are unable to answer it, then it’s definitely a fraud. The best safety is to never share any kind of OTP with anyone. P.S. 1) There is a series called [Jamtara](https://www.youtube.com/watch?v=GoXd_sESBBI) on Netflix which explored such scamming and phishing which takes place in India. Jamtara is a city from Jharhand. It is nicknamed the phishing capital of India. It got this title because there were numerous incidents of phishing across country whose centre point was this small town. 2) **Just to ensure full safety and peace of mind, when I was talking to the fraud department of the customer support, with their help, I immediately blocked the credit card and requested a replacement.**

IndiaInvestments

`I asked him to tell me my existing card limit before I share the OTP.` You threw a googly at him. Commendable. Thank you for sharing the exp. ​ Edited: Please upvote and share, this post needs visibility.

wp44iq

Mark Cuban's Cost Plus Drugs is going to lift me out of living paycheck to paycheck.

I spend around $300 per month on various medications. Based my income and my other costs of living, I have essentially been breaking even for the past 6 years. I just signed up for Cost Plus Drugs and had my prescriptions moved over. It's going to cost me around $30 to get all my prescriptions shipped to me via this site. That means that I just went from breaking even to saving almost $300 per month. LOL retirement here I come!!!

povertyfinance

That is awesome, brother! Cost Plus Drugs has been a lifesaver for me as well. One of my medications went from $163 for a 90 day supply to $5.16. My other two went down as much. Even better I was able to get my scripts written as 1 year supply so I don't have to pay the $5 shipping fee 4x per year. I could never have afforded that when it was $163 for a 90 day supply, but now that a year is only $25 and change it is possible. I'll be putting the other $$$ I had allocated for my medication into savings so I can hopefully retire someday, too.

l3cx0w

Why is the Canadian economy such a basket case, when compared to America, or Asia?

We don't make cars, or high tech electronics, or pharmaceuticals, or vaccines, or anything advanced at all. The highest market cap stocks are all banks. Our biggest economic sectors are... commodities. Like a third world country or something. Imagine if we weren't adjacent to the USA. Our economy would like Portugal or something.

CanadianInvestor

Population of: - Canada: 38 million - USA: 328 million - Asia: 4.5 billion - China: 1.4 billion - Japan: 126 million - South Korea: 51 million - Portugal 10 million - Belgium 11 million Canada has always been an economy focussed on exporting natural resources from the time it was feeding Europe resources, continuing through the age of the USA. With its population it has done very well, but is better compared to Belgium, South Korea and other small countries next to giant economies. “Advanced” stuff requires large educational sectors that attract the attention of the world, and large investment, research and development sectors, large government support, and mostly a lot of money from a large economy. Canada has a larger share of these things and punches well above its weight (ie/participation in space development) but it is always going to be a small fish in a very large pond.

jg45yh

I’m 68 and retiring with $700000

I’d like to invest in something that would generate $30000 a year. Would like to entertain as many options as possible. How about some ideas. Thank you

FinancialPlanning

$30K from $700K is a 4.2% SWR (safe withdrawal rate). This is well within the 4% threshold describe by the [Trinity Study](https://en.wikipedia.org/wiki/Trinity_study). I.e. you can start by taking out $30K the first year. The next year, you adjust the $30K for inflation and take that out. There is a 95% chance your money will last and a very good chance it will actually grow. The Trinity Study used a time horizon of 30 years. Your life expectancy at 68 is 16m/18f but you have to allow that you could live longer. A key decision though is how to allocate your money between stocks and bonds. Typical advice might be 60/40 or 50/50. The problem is that bonds are now at a historically low rate. A second issue is that the equity market [CAPE Shiller Ratio](https://www.multpl.com/shiller-pe) is currently very high. This indicates that equities may be over valued and that the market is due for a correction. The further implication is that you face a larger chance for a [sequence of returns risk](https://www.investopedia.com/terms/s/sequence-risk.asp). The other realistic option you have is to purchase an annuity. Just off the top of my head, I believe you could get an annuity which would return even more than the amount you want to spend each year. The problem is that the annuity probably would not be inflation adjusted. Schwab offers a fixed immediate income calculator here: https://www.schwab.com/annuities/fixed-income-annuity-calculator I get a rough estimate of 42K / year for a the situation you describe assuming you are a male. Female would pay worse due to longer life expectancy. **EDIT** I'm humbly honored by those redditors who've bestowed a number of awards on this reply. Thank you.

yeuzxy

Mark Zuckerberg lost $100B recently

Mark was early, too early. Meta should have remained an internal project Instead, he took a risk and took the company in the new direction with the greatest deal of publicity. Changing their ticker, name, mission. All on display for the world to see, as if to say, look at me, look at us, place your eyes on our newfound identity. It's very fitting, for the de facto social media industry leader to take this approach. Very fitting, for a once young and innovative Mark Zuckerberg to want to matter again, after years of declining market share and increased competition. The issue is one that is shared among the modern investing world. One driven by jargon and VC capital endlessly pouring into the "next big thing". One where appearance matters much more than actual substance. You might even say this is reflective of society at large, perhaps even one where Zuckerberg helped mold. The issue lies in the fact that we live in a world where simply changing your name to include a buzzy new catchword such as crypto, NFT, or Metaverse can increase your company's valuation multiple times without changing much else. But for how long? Eventually when the music stops and the madness of discretionless investing is over, when the cost of capital has tripled, quadrupled, will your firm truly stand the test of valuation? Time to get back down to brass tacks.

ValueInvesting

Completely agree, they should have kept it small and maintained some mystery around it, which may have built up more excitement around it. Their big public leap into it seems desperate now as they keep pushing something that people currently don't really want all that much.

lhtodm

Historically it's way better to invest at market close than at market open, most gains occur overnight

Found this 2018 article, interesting/fun fact: [The Stock Market Works by Day, but It Loves the Night](https://www.nytimes.com/2018/02/02/your-money/stock-market-after-hours-trading.html) * If you had bought the SPY at the last second of trading on each business day since 1993 and sold at the market open the next day — capturing all of the net after-hour gains — your cumulative price gain would be 571% * On the other hand, if you had done the reverse, buying the ETF at the first second of regular trading every morning at 9:30 a.m. and selling at the 4 p.m. close, you would be down 4.4% Chart: [https://i.imgur.com/YPTjg3v.jpg](https://i.imgur.com/YPTjg3v.jpg) Disclaimer - I'm not posting this to endorse the above strategy, I prefer to buy and hold.

investing

And if you just bought SPY in 1993 for \~$44, and just held it... you would be up 900 percent :) Edit: as many comments noted, the article is from 2018. So it's closer to 600% than 900%. Also if you factor in taxes (it's all wash sales), and commission, you'd be in deep red. Either way this isn't really a "strategy" one can use. Edit2: Also, please note that this is a cherry picked time period. Even in this chart, the time when "day" and "night" trading are directionally opposite is around 1998-2000. This is what makes the "omg day-only trading is net loss" sensationalist title.

lgzvf3

Please be careful when buying a stock from a post that has 500 karma and 15+ awards in the past hour.

There has recently been a user who posts super well written DD on certain stocks, and then the price will jump 50% (or even 200%) in about 30 minutes. Make sure you’re checking when that post was made because otherwise, you’re going to be buying at the top of a major pump. The price will likely fall down close to where it was before and then you will have a much better chance to buy in and get gains. When a stock is $3 and the DD says it’s price target is $7, generally that means that within the year, they expect the price to reach $7 - not within the day or week. Just be careful buying stock an hour after a convincing DD is posted, that is all. Disclaimer: I do think this user’s DD is very well written and he finds good stocks to invest in. I just think that waiting a day or two after the initial post would provide a better entry point.

pennystocks

I come here to read other people's DD because I don't want to do the DD. Now you're asking me to DD the redditor writing the DD. Can't I just yolo my money without reading? Edit: My first awarded comment. You silly gooses now how to make a redditor feel special. Thank you

