Welcome back to the channel everyone today, citadel securities have responded to accusations of ken griffin, lying and jeanette. Yellen has just said that there could be financial runs on over-leveraged hedge funds, 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 5 000 of you that have 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, but before i dive in with the key information, if you haven't already be sure, to get your hands on some of my new amc related merch.

This is the to the moon. Hoodie. I've also got a space ape hoodie and many other designs over on my store linked in the description below, and i want to dive straight in with the key information. So citadel securities made their first tweet in nine months.

Saying citadel securities did not ask robin hood or any other firm to restrict or limit its trading activity on january 27th, citadel securities was the only major market maker during this time that provided continuous liquidity. Every minute of every trading day on january 27th, citadel securities executed an extraordinary 7.4 billion shares on behalf of retail investors. Ken griffin and vlad kenneth have never met or spoken, and when asked whether citadel securities request that robin hood restrict trading ken griffin truthfully told congress, let me be perfectly clear: absolutely not now. I personally think these tweets have been very carefully crafted by the legal department over at citadel securities and great cubed over on reddit explains exactly this they're, putting specific qualifiers in each of those three tweets, the first qualifier being 27th, not the 26th or the 28th.

The second qualifier being those specific people, aka ken griffin and vlad tenef, not mentioning any other employee at either firm or any kind of senior member of staff like a director or something and the third qualifier. Is they rephrase the question ken was actually asked? These tweets did make it past legal and they are not denying the collaboration they're just making it seem like they are. This is pr not anger and greycube reckons it's damage, control and they're frankly admitting to doing what is not specifically detailed in those tweets. It is incredibly bullish that they couldn't say anything stronger than that, and he says the only reason i could think of that they are trying to salvage their reputation by making their first tweet in nine months.

So clumsily right now is because they're concerned about an immediate outflow of capital speculation, but bullish, and the kilted trader over on twitter, who also has a brilliant youtube channel, made some further clarifications. What about anyone under ken or vlad speaking to ken or vlad? What about coordination between underlying employees and what about the 26th and earlier or the 28th, and later excluding the committee hearings and as jackson hunter notes? They didn't actually change these stocks to be position closing only until the 28th of january, not on the 27th and therefore citadel security seemed to be very carefully dancing around the question and the fact that ken griffin did in fact lie under oath and now i also Want to talk about the senate, blocking the bill to raise the debt limit and avert the shutdown government funding will run out on thursday without action. But the democrats may try and go alone to raise the debt limit in the coming weeks. Senate republicans blocked a bill that would suspend the debt ceiling into december 2022 and keep the government operating past september 30th, forcing democrats to find a new strategy to address two fast approaching deadlines with acute economic consequences.

The 48-50, largely party-line vote, fell well short of the 60 needed to advance the house passed legislation to the floor. Republicans would let the country default for the first time in history, senate majority, leader, chuck schumer, said after the vote. It's one of the most reckless one of the most irresponsible votes i've seen taken in the senate. Schumer switched his vote to no at the last moment which allows him to call up the bill for another vote later, but he gave no indication of any further strategy to prevent a government shutdown early friday and a default on government obligations.

Sometime in october. Republicans refuse to back the debt ceiling suspension because they say they don't approve of democrats plan to spend trillions as part of president joe biden's, far-reaching economic plan, even though a major portion of the current debt accumulated under republican control of congress and the white house senate Leader mitch, mcconnell said democrats have known for 10 weeks that republicans wouldn't provide them the votes to raise the debt cap and that the crisis is a manufactured one. