Is the game gonna stop?

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Is the game gonna stop?

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Is Gamestop really going to change markets forever?

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Is there really a movement on the Internet that’s going to flip the entire financial world on its head?

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As of today, I can’t say yes because nothing’s happened.

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Yet every day, it becomes the powder keg that no one is paying attention to.

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Let me explain.

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Jan 2021 the price of Gamestop went up to $500 a share then Wall Street shut off the buy button (I’ve written about before and you should know about)

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Coordinated across multiple brokerages and firms like the DTCC, NSCC, CFTC and SEC, they turned it off.

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They didn’t allow people to buy more shares.

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They chose Wall Street and the big banks instead of the little guy, or thousands of little guys around the world, who beat Wall Street at their own game.

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Retail beat Wall Street doing exactly what they’ve been doing for generations.

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Since that time, millions more people got invested.

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Now why is this relevant?

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Millions of people can invest in something like Tesla or Apple or Google or any of the million other big companies on the market, so why Gamestop?

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Why does this dying brick-and-mortar retailer mean more than what the mainstream media wants you to believe?

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Because people figured out DRS.

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They figured out how to directly register your shares.

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Why is this important?

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Because it removes liquidity from the market.

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It takes available shares away for market makers and Wall Street to trade with.

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What does that even mean?

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Let’s use a simple example.

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A company decides to list on the stock market and has only 100 shares.

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Some of those shares are locked up or ‘registered’ by insiders at the company, institutions and banks.

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Let’s say they register 30 shares.

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So now in the market to trade, you only have 70 shares.

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This means Wall Street and the market makers can buy/sell only 70 shares.

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What happens if retail en masse decides to start registering their shares too?

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What if they take 40 shares or 50 shares or 60 shares out of the market?

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Then the liquidity pool or number of shares available goes down.

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Why is this relevant?

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Well, what if you’re a short hedge fund?

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What if you’re a short market maker?

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What if you’re short the stock?

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What that means is you borrowed the stock and haven’t gone into the market to buy it back and return it to the person you borrowed it from.

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If when you went short the number of shares to trade was 70 and a year a half later it’s 10, you are fucked.

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Royally fucked.

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Now what happens if you were naked short shares?

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This means you were short more shares than existed.

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This is what happened to Gamestop in Jan 2021.

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Wall Street, hedge funds and market makers were short more shares than existed.

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140%.

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Now you should be asking how is this possible?

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How is this allowed?

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Guess what, market makers and Wall Street have bent the rules such that they create infinite liquidity in the market.

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Literally the CEO of a market maker said that it an interview - INFINITE LIQUIDITY!

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And guess what the penalties are for breaking the rules?

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Million dollar fines.

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For breaking the rules and not delivering shares, Wall Street banks, hedge funds and market makers pay millions of dollars when they’re making billions.

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Billions off of retail investors, every single year.

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They’ve gotten away with it for generations because there’s no punishment.

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There are no consequences severe enough for them to stop doing it.

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Why would you not pay millions in fines when you’re making billions on the back-end, no one goes to prison and no one has to admit any fault?

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You wouldn’t.

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Now here’s how they play the shell game to make sure they can keep running this racket.

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Lobbying.

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AKA legalized bribery.

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Burn that into your brain because that’s what lobbyists do.

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Wall Street has the best on the street.

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It’s how they swindled Obama out of enacting any difficult legislation while Hank Paulson was treasury secretary to save the banks, give Wall Street billions of dollars and let them keep their bonuses.

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So why not spend some of the billions you make on lobbyists and politics to make sure you get the right people in power?

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The right people who are never going to change the laws and rules.

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Ask Ken Griffin about that.

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Second largest donor to the Republican party for a reason.

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Why do you think SBF donated so much to politics?

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He knows how this shell game is played.

Buy the politicians.

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Buy the media.

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Be connected with the right influential people.

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Influence policy.

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And then you’re golden.

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Only problem for SBF was his charade got caught before he could accomplish the full thing.

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But how about our boy Ken?

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Is he ever going to get found out?

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Nope.

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Not in this environment.

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Not until something happens.

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Not unless he’s at the centre of one of the largest financial crises in history.

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All because him and his buddies decided to naked short a gaming company and underestimated the power of the Internet and social media.

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So what happened since Jan 2021?

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No one’s stopping buying.

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Millions have people have registered shares.

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A subreddit literally owns billions of dollars of a gaming company with shares in their name that Wall Street cannot use for their shell game.

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Remember, the internet is undefeated.

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So do I believe the game is going to stop for Wall Street?

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Let’s see.

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Should be a wild ride.

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