Today I Want to talk about how said that? I was 2022? Financial Figures have just revealed a massive problem. It proves that Citadel has been taking on heavy losses and is heading for bankruptcy along with a number of other major Banks and giant institutions. So stay tuned and let's make some money. And now that I've straightened with accumulation.

so I Want to start with a quick reminder or a quick summary of Citadel's security sold and not yet purchased since 2015.. I Want to give you all the lead up on how Citadel has expanded their synthetic Short Selling operation over the last few years and how each number is ramped up every single year. But then I also want to explain how this year Citadel has actually taken on giant giant losses and not actually made a profit as many believe. So back in 2015, Citadel had around 6.4 billion dollars in security sold not yet purchased.

in 2016, that increased by about a billion dollars to 7.3 billion now in 2017. that took quite the jump from 7.3 billion to around 17.3 billion. a massive increase of around 10 billion dollars now in 2018 that jumped by around another 5 billion from 17 billion to 22.3 billion in 2019. another small increase from 22.3 to 25.2 billion.

Now in 2020, those numbers really ramped up from 25.2 billion to 57.5 billion dollars in security sold and not yet purchased. And obviously last year or I guess in 2021 that number ramped up once again from 57.5 billion to 65.7 billion dollars in security sold and not yet purchased. Now as a quick reminder, these security sold and not yet purchased are made up of two things: Number one, they're made up of synthetic shares AK fake shares that have been sold without locating the real underlying share and number two: it's where shares have been sold to us because retail investors have been buying shares, but Citadel could not locate a share available for sale or couldn't locate anyone that wanted to sell their share and has simply issued us an IOU. Now in 2022, that number has actually decreased from 65.7 billion dollars 20 45.7 billion, a drop of around 20 billion dollars.

Now you may be saying Tom How can that be how I Citadel actually shorted less synthetic shares this year than they did last year or less synthetics in 2022 than they did in 2021. But don't worry guys, I do have the answer and it all ties into how Cedarillo has actually lost billions. Start that on, so we actually need to look up a little higher. We need to look at the Securities owned at fair value.

Okay, the total assets that Citadel has in their portfolio in 2021 Citadel held around 73 billion dollars of total assets or Securities in their portfolio AKA 73 billion dollars worth of long positions. Now in 2022, that number has actually decreased massively from 73 billion dollars down to only 57 billion. That means the Citadel have actually lost around 15 billion dollars over the last year. Obviously because in 2022, their long positions actually decreased massively along with the wider market crash.

We can also see this line here for their total assets. In 2021, their total assets was 79.1 billion dollars. Now in 2022, only 63 billion. So therefore I First find it really strange that Citadel can actually report a profit of 16 billion dollars when actually their total asset, it's decreased from 79 billion all the way down to 63 billion.

Therefore, I think the first potential answer as Mike tweeted is that a lot of people were waiting for this financial statement to see just how bad Citadel synthetic shares had increased And therefore, as Gavin replied, he said exactly said that I have been intentionally cooking the books to give the impression that everything is fine. Maybe Citadel have just transferred a giant portion of their assets and synthetic shares into another likely offshore entity. And that's why they're reporting this 16 billion dollar profit even though they're total assets in Citadel Securities LLC has decreased from 79 billion down to 63 billion. Maybe that total assets number should have actually increased to say a hundred billion and a security sold not yet purchased should have also increased to say 70, 80 or 90 billion as well.

But they've moved a giant portion of their assets and synthetic shares into another offshore entity, basically intentionally cooking the books to give impression that everything is fine and that actually guys, look at this: our number of synthetic shares has actually decreased massively, which obviously could potentially be lies if it's just been moved offshore. Now, Obviously, the second answer, as tweeted by and Juicy is the fact the value of the AMC and GameStop stocks have dropped. Obviously, in 2021, AMC was trading at around 40 to 60 dollars per share, but in 2022, sub 20 per share. Basically saying, the number of synthetic shares in AMC and GameStop could have likely increased massively, but because the share price has decreased, the total value of their synthetics is less.

Having one billion synthetic shares at 65 each is a total value of synthetics of 65 billion dollars. But obviously, having 4.5 billion synthetic shares, a massive massive increase, but only ten dollars per share is still only 45 billion dollars. Therefore, the number of synthetics could have actually increased massively from say, 1 billion synthetic shares to 4.5 billion synthetics. but because of the reduction in value of the share price, it makes the total value of synthetics seem less so.

