Welcome back to the channel everyone today, i want to talk about how blackrock could cause that amc squeeze, and you guessed it because it's all due to evergrande so stay tuned and let's make some money. And now i want to dive straight in with the key information. So, dr marco meltzer, tweeted saying yesterday, it seems that the chinese central bank announced that evergrande has officially entered the bankruptcy process, there's also a video circulating on the chinese social media platform, weibo explaining who has priority during the liquidation process. This means that the evergrande liquidation and the other grand a bankruptcy is officially being reported by and officially being listed by, the chinese central bank.

Therefore, those evergrande bonds are now going to officially have the d for default rating, basically meaning the citadel can no longer use these evergrindly bonds to meet their collateral requirements. But how does this impact blackrock and how does this impact amc, so the reason why amc is currently falling is because blackrock is the second largest holder of amc, which we knew, but they are also the largest holder of evergrande and evergrande's bonds. You can see here that blackrock holds 43 000 shares in one of evergrande's bonds and there's also another screenshot. I've seen circulating around twitter, showing that blackrock holds the largest position in all of the evergrande bonds.

So the reason why, at the moment this is impacting amc is because blackrock is realizing, they have all of these worthless bonds and they can no longer meet their collateral requirements and therefore they're having to sell off some stocks in order to meet those requirements. Therefore, right now, blackrock are probably selling some of their amc position and many of their other positions as well. In order to meet these collateral requirements and meet their margin calls, and this is ultimately why right now, amc is falling because blackrock is having to sell. Obviously, we know that citadel also hold tons and tons of these worthless bonds and therefore, when they fail to meet their collateral requirements or margin calls, they will have to cover their amc shorts on top of moomoo's five free stocks, valued up to 3 500.

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Every grande is collapsing and blackrock is losing billions in the process. Could the last few days be blackrock selling off their ownership of amc to cover their evergreen losses? It's also important to remember that blackrock currently have massive unrealized gains on amc and therefore they could be realizing some of these gains in order to offset their losses from evergrande, and he said this to me would at least explain why we saw such a red week. Last week, where the selling never seemed to stop and combined with some good old short selling and illegal market manipulation - and he said this to me - is all bullish. As we know, the large institutional owners lend out their shares for almost no fee at all and also drag down our utilization, and he says, if my theory is correct, we'll hopefully see utilization climb again this coming week, because, if blackrock are selling their shares, they have To recall those lent out shares in order to sell them, therefore, whoever's shorted, those lent shares needs to cover their shorts, so blackrock could sell.

On top of this, those shares that blackrock have just sold are going to have been bought by retail investors and we obviously don't lend out our shares. So therefore, this is just going to be more of the float that was purchased by retail investors and less shares for blackrock to lend out, and they would have had to recall those shares in order to sell. As guardian h says, this is some dd on how a chain reaction could cause 40 million loaned amc shares owned by blackrock to be recalled from borrowers, who are likely sure meaning mass covering in a short amount of time. So blackrock holds 9.2 billion dollars in evergrande and 9.5 billion dollars in country garden.

Another property developed in china. That's defaulted as well as well as 500 million in casia bonds. Blackrock owns a ton of terrible chinese assets and their accounts are going to be in trouble. You can see them here.

There is a crisis looming in china and if things pan out towards the rubbish, endless stick blackrock's portfolio may melt, amc is also in blackrock's portfolio and it's also 0.6 of the russell 2000 etf. Since they're loaning out about 40 million shares. They may have to recall those shortage shares and for that to happen, those shorts will have to close their positions, meaning they'll have to buy 40 million amc shares back in january, around 70 million shares were purchased by blackrock and vanguards, and that caused the hedges to Turn off the buy button because of the volatility 40 million shorts being covered or 40 million shares having to be bought up all at once will likely cause the other 70 million out of the total 103 million shares being lent by institutions to also have to cover. As well so this could potentially end up with not just 40 million shorts being covered, but potentially over a hundred million shares to be covered because of the volatility from the 40 million.