nlwqyv

House of Cards - Part 3

***Prerequisite DD:*** 1. [Citadel Has No Clothes](https://www.reddit.com/r/GME/comments/m4c0p4/citadel_has_no_clothes/) 2. [The EVERYTHING Short](https://www.reddit.com/r/GME/comments/mgucv2/the_everything_short/) 3. [The House of Cards – Part 1](https://www.reddit.com/r/Superstonk/comments/mvk5dv/a_house_of_cards_part_1/) 4. [The House of Cards - Part 2](https://www.reddit.com/r/Superstonk/comments/nlwaxv/house_of_cards_part_2/) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ **TL;DR-** **No freaking way I can do that.** **\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** **Continuing from HOC Part II...** **4.** **Slimy…** If you watched the [AMA with Wes Christian](https://www.youtube.com/watch?v=2rJujnpKiqM), he talks about the number of occurrences where the actual short interest is severely understated based on the data his firm obtained for legal proceedings. According to his numbers, in most cases the short interest is 50% - 150% **MORE** than what is reported by the SEC *(starting at 14:30).* The objective isn’t to address the issue: it’s to keep the issue hidden. Firms that underreport their short interest are gaming the system by taking advantage of how the short interest calculation is done. When the SEC relies on reports that broker-dealers provide, and FINRA takes YEARS to reveal the lies within those reports, the broker-dealer can lie without immediately facing the consequences. It allows these firms to operate in a high-risk environment without exposing just HOW big their risk-appetite is. Another example that Wes mentioned was [Merrill Lynch](https://www.sec.gov/news/pressrelease/2016-128.html). Merrill was fined [$415,000,000](https://files.brokercheck.finra.org/firm/firm_16139.pdf) *(violation 3)* in 2016 for using securities held in their customer’s accounts to cover their own trades. Check out this screenshot I took from that case: https://preview.redd.it/v9625j8wek171.jpg?width=1115&format=pjpg&auto=webp&s=85d43bc351fbda75e347bd33a1a550b67dda970e Remember when we mentioned [SEA 15c3-3](https://www.finra.org/sites/default/files/SEA.Rule_.15c3-3.pdf) in the case with Apex? They were asking customers to book short positions to either a cash account or a short margin account. [SEA 15c3-3](https://www.finra.org/sites/default/files/SEA.Rule_.15c3-3.pdf) protects those customers from allowing brokers to lend out the securities within their cash accounts… Well Merrill Lynch knocked that one right out of the f\*cking park… ​ https://preview.redd.it/s3zok5wyek171.jpg?width=1129&format=pjpg&auto=webp&s=815e5344912234ceba846dc0d45c8b8b488b82c4 Merrill made it seem like the required deposit in their customer reserve account was much lower than it truly was. They wouldn’t have been able to use that cash if it reduced the amount below the minimum capital requirement, so they found a way to fudge the numbers. In doing so, they managed to prevent a CODE RED while reaping the benefits of a high-risk ‘opportunity’. Should Merrill have filed bankruptcy during that time, those customers would have been completely blindsided. In the case of short selling, the *true* exposure of short interest is unknown… and I’m not just talking about the short sale indicator. When a firm fails to deliver securities that were sold short, there’s a pretty good indication that they’ve exposed themselves to a bit of a problem.. Now imagine a case where the FTDs start piling up and they STILL continue to short sell that same security.. think I’m joking? Check out the [Royal Bank of Canada](https://files.brokercheck.finra.org/firm/firm_31194.pdf): https://preview.redd.it/u6yl6tj2fk171.png?width=812&format=png&auto=webp&s=1e44cc507247db1e28c00a213f90054b9abdaa6a Again… I was pretty shocked at that one. However, nothing rang-the-bell quite like this one from [Goldman Sachs](https://files.brokercheck.finra.org/firm/firm_361.pdf): https://preview.redd.it/5f408er6fk171.png?width=1031&format=png&auto=webp&s=38b9ad83d2a07360af5b5cd99d834a8771b66c93 Goldman had 68 occasions in 4 months where they didn’t close a failure-to-deliver… In 45 occasions, they CONTINUED to accept customer short sale orders in securities which it had an active failure-to-deliver… When a firm is really starting to sweat, they pull certain tricks out of their ass to quell the situation. Again, this is nothing but smoke and mirrors because that’s all they can really do. Just as Merrill Lynch artificially lowered their customer reserve deposit, other firms make it look like they cover their short positions. One of the ways they do this is by short selling a SH\*T load of shares right before a buy-in… Since we’re talking about Goldman Sachs, this seems like a great time to showcase their experience with this.. https://preview.redd.it/zhf1hr1afk171.png?width=1049&format=png&auto=webp&s=f704c3722ae287480057ce3e01c561a28b77cf4c I promise… It really is as dumb as it sounds… So the perception here is when Goldman’s client has a FTD and they find out a buy-in is coming, the required buy-in would obviously be too extreme for the client to handle.. So they begin to buy those shares while simultaneously shorting AT LEAST the same amount they were required to purchase… Have you ever failed to repay a loan so you went to another bank and got a loan to cover the first one? Well that’s exactly what this is… I know what you’re probably thinking… “didn’t that just kick the can down the road?”. The answer is YES: it didn’t actually solve anything.. There’s still one more citation that Goldman received which truly represents the pinnacle of *no-sh\*ts-given.* After I cover this, I don’t know how anyone could argue the systematic risks that exist within the securities lending business.. Check it out: https://preview.redd.it/0md200bdfk171.png?width=940&format=png&auto=webp&s=cf5e8310fbcbd73699e3593b2ab5dab418055ab0 For 5 years, Goldman relied on a team of 10-12 individuals to locate shares to be used by its clients for short selling. This group was known as the “demand team”. Naturally, as the number of requests coming in the door started to increase, it became difficult for the team to properly document all of them. The volume peaked at 20,000 requests PER DAY, but the number of individuals that handled this job stayed the same. Obviously, this became too much for them to handle so they opted out of the manual process and found another solution- the F3 key…. Yes- the F3 key… This button activated an autofill system which completed **98% of Goldman’s orders to locate shares** https://preview.redd.it/exqzge3gfk171.png?width=964&format=png&auto=webp&s=ed9c8b740974dad01db69460332c56df81a8d768 The problem with Goldman’s autofill system was that it used the number of shares available to borrow at the beginning of that day, which had already been accounted for. After using the auto-locate feature, the demand team didn’t even verify the accuracy of the autofill feature or document which method was used to locate the shares for each order… and this happened for 5 years.. Just goes to show how dedicated firms like Goldman Sachs truly are to the smallest of details, you know? Great f\*cking work, guys. By the way, I have to show one of Goldman’s short sale indicator violations… It’s too good to pass up. https://preview.redd.it/5iuhlkcjfk171.png?width=1082&format=png&auto=webp&s=f4e2fa1f106e78b9d282b60c3cee9944e919ea82 At some point, you just have to laugh at these ass clowns… I mean seriously… one violation for a 4 year period involving over 380,000,000 short interest positions… they have plenty of other short interest violations, I just laughed at how the magnitude of this one was summarized by FINRA with 10 lines and roughly 4 minutes... whoever wrote that one must have been late for lunch.. The last thing I’d like to note here is the way in which short sellers use options to “cover” their positions. Wes gave a great overview of this in the AMA *(starting at 6:25)*. Basically, one group will buy puts and another group buys calls. This creates a synthetic share that is only provided if the option is activated. Regardless, short sellers will use that synthetic share to cover their short position and the regulators actually accept it… However, as Wes points out, most of those options expire without being activated which means the share is never delivered. This expiration can be set months down the road and allows the short seller to keep kicking the can. I doubt I need to say this, but we all remember the wild options activity that was happening shortly after GameStop spiked in January. u/HeyItsPixel was one of the first to point this out. While a lot of that activity was on the retail front, I suspect a lot of it was done by short sellers to cover those positions. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ **5.** **Hedgies are f\*cked…** I’m officially +20 pages deep and there’s still so much I’d like to say. It’s best saved for another time and another post, I suppose. So I guess I’ll wrap all of this up with some of the best news I can possibly provide… It all started with a [73 page PDF](https://www.sec.gov/comments/s7-08-08/s70808-318.pdf) that was published in 2005 by a silverback named John D. Finnerty. John was a Professor of Finance at Fordham University when he published *“short selling, death spiral convertibles, and the profitability of stock manipulation”*. The document is loaded with sh\*t that’s incredibly relevant today, especially when it comes to naked short selling. He dives into the exact formula that short sellers use, which is far beyond what my wrinkled brain can interpret, alone… ..However, when firms are naked shorting a company with the goal of bankrupting them, they leave footprints which are only explained by this event. The proof is in the pudding, so to speak.. https://preview.redd.it/ax7u0r4wfk171.jpg?width=1072&format=pjpg&auto=webp&s=1828755bfe49c47ca178d960f91dfd21d8b0d680 Any of this sound familiar?? *“The manipulator can not drive the share price close to zero unless he can naked short an extraordinary number of shares…* *this form of manipulation would result in… unusually heavy trading volume, and unusually large and persistent fails to deliver at the NSCC”.* Anyone else remember the volume in GME during the run-up in January? The total volume traded between **1/31/2021 and 2/5/2021 was 1,508,793,439** **shares**, or an average daily trade volume of **88,752,555 shares.** On 1/22/2021, the volume reached 197,157,946… that’s roughly 3x the number of shares that exist.. if this doesn’t sound like unusual volume then I’m not sure what is. Furthermore, the FTD report on GameStop was through the roof during this time: ​ https://preview.redd.it/brz98nbzfk171.jpg?width=1625&format=pjpg&auto=webp&s=83ae877853acd2ec65fa73f57216f00b708a7eab ​ https://preview.redd.it/zlla3ak0gk171.jpg?width=1038&format=pjpg&auto=webp&s=c5d4a1331f8c9d97b5338cc55a37310a95c9559b Notice the statement where the manipulator will be relieved of its obligation to cover **IF** the firm’s shares are cancelled in bankruptcy? Did you happen to see footnotes 65 & 66 in the first screenshot of his PDF? It references a company that he used for his analysis… https://preview.redd.it/zdp3at43gk171.jpg?width=997&format=pjpg&auto=webp&s=8508c9d0c869544f0ccd3a15477abfd64d38897c Charter Communications had a whopping **241.8% short float in 2005**… **The ONLY way the manipulator could have escaped this was by bankrupting the company and relieving the obligation to repurchase those shares…** Guess what happened to Charter? They filed for [bankruptcy](https://abcnews.go.com/Business/story?id=7189668&page=1) in 2009… However, unlike John’s example where naked short sellers were driving down the price without opposition, GameStop had extremely high demand from retail investors to counter this activity. As I have discussed with Dr. T and Carl Hagberg, the run-up in volume during January and February was largely conducted by naked short sellers in an attempt to suppress the share price. As I have shown in the example with Goldman Sachs, firms will short sell during a buy-in for the same exact reason. To stabilize the price, you must stabilize supply and demand. …You know what Charter didn’t have? AN ARMY OF APES TO HODL THE STONK ​ DIAMOND. F\*CKING. HANDS

Superstonk

Damn. This is the "they looked" moment from the Big Short. All this info, all publicly available, but hidden behind a wall of boringness and jargon. After the dust settles, will they change, or just get better at hiding it? The battle isn't over, even after the MOASS. Atobitt, Dr. T, Wes, David, Lucy, and everyone else, thank you for looking.

vxpkyb

I work 16 hours a week and make 300k a year. I have offers from a competitor and other startups for twice as much.

