Welcome back to the channel everyone today, i want to talk about how the shorts are running, desperately low on shares to short and how the amc squeeze will soon be upon us. So stay tuned and let's make some money, and now i want to dive straight in with the key information. So robin hood plans to launch a share lending program to borrow out investors positions, so their direct market maker citadel securities can reroute the trades off exchange and shore and store. Obviously many of the users on robin hood on weeble and many other trading platforms have turned off the share lending permissions and therefore those trading platforms can't lend out the shares now.

Obviously, at the moment, many of these trading platforms don't reimburse sue for the profits that they make when lending out the shares and therefore, obviously the users turn off those share lending permissions, but robin hood and citadel securities, and all of these other shorts are hoping that By offering this new share lending program where users actually get paid to lend out their shares, that citadel will be able to borrow and locate more shorts. So i want to start by talking through this article and then explain why the shorts are desperate, to try and locate additional shares to shore and then obviously explain what that means for amc and what will happen to the amd stock. If the shorts can't locate and can't short any more shares, it says robin hood launches a stock lending program in a revenue, diversification push. It says robin hood on wednesday said it launched a fully paid securities lending program which lets the online brokers.

Users lend out shares. They own, through the popular app to market participants and passively collect a cut of the fees. Obviously, the excuse is that it's part of robin hood's efforts to diversify its income away from transactional revenue, aka away from payment for order flow, which makes up nearly three quarters of the company's revenue in the first quarter, which was down 48 from a year earlier. Now.

Obviously, robin hood already makes money by lending out shares that its customers buy on margin, but the new, fully paid program will include all shares held by its nearly 23 million users so long as they opt in and meet certain qualifications. Now at this point it genuinely wouldn't surprise me if robin hood forced their users to mandatorily opt-in, so they can continue to lend out these shares. They reckon the new program will potentially bring in one to two times the revenue that robin hood's margin securities lending program. Currently generates - and they even said in the article demand to borrow shares for a fee - often comes from institutional investors and other brokerages looking to settle trades or facilitate short sales.

Okay, when these other brokerages and market makers have these failed delivers, they obviously have to locate and borrow shares to settle the trades or facilitate those shorts. They've also said that this move is partially an effort to keep up with coinbase and other brokers that have enabled staking of cryptocurrencies okay, it's just a way for robin hood to generate some additional passive interest to obviously generate more revenue. This seems to be a mandatory move for robin hood, who obviously have seen their revenues and profits decrease every quarter over the last year and have seen their stock price tumble as well. Now, my feelings are that most of the robinhood users are currently using a margin.

Account cash accounts tend to only be used by those day trading stocks. If you're using a margin, account and you're below the pdt threshold. You can typically only make three day trades in a singular week period, or sometimes only one day, trade in a singular week period, but by trading to a cash account, you can make as many day trades as you like. As long as you wait for the cash in your account to settle after every trade, for example, if you have a thousand dollars in your account, you can make five 200 trades.

But then you have to wait an extra two days for those trades to clear and for the cash to settle and therefore i feel that most of the people that currently have a cash account don't really buy and hold stocks for the long term. They just day trade stocks for a few hours or for a few minutes, and therefore i don't really think this new share lending policy for cash accounts will generate robin hood all too much additional revenue to me. It seems like a reason or an excuse for robin hood to make share lending mandatory for all of their current clients and obviously, if you haven't already gathered by now, i would suggest that you don't use robinhood if you are still using them and change to a Different broker, like moomoo or fidelity, or many of the others, and worryingly enough, it even says here that stock lending is riskier than traditional stock. Investing as robin hood notes in a disclaimer in its blog post, there is a risk that robin hood securities could default on its obligations to you under the stock lending program and failed to return the securities it's borrowed.

This is if robinhood securities defaults and is unable to return loan securities. You will not be able to trade such securities as usual guys. Many of you may not have a lot of confidence in the stock market at the moment. There's all this market manipulation and market fraud that seems to be going entirely unpunished, and that's why i personally also like to invest in crypto, especially now that bitcoin is trending upwards.

