Welcome back to the channel everyone today, i want to make one all-encompassing video to help you decide whether you should drs your shares or not. I want to talk about the good points and the bad points i want to give you some words of warning and also some words of encouragement to help you decide once and for all, and i also want to talk about evergrande and the incoming collapse. So stay tuned and let's make some money, but before i dive into the video, i just want to give a massive shout out to the 5 100 of you that are currently ding. That notification bell, because you guys are always the first to watch a new video as soon as it's released so guys be sure to drop a like down below subscribe to the channel and ding that notification bell.

If you haven't already so that you don't miss another video, just like this one and just a quick one before i dive in with the key information, if you haven't already be sure, to sign up to moomoo, to get those three free shares and also be sure To sign up to block five to get up to 250 worth of free bitcoin and also consider joining the private discord and becoming part of the team all linked in the description below and now i want to dive straight in with the key information. So, firstly, i want to go through this brilliant piece of due diligence by create this needs to be said, and it's a tough pill to swallow buy and hold is not guaranteed to cause the mother of all short squeezes, and nor is a market crash. I do think a market crash will have a big impact and could definitely be a catalyst, but obviously it's not guaranteed nothing. This world is guaranteed.

Apes can beneficially own hundreds of multiples of the flow, but beneficial ownership of the float does absolutely nothing to their ability to short the stock and reset fail to delivers hello apes. I'm not a financial advisor, and i do not provide financial advice. There's a lot of divisiveness around direct registration. Yes, of course, do your own research.

Yes, there are some concerns about the ability to sell at high amounts or to sell immediately when you want which you'd want to wager when determining. If direct registering is right for you, but for the sake of this post toss out those negatives for a moment and read this objectively from the standpoint of how direct registration fundamentally changes the game and in turn, why you should not get caught up in the hopian Theories that the mother of all short squeezes will just happen because of buy and hold or a market crash. This is not a call to action. This is my opinion, which is backed by the mechanics of direct registration and as a boilerplate.

If you do not direct register your shares, that is completely okay, don't feel pressured by it. I'm mostly posting and commenting because it's just frustrating how such an overwhelmingly positive concept is getting shut down and brushed off, as if it won't do anything. Unlike all of those failed price prediction posts in the past and all of the maus starts tomorrow posts, it's very clear of what the mechanics are for direct registration and how it pulls shares from the dtcc or the dtc. It reduces their ability to infinitely re-hypothecate shares and can kick for pennies worth or a 0.9 borrow fee.

He also, then, gives a bit of a disclaimer and says to do your own research. Do your own fact checking don't purely listen to him as he's not a financial advisor and also explains where you can find some more information. So what impacts does direct registration have on the dtc owned flow? One of the main resources you should start looking at in regards to direct registration is computer shares, faq page that they just updated not too long ago. So how does computer share ensure? There is a balance between shares that are directly and indirectly held, and their response is that we use double entry accounting systems that ensure there is always an accurate balance between shares held directly by registered shareholders and those held by seed co.

On behalf of the dtc banks and brokers and beneficial investors, this means that for every share transferred through drs from the dtc to direct registration that can be registered on the share register, there is one fewer recorded as being in seed co or one less in the Dtc, so, basically a one in one out basis. When you direct register your share, it doesn't create a new share in computer share. It basically removes one from the dtc and passes over to computer share and therefore it means that the dtc has fewer shares that they can use to lend such that short. Hedge funds, brokers and market makers officially have less ammunition to short the stock and reset felder delivers with.

So he then explains why turning off share lending doesn't really impact or affect the dtc owned flow. We can assume there's been no liquidity in the market and a minimum of one times. The float was bought up by january apes. Therefore, the majority of new retail buys must have been matched by shores every day.

Retail goes to the market, places buy orders and these buy orders are matched by a short sale and the order is internalized. So, basically, instead of just selling one share in the dtc own float to somebody else and keeping that share in the dtc own float. The original share kind of stays there and it just gets short sold to somebody else. Therefore, you've got one buy and one short sell as well, and that's why our buys don't really impact the actual lit exchange price and given the above 50 short volumes.