Throwaway account for obvious reasons. Mid 30s - I work as a Senior Director in a well-respected industry leading firm. I’ve made my way up over the last few years. I looked at my work calendar over the last 6 months and it turns out that I average about 16 hours of actual work a week. My reward is about 200k in base, 30 percent bonus and an equity package of about 75K per year.I ’ve pretty much reached as high as I could at this job and could coast here with your average 8 percent raises. Doing so would get me to FIRE in the next few years and FATFIRE in probably 10-15 years, I have a few offers on the table from startups and one competitor that would essentially get me to about 500K a year in a more exciting role with lots of growth. I know that’s not as much as some of you FAANG folks, but its a pretty chunk of change for my household and might get me to FATFIRE faster. The catch is of course, is likely 40-60 hours weeks + more stress. EDIT: NW is about \~$1M split across two properties, and a few brokerage funds. My wife is a doctor so it is unlikely were going to retire together anytime soon, but I’d like to essentially FATFIRE by the time I’m 50. I estimate needing about $6M to complement my wife’s income to maintain our lifestyle. ​ EDIT 2: This is not a 40 hour job that I’m just putting in 16 hours. No, this is a WFH job where really I put in 16 hours and the rest, I’m taking care of the house, working on my car, etc etc. Thanks for all the comments, at least my conflict, in theory, is represented here. ​

fatFIRE

At 16 hours a week, you’re already *kind of* retired. Why would you go get a full-time job to be able to retire in some abstract future? Why not do now with the time that you have what you would want to do in the future?

7hmjdw

My brother killed himself because of BTC

I don't really know where to post this but I feel like I need to vent. Do not take this as criticism of Bitcoin, blockchain technology, or cryptocurrency users & developers, it's not. There are probably other factors that led to my brother's suicide, but he had been beating himself up over Bitcoin for the past several years to the point where he seemed constantly depressed over it and gradually became a shadow of his former happy self. He claimed to have owned 15,000 at one point, which may have been an exaggeration. But I know for a fact that at some point around October-November 2012 he did have at least 6,000 BTC which he showed me in his wallets. He was so enthusiastic about Bitcoin and how cryptocurrencies would revolutionize the financial world. For awhile he was annoying the fuck out of our relatives about how it would make them millionaires. I'm not sure exactly what happened to his BTC. Sometime in 2013 he claimed to have lost most of them in a hack and sold the remainder too early. He very well may have sold them all too early, but who knows. As the price took off in late 2013-early 2014 you could tell he was distraught over it and became increasingly withdrawn from family and friends. Whenever I did manage to contact him he would sometimes end up ranting about how badly he had fucked up and how he would never have a chance to be rich again. As the price climbed up to 10k over the past several months it became even more difficult to make contact with him, he just wouldn't reply to me or my parents calls and texts. A couple weeks ago my parents flew out to see my brother and found him dead by suicide with no note. He was 29 with 50 years of life ahead of him. Other than obvious grief I don't really know how to feel about this. If I had missed out on $50M I might have killed myself too. I can't imagine what my brother must have been feeling these past several years knowing he missed his best & easiest shot at the wealthy life he had always fantasized about. Bitcoin totally fucked up his mindset to the point where you couldn't talk about anything related to investing, money or finances without him storming off or crying. If there's any more of you in a similar situation feel free to PM me. Please try to recognize there are endless economic opportunities in life and 1 mistake doesn't define your future. There are family and friends who care about you and will listen.

Bitcoin

I bought Apple when it was $9/share and I owned thousands of shares. If I'd just held onto it and not done a single damn thing, remaining through years of stock splits, I would be a multimillionaire. For not doing a goddamn thing other than ignoring it. The fact is, life happens. You get older (I'm in my 40s) and you look back on it and realize that the money didn't matter in the long run as much as the times you spent doing things. Time with loved ones. Time learning new things. Time exploring the world. That's the stuff that money cannot buy. Later in life when you have the money to buy the toys after decades of investing, you realize that the toys are boring and the memories are what you value. The journey *was* the reward, and getting to the end kind of sucks. My point is this. This happens to everybody, and you grow up to live and learn. Buy an S&P 500 index fund with half of the money and then put the rest into Bitcoin. Diversify and HODL both.

tr0x9y

The price was very briefly somewhere above $510

I have three call options, one with a 510 strike price. Just before the halt, I got notifications from my broker that all three options were in the money. Before the halt was lifted, I was notified that all three were no longer in the money. How much more theft are we going to put up with? How much more blatant can you get? The American market is just as bad, if not worse, than the LME. These idiots seem to have forgotten why there was a French revolution. At some point, people will decide enough is enough.

Superstonk

There was another dude who had RH alerts about his $510 calls going ITM. Ofc he got destroyed for using RH but the fact remains it happened to him. E: [Found it.](https://www.reddit.com/r/Superstonk/comments/tr0byu/did_anybody_get_in_the_money_notifications_prior/?utm_source=share&utm_medium=ios_app&utm_name=iossmf)

lgd6sf

What is your favourite Canadian Penny Stock? Describe it in 2 sentences or less

Use this as an opportunity to introduce people to your favourite ticker that they may have never come across otherwise! Maybe find a hidden gem or two.. **ALWAYS DO YOUR OWN DD!!** **Keep the main comments to this format:** “$#### - Describe the company, blah blah blah. 🚀” **Rules:** Main comments must be 2 sentences or less in the format above. No crazy text walls in replies (extensive DD, copy paste press releases, etc.) No links in main comment. Links in replies allowed ONLY if it answers a question. **Low karma/new accounts:** Comments will be moderated but this is a good chance to join the discussion and earn karma to get past auto mod restrictions! Ask questions, chat & have fun! None of this is financial advice.

Canadapennystocks

$GDNP - prepping for a compostable future, and with Canada looking to ban single use plastics, I’m a big fan $NEXE - same principal, but with compostable single use coffee pods. Can’t wait to see how these companies progress with getting rid of disposable plastics! Edit: this is my first award and wow thank you!!

snjts2

Realtor reselling condo 3 days after closing

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?

realestateinvesting

A Realtor is a real estate agent who is a member of the National Association of Realtors. If your real estate agent is a Realtor (almost every one of them is), you should contact your state board of Realtors and let them know you believe your real estate agent has behaved unethically. A real estate agent encouraging you to take an offer before a property hits the open market and then turning around and helping the new owner list it on the open market - that sounds like they weren’t looking out for your best interests. You should also call your state bar association and ask for a consultation. It’s usually free, and a lawyer may take your case without up front pay if they believe there’s a good chance for damages. Pursue this. Do not ignore or cut your losses. You may be owed the additional value of the property plus four times that amount. This is also why real estate agents have to carry insurance. Edit: Want to explicitly say that this may be a misunderstanding or a unique circumstance. This may also be a run of the mill practice that is not being fully appreciated through this Reddit post. Ultimately, we’re just random people with no particular understanding of the situation. I might be a twelve year old. Document - screenshot listings, keep copies of your correspondence. Get a free consultation with someone who will give you actual advice, like a lawyer. Specifically, seek out a lawyer who has experience in real estate. As mentioned above, state bar association is a good start.

lmcktr

FatFIRE is for suckers, I decided to FILE - Live Early.

