Welcome back to the channel everyone today, i want to talk about the massive liquidity crisis that's currently being covered up and the impact that it will have on amc, so stay tuned and let's make some money, and now i want to dive straight in with the key Information so four days ago, the federal reserve released the names of the banks that had received 4.5 trillion dollars in cumulative loans in the last quarter of 2019, under its emergency repo loan operations for a liquidity crisis that has yet to be credibly explained among the largest Borrowers were jp, morgan, chase, goldman sachs and citigroup three of the wall. Street banks threw at the center of the subprime and derivatives crisis in 2008 that brought down the us economy and the banks that are right now, very, very heavily over leveraged. You may remember the goldman sachs is the bank that's leveraged at like 133 times to one, and that is absolutely blockbuster news, but as of 7am this morning, not one major business media outlet has reported the details of the fed's big reveal. But it's not just this one liquidity crisis in 2019.

That's the problem right now, there's actually multiple ongoing liquidity crisis still happening right under our very noses. Jpmorgan chase and city group. Citibank are among the largest deposit-taking federally insured banks in the us, so why did they need to borrow from the fed on an emergency basis in the fall of 2019, and this poster has never before seen a total news blackout of any financial news story of this Magnitude in 35 years of monitoring wall street and the fed, and this article even believes that some journalists are actually under gag orders and physically can't talk about it. In the news on september 17 2019 the fed began making trillions of dollars a month in emergency repo loans to 24 trading houses on wall street, the fed released on a daily basis.

The dollar amount. It was loaning just like we can see here with the overnight repo facility, but withheld the names of the specific banks and how much they borrowed, and this was the first time the fed had intervened in the repo market since the 2008 financial crash, the worst financial Crisis since the great depression and this website emailed the data to the media relations, contacts for the wall street journal, the new york times the financial times and the washington post inquiring as to why there was a news blackout on this story, but only received silence. Now you may notice that these banks that borrowed 4.5 trillion dollars back in 2019, jp morgan, chase goldman sachs and citigroup are the same three largest banks that hold massive amounts of derivatives. It's calculated that 91 of this 183 trillion dollars worth of derivatives is held by these top four banks: jp morgan with 52 trillion goldman sachs with 48 trillion, citibank with 44 trillion and bank of america with 19.6 trillion.

So why is it that banks with seemingly trillions and trillions and trillions of dollars of safe derivatives are having to borrow such massive amounts of money back in 2019, but not only in 2019, but right now, as well with the overnight repo facility? You may remember, on the 31st of december 2021, a new all-time high was set in this overnight repo facility of 1.9 trillion dollars. If you're a bit confused with what this overnight reverse repo facility actually does. I've got the definition here from investopedia, so a reverse repurchase agreement or reverse repo is the purchase of securities with the agreement to sell them at a higher price at a specific future day so effectively. What this is is the fed lending securities or lending money to those major banks with the intent of buying them back in whatever period of time for more money than they initially lent them.

For so not only are these banks getting to borrow these securities or borrow this money, but they're also making a profit on it as well as they sell it back to the fed in the future for even more than they borrowed it. For if you didn't already know, mumu is an excellent commission free broker. They also don't make their money from payment for order flow. Mumu and futu make their money from margin interest and from payment fees.

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If they start recognizing the losses, they won't be able to meet. Those margin calls and these banks will effectively go under, and that is why these banks are having to borrow trillions and trillions of dollars in this overnight reverse repo facility and also why they had to borrow four and a half trillion dollars back in 2019. But the worrying thing is that it's not just this one overnight - reverse reaper facility of 1.5 1.9 trillion dollars. But you may also remember from one of my videos a few days ago, the fed has just released another 500 billion dollar standing repo facility and who are the counterparties for this standing repo facility, citibank, goldman sachs and mizuho.

