Welcome back to the channel everyone today, i want to talk about whether blackrock have been lending out their shares, and actually i want to come at this video from multiple different angles why they might not have been lending out their shares why they might have been lending Out their shares and why this is bad, but also why it might actually be a good thing and towards the end of the video i've got another clueless, cnbc anchor, so stay tuned and let's make some money, but guys before i dive into the video. I just want to give a massive shout out to 3 700 of you that have currently doing that notification bell, because you guys are always the first to watch a new video as soon as it's released so guys be sure to drop a like down below check Out the description and get your full free shares worth up to 3 350 with moomoo and also consider joining the patreon and the private discord to being with the chance of winning 600 dollars and as always, subscribe. If you haven't already and do that notification bell, so that you don't miss another video, just like this one now guys, i do want to preface this video by saying that i obviously don't work for blackrock, i'm not the ceo of blackrock, i'm not the cio of Blackrock and i'm also not best friends with the ceo of blackrock either, and therefore this video is only an assumption and i can't really claim to know exactly what blackrock are doing with their shares. And now i want to dive straight in with the key information.

So why might blackrock not have been lending out their shares? If you have a look at iborodesk, we can see that for amc, the current share lending fee is only one percent which isn't very high. Therefore, blackrock are only making one percent a year on their entire position when lending out that amc share. Now, you might say well, blackrock has 30 million shares of amc, 30 million shares of amc at one point at two dollars a share was two billion dollars. Yes, one percent doesn't sound like a very high percentage, but one percent of two billion dollars is a lot of money.

At the same time, though, you've got ta remember that blackrock manages seven trillion dollars of assets under management and therefore, even though one percent of two billion dollars is a lot of money, it's still very, very small fry compared to the seven trillion that they manage. If blackrock wanted to make some real money, they could look at lending out some shares in lucid, which currently has a fee of 84.2 percent, or they could have a look at lending out. Some shares in bit digital incorporated with a fee of 54.1 percent. Since october of 2020, the lowest lending rate that bitdigital has had has been four percent, with a large portion of that time being spent at 30 percent, 40, 50 and even 60.

If we have a look at this article, it talks about elon musk, turning his eye over short selling towards blackrock a day after referring to the sec is the short seller enrichment, commission, musk alleged in a twitter post on friday that blackrock made 597 million dollars. From short lending last year, at the expense of investors, he said index managers like blackrock make excessive profit from short lending, while pretending to charge low rates for passive index tracking. He alleged that mostly small investors and retirement funds don't realize that their stocks are being lent to short sellers, diminishing their true equity return. When something sounds too good to be true, it usually is he wrote in a twitter reply way the trick works.

Is companies like blackrock keep up to 50 of short interest revenue, but suffer almost none of the equity decline as they're just passive managers blackrock made 597 million dollars in short lending last year and elon actually tweeted saying i just want to say that the short seller Enrichment commission is doing incredible work and the name change is so on point musk, tweeted on october 4th. So therefore, at the end of the day, there's a lot of money in it for blackrock to lend out shares and very little risk. It basically means that blackrock can make more money from their passive index tracking. They obviously charge very low fees for those passive trackers and therefore, because they're lending out the shares it just makes them more money.

At the end of the day, blackrock is a business and any way they can make money or whatever way, makes the most money is the way they're gon na follow. A spokesperson for the asset manager said that blackrock engages in securities lending to provide investors in our funds. The ability to collect higher returns than they otherwise would receive and has delivered positive lending returns for all participating funds for over 35 years and at the end of the day, there's a reason why they've made positive lending returns for over 35 years straight and it's because They're doing whatever makes them the most money, but i suppose the big question is whether lending shares is a bad thing, or is it almost a good thing for us, but guys before i dive any deeper? I've got a quick message from the sponsor of today's video gsx is a new cryptocurrency. That's revolutionizing the space.

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Every single day we see manipulation in the pre-market in the post market when our retail buy orders are being delayed and pushed through. After the market closed as to have minimal market impact, therefore, the fact that this is allowed to continue and the fact that the hedges could potentially be borrowing more and more and more shares from other institutions just makes it even worse for the amc short squeeze. If we could block the use of dark pools for 30 days or we could block the allowability of shorting or we could block the allowability of share lending for 30 days, amc would most certainly squeeze because the hedges would be all out of tricks to manipulate the Price, if the hedges couldn't manipulate the stock, then that amc price would absolutely moon as all of the apes would be buying more and more and more available shares. But why could share lending potentially be a good thing is that they looked lined from the big shore? Blackrock is bleeding these institutions dry from both ends, as in blackrock, is long on gamestop and amc, but they also hold the trigger to stop lending etf shares to the shorts at any time, and they also hold the trigger to enact a share recall which would force All of the shorts to buy back their positions and return the shares, that's like having your hand wrapped around kenny's nuts, while the other hand steals his mayo literally blackrock, is making a killing on lending these etf shares and they're going to make a killing when these Banks and market makers can no longer afford to pay them in chess is what they call the checkmate there's a post here.

That says why i believe blackrock has their finger on the button of our mother of all short squeezes from our previous due diligence. We discovered that blackrock has the most shares in both amc and gamestop. They also have a strong relationship tie to adam aaron. The ceo of amc blackrock also hold their highest level of cash in years.

Ryan cohen and chewie received 350 million dollars in six rounds of funding, one of which was from blackrock. Therefore, blackrock also have a very strong relationship with ryan cohen as well. He says i do not believe that they're friendly whales with gamestop and amc, but he says instead, i believe their cio has a knack for playing both sides of the fence. If what tesla alleges is true odds are, is that blackrock has repeated this pattern with gamestop and possibly amc and loaned out their 9 million shares to short sellers and their 30 million amc shares to short sellers as well likely.

Those short sellers were hedge funds and more than likely when they sold those borrow shares. We bought them now, let's back up to the previous video of blackrock's chief investment officer, mentioning the fallout of bill, hangs, topple and how overleveraged and illiquid the market may be and dropping the blackrock is running their highest cash position in years, perhaps ever well. If i knew there was a likely crashing of stocks, i'd also keep my cash reserves high for the looming fire sale. Blackrock cio also emits more volatility in the market, but what he doesn't say is blackrock may be in a position to create that volatility by calling back their shares from short sellers when they recall those shares, given my assumption that they'll continue their both sides of defense Strategy, the borrowers have to repurchase them in the market and that dear apes equals the moas.

Therefore, in a really weird way, it might actually be a good thing that blackrock is lending out their shares because they're effectively giving citadel more and more lengths of rope that they can use to hang themselves with, because at the end of the day, blackrock are effectively Just bleeding citadel dry they're charging them interest on a daily basis and when said they'll run out of money, blackrock can just pull the plug. They can just enact that four share recall and make citadel buyback every single share, they've, possibly shorted and return them all to blackrock all at once. It would make a pretty sizable explosion in the amc share price if citadel had to buy back 30 million shares that they've borrowed from blackrock, if not more, if they've borrowed and created synthetic shares all at once in one singular. Second guys, let me know in the comments below what you think do you think blackrock are lending out their shares or not, and do you think it's a good thing or a bad thing, but for now let's end today's video by watching another video of a clueless Cnbc anchor, i want to get your thoughts on amc.

Sarah, i mean we heard from adam aaron yesterday on cnbc. He also did a live stream with trey's trade, a youtube channel on which uh is basically um, held by one of the quote: unquote apes out there. So he knows where his bread is buttered in terms of the retail investor. What's your take on adam aaron and the viability of amc, i am so bearish on amc.

I think this company is in a worse position now than it was at the beginning of the year when its stock was trading at like two or three dollars, but i think adam aaron is smart. I think he's making lemonade out of lemons he's smart support that retail investor, because if he can keep the stock high raise some money, then maybe he can pay down some debt and get this company in a better fundamental position with its financials. But in terms of how amc is going to fare for the year, it is not going to look good you're, looking at fear revenues for the total year that i don't personally think will cut five billion dollars. Adam aaron has said that he needs it to hit five billion dollars to be profitable.

I don't think that will happen and then i also think some of the things he's doing while they're smart support retail investors they're gimmicky. What do you mean? You're gon na? Have people buy popcorn with cryptocurrency the average age of someone buying a theater ticket is not the person behind that retail investment trade on reddit. These are people who are not gon na whip out their phones and try to buy some razor nets with cryptocurrency. It's a good buzzword, but i don't see how, in practice any of these things actually work out now, that might just be the most clueless news anchor i've ever seen.

She starts out the interview by saying that she thinks amc is in a worse position now than it was last year. Clearly, she hasn't seen the quarter two results where amc, absolutely smashed earnings and have over 1 000 year-on-year revenue growth this time last year they generated 16 million dollars this time this year they generated around 400 million dollars in one singular quarter. She probably also doesn't know that adam aaron has around two billion dollars of cash on hand that he's raised since january, and he's also promised not to actually issue any more shares. Therefore, he can't raise any more money, but he doesn't really need to because he's raised.

Two billion dollars and then she also goes on to say that buying popcorn and cinema tickets with cryptocurrency is very gimmicky, and the average age of somebody that buys popcorn and goes to the cinema isn't going to be the same average age of somebody that owns cryptocurrency. So i think she thinks that the average age of somebody that goes to the cinema is like 60 or 70 plus and doesn't understand what cryptocurrency is, which is a fair assumption. But it took me around three whole seconds to google the average age of a cinema goer, which is between 15 and 24 years old, and it also took me around three whole seconds to figure out that the average age of people that own cryptocurrency is men under 30 and therefore people that go to the cinema are exactly the same. People that buy cryptocurrency and now hopefully guys that video of the most clueless news anchor i've ever seen gave you a laugh and, as always, guys if you haven't already be sure to pick up your four free stocks worth up to 3 350 with moomoo linked in The description and, if you're from the uk, i've also got a link for free trade to get yourself a free stock and as always guys, if you enjoyed this video, be sure to check out some of my others.

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