Back in my 30's I was similar to so many people who post here. I was a computer programmer making good money from my salary, stock grants, bonuses, investments, and the booming housing market. If I had stuck with it a few more years I could have retired early. People who haven't experienced it will never understand. "Just stick with it," they'll say, "How bad can it be?" If you've been in a job you hate, or are right now, you know that sometimes the money simply isn't worth it. I was bringing my work stress home with me. I wasn't a happy person and that wasn't fair to my wife or young kids. So I quit. I could have taken some time off, decompressed, then found another job to continue my FIRE journey. Nope, instead I bought a coffee farm in Hawaii. I wasn't at my FIRE number yet and after purchasing the farm I was even further away but I don't regret my decision. In fact, I'd say it was the best decision I've ever made. Farming isn't easy. If you think any idiot can be a farmer, you're wrong. Computer programming was easy, farming is not. Still, it was totally worth it. Of course I might be biased because growing coffee in Hawaii is different than growing corn in Minnesota. Now I'm in my 50's, the kids are grown, and I'm selling the farms. I don't have enough money to retire so I'll have to get a job. That's kind of scary. It's been decades since I had to look for a job. Some might think I made a huge mistake. I was close to permanent retirement but I blew it. Instead of retiring early I have spent my entire life working and now I need to keep working. "Fail!" they might say. I look at it different. Which is better, enjoying life while you're young or waiting until you're old? I quit a job I hated and created one I enjoyed. Whenever I wanted to go surfing, sailing, play computer games, take a nap, or hang out with my family and friends, all I had to do was ask the boss. Since I am the boss I always said yes. Maybe some people like the hustle of Silicon Valley, personally I have enjoyed the quiet life on a Kona coffee farm. I'm not trying to convince anyone to give up their journey to FatFIRE land. If I had stuck with it for a few more years, I might be very comfortably retired now. Or I might be a divorced alcoholic with no stories to tell. I have touched lava, swam with dolphins and sharks, chased a pet goat out of my living room, wrestled a wild boar, been sunburned on my private parts, been lost in the jungle, and every day I drink ridiculously expensive gourmet coffee that I grew myself. If I'm working at age 65, will I still think I made the right decision?

fatFIRE

You sound convinced, and that’s the only person that matters here. There is no one size fits all. As bill murray says in “lost in translation”: “the trick is to know yourself, and that’s hard enough”.

b7hqn3

Tried to keep my FIRE situation secret but, family found out. What to do next?

​ Throwaway because numbers. I've been on this FIRE journey since I was 18. I've done pretty well for myself so far and am on track to retire by 40. But, I royally fucked up this week. This is just a reminder to everyone who can hopefully learn from my mistakes: never, ever let people find out how much money you have. Hide it at all costs & don't trust anyone. Also, I need advice. My mom was in town the other day and, while I was at work, I let her chill at my apartment before an appointment she had. That morning, I was working on some papers for a visa application. For the application, I have to account for my current income and assets ($115k/yr, $525k) and also include copies of my account statements. Those papers were on my desk in my bedroom in plain sight. I didn't think about it until she called me yesterday and flat out told me that she saw the papers on my desk. Then, she started crying and told me in very clear terms that she expected help. She then laid out (in detail) all the financial problems that she and the rest of my family were having. I honestly didn't know what to do or say so I just hung up. Yes, because I am socially inept and can't handle confrontation like that, I hung up... and ignored the next 4 calls and 5 texts she sent. I also ignored the calls from my siblings and aunt. So I am thinking that she talked to the rest of my family about this and told them that I am now ignoring her. $525k is basically an unlimited amount of money from her perspective and my family thought that I was just as poor as they are so, I get it? I understand how much of a shock that would have been for her. But, I wish I wasn't so careless. I had no idea she would go snooping in my bedroom. I don't know what to do now. I don't plan on ignoring my family forever and I can't talk to any of my friends about this so.... what would you do? OR if anyone here has actually dealt with a situation like this, advice on a way forward is greatly appreciated. I just feel like I've now become the family bank and everyone is going to constantly ask for a bailout.

financialindependence

My parents have a family member who kinda learned of their FIRE scenario. So every time this family member asks for money, my mom first demands to look at their pay stubs and where the money goes. If they can show her that 90% or more of the paycheck went to legitimate expenses, she will help. Turns out this family member spends about 60% of their paycheck on going out to the bar, going out to dinner, and other stupid stuff. So my mom says she will start helping once she is given full control over the person's finances and sets up a tight spending budget. All of a sudden this person doesn't need help anymore... strange! OP, I would suggest instead offering to help them get on track financially. Kill 'em with kindness and overly supportive finance advice. Be overly positive about helping them be more like you. They'll back off eventually if you can keep pushing this conversation, especially if it comes up around other friends and family. "I've told you 10 times mom, I'm willing to help you budget like I do. I'm not paying your bills when you refuse to accept help with spending habits". Edit: thank you for the gold! Edit2: thanks for the silver! Also wanted to add an interesting way to look at things. If someone blows their money on a vacation and cannot afford to pay their bills, but then you "help them out" with their bills, you are essentially funding the vacation since the money normally saved for bills was used elsewhere. This is why you don't give people money to help them financially.

l9k2pl

NEW RULE: Anyone found pumping stocks or bringing attention to individual tickers will be perma-banned. We are not WSB. This is an algo trading subreddit.

Title says it all. The amount of comments and posts I've had to remove over the last few days that were just telling people to buy random low liquidity ticker symbols or meme stocks is silly. Be warned, we are not WSB. If you post something off-topic to algo trading, such as pumping a MEME stock, you will be perma-banned.

algotrading

As long as we keep posts like: "My alg returns an average of +21% daily and I've made 9 figures in the last year. Does anyone mind sharing their alg so I can compare?" Edit: folks, it's a joke. I don't have such algorithm and anyone who claims to have one is likely also joking/lying.

nrc7cg

Stop feeling sympathetic for those that lost their $ on naked AMC/GME Calls

I understand it sucks to see people losing their life savings, but we have been telling you not to sell naked calls on meme stocks FOR 6 FUCKING MONTHS. That’s more than enough time to grasp the fact that the premium on meme stock options are high for a reason. I have absolutely no sympathy for any of you. To the ones who sold covered calls, I also have no sympathy. You made max profit. Stop bitching about missed gains because it could have just as easily gone the opposite way. Be grateful and move your capital to another stock Edit: why is this doing numbers? It’s a shitpost. Thank you for the awards though lmao

thetagang

Everything I read in these threads is absolutely the opposite of what thetagang is about, making a little less consistently without a huge risks, just overall trading smarter. Selling naked calls on AMC is just an arrogant wsb logo with nerdy glasses

m3g13g

Is there a better sub where comments aren’t hidden 99.9% of the time?

So often someone will ask an amazing question, something I’m really interested in getting a good answer to, or even someone’s opinion, but I always just see that message explaining that comments need to be approved. 99.9% is an exaggeration, but not many people are going to come back to look at a post to see if any comments have been approved.

AskEconomics

Some general feedback on what it is you're not seeing: * long written answers which are just anecdotes: "my shop had to pay an import tax penalty once and...." * political comments: "minimum wage is really good/bad because..." * jokes or witty remarks, which while sometime humorous don't add to this subs content. * answers with wierd mixes of correct and incorrect information mixed together: "inflation does X[correct] , but central banks need to Y[incorrect] ...". I'd also note, some really good questions I don't know the answer to because they're on specific topics... We are sometimes dependent on someone with the relevant expertise to answer. As well sometimes it takes time for mods to validate in the cases where we don't have expertise. We don't have strict coordination, most often when I see a topic about which I'm less familiar I'll wait for another mod who's more confident in that area to review. It's not like any one of us have all the answers (or all the time it would take to validate all the replies). Seeing wrong and/or off topic answers won't resolve your complaint, the mods feel diluting the content like that is worse than having no visible comments. Know at least that when you do see a top level comment there's some peer review to it.

lvon5a

Today I made my first $70 bucks from the market, & promptly logged the fuck off.

As a completely new day trader i’m ecstatic, i have been severely depressed for some time now & life just seemed to be taking no brakes with the whole shitting in my cereal thing. Learning & starting this adventure has brought me so much purpose & motivation i feel like i can maybe just maybe start creating some direction for myself. this is just nothing from no one but thank you for reading this anyways i appreciate & love all of you.

Daytrading

No thats awesome. Congrats. Keep it up and keep your head in the game and never get emotional, only analytical. Your future will be bright. Seems not so long ago my daily benchmark was $100 unrealized gain. I logged $7k in realized gain today. There will be growing pains and losses but if your truly invested (pun intended) you will succeed!

7q7imt

Why need to stand up to Bittrex. PLEASE PLEASE PLEASE UPVOTE. Help 1000s of people. Missing 1000s of dollars. With support MIA for months.

I just finished a scan of reddit and twitter, searching for Bittrex support issues. It's ridiculous to read about some clients of theirs who have been waiting 4+ months for a response, let alone a resolution. This just isn't right. They happily accepted our deposits to trade. That's an agreement that our issues should be dealt with in good faith, in a timely manner and with open communication. The backlog excuse, I've heard it many, many, many times before. That's not our problem. It's theirs. And whatever they have to do to resolve and lessen the backlog, do it. No more excuses. Hire more staff. Change the resolution process. Increase shifts. Overtime. So many options. God doesn't need to tell us you're rolling in crypto right now. I'm sure the funds are there to implement whatever possible improvements are necessary and give people back their money. Do you think support is this tough with the largest traditional stock brokerage sites? Or banks? Not even a chance. After a 10 minute call, issues are rectified. And that includes waiting on hold for five minutes. This is from their twitter account on December 14, 2017... "We have turned off user registration for a DB upgrade due to a large spike in new user sign ups." What about support upgrades? That's great about your new DB but seems like your tickets are only going to increase now by being able to handle more sign-ups. More congestion. More waiting. I currently have over $15,000 in support tickets with them. I know I'm not the only one. But if there is no fire under their ass, nothing will get done in a timely manner. POST YOUR ISSUES HERE AT REDDIT.COM/R/BITTREXSUPPORTLOGS. They are not listening on twitter anymore so here's another way for us to voice and let them know we won't tolerate the way they're handling OUR money. Subscribe. Post. Upvote other posts. Comment. That's the only way we'll get this rolling. And if you haven't had to file a support ticket, lucky you. I hope you'll never have to. But help us out anyway.

