Welcome back to the channel everyone today, i want to talk about whether the shorts actually have enough money to pay for the squeeze if the fed and the sec will need to be involved or if they'll have to halt trading entirely and work out a settlement figure. So stay tuned and let's make some money again before i dive in with the key information. This is another video of my quickfire q, a series, if you have any amc or gamestop questions, be sure to leave them down in the comments below and i'll answer them in an upcoming video, and i want to dive straight in with the key information. So we know there's a number of different funds currently shorting amc.

We know that many of these funds are vastly underwater in their position and they've created so many synthetic shorts. They can't actually cover all of these shorts without bankrupting their funds at the moment, they're, basically being kept on the hook by the dtcc and the fed and they're hoping that everybody forgets about amc and gamestop and they're hoping the squeeze never happens, but obviously, as i've Explained in many of my previous videos, people aren't just going to forget about amc and gamestop. The market is continuing to crash and therefore those margin calls are approaching closer and closer. Not only that, but the sec and the department of justice is performing their investigation and getting closer and closer and closer we're already now, starting to see hedge funds being disconnected we're seeing the sec investigating personal mobile phone usage and much much more and when amt squeezes.

It's likely that these few individual funds that have created all of the mess won't have enough money to buy back those amc, shares and close out of those synthetic short positions. But obviously all of these individual funds are members of the dtcc and when one dtcc member ends up going bankrupt, the other members in the dtcc are responsible for their liabilities. Therefore, if a fund like citadel ends up going bankrupt but doesn't have the cash outlay to cover and to close all of their open positions, other members of the dtcc, like bank of america or another hedge fund will have to cover citadel's liability and therefore, when amc Gamestop and the other meme stocks squeeze to unimaginable new highs, it's likely that all of the members of the dtcc will basically have to backstop these few funds that have caused all of the mess now you'll have seen this extract from many of my previous videos. That says its depository provides custody and asset servicing for securities issued from 170 countries and territories, valued at 63 trillion dollars.

That basically means the dtcc provides custody and holds assets worth 63 trillion dollars. Now a lot of people refer to this as the 63 trillion dtcc insurance policy. But it's important to note. The dtcc itself doesn't hold this 63 trillion dollars.

This is basically the asset base of all of the members inside the dtcc. So, therefore, if you take the assets from bank of america, jp morgan from citadel from blackrock vanguard and all of the other funds that make up the dtcc, you get to this 63 trillion dollar position now. Something very interesting that i found is that this 63 trillion dollar number is actually the 2019 figure. This has been secretly updated that i don't really think anyone has taken too much notice of and guys if you haven't already be sure, to sign up to blockfy, using the link in the description below to get up to 250 dollars in free bitcoin with block fight.

You can trade tons of different cryptocurrencies, like solana like doge, like avalanche matic, mana or decentraland sand or sandbox, and many others, and that's why more than 500 000 people and 350 institutions globally use blockfy blockfy is also an entirely free platform that requires no minimum balance Block fight also offer a reward credit card with an introductory rate of 3.5 cashback when you're spending from the dtcc website. The dtc now manages 87.1 trillion dollars. I guess due to the massive increase seen in the market in 2020 and 2021 and all of this additional cash printed by the fed. Obviously, these us institutions have grown significantly, but i suppose, in the long run or in terms of the amt squeeze, this is beneficial for us, because it now means these members of the dtcc now have even more money.

I think it's also important to think about just how much money has been printed over the last few years. Obviously, at the moment, we're currently entering a recession and the fed is likely to print even more money to help save the us from a recession or help save these banks from an amc squeeze. As of february 2020 pre-pandemic, the fed had printed around 15.4 trillion dollars or the m2 monetary supply was 15.4 trillion. That's now increased to nearly 22 trillion, which is an increase of seven trillion dollars.

Now that means in terms of cash available to actually pay for the squeeze. We've got this new 87 trillion dollars of cash managed by the dtcc or cash managed by the members of the dtcc. If additional cash was needed, it wouldn't be beyond the fed to print more money. Recently, we've seen them print seven trillion dollars, but back in 2008, the fed actually printed 30 trillion and therefore i don't think it'd be unreasonable for the fed to print somewhere between seven and thirty trillion dollars in extra cash if needed, for the amc, gamestop and other Meme stock squeezes now you may say tom, okay, the fed and the dtcc have somewhere between 94 trillion and 120 trillion dollars to pay for all of the squeezes, but saying that all of that 94 to 120 trillion dollars would basically bankrupt the us if they did Have to pay for the squeeze and every single american would lose their savings.

