Today I Want to talk about how the hedge fund bailout is about to end? If you didn't already know Banks like City Bank Bank of America and JP Morgan provide the margin loans for hedge funds. But these hedge funds became way too overleveraged, the banks took on heavy losses, and therefore the hedge funds are about to be margin called. So stay tuned and let's make some money now. I dve straight in with the key information, so hang loose Tweeted saying the banks lent money to the hedge funds to keep the Trap shorts and aims in GameStop a flow.

otherwise the mother of all short squeezes would have taken them all down. These banks have obviously provided margin loans for some time now, but didn't Margin Call them when they should have and have therefore taken on heavy losses. And just Dario is about to explain how much these banks have lent to hedge funds, how much in terms of losses they've taken on, and why they're about to Margin Call So just Daro tweeted saying the Fed and these major banks have a massive problem did Jerome pal and Janette Yellen Please note that the four major US Banks lent quite a ton of money to asset managers and hedge funds. JP Morgan have provided margin loans to the tune of $233 billion, Bank of America 103 billion, City Bank or City Group 114 billion and Wells Fargo 144 billion.

He said it looks like Aragos didn't teach people a lesson. so we know these hedge funds don't trade with a average ratio of 1 to one. If they have a billion dollars, they don't buy a billion dollar worth of stocks. What they do is leverage the money they do have and borrow additional money from other Banks.

So for a prime example, Citadel has around $50 billion, but they borrowed an additional 250 billion from elsewhere to buy $300 billion worth of stocks. Now that's a leverage ratio of around 7 to1. But what happens when those stocks go down? all their short positions go up well. they're in big trouble and they should have been margin called long ago, but they weren't and that so followed to massive, unrealized losses for four of these largest banks.

So you can see specifically with Wales Fargo 16% of all of their loans didn't go to agricultural companies, real estate companies, or utility companies. They went to financial companies not including Banks like hedge funds and again, similar for Bank of America, they didn't loan a hundred billion do to materials manufacturing companies, to consumer services companies, or to energy companies. They lend over $100 billion do to asset managers and hedge funds. And obviously Bank of America won't want to realize a $100 billion loss and will therefore Margin Call those hedge funds before losses get too big and you can see many of these Banks like City Group or City Bank are already struggling.

As if you didn't know, City Group has planned to cut 20,000 jobs as it just reported its worst quarter in 15 years. And if you didn't already know, City Group A few months ago, around 6 months ago already cut 10,000 jobs. On top of that, City Group have now cut well over 10% of their entire Workforce obviously due to having awful results. I Also wanted to quickly recap our Friday from the Millionaire Mindset Trading Group We started the day with a 47% Gainer on Auvi where Ross locked in around 31% We also had a put option running over 200% where Chad locked in $1,473 in just a few minutes.

We also had some trades on the S&P 500, some which led to over 100% gains and B once again went five profitable trades out of five trades on Friday alone. Guys, if you want to be making 47 % daily gains on small, fast moving momentum news plays on daily options trades or on longer term swing trades, be sure to join the Millionaire mindset. Trading Group Linked In The description below not only have City Group just posted one of their worst quarters in the last 15 years, but if you didn't know, their balance for security sold and not yet purchased has also increased to over9 billion. That means they've shorted with no intention to repurchase over 109 billion of Securities For reference, Citadel's balance is Somewhere Only around 60 billion potentially.

City Group has created many more synthetic shares than Citadel or at least holds many more synthetic short positions or as I said, at least short positions that they have no intention of closing in the future for companies they're trying to sell a box and bankrupt. And as Robert tweeted, it now seems these banks are at War and even fighting with these hedge funds as City Group has just opened a 90day negative Catalyst Watch on Virtue Financial The market maker City Group is expecting something very negative to happen or a very negative announcement for Virtue Financial in the next 90 days maybe the conclusion of the lawsuit as Virtue is currently being sued for Market manipulation that I think would likely create a Virtue stock price, potentially sending the company bankrupt and that's not all. Boss Blun has also tweeted about the European Central Bank which is currently warning of a fire sale of assets. They're also warning of margin calls and potentially massive losses for insurance and real estate companies, creating systemic shocks to the Global Financial system by saying risk sentiment in the markets remains fragile and highly sensitive to further surprises regarding the outlook for inflation growth and by extension the path of monetary policy.

If inflation were to prove more persistent than currently anticipated which is happening in the US now as inflation just increased month over month, that could lead to a further increase in long-term interest rates and that could trigger a rise in Market volatility and risk premium, increasing the likelihood of credit events materializing such as bankruptcies, margin calls and defaults, and due to the heighten leverage in equity options markets such as those hedge funds using 7 to1 l ratios like Citadel borrowing tons of money from other Banks it could possibly caused forced asset sales AK margin calls, liquidations, and a fire sale of Assets Now IC Assistants has also tweeted saying let this image haunt them The mere fact that 3.8 million AMC investors stand with the CEO and won't allow the shorten the St campaign against AMC and Adam Aaron to work like in the old days when they tried to sell a box stocks is driving the shorts absolutely crazy as I touched on in a recent video I'm trying to get an update from Adam Aaron as to how many retail investors remain, if it's 3.8 million, if that number is increased, or if that number is decreased. But as far as I know, at least a very large majority of retail investors still remain and will see those hedge funds liquidated. and finally, Practical Stocks tweeted about AMC Leaning into the success of concert films by saying our phone is been ringing off the hook Adam Aaron seemingly is making tons more deals like the Taylor Swift and Beyonce concerts expected to make hundreds of millions of dollars, which again is pure profits for AMC especially if they're licensing those films out to other theater networks. So 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 upload a new video Cheers!.