CryptoMarkets

It's amazing how quickly things change in crypto. When I first started poloniex was the place to be. Then it was total shit and bittrex was all the rage. Now bittrex is shit and binance is king. I wonder how long that will last.

ldw1z7

This sub has been the best kept secret of the old wsb

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.

thetagang

Agree. Thetagang is the best investing/trading sub. A relatively small sub that people share their strategies and stock picks and help each other answering their question. r/investing is just a echo chamber and the only voice you can hear is ETF and r/wsb is pure garbage now, full of people who never joined any investing subs one month ago suddenly becoming market specialist and have no idea how market works so they label everything with conspiracy theory. Selfishly speaking, I also prefer to have more people as our consumers than competitors

l7jcxx

IM URGING YOU TO READ IF YOU OWN AMC

Guys, first off i’ve been part of this community for only a short time, a little bit before this whole short interest craze but I seriously love the amazing things we’ve done for peoples lives. I’ve read about college kids paying off their student loans, people being able to afford to pay for family members cancer treatment, pet owners being able to afford their pups surgery. It’s incredible and I couldn’t be more proud to know I have a stake in this historical moment in time with all of you. You see those headlines? That pushback from the big suits of wall street? WE did that. Together. If today was any indication at all, they are shitting their pants right now. I urge all of you to hold AMC and take advantage of dips if you’re inclined to do so. Please do not fall for hedge funds manipulating the market to send you into a panic sell frenzy. The squeeze may not be tomorrow, and maybe not Monday, but it’s coming. I was DEEP in the red today and in any other scenario, I’d be panicking but this is bigger than me. It’s bigger than you, yes you reading this. This is a chance for us to come together as a collective and revolutionize the economy for better. Do your DD, stay on the ball, don’t let emotions cloud your judgement. I’m here to ride or die, AMC (and GME) to the fuckin moon baby, i love all you morons🚀🚀🚀🚀🌕🌕🌕💎🙌📈📈 (edit: ik this technically isn’t a penny stock but we do have an AMC mega thread here)

pennystocks

>I was DEEP in the red today and in any other scenario, I’d be panicking but this is bigger than me. It’s bigger than you, yes you reading this. I agree 100%. I'm not even upset if I lose the 5K anymore. Fuck the big bankers and the hedge fund troglodytes. What is happening is one of the most American and democratic events to occur in years. It's beautiful. Stay the course and hold the line.

xxt9k4

Asda has announced it is offering over 60’s unlimited hot drinks, hot soup and a roll for just £1 through November and December.

Asda has announced all of its own in-store cafe’s will be offering over 60’s a roll, hot soup and hot drinks through November and December for £1 to help with the cost of living crisis. This isn’t strictly personal finance related but I’m sure there’s plenty of people over this age or with family over this age that may see this post and benefit from it, so I though it’d be worth posting for awareness.

UKPersonalFinance

FYI, Asda aren't just helping out the over 60's. They also do kids meals for £1 when an adult buys a meal or drink and free baby food pouches when an adult buys a meal so that helps babies, kids and parents/carers. Whilst I'm not single or an adult without a child, I do think single adults and adult couples without kids get absolutely zero help and more needs done. It would be nice if they offered something to that large group of people but at the end of the day, Asda shouldn't be propping up a failing system.

snrrsy

Economists, what is the single biggest misconception you feel the "Econ 101" crowd has about economics in the real world?

By Econ 101, I do not mean people who are ignorant of the study of economics. I mean individuals who draw incorrect conclusions about economics based on a failure to recognize the simplifying assumptions we make in introductory courses. Here is something I believed early on in undergrad when I (wrongly) thought I knew everything there was to know about economics: "printing money" essentially has a 1:1 relationship with inflation. I never considered that the velocity of money could fall!

AskEconomics

It is not our fault that your country is mismanaged. We don't actually predict the future We measure, describe uncertainties, model and optimize. Economists don't really know anything about the weather either. Stop misquoting the 10 economists who were selectively surveyed out of the millions that exist.

wdufes

Pls explain like I am 5 yrs old. how is the rba raising interest rates helping me, Mr average.

Cost of everything up, mortgage payments up, everything still going up. Can someone explain in a basic way how the rba raising interest rates helps me? Someone must be winning and it doesn't feel like it's me. And how does this help those looking to buy a home? Isn't the drop in house prices cancelled out by the interest rates rising? Edit: Thanks everyone. I really appreciate the replies and knowledge share. I have to be thankful for what I have though never feels good to pay more for the same. One thing I am really thankful for (and amateur tip)is getting a mortgage/home based on what I would be comfortable paying monthly at 7-8% not what the bank would give me which was a lot more.

AusFinance

Right now there’s a battle going on. On one side, is Dastardly Inflation. That makes everything cost more money. Your lollies that were $1 last week will now cost you $1.10. And if Dastardly Inflation has his way, they will soon cost you $2! Which is mean, because your pocket money isn’t going up that fast. On the other side is Captain Interest Rates! Now, he’s more of an Anti-hero. You know how at the end of Avengers the heroes have done trillions of dollars damage to Manhattan? Well, you don’t because you’re 5; you know how I clean your room and pack up all your lego and tear down your creations? We don’t like it, but we need it to to have a clean room / beat the bad guys. Captain Interest Rates is like that - he has a huge, blunt instrument that does a lot of damage, and we all just hope he defeats Dastardly Inflation without wrecking too much else. The winner isn’t you today. The winner is you in the future. It’s fun to have a clean room to play in. It’s fun to pay $1 not $2 for lollies. But to get that good outcome, we need to defeat Dastardly Inflation. And that needs Captain Interest Rates. Now run along and build a lego house. Regardless of interest rates, that’s the only house you’ll ever be able to afford.

lh8dyi

NAMASTE TECH. NV

Hey, this is my first DD, I've been trading for around 6 months, and I found this very interesting penny stock with great growth potential! I'd like to hear your opinions aswell! Namaste Technologies (NV/NXTTF) is the largest ONLINE retailer for medical cannabis systems across the world. Majority of the market is situated in the biggest countries such as: Europe, Australia, UK, Canada, Germany, and keeps expanding into new markets such as Brazil, Mexico and Chile. Namaste Tech. is an international leader in vaporizer and accessories distribution, with great potential up ahead. We are the most bullish on the international side of the industry. Here are some keys aspects to consider upon investments: -Advances USA Expansion with approval from TSX Exchange, engaging in sales of smoking accessories and hemp derived CBD in the U.S. Namaste looks forward to leveraging its VendorLink technology in collaboration with DankStop and PeakBirch Logic, Inc. They also launched another brand under the name: Roilty. -Expects to go live for U.S customers thru CAnnmart by the end of this February 2021. This proves that their expansion is significant and should affect the attention of the company. -This company got approved for their launch of a new nutraceutical division and an expansion of the business into psychedelics. -Estimation of 100% surge on Q4 revenue to $8m From the looks of it, Namaste Technologies have extremely great potential for growth. Through the power of expansion and innovation, there’s no surprise that the company grew by 88% this last month. It is truly a company to watch out for closely, as they are very active with deal-breaking new ideas and constant development. PRICE TARGET: Short Term: 2$-2.25$ - Long Term: 5$+ My personal position stands at 10.3k shares at 0.29$ NAMASTE TECH. EXTRA INFORMATION (10/02/2021): Market Cap: 115.62M Volume: 8,341,194 Avg. Volume: 1,008,808 References: https://finpedia.co/bin/Namaste%20Technologies/ https://www.namastetechnologies.com/news/

Canadapennystocks

This is NOT A DD POST. Read on. I am all for Namaste, been in it since 0.20$ but I am sorry I have to poke holes in your DD, for one this is not a DD because it doesn’t include any of the risks or the downfall they might face in the future. This is just a cheerful advertisement wrapped in a DD tag. Secondly they have had awful bad rep in the past and their stock history shows it. They also blew it big time in 2018. Thirdly their stock history also shows a clear sign of pump and dump behaviour and I am highly skeptical that the same situation is happening once again with Namaste since “weed” stocks are the new fad. And people just want to pump and dump it. I be surprised if we don’t see these “DD” posts about Namaste showing up more and more in the next few days all saying the same positive things with no negatives in different subreddits and then youtube and stuff. To everyone reading this (if downvotes permit it to live) always do your own DD don’t just jump on hype wagon on a company that has no long term potential, short term gain is nice but more often than not these “DD” posts are made with people already invested in these stocks at lower prices and they want your support to pump it up more and dump it. You are left with the bag. Please, please with smart and responsible with your investments and hard earned money. Just so we clear this is not financial advice, only my personal opinion and I am selling all my positions when it hits 0.5 CAD this is not a long play stock for me based on my own DD for myself. Edit: OMG this goes deeper than I thought, most comments have typical bot behaviour with a touch of rocket emoji and just blinded cheerful excitement. All young accounts with not much going for them. They are all also upvoting each other. Edit 2: Even worst than that the Mod also gave this guy with 14day account creation and not much activity a high praise for their DD. Mod you are suppose to be out protector. What DD? They just stated few positive things about company that is it. Edit 3: I am selling all my positions at market open not even waiting for 0.50$.

hgdyom

I am a failed real estate investor. Here's what I learned.

