The Internet figured out options:

The Internet figured out options.

They figured out how market makers and hedge funds use options to hide all their shit.

The derivatives market is trillions of dollars.

Remember the part in the Big Short where Selena Gomez is explaining how CDOs work?

This one:

https://www.youtube.com/watch?v=Pxr_FzpPM2Q

That’s essentially the derivatives market.

It’s legalized gambling.

It’s all controlled by those at the top.

Has been for a long time.

But only recently did the Internet figure out how they do it.

Tested theories.

Came together as a community.

Used expertise from people all around the world.

Contributed their evidence and refined their theories based on new evidence.

Superstonk is the best peer-reviewed website I’ve seen in action.

It’s amazing.

Everyone contributing to the same cause.

To figure out how Wall Street actually works.

Expose all the crimes that are going on in broad daylight that no one has done anything about since the last Global Financial Crisis.

Wall Street spent billions of dollars in lobbying fees after the last global financial crisis.

Lobbying is just legalized bribing. Never forget that.

The banking system didn’t get regulated and market makers continue to steal millions of dollars from retail investors.

Michael Lewis tried to expose it with Flash Boys.

Same as Brad Katsuyama.

Such a hero.

They figured out how market makers are making their money and front running them on every trade.

That’s fine if they're independent organizations but when you’re a Citadel and have a multibillion-dollar hedge fund, and fixed income fund along with your market maker business, you have a conflict of interest.

Your hedge fund plays the same positions you take on as a market maker.

That’s fine when no one is paying attention.

But one guy online started digging into a company and realized something was off.

How could a company have 140% short interest reported?

That makes no sense.

It’s illegal but of course they do it when the fines are miniscule and no one spends time in prison.

So what did DFV do?

He told Reddit.

He told the Internet.

Some people believed him, did their own research and bought into the idea.

Then January 2021 happened.

Millions more started paying attention.

They kept contributing.

Then slowly the system got exposed.

Atobitt the GOAT with the Citadel exposure and the Everything Short.

Man in the Glass Castle.

Criand with his multiple god tier DDs.

Here’s just one of the incredible posts he’s written on how 2008 never ended.

So many people contributed to the community.

Then you have the lurkers like me who are watching this unfold from afar.

Doing your own homework and realizing holy shit?

What if they’re right?

So I went to work.

I tried to study history to understand how this time period fits in other time periods in history.

It’s easy to see we’re in a superbubble if you study history.

All supported by the US Fed.

That’s fine if that money went into economic productivity and actually making things.

But when it’s given to the banks and their favourite buddies, the hedge funds and market makers, they’re just going to boost asset prices.

Also when interest rates are this low and money is essentially free, everyone can take it out.

It increases demand, but supply cannot catch up.

Covid shut down the world.

To make up for that quickly is hard.

We saw how impervious the world’s shipping system is when the Ever Given Ship got stuck in the Suez Canal.

But when the Federal Reserve adds 25% of all money ever printed in US history in a 2 year time period, you have a problem.

That money mostly boosts assets.

It does not trickle down to people towards the bottom.

Trickle-down economics is bullshit.

Inequality hasn’t been this high in generations.

Any functioning society in history cannot sustain this.

Something has to give.

An economic crisis can do that.

This is always going to happen.

Crashes and crises are everywhere in history.

It’s how capitalism works.

Debts have to get restructured.

But if a government decides not to let a crash occur and continue to print currency, which is the politically correct thing to do, they’re screwing themselves even more.

It creates even more division.

That’s fine if you’re in a country where you’re population isn’t armed.

That’s not America.

America’s politicians have enriched the elite for generations and refused to invest in their broader population.

Their population on average is not as educated as China.

Sure America still has some of the best universities in the world and the smartest are very smart, but China actually invests in its population.

It knows in history you need an educated population to continue to advance.

To succeed for generations, you have to start building now.

That doesn’t mean there won’t be problems along the way in China.

The real estate debt crisis is a massive one.

Why?

Because the banks are also at risk.

But it’s not just the banks, it’s the international banks.

Who holds Chinese real estate bonds?

A lot of international banks.

That’s a problem.

So you have the China problem, this meme stock problem, the hedge fund problem, the inflation problem, the supply chain problem, the Russia Ukraine problem, and the COVID problem.

That’s a lot of problems.

The world is about to change in a drastic way.

History tells us it has to.

There are too many signs.

Ray Dalio’s been speaking this in public for multiple years now.

Be ready for the world to change drastically.

Humanity will get through it.

Evolution will take its course.

That’s healthy for us in the long run.

The issue is many people around the world will get hurt.

That’s the saddest part.

So who do you blame?

The guys who set up the Wall Street infinite money game in the first place.

Who figured it out?

The Internet.

Options and the derivatives market are just part of how they do it.

But there’s so much more.