We see each and every day it's not a far-fetched assumption that many buys are being matched by new shorts due to the stock being so illiquid and retails diamond hands. The dtc owns the majority of the float because, when you own a share in robin hood, your name isn't legally registered as the shareholder, it's held by robin hood and therefore still part of the dtc's pool of shares. The dtc owns the majority of the flow and they can lend out shares for the sake of providing liquidity to the markets. Hooray, stupid, free markets, the short hedge funds, brokers and market makers borrow from the dtc owned pool of shares, short sell.

Those shares back into that same pool to retail, wait for those dtc owned shares to settle back into that pool of lendable shares and they repeat the cycle indefinitely. So, basically, when you buy a share in robin hood or weeble, you're buying from the dtc pool or the dtc float you're taking it out of that pool and then putting it straight back in the pool and effectively you're not even really buying out the pool in The first place, because a hedge fund shorts it out of the pool to you and you put it straight back in there start from the beginning when shorts just started, attacking the stock, they kept shorting and borrowing from the dtc-owned pool to give to retail. Eventually, there's now two times the entire float in the market keep going at least the three times the float four times the float five times the float and so forth, all for the sake of providing liquidity to the market, because those shares aren't locked up and locked Away so you basically have this never-ending cycle of apes buying a share which effectively goes back into that pool, which can then be shorted back into the real share float, which is owned by the dtc and then bought back by the apes and then back around and Back around and like many, you may be thinking that at this point you can just turn off lending in your brokerage and that'll be the end of it. No more rehypothecation and you're kind of right turning off lending will stop lending of those new fake shares, but the problem is that those shares are beneficially owned under the broker, which are then beneficially owned by the dtc, and those shares that you have in your brokerage Account are most likely fake shares a result of shorting the stock.

Despite marking the brokerage shares green, the dtc can still lend out the shares they own in orange. So, basically, just because you mark your shares, held in robin hood as non-lendable they're still in the dtc owned pool of shares, because those shares aren't necessarily in your name they're still in robin hood's name and are therefore still in the overall dtc pool. And if you're still in disagreement, consider this the thesis is the apes own multiples of the float hypothetically, let's say six times the flow. If turning off share lending actually made a difference, then why hasn't it taken off? Surely the float would have been restricted by now and you'd have like 90 of that six times the actual float being not available for lending and surely it would have triggered the squeeze and, as you can see by this graphic here, even if apes held six times, The float the dtc owned shares in orange still remain unaffected.

All that happens by turning off share lending is these green fake shares can't be lent out any further, but the shares in orange can and are still lent out, but mechanically, it's very clear what happens with direct registration and how there's no path out for even the Big guys, if they decide to cascade the positions upwards, when the float is direct registered, be it through drs direct registration system or dsp direct stock purchase. It officially reduces the amount of shares owned by the dtc, and thus they lose their ability to lend out. The shares to the shaw, hedge funds, brokers and market makers every time you direct register a share. It makes this orange pool of shares, lower and lower or smaller and smaller.

Obviously, it doesn't really impact the fake shares in the market, but these shares can't really be loaned anyway. What we're mostly focusing on is reducing these orange shares. No more matching retail buys with shorts, no more resetting of failed delivers. Market makers will be unable to reasonably locate shares anymore because there's no way for them to reasonably locate anything.

The market makers can certainly apply that loop around right now, even if there's currently no shares available to borrow. But they can only do this if they expect the shares to settle within a reasonable time frame. But if the dtc has no more shares and won't be getting any more shares in a reasonable time frame, then they cannot reasonably locate shares anymore. Now, at the start of the video, i also said that i had some words of encouragement and here's ryan cohen himself.

The ceo of gamestop tweeting, saying can't stop, won't, stop gamestop and with a photo of a computer chair or a computer chair or a computer share. Many people believe this is a very cryptic way of ryan cohen, telling you to drs your shares to computer share, because computer shared sounds very like computer chair now, there's also a tweet here from computer share, saying shares held directly on the books of u.s companies through A transfer agent are not held at the dtcc, as such shares are not available to be loaned out for any means within the security markets. Computer share is a registered transfer agent and therefore does not lend shares in any capacity now. That sounds great, but it's a bit confusing as well.