So this time not jp morgan but citibank and goldman sachs, again reappear, but something you may not have known about is that there's also another reverse repo facility for foreign officials and international accounts, which currently has around 280 billion us dollars inside, and this just goes to Show that goldman sachs and citibank are absolutely desperate for any money. They can get their hands on because they are so over leveraged and they're realizing these derivatives. They have really aren't worth the paper they're written on. So, what's going to happen, if all of these banks are very very over leveraged and trying to borrow as much money as physically possible because they know that they're over leveraged and just don't have the asset value we're going to start seeing a lot more stories like This one credit suite is to lay off new york employees as it shuts its hedge fund division.

The article says credit suisses starting the year on a sour note, with the bank disclosing monday that 69 new york staffers will be shown the door. The pink slips are in a division that served hedge funds and which is being wound down after our cagos capital management collapsed. Last year sticking the bank with a 5 billion loss. New management vowed to stop lending hedge funds or processing their trades.

A typically lucrative business dominated by morgan stanley, goldman sachs and jp morgan again, those same banks that are very, very over leveraged that are lending money and lending derivatives to these hedge funds that are imploding and the assets are becoming worthless at the switzerland bank. So credit suisse net income fell by 86 over the nine months ending last september, the 30th to 475 million dollars and its investment banking division posted a nearly 2 billion dollar pre-tax loss results were weighed down by regulatory charges, litigation costs and hedge fund related losses. In addition to the archaegos fiasco, the bank wrote down at stake in manhattan, manhattan-based york, capital management by about 125 million dollars after taking a 450 million dollar loss in 2020 and credit suisse said. The fourth quarter of 2021 would be unprofitable because it expects to take a 1.6 billion dollar write down related to its acquisition of investment, bank, donaldson, lufkin and genre.

And finally, in november management of credit suisse said that in recent years it had cut capital allocations to the investment banking division, almost in half and was focusing on serving wealthy clients and therefore investment banking at the moment, isn't as profitable as it used to be because The market is on a cliff edge and another hedge fund here is feeling the pinch. 13 billion hedge fund whale rock capital suffered big losses in 2021 after getting slammed in december. This sounds like another domino in the long line of dominoes, that is, hedge funds going under because of either aggressively shorting amc or just being heavily over leveraged in the market as a whole. And finally, i want to talk about adam aaron and how marc hodes, cody's sto plan would have actually worked.

Pip and sammy tweeted asking would mark podestio plan presented in early december, which is a hundred percent legal and, if acted upon by adam aaron, likely have prevented the amc stock price falling from 42 dollars to 25 and sinking. He says a simple, yes, no or i don't know. What's going on, will suffice. Mark codes, replied, saying yes and tara.

Bull replied saying it would have likely caused the stock to go in the other direction, as in it would have likely caused amc to go up from 42, potentially to new highs. This tweet says, to be honest, you could make an argument that adam aaron, making his tweet saying that amc will not ever issue an nft dividend, was market manipulation because it was detrimental to retail investors and potentially caused the shorts to pile in even heavier when those Short hedge funds knew that adam aaron wasn't planning to issue an nft dividend and exposed the naked shorts and synthetic shares. Then the shorts piled in even more the shorts issued more and more and more synthetic shares crushing the price because they knew they weren't really at risk of being exposed, because obviously the sec isn't really going to do anything now, while i do think adam aaron is Doing a brilliant job at running the company and turning amc into a profitable business, it does beg the question as to why adam aaron couldn't have issued one nft dividend for every single share. Obviously, adam aaron said that it was fraught of legal complications, but mark codes.

Doesn't really seem to think that's the case and believes that it is 100 legal as long as you can make a genuine business case now, especially as amc is more and more heavily entering the market of nfts, it begs the question as to why they can't do That i'd be really interested to hear your thoughts down in the comments below what you think about an nft dividend or an nft gift to shareholders and whether you think that would have impacted the amc price. As always guys. If you enjoyed this video be sure to check out some of my others, alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted. When i upload a new video cheers.