The world is watching, America:

The world is watching, America.

How you handle this AMC/GME short squeeze will have repercussions for the rest of the world.

If you decide to let it squeeze, let banks, hedge funds and companies die, reform the system to never allow this to happen again and let people around the world become millionaires, the world will be ok.

If you allow politicians to be paid off by lobbying groups to not let bills pass, let rich people continue to maintain this fraudulent stock market and don’t put people in prison for crashing the world economy with their fraud, America is finished.

For too long, those at the top have had all the wealth. Through QE and money printing, those at the top have had their wealth increase on paper exponentially in the last year. Some companies have gone up 10x in a single year, in the middle of a global pandemic.

Let’s think about this rationally. Has a company become a 10x better company in the same time period? Absolutely not. No company can become 10x better in a single year, but that’s what happened for tech and growth companies over the last year. Retail investors and institutions are chasing yield because there is nowhere else to put their money.

All of that is going to come crashing down to a halt, ala the crash of 1929 where major banks fell. Don’t be surprised if America goes through a depression-like-state again.

Short term, this will be very bad for most people in the country as those at the bottom are likely to feel the effects of it first. Even if rich people lose money, they’re still rich. Some will fall and lose everything because they got greedy and took on too much leverage over the last year, but there will be millions of people whose lives will forever change by this short squeeze. They’ll be able to pay off loans, pay off medical debt, buy houses, quit their jobs and retire. 

My fear is the banks are going to ask for bailouts. They’re going to use all their lobbying power in the world and all the politicians they’ve paid off to get them a bailout. What I hope happens is those banks that win in this squeeze like BlackRock and Fidelity/Vanguard, who are already worth trillions of dollars, are going to just buy the rest of the banks for pennies on the dollar to maintain them.

In every crash there are winners and losers. This time, millions of people will win and you can bet there are tons of institutions and big money whales who have bought into Gamestop and AMC. You can bet they want this squeeze to happen to crush the fraudulent market players.

We’ll see what happens. This will be one of the most interesting years in history because market crashes don’t happen that often. I was too young to understand what it was like in 07/08 because we were still in school, but it didn’t really change my life.

Today, everything could change. A lot of what I’ve been writing about in the last few months is history. These words likely get studied and read by people for years because I could be discussing history before it happens.

We’ll see. Interesting days ahead.