I think charlie's vids was the first person to discover this chart and kind of review it and understand it and investigate and question it a little bit as well over here. You've got the direct registration system or the rs, and you get security certificates which are forms in which registered ownership is held. So obviously the buyer can buy these security certificates and basically drs their shares completely separately over here on its own, and that way the buyer doesn't have to go through an introducing broker and go through a clearing broker, which is a dtc participant and then over here To the depository trust company or the dtc, but then, if you look up here, we've also got the issuer, which is going to be gamestop or amc. And then you've got the transfer agent, which is what computer sharers just said, that they are, and that goes to fast balance certificates which are held by seed co, a nominee for dtc.

So at the moment i think there's a little bit of confusion. This hasn't been cleared up just yet by computer share and it also hasn't been completely found to be 100 factual by people investigating and doing their due diligence. It's a bit of a gray area at the moment. Basically, does computer share sit over here entirely separate from the dtc, or does computer share sit here and has their shares held by seed co, which is part of the dtc? Now charlie's bid spoke to somebody on a live chat from computer share and obviously asked a number of questions which the guy on the live chat did answer, but then also abruptly ended the session i'll leave this link down in the description below and you can have A read through it yourself and basically decide for yourself what you make of it.

Something else that i thought was absolutely brilliant was the fact that amc showed the fury world a fight last night at amc theaters. I actually stayed up to watch this fight in the uk and this fight started around 4 or 5 am over here in the uk, and it was possibly one of the best fights that i've ever watched. If you didn't watch the fight at home or at one of your local amc, theaters i'd really encourage you to watch the fire on catch up or see if they're still showing it at amc. And now i also wanted to talk about evergrande or evergrant evergrande.

Creditors fear imminent default as concerns shake sector. Every grindly bondholder is worried about lack of information, evergrande bond trustee, hires mayor brown, a law firm evergrande due to pay nearly 150 million dollars in coupon interest. Next week, china's evergrande group, offshore bondholders, are concerned that it is close to defaulting on debt payments and want more information and transparency from the cash-strapped property developer. Their advisor said evergrande, which could trigger one of china's largest defaults as it wrestles with depths of more than 300 billion dollars and whose troubles have already sent shockwaves across global markets.

Missed payments on dollar bonds worth a combined 131 million dollars that were due on september 23rd and september 29th, with evergrande staying silent on dollar debt repayments and prioritizing onshore creditors. Offshore investors have been left wondering if they will face large losses at the end of a 30-day grace period for last month's coupons, a group of bondholders have enlisted investment bank mo ellis and co and law firm, kirkland and ellis to advise them. Offshore bondholders want to engage constructively with the company, but are concerned about lack of information from what was once china's top selling property developer. We will feel that imminent default on the offshore bonds is or will occur in a short period of time.

Grizzle said on a call with bondholders on friday. Unfortunately, so far, we've only had a couple of calls with the advisors, but there's not really been any meaningful dialogue with the company on provision of information in another development. Evergrande dollar bond trustee, citibank, has hired law firm, mayor brown as council and therefore it seems like citibank, is starting to take legal advice on the upcoming default. The possible collapse of one of china's biggest borrowers has triggered worries about contagion, risks in the world's second largest economy, with other debt-laid laden property firms hit by rating downgrades on looming defaults.

The shanghai stock exchange on friday suspended trading of two bonds issued by smaller developer. Fantasia with one dropping more than 50 percent after controlling shareholder fantasia, missed the deadline on a 206 million dollar international market debt payment on monday, most of evergrande and fantasia's bonds have already lost 80 percent of their value. Meanwhile, bonds issued by greenland holdings, which has built some of the world's tallest residential towers, including in sydney, london, new york and los angeles and casia group, both took another beating on friday and therefore it seems like it's also impacting property developers that are still based in China, but also build properties around the world, guys be sure to. Let me know down in the comments below what you think about drs in your shares and also what you think about evergrande's incoming default and, while you're down there be sure to check out the private discord and consider becoming part of the team.

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