As I said from this financial statement, it's quite difficult to work out exactly what's going on. Has Citadel actually lost billions? Did they just move a portion of their assets and synthetic shares into a different company, potentially an offshore company, or has the value of the stocks obviously just decreased. And obviously, the real answer as tweeted by Mike is the fact that so many people were waiting for this financial statement that Citadel has obviously pulled some kind of trickery so that we'll never know the true answer. But it does also seem like Citadel has many other problems of their own, such as their investment in Silvergate Capital.

As Diamond hand Jay tweeted, he said, let's take a look at who's getting absolutely screwed on their Silvergate Capital investment. Obviously this morning, Silvergate is down 45 in the early hours of the market open. Now looking at some of the major owners in Silvergate, we've got BlackRock State Street Vanguard Group One Trading, Jane Street Susquehanna and of course Citadel themselves. So they'll have a five percent ownership in Silvergate Capital, which is currently down 45 in the early hours of market trading.

This is obviously just another knock on Citadel's assets or in Citadel's total long positions, which have obviously decreased massively from the year before. And it seems like Citadel and those aggressive manipulative short sellers have also got other problems coming. As Roger Hamilton tweeted, he said, while the SEC has not sued many Wall Street players for naked shorting directly, they have sued multiple toxic lenders that are associated with Naked Shorts and the Wall Street fraud. Now, obviously one of the key ways these manipulative short sellers short and distort companies is by issuing Death Spiral convertible loans.

Now you may be saying Tom What's a Death Spiral convertible loan And how exactly does It screw many of these smaller companies over a Death spiral Convertible Loan is where a lender says that guys will lend you say 20 million dollars in cash, but in return you have to issue our shares which will convert into 200 million dollars worth of shares. So it says Death Spiral Debt describes debt Finance through the use of certain type of convertible bonds, resulting in an ever increasing number of shares of common stock, inevitably leading to a steep drop in the price of those shares and ultimately bankruptcy can result. Therefore, they can give this underlying company say 20 million dollars in cash, but over the next, say few months or the next few years, they received 200 million dollars worth of shares that they could sell into the open market while shorting that company at the same time. And it says here that recently the SEC has commenced enforcement actions against some of the more well-known toxic convertible low note lenders including John Fife and his companies.

But obviously it is good news if the SEC is actually taking action against these Death Spiral Convertible low note funders and whether many of these funders will actually receive real jail time. Anthony Tweeted: It's also not just Citadel that have been taking on massive losses on their long positions and has a perfect example. So a few days ago Tom Hidden tweeted saying that he's 36 years old and that the AMC 8 Cult may be the single stupidest group that he's ever seen in his game. But yet Tom Hidden's funds: Skyland's Capital decreased in assets from 864 million down to 630 million in 2022, losing around 200 million dollars or 25 of its fund.

It looks like Tom Hidden is potentially one of those guys that is indeed shorting and distorting AMC and is likely partaking in the creation of synthetic shares. But obviously it's backfiring massively for him and his fund, as he's currently down 200 million dollars for 2022.. It wouldn't surprise me if there's many other hedge fund owners that are currently in the same spot that are super angry about AMC and GameStop because their funds have lost massive, massive amounts of money. Now, something else we're also starting to see.

crazy enough is the defaulting of some major Banks and giant financial institutions. Frank's Place tweeted another money Market instrument issue a failure for the overseas Chinese Banking Corporation. It says here: the DTC has received notification from Deutsche Bank the issuing or paying agent for overseas Chinese Banking Corporation Limited. The Deutsche Bank refuses to pay maturity presentments for this issuer's commercial corporate paper that are due and payable through the DTC.

Now you may remember, this is pretty much the exact same notification we also saw a few weeks back for HSBC International. So it seems like HSBC Bank and also Deutsche Bank are struggling or at least the banks underneath them are struggling and that Deutsche Bank and HSBC are refusing to pay their commercial paper payments which as I spoke about yesterday could lead to Major Bank runs even on these massive major financial institutions. And yes, speaking of which, gold Telegraph is just waited saying breaking news, the German Central Bank suffered a 1 billion Euro hit from its Bond Holdings and warned future losses would wipe out its remaining for actual buffers and he added saying that central banks are feeling the heat from their own mistakes. This obviously adds to the Swiss National Bank taking on their largest Everlast since the bank's formation.

it basically seems that many of these central banks have taken on massive massive losses in 2022 and any further losses would likely all these Central backs. Now, this is obviously overall very, very worrying and it goes to show that even central banks aren't immune from a stock market crash. But guys, be sure to let me know what you think down in the comments below. And as always, guys, be sure to ding that notification Bell because that way you'll be alerted when I put a new video.

Cheers!.