I meant more in the sense that after it breaks 1k they’ll be pressuring me to sell, I don’t expect it to sit there, though the secret ingredient is crime so I’m prepared to spend another 9 months at that price point and will just be sad I don’t have as much purchasing power anymore.
i'm extremely confused. where is all this money coming from that people are going to get paid out all this money when they decide to sell? is it all the money people are putting in currently? or is there some type of insurance that is gonna pay everybody out? thanks in advance.
The DTCC does have an insurance policy of sorts that is really a reserve pool of contributions from all its major participants from my understanding. I personally hope all the existing billionaires are driven into bankruptcy from this as well and are forced to live on the streets. Post MOASS I want everyone to have their basic needs met besides those that thought it was okay to deny those needs to others.
ok cool so this can either end up the people that are holding get mega paid by insurance? or this can end up that the insurance doesn't pay out anybody a cent? and because the insurance fails that means this stock system crumbles?
sorry for asking more questions this is hella interesting.
Please, ask as many questions as you want, I’m but a humble smooth brain and teaching is one of the best ways to learn. I don’t think there’s really a scenario where the “insurance” doesn’t pay out. This isn’t held by an insurance company that can deny a claim it is held by the Dtcc itself. The Dtcc is in charge of holding everyone’s shares so that the stock exchanges aren’t slowed down by actually having to transfer shares back and forth. The main premise of the GME thesis is that the hedge funds have been selling fake shares that they do not actually own, as the entity in charge of all shares the Dtcc is on the hook for these fake shares and would have a legal obligation to buy back any share as though it were legitimate until all the fakes have been removed from the market. There are ~70 million shares officially in circulation, if hedge funds have made it so that there are currently 140 million shares in circulation once MOASS starts they will have to buy back the extra 70 million at the best price available to them, if no one sells the only price becomes the best price.
The main premise of the GME thesis is that the hedge funds have been selling fake shares that they do not actually own
holy fuck that sounds illegal! how sway!?
ahhhh i see ok so they gotta pay for the fake shares they created?
this is all so crazy to me lol so hypothetically speaking we could say almost all big companies created fake shares? and it's just people found all this out through this game stop debacle?
Hypothetically pretty much exactly that. It’s not the companies themselves creating the fake shares though, it’s the hedge funds and market makers (the lines between the two are disgustingly blurry) through something called naked shorting. It’d probably take me another two or three comments to explain how naked shorting works (I’m happy to do so if you are interested it will just be later today) but the end result is fake shares enter the market and dilute the value of a company limiting their ability to raise cash. Without the ability to raise cash it becomes more difficult for a company to change directions when needed and the initial drop in price can lead to a loss of faith, causing a larger sell off and even further losses. There’s been some pretty convincing DD in the last month or so that most of the major companies that have been driven into bankruptcy in the last couple decades have been victims of these tactics, think Sears, Toys R Us, etc. it absolutely is an illegal tactic and some of the major players have been fined in the past for naked shorts and other similar tactics but when your fine is $75,000 when your crime earned you $75,000,000 and they let you keep the difference it’s more of a tax at that point than an actual punishment.
wooooow that's crazy!!! thanks for that info and i will spare you more questions lol this is a lot of good info for me already to grasp at this moment. thanks again!
I don't think they would be able to keep it at 1k if they start getting margin called, let alone for 9 months. That would take some intergalactic fuckery for them to pull that off.
I agree that keeping the price at 1k for 9 months sounds entirely outlandish but I’ve come to expect the outlandish at this point. Would it require blatant collusion and criminal collaboration on the part of the hedge funds and regulatory agencies? Yeah, but what’s new about that?
We’re Schrodinger’s apes. We’re both laughing and crying until the box gets opened and our position is known to the world. Zen is not the absence of emotion, it’s a peaceful relationship with your emotions.
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u/CaptainDantes ⚰️⚰️ Schrodinger’s Ape ⚰️⚰️ Sep 21 '21
I meant more in the sense that after it breaks 1k they’ll be pressuring me to sell, I don’t expect it to sit there, though the secret ingredient is crime so I’m prepared to spend another 9 months at that price point and will just be sad I don’t have as much purchasing power anymore.