Now, if you wondered what's going on and you've seen, the big short we're currently at that part of the big short when the bonds are worthless, but the rating agencies aren't yet budging. However, as this has now been officially reported by the chinese central bank, these rating agencies should be downgrading the evergrande bonds to worthless and into that default position, and he says you fellow ape are in the position of the main characters. You've already won, but the system is corrupt, the system is rigged, and so our attendees are delayed, they're stalling and trying to undo our win. If you hold on with diamond hands and don't let them scare you off your victory, you'll get what's yours in the end.

Now it seems like the fed is finally catching on to what's going on in china and how over-leveraged these institutions really are. The fed has just written a letter to all of the senior staff at the 12 largest banks, stating that, in the wake of our chaos, capital management default. All banking institutions must assess their derivatives exposure when dealing with counterparty credit and specifically outline margin requirements, and it says, in light of the archagos default and the context of firm's relationships with investment funds. The federal reserve is issuing this guidance to remind firms of the supervisory expectations in inter-agency supervisory guidance on counterparty credit risk management.

This isn't to make firms and industry participants aware of practices that may be inconsistent with safe and sound banking practices. This letter is intended primarily for use by banking organizations with large derivative portfolios like goldman sachs and relationships with investment funds like bank of america, who are the prime brokers for citadel, and it said the federal reserve is concerned with practices where firms accept incomplete and unverified Information from the fund, particularly with regard to the fund strategy concentrations like concentrations of stocks and relationships with other market participants. These concerns are heightened where a fund client has a history of concentrated positions and losses. Basically, the federal reserve is sending a letter explaining just how concerned they are with the over leveraged funds and institutions in the market.

Right now now you may say tom: well, that's all well and good, but there's so much negative sentiment around amc right now. What's going on with that, ashley says the overall attitude and sentiment, i'm seeing in the amc community reminds me of how i felt at the end of april. You start questioning everything you wonder if this is ever going to move up or ever going to happen. It's been one red day after the next.

You keep buying the dip, but it doesn't stop dipping you're feeling a little lost and a little defeated. You maybe even consider selling, because several people are saying the squeeze already happened or that it's never coming, but just keep your head up and believe in your conviction to the play. Obviously, if ashley was feeling like this back in april and decided to sell his amc in april or in may, he would have missed the june run up and that could potentially be exactly what's around the corner for amc either later in december or in january. For example - and i know this because amc is still the number one trending stock on twitter over the last 72 hours with over 44 million impressions - and you can see that right now - amc is still getting more impressions than tesla gamestop and many other stocks as well.

This means that the amc movement has absolutely not died out and the amc squeeze is absolutely still on. I also wanted to pick up on some very specific wording from adam aaron. In his recent interview with melissa lee on cnbc, i was wearing a tie and a dress shirt and the camera was positioned above my waist and i looked quite the professional, ceo and the camera fell over in the middle of the interview and you might say it Exposed the shorts i do think adam aaron is absolutely brilliant and picks his words. So perfectly he didn't just say the camera fell down and showed that he was naked underneath or showed his shorts.

He specifically used the word exposed his shorts and finally, adam aaron has just released the third round of amc related nfts. He tweeted saying you ask you get it it's time for amc's. Third, ever nft, he said: we've secured 20 matrix nfts from nifties and warner brothers we'll be giving these away on amc, social channels starting monday, 1pm est. Now, obviously, this is only 20 nfts, obviously not the 513 million nfts that we want, but it just goes to show that adam aaron is really serious about amc being an official nft distributor and therefore is just incorporating nfts more and more and more heavily into amc's.

Real business practice, even though adam aaron said that right now he doesn't want to issue one amc nft for every one share in existence. This does create the path for him to be able to do that in the future. Obviously, he doesn't want to do it right now because of the legal implications this would expose him to, but in the future, when he has a genuine business reason to do it. Those legal implications become minimized and or disappear entirely and, as always guys be sure to.

Let me know down in the comments below what you think about blackrock, causing the amc squeeze and how it's due to evergrande and if you want to stay up to date with all of my latest stock and crypto picks or if you just want some help. With amc and gamestop be sure to check out the patreon and the private discord linked in the description below and become part of the team, and if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe the channel and ding that notification bell, because that way, you'll be alerted. When i upload a new video cheers.