Hi! I just closed on the sale of my second investment property, and I'm officially "out of the game". I read this sub religiously for two years before making a leap and buying property. So I thought I'd come back here and share what I learned and what I should have done differently. My story is very common: high income, high cost of living area, property here is crazy expensive, want to diversify, etc. I started looking for places to invest. After a couple failed attempts and about six months of research into cities I decided on a Midwest city. I flew out there and met a property manager and realtor (business partners) and eventually bought 2 duplexes. I was super excited to start my real estate empire! I ran the numbers hundreds of times. The rents were almost double the payments. What could go wrong? Then reality hit. There was always something happening with the properties. Always. Sometimes big stuff like the AC breaking. Stupid stuff too. Every time the PM sent someone it would be another $200-300 out of my pocket. We had two evictions (across 4 units total) and unit turnover was 10k every time, and that's after I pushed back on most of the stuff the PM insisted on "fixing" (like replacing a shower head that worked just fine. why?!). Good months, I got 80% of the rent I had been counting on in those spreadsheets I spent so much time on, but there were a lot of months where there was nothing coming in. So what does it mean when you have a mortgage on two properties with no money coming in? Risk. How long can you remain solvent? The properties were supposed to be net positive, instead I never even bothered putting them in the income section of my budget sheet because it was so unreliable. I realized that I have no stomach for the degree of risk that comes with increased debt. I once thought that I would buy one property per year. I can easily afford the down payments. But each one is another amount that becomes a tighter noose around your neck if / when the tenants don't pay. I sold my first property after the tenant got evicted. I sold the most recent one after I had a dream that covid caused the economy to crash to 2008 levels and it lost half its value. I just don't have the stomach for that level of risk. Lessons learned: ** Do not invest out of state unless you have multiple, personal connections that have worked with the property manager in the past. I still don't know if they fucked me over or if I got unlucky with the properties/tenants. I suspect it's a bit of both. They certainly padded the to do list when turning the units over by at least 50 percent. I was charged $400 to haul away the debris after one turnover. ** Get a separate property manager, realtor, and attorney with no connections to each other. You need checks and balances. ** Understand how much risk you can stomach. Know yourself. I have a "fuck you money" amount of savings in cash because I'm just inherently not a very risk taking person. You don't want your investment to keep you up at night. ** Talk to the PM before signing anything on what the process is to end your relationship with them if things go south. Document it. ** This one is kinda random but if you're trying to keep your investment a secret from family, put it in an LLC. Wholesale vultures called my estranged father trying to get him to sell them his property in <city>! Which was just great when I purposefully didn't tell anyone about the investment to keep my financial situation under wraps. So, in the end, I'm a failed real estate investor. Due to property appreciation I basically broke even on one property and made maybe $20k on the sale of the other, so it was just a collosal waste of time for the number of trips across country, all the transaction fees, etc. Hope this was useful info for someone. Like I said, I never told any of my friends or family about any of this so Reddit is all I've got to get this off my chest.

realestateinvesting

Property Manager that looks after 600+ units here. Not to rub salt in OP's wound, I appreciate that he had the courage to post this. But all of this is completely avoidable. Would a write up on how to choose a Property Manager be warranted on this sub? Edit: [How to Choose a Good Property Manager](https://www.reddit.com/r/realestateinvesting/comments/hgmiqp/how_to_choose_a_good_property_manager/)

lghevq

First Time Investors - If you don't know what to do -- READ This

Hi all beginners, I was once like you, had no idea what I was doing, no idea what an option was, and had no idea how to even buy a stock. Now, you could say I'm an "experienced" trader (Whatever the f%&\* that means), and I see a decent amount of posts "totally new - what should I invest in". From all the smooth brains that have been doing this for awhile - that's really annoying and no one wants to help you for the most part. Instead, do you own research first - I mean, you literally have Google, it is so simple. Im really not trying to bash on anyone, but Google is amazing and if you just take the 15 minutes to read an article or watch the ENTIRE youtube video, you will be so much further ahead. people are so obsessed with the known and dont want to work. It has taken me about 3-4 years to finally understand the market, charts, DD, and more about stocks and I still lose money on trades, and if u see someone saying they never loss money its a scam and stay away. Anyways, what im trying to preface this with is stocks take time to understand do you DD. For those complete beginners that dont even have brokerage app installed yet, here are some good places to start: [https://www.investopedia.com/articles/basics/06/invest1000.asp](https://www.investopedia.com/articles/basics/06/invest1000.asp) (investopedia in general is amazing for learning) [https://www.thebalance.com/stock-trading-101-358115](https://www.thebalance.com/stock-trading-101-358115) Those are two good articles to start reading, giving you a basic understanding. I know most of you wont read that so for complete beginners here is the TL;DR: FIND A BROKEAGE LIKE ROBINHOOD,WEBULL ETC, DEPOSIT MONEY, THEN ONCE THE MONEY HITS START RESEARCHING STOCKS YOU WANT TO BUY. So now that you have a brokerage app installed on your phone, or you can access it via your laptop, doesnt matter, and you have some money in there, you can actually start buying the stocks. Depending on what brokerage you are using all the UIs look different so buying and selling will look different but buying and selling is the same. If you buy a stock you get shares, and when you sell the stock you lose those shares and "collect" your money, whether thats a profit or loss. Anyways, you have a brokerage now with some money in it, how do you find stocks to buy. There are a million difference ways you can decide. The first way I recommend you find stocks to buy is through create a "stock screener". [Finviz.com](https://finviz.com/) has a great free tool that alot of people use for this, and there are a ton of youtube videos on how to create your own screener..here are some of my favorite screeners: [https://www.youtube.com/watch?v=M8sNMhPJINU&t=2s](https://www.youtube.com/watch?v=M8sNMhPJINU&t=2s) [https://www.youtube.com/watch?v=bWpe30R2VnM](https://www.youtube.com/watch?v=bWpe30R2VnM) [https://www.youtube.com/watch?v=7xKOo6vNaq8](https://www.youtube.com/watch?v=7xKOo6vNaq8) Each morning, you can run these scans premarket and have some stock ideas on what you want to trade. But don't just base your screener off of the stocks you are going to buy, you have to make sure they are a good stock with potential because just because its in your screener doesn't mean it is a stock you want to trade. So go through technical chart analysis (will cover that further down), read up on the stock, look at the price target, with analysts think it is a good buy or if you should sell, you can look at the fundamentals, and much more. The good news is all of that can be found on Finviz as well. Before we get into the meat of breaking down your pre-market screener stocks, there are some other ways you can check out stocks to buy. There are way to many accounts to count on twitter that provide great advise and tweet about what stocks they are watching and buying into - this is complete free. Another great place you can go is right here - REDDIT. People are always posting stock ideas, so instead of posting "what should I buy" take that time to look through subreddits of what people are buying, what they are looking at or some of the DDs, those can be super helpful. Now that you have an idea on how to find the stocks, the next part is determining if you should actually buy the stock or not. The first step I like is the technical chart analysis. If this is a swing trade, a stock you plan on holding for more than a day but less than a year, technical analysis is super important in my opinion. If you are LONG on a stock and are going to hold it for more than a year or even 10+ years then it is more about the company and the direction you think they will be going which is more fundamental trading, but I focus on more of the swing trading, and sometimes day trading but I dont really do that. Here are some good videos to understand technical analysis of a stock chart: [https://www.youtube.com/watch?v=rlZRtQkfK04](https://www.youtube.com/watch?v=rlZRtQkfK04) [https://www.youtube.com/watch?v=o6hZma0bajE](https://www.youtube.com/watch?v=o6hZma0bajE) [https://www.youtube.com/watch?v=ItacPNRujiU](https://www.youtube.com/watch?v=ItacPNRujiU) Those are some great videos that should get you started and really will teach you what all the stuff on the charts mean so you can start to break down charts on your own and know if those stocks from your screener are worth buying or not. The next analysis that is popular is called funamental, I dont do this style but here are 2 videos that cover it in good detail: [https://www.youtube.com/watch?v=a63yvv4vjDE](https://www.youtube.com/watch?v=a63yvv4vjDE) [https://www.youtube.com/watch?v=baAzH5ZfNbs](https://www.youtube.com/watch?v=baAzH5ZfNbs) There you have it. Now you can sign up for a broker to get money into an account, deposit money in, start screening for stocks that you may want to buy, and then review their chart to see if you want to buy the stock. If it still seems confusing go back to what confuses you and re-read the article or find another video that may explain it better than the videos I found. Its all about just doing the process over and over again and you will see what works and what doesnt. That is the honest truth, like i said it took me about 3 years to find what works for me and what doesnt. And what works for me may not work for you, the biggest part of understanding a stock or the market in general is having your own way so you are confident when you invest in a stock. Pro-tip, when you buy your stocks, set a stop loss order for the stock. This means that if the stock doesnt go up and starts falling, once it hits a certain price it will automatically sell. This is very important for managing your risk, especially as a beginner. check out this video on stop losses: [https://www.youtube.com/watch?v=VW7P22B\_99A](https://www.youtube.com/watch?v=VW7P22B_99A) I hope you beginners learned something from this, if not no problem. drop your questions below I will try to answer, but again im now financal advisor or millionaire.