I personally like to invest using block fi and right now. If you sign up to block five using the link in the description below you can currently get up to 250 dollars in free bitcoin block fire, you can also invest in tons of other cryptocurrencies, like solana. Aida avalanche doge, matic, litecoin and many others, and that's why more than 500 000 people and 350 institutions globally use blockfi to manage over 10 billion dollars in assets. Blockfire as a platform is also entirely free to use and requires no minimum balance so guys be sure to sign up to block files in the link in the description below to get up to 250 in free bitcoin.

Now i think this is a very, very, very worrying paragraph for two main reasons: a is saying that robin hood may end up defaulting and may end up going bankrupt now. Obviously, if robin hood does end up going bankrupt, your money should be protected and you shouldn't actually end up losing the money that you do have invested, but obviously, more worryingly, it says that if they do default, they may fail to return the securities they've borrowed and You also won't be able to trade such securities as usual. Okay, they'll lend out your amc shares, which you may not get back, and you may not even be able to sell your amc shares when the time comes and when amt squeezes. I think this paragraph alone is enough to move away from robin hood if you're still using the robinhood platform, tamumu or other brokers.

Now i think this is important because it shows just how desperate short sellers currently are. Short. Sellers are obviously running out of shares. To borrow to meet those failed delivers to satisfy those failed, delivers and also running out of additional shares to actually shaw they're, getting so desperate that they are now trying to convince robin hood to create these new share lending programs to potentially adjust current share lending programs And make share lending mandatory and also potentially convincing robinhood to default, so they don't have to actually return the shares.

Obviously, if robinhood do default and don't have to return those shares, it means the hedges can continue, shorting amc and they don't have to return their shares. They borrowed from you, but i do think it's important to realize that this shows that hedgies are absolutely desperate to find any additional shares. They possibly can to continue shorting amc and therefore i don't think it will be long until they've even run out of shares. To borrow from robin hood and they can't afford to shore amc any longer, and i also want to talk about peter han's latest linkedin post.

He said when our cagos went down. I realised just what a house of cards the market was sitting on. He said, while his long positions based on huge leverage through total return swaps, is what brought bill down. He was also a noted short seller early in his career.

He says credit suisse was one of his prime brokers and credit suisse in february and march of 2021. Was one of the most active sellers of amc in the dark pools and he said so one thing that's never been discussed is was bill, huang, shorting, meme stocks, while being long stocks like cbs and other media companies and peter said importantly. This is why i think the department of justice started with bill huang and his employees gathering more evidence for a broader crackdown on dubious wall street practices, aka naked shorting and obviously now that bill juan has been arrested and now that credit suisse has taken on tons And tons of losses, billions of dollars in losses the shorts are now starting to struggle. Obviously, they can't employ these same practices any longer, because they're currently being investigated and now they're starting to run out of legit shares that they can actually borrow, and i also wanted to quickly touch on today's market activity.

Sven henrich, tweeted saying in other news. Yesterday, investors chased stocks for a 3 rally on a 50 basis, point rate hike by the fed, because investors were relieved that it wasn't 75 basis points. Those investors then sold those same stocks today because they realized the fed just raised rates by 50 basis points. Obviously the market ran yesterday because the rate hike was less than expected, which is obviously a good thing, but today the market has realized that actually a 50 basis point hike in rates is still massive and it's not likely to even scratch at current inflation.

Obviously, inflation is ridiculously high and will take a lot more than a 50 basis. Point rate hike to curb that crazy inflation and david rosenberg tweeted, saying a cnbc poll shows that 80 of small businesses are currently seeing a recession this year. Right now - and he said no wonder - they've shed a net hundred and five thousand employees in the past three months. He said it's one of the best turning point cyclical indicators, that's currently out there.

This is showing that obviously, a recession is likely to happen this year and a recession is currently already happening to those smaller businesses across america and, finally, just to touch on the gamestop and loot print nft platform. Tendee baron tweeted saying gamestop launched a blockchain support website using zendesk. This website shows a new gamestop blockchain logo and the official gamestop nft website is also saying that you can now activate loot print layer 2.. Therefore, gamestop are clearly working with loot print and are just about to release their nft trading platform featuring loop ring.

This is obviously brilliant for any of you that are still currently invested in loot print or are thinking about getting back into loopering. Now the gamestop nft platform is about to launch guys be sure to. Let me know down in the comments below what you think about the shorts, desperately running out of shares to show, 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.