Obviously don't forget, including this 94 trillion dollars is all of the assets held inside jpmorgan bank of america and all of those other mainstream banks. Therefore, genuine american people savings will potentially be used to pay for the squeeze, therefore, could the sec and the fed step in somewhere before then and basically hold all trading and force a settlement price? Now, i think, that's a topic for another video and i basically wanted to talk about what kind of price amc could see if every single penny available was used to pay for the squeeze. Now again, i think it's also important to factor in that. It's not just amc, that's going to squeeze gamestop is also going to squeeze and the entire meme stock basket is likely to squeeze alongside now.

We know that amc has around 500 million legally issued shares, but we also know that amc has a significant number of synthetics. Some estimate - maybe it's only a hundred million synthetics - maybe some people think there's zero synthetics. Some people, like me, think there's around two billion, but some people think there's even more, maybe 20 to even 50 billion synthetics. Now we also know that gamestop has synthetics as well.

I personally don't know how many synthetics there are for gamestop, but, let's assume, there's somewhat similar amounts and there's around 2 billion gamestop synthetics as well. I assume the majority of the gamestop synthetics would have been created before gamestop ran up back in january of 2021 and therefore there's probably a somewhat similar amount to the amount we see in amc and again, we also know there's an entire basket of heavily shorted stocks Or heavily shorted meme stocks, it's likely that each of these also have their own synthetic shares, although it's probably not as many as amc and gamestop as these are the two main meme stocks. Therefore, i'm going to assume for the entire basket of other meme stocks. There's around 2 billion total synthetics for all of those other stocks.

Therefore, based on my assumption, there's six billion total synthetic shares floating around in the market right now. Part of what makes these videos difficult to make is the amount of unknowns. Obviously, i don't know just how many synthetic shares actually exist, because i haven't spoken to ken griffin and asked him how many he's created. Even if i had spoken to ken griffin, i'm sure he wouldn't tell me how many synthetics have been created, because it's illegal to do so.

This number could be way higher than 6 billion, but it could also be way lower. I think 6 billion is a somewhat fair assumption and i think it's somewhat fair to assume 2 billion amc synthetics. Now, if you take the lower end of that spectrum of 94 trillion dollars available divide that by six billion shares. That gives you a price of fifteen thousand dollars per share for each of those individual stocks.

Now i think it's also important to remember that this isn't fifteen thousand dollars as a peak. This is fifteen thousand dollars as a geometric mean because, obviously not everybody's gon na be selling their shares at exactly fifteen thousand dollars per share. Many are gon na sell before that number and many are gon na sell after that number, and therefore fifteen thousand dollars is the potential geometric mean now. I've spoken about the geometric meme before in this channel, and it basically looks somewhat like this, which again is similar to how that amc squeeze will look.

You're gon na have lots of people selling down here before the squeeze or just as the squeeze gets started. You're gon na have lots of people selling here after the squeeze and you're gon na have lots of people selling during the squeeze and at the very tippy top, and therefore the geometric mean basically calculates the somewhat average price throughout this entire squeeze char. So this chart here actually uses a simulation that peaks at 1 million dollars per share and the geometric mean number for that chart is 11 000. That basically means that, if aims your gamestop peak, a million dollars per share, the average price is only eleven thousand dollars per share.

So if i've calculated an average price of fifteen thousand dollars per share, that means the peak frame c at the peak tippy top of the squeeze could potentially be over a million dollars per share. Now again, that's only if every single penny available to the dtcc and the fed was used to pay for the squeeze effectively bankrupting the united states. Every single person in the united states would lose their savings, but every single person holding amc could potentially sell their shares. For over a million dollars per share with an average geometric mean of fifteen thousand dollars per share.

Now, as i said, i do plan on explaining in other videos, if the sec and the fed are likely to get involved and basically force a settlement price. But i think this video proved these unimaginable highs of over a million dollars per share are actually possible and even if amc did reach over a million dollars per share, technically the dtcc and the fed does have the cash to cover it. Yes, obviously, it would involve bankrupting the united states and printing trillions and trillions of new dollars or new money, but it would be viable. However, i do think the sec in the fed is likely to get involved before this level because they wouldn't want to risk bankrupting the us and risking every single american losing their savings.

I personally think the shorts will have enough money to pay for the squeeze, but we may not see peak prices of over a million dollars per share because that'll bankrupt the economy. But hopefully it's helped explain that. Actually, yes, the shorts do have enough money to pay for the squeeze, even if nobody got involved and even if we saw a million dollars plus per share so guys be sure to leave a comment down below and ding that notification bell, because that way you'll be Alerted when i upload a new video cheers.