StocksAndTrading

Champ. I really appreciate this. I just got into Sri is with the whole GME. I started buying basic crypto with Coinbase (they give free crypto) and RH (I know they are bad lol) and so far got about 200$ in. I mostly bought bigger name brands bc I know they will gain in the LONG. Thanks for the post it was amazingly helpful.

m7dxnz

Today, at the age of 28, I became a millionaire

Obligatory: This is not to brag, but more a gratitude post for all the help over the years from people in this sub, and other mentors. Also, there are very few people in my circle outside of my wife and a few core friends that I'm able to share this with. Five years ago (2016), at the age of 23, I got my first taste of real estate. I purchased a single family home. A little 1300 sq. ft. house, with 4 bedrooms, and 2 bathrooms. I lived in the master suite, and rented out the three extra bedrooms to my buddies. I lived completely for free, which was a miracle as I was living paycheck-to-paycheck, and had a net worth of -$50k (student loans, CCs, and car loan). Little did I know that this even had a coined term -- "house hacking". Two years later, my life had changed quite a bit. I was getting married, and rather than keeping that home as a rental, my wife and I decided that we would kick out the roommates, and sell the house to pay off debt, and move into her home. When my house sold, I stood in awe, holding a check for $40k -- the same amount as my entire year's salary. Not only did I get to live completely for free for two years, I made $40k. I thought to myself, "I've got to do this again." That $40k paid off all of my remaining student loans, and all of my credit cards. With the money we had leftover ($25k), we rolled the remaining into our first rental property. We started attending our local REIA, networked, and made connections. The first rental rolled into a duplex. And then the duplex rolled into a fourplex. Then we snagged another single family property. We did our first BRRRR deal. Then we found a great deal on a commercial property. We tried GC'ing a home on our own. And then we tried an AirBnb. We've used every type of financing under the sun: FHA, Conventional, HELOC, Seller Financing, 401k Loans, Hard Money, and Cash-out Refi's. Little by little, just with consistency and patience, we've been able to build a nice little portfolio of 9 properties and 20 units. Our current NW consists of: Cash - $37k RE Equity - $889k Vehicles/Toys - $112k It's a really cool feeling to be able to say "I'm a millionaire." It's a fun milestone to hit, yet at the same time, feels very small now when I look at other investors with insane net worths. Regardless, I'm really pleased and grateful with what we've been able to achieve in just a few short years. We're on track to hit $1.2M or $1.3M by the end of the year. Of course, a lot of the credit goes to being privileged, as well. I realize that I won the lottery by being born into a white, middle-class family, in America. I never grew up hungry, and both of my parents were well-educated with college degrees. I'm grateful for my upbringing and know that this absolutely has attributed to our success. Anyway, I think the whole point of this post is to say that it's easy to look at others and compare and see what they have. But it's amazing how 4-5 years of consistency and hard work with laser focus can truly change your life. I have SO much to learn, but finally feel that I sort of have a decent "hang" of it. I love RE. I still work a 9-5 (mostly because it's easier to qualify for loans with a W2), but have a goal to quit by my 30th birthday. Onto the next million!

realestateinvesting

You listed your equity, but how much are you leveraged? Not trying to downplay your success but I think everyone needs to understand the overall risk you have taken or are taking. I knew tons of millionaires back in 2008 that were bankrupt by 2010. Just trying to add some balance to the discussion.

fdlriy

You are not "family" to your company. If you have an opportunity to better yourself, take it. They will do the same when it comes to cutting ties with you.

People tend to feel a sense of guilt when it comes to leaving a job like they owe them or their coworkers something. That is because America preaches this "family" culture that we are such a strong team all working together. In reality, if they need to close your entire division, they will do it without hesitation. If they can outsource something cheaper, they will do it. You do not owe them anything and if you see a better opportunity for yourself or your family, please take it and make your own financial future.

personalfinance

I worked 683 hours of overtime for my current company last year only to be passed up for a promotion 3 different times. Fuck them. A few weeks ago I took a sick day to stay at home and work on my resume and apply to jobs. It worked out great, I just accepted an offer for a much more exciting job with a 50% increase to my current salary. I'll be putting in my two weeks notice on Friday and it has felt great walking in to work everyday this week knowing that they won't be my problem for much longer.

x0nc5u

Is rich dad poor dad trustworthy

I recently started reading rich dad poor dad. The information to me is simple and seems to be true but is it actually true. Any more guidance on personal finance / hustle?

Money

It's a pretty simplistic take on personal finance. Only go into debt to purchase things that make you more money. Cash flow is king, things like that. The author Robert, has gone bankrupt at least once but the general advice is pretty good. OP if you're paying off debt, and saving money for retirement (even if its only a little) you're doing better than most. If you have any questions shoot me a message, I'm not a high net worth individual (yet) but personal finance is my main hobby.

pawihj

Failure To Deliver 🍉

I made a statement in the daily thread that if the stock reached $200, I would put a watermelon in my anus. I watched in horror as the stock I liked soared from about $170 to over $215, a price it had not seen in weeks. ^(Is ^this ^the ^catalyst?) After careful consideration and measurements, I have come to the conclusion that fulfilling this bet would cause severe trauma for both myself and the watermelon. I had hoped that my bet would be forgotten about but as we have all learned over these last 7 months, Apes never forget. I cannot give you all what you ask of me, but I can give you justice. I will change my flair to whatever suggestion gets the most upvotes, and I also won't contest a ban from the mods. I wish you all good fortune in the weeks to come, it's been a fun 7 months. Stonks only go up (unlike watermelons) **TL;DR** no melon, no cry. **TA;DR** 🚫🍉⬆️🍑

Superstonk

WE WERE ROOTING FOR YOU WE WERE ALL ROOTING FOR YOU Edit: Okay I can't believe I'm saying this, we had an emergency meeting about Melon guy, going with what u/Doom_Douche and u/stonk_sandwich suggested, flair and 3 day ban, but I said I needed to do it cause I let this slide, my first Ban be gentle. u/HoldRush you are banned from Superstonk for 3 Days for Failing to Deliver a promise to the Apes. When you come back you will be wearing the Black Flair failure to deliver 🍉 which will never be undone by any Flair Day Friday from today and MOASS beyond May DFV and RC have mercy on you for these Apes have none, begone

ldzd8u

WSB ruined investment based subs on Reddit.

You cant even post about moderate gains without some fanatic or social justice warrior trying to tell you that you are a "paper handed bitch" or that you "turned your back on the movement". What fucking movement?! Stocks are not a movement. What happened with the meme stocks is not a movement. It's a bunch of idiots who got too greedy and in turn attracted a larger group of idiots who think putting $100 into a fractional share is going to bankrupt all the large players and change the way capital is dispersed to the people. Get your head out of your ass. You didn't even bankrupt 1 hedge fund. You just forced them to close their position and borrow from their friends. I hope these people go back to r/charity or r/socialjustice or where ever they usually bitch and moan about not knowing how to make money. r/investing r/stocks r/stockmarket are for investing and trading not for furthering your cause or political beliefs. That's it. GL making that paper guys. Edit: For those who are upset about my inclusion of r/socialjustice and r/charity I will admit It was an uncalled for jab at them and I do appreciate the work they do. I am actually upset about those false, fake, or wannabee, sjw's acting like this is a movement we are all a part of or even wanted to be involved in when they really just wanted to see meme stocks get them rich quick. Edit 2: For anyone who is new to trading and looking to learn more I would like to direct you to the following educational sources:-Most Brokers have excellent educational resources on their platforms when it comes to the basics.-Investopedia has articles and educational resources on most charts, technical analysis, trading strategies, and techniques. [https://www.investopedia.com/](https://www.investopedia.com/)The subs bot also provided me with these: [https://github.com/ckz8780/market-toolkit#getting-started](https://github.com/ckz8780/market-toolkit#getting-started) Edit 3: Hey all, This was really fun chatting and arguing with you all. I tried to answer every comment and now I'm gonna call it because at this point most of the comments are just angry kids yelling at me for being paper handed or a whiney bitch. So have a great day & good luck on your future trades! Disclaimer: None of my comments should be considered financial advice.

StockMarket

The fact that wsb went from 1.5 mil to almost 9 mil in 2 weeks plus the national coverage makes me not value the info in the sub anymore because of the potential bad actors. I know there were bad actors before but now the scale has increased

vbznh5

Is a stock market crash like the ones in 1929 and 2008 impending?

More or less all stock prices have been continously falling for the last week, if not longer. The housing market sees skyrocketing prices, the price on food, gas and electricity is increasing, and subsequently the consumer spending index drops. All of this leads to an increase in inflation. Are we going to see a stock market crash and financial crisis, like the ones in 1929 and 2008? Or are things different this time? Also, should I personally be worried that I'm not going to be able to get a job, and afford stuff like a house and a normal standard of living, once I've finished my education in 5-6 years?

AskEconomics

On this subreddit we mods don't like predictions about stock-market crashes. They are notoriously tricky, for the reason already given by another commenter. It is fairly easy though, to explain why the current situation is so troubling. I'm going to concentrate on that. During the pandemic the Federal Reserve performed very expansionary monetary policy. Other Central Banks across the world did something similar. As it turned out that policy was too expansionary. Inflation was caused by various factors including pandemic-induced supply chain problems and the expansionary monetary policy. As a result, inflation has been high for quite a while now. Over on /r/badeconomics Integralds gives [the path of the CPI price-level compared to the Fed's aim](https://i.imgur.com/Pfn9szI.png). The price level is now far higher than the Fed's intended path. Since 2020 inflation has averaged 5.25% rather than the 2% aim. If inflation went to 0% next month and stayed there it would take *several years* for the Fed to get back to it's intended price-level path. This leads us to the current problems. The Fed must raise interest rates to counter inflation. It must contract the money supply or at least stop it from expanding further. Raising interest rates is contractionary. It will raise interest costs and deter investment spending. This affects the stock market in three inter-related ways. Firstly, companies can borrow less to expand, which affects their growth prospects. Secondly, stock speculators can borrow less to buy shares (margin loan interest rises). Thirdly, bonds become a relatively more attractive investment compared to stocks. (Notice, that only the first effect -probably the weakest one- applies to the wider economy.) When thinking about the US stock market you must remember that it has already declined a great deal. The S&P500 peaked at 4818.62 on Jan 4th this year. Looking just now it is at 3742.23, that's a fall of 22.3%. Has the stock-market fallen far enough, or has it fallen too far? I have my own opinions about that, but conventional economics does not give an answer.

l6xpjg

Trading212 banning people from buying GME and AMC. This is unacceptable!

I don't have any GME/AMC, I'm not riding this hype train, but I find it ridiculous that a broker is basically prohibiting people to invest in whatever they want. It's their money, not yours, T212. Great thing I abandoned them! https://i.imgur.com/h6HMchO.png

eupersonalfinance

This is a bit of a joke. A broker prevents users from buying a stock for unexplained reason and then allows them to sell. But when the time to sell finally comes, users can't sell because the broker does not work... While I don't think T212 is to blame for GME trading halting (I blame IB for that) its a bit of a joke how they crash every time on US market open this week...

xojnnx

Thoughts on UK economy under Truss?

Hello, American here. Astounded at how much the pound dropped vs USD after Liz Truss’ and Kwasi Kwarteng’s speeches on tax cuts and breaks. Imo multinationals listed in London should perform better on paper because of the decreased tax burden and oversees sales (in USD) should bolster balance sheets, however I’m curious what others thing!

UKInvesting

Economist here. The main problem is that the budget was basically a gamble. The tax cuts weren’t funded and rely on economic growth to make up the reduced tax revenue. Economic growth isn’t forecast to be very good in the short term and the UK has a low medium to long term growth forecast when compared to other developed economies. This means that there is a strong chance that the UK government will need to borrow money to pay for it. High borrowing isn’t always negative but if this happens there isn’t anything to show for it. If borrowing was high to, say, invest in renewable energy infrastructure, then the lower energy costs in the future offset the borrowing. The markets can’t see what the benefit is here. It may work and it may stimulate the economy but it is strange timing with interest rates working against it at the same time. Taking my economist’s hat off for a second, my colleagues are all of the opinion that the new government is displaying economic illiteracy and that in itself is fuelling the negative sentiment. I can’t comment on this though.

r8tyri

(CODENAME: S.O.C.K.) Mod Team was approached by several news agencies. We don’t feel comfortable speaking on your behalf. So we have a mission for you, should you choose to accept it… ***cue Mission Impossible music***

Alright good afternoon my wrinkle wizards and smoothbrain boners, we’ve got a situation on our hands and things are looking…spicy. [HODL ON!!!! \(don’t try this at home\)](https://i.redd.it/6dl9q3os3k381.gif) So over the past couple months, we’ve had the Mainstream Media (MSM) reach out to the Mod Team for interviews. We told them all no, we can’t do interviews. For transparency purposes, these news agencies are Reuters, Market Watch, Wall Street Journal, & CBC (Canadian Broadcast Company). Hell, we even had a possible connection to a US Senator lol. We haven’t done anything with them other than some initial back and forth to find out what they want. It’s not our place to speak on behalf of the Apes. We do not represent Apes, we do not speak for Apes, and we sure as hell aren’t gonna try. Recently, we’ve had an uptick in outside agencies reaching out and if we’re honest, we think SuperStonk and the Apes are gonna be dealing with a lot more of the press/politicians as we get closer to MOASS. As such, the Mods have felt we need to collaborate with you guys on a game plan for dealing with these agencies, together as a community, because it’s gonna be a bumpy ride. [\(for real, don’t try this at home\)](https://i.redd.it/mvexvi9u3k381.gif) So here’s what we know: We received modmail with requests for interviews, we asked about what, some have responded, some have not, and here we are. One of them had a focus on why we were so adamant about Computershare and what changes we’ve noticed since moving our shares into our names. We expect that soon, others will reach out and want us to say something. Especially when we start seeing the stock price add some commas 😉. Until the subreddit figures out how to proceed, we’re gonna leave them on “Read.” How do you guys think we should proceed with the news? Should we engage? If so, how? Do you want to directly talk to them? Or should we tell them to fuck off? We want to hear your thoughts and ideas. The Mods do have an option to manually approve reporters if you wish to invite them to the subreddit to ask their questions. It’s a lot of ground we need to cover. And because of how open ended this situation is, the Mods would like to pitch an idea to you. [\(this can be tried at home\)](https://preview.redd.it/x2xfnf8v3k381.jpg?width=1908&format=pjpg&auto=webp&s=0eef10eaf8d09cc19d9488f625b7f5867435f091) …is band together and use the combined skills of the community to develop and create the first Superstonk Official Communications Kit (S.O.C.K.) to give to reporters when they come knocking. [CODE NAME: S.O.C.K.](https://preview.redd.it/qnno9yzv3k381.png?width=504&format=png&auto=webp&s=94681587b08248abc9f427cae7769413ab5a99b3) [\(definitely don’t try this at home\)](https://preview.redd.it/nr368rkw3k381.jpg?width=432&format=pjpg&auto=webp&s=b5a79f3ca1844f2ab911c94d87d4375242fa87e4) [\(you’ve already tried this at home\)](https://preview.redd.it/yxrzwv0x3k381.jpg?width=480&format=pjpg&auto=webp&s=5dbbe80c241e4005bf1685271235729e0791ea6f) The SOCK would ideally have some basic stuff that says who we are and what we’re about. What do we like? What do we not like? Something to give the MSM a clear picture of what it means to be an Ape of Superstonk. It would need to be a polished document that is fact checked and peer reviewed and yes, it needs to look “presentable” to the outside world. Or you can just say fuck that idea lmao. It totally doesn’t matter. The Mods are putting the power of our representation to the world in your diamond hands. However you guys want to decide this, whether it be a committee, or an election, or whatever, you guys just come up with the idea and the Mods will watch and support you beautiful Apes along the way (we will still moderate the subreddit lmayo you can’t break rules for this). I’m a firm believer that when enough critical thinkers get together, then any problem can be solved and we just so happen to have an entire network of people asking the right questions. We don’t speak on your behalf, so we present you with this mission, and *should you choose to accept it*, we will let you go and do your thing. We want this to be a community driven effort. By the Apes, For the Apes. Some pointers up front: you guys are gonna figure out how tricky it is to maneuver this size of a group. Sometimes it’ll be a delicate dance with a rope and floor and gravity. [\(I'd be impressed if you could try this at home, but don't try this at home\)](https://i.redd.it/2u15f92y3k381.gif) You’ll need to use your wrinkles and your wits. And don’t go full smoothbrain 😂 \- - OH WAIT IT’S PROBABLY MORE LIKE THIS - - [\(SAFELY try this at home and make a Superstonk meme lol\)](https://i.redd.it/3uolo1jy3k381.gif) So now you guys know basically what we know and I’m fascinated to see how you’re going to react. From here, the Mods will liaison and support where necessary. Ball’s in your court. Godspeed, Ape. THIS MESSAGE WILL SELF DESTRUCT IN 5…4…3…2…1… [\(can you even try this at home? lol please don’t try\)](https://i.redd.it/gjcihmez3k381.gif) lol jk there’s no destruction # XOXO the Superstonk Mods 🦍💎✋🚀🌕🐳🚽🦙🐸🍦 ​ # TA;DR: The mod team is seeing an uptick in inquiries from MSM outlets requesting interviews and questions. The mod team does not speak for you. So, this is your chance. Do you want us to tell them to fuck off? Or do you want to talk to them? Or maybe, as a community, you could put together the S.O.C.K. (Superstonk Official Communications Kit) to give to reporters? You decide! Time to speak up!

Superstonk

As someone who has done media engagement regarding developing scientific research...this sounds like a huge headache. It is better to just stay silent IMO. We are individual investors. There is absolutely no way you'll be able to capture everyone's individual sentiment. Also, MSM is notorious for highlighting things that you didn't mean to highlight (not even maliciously most of the time). Talking to MSM is very tricky and takes a lot of training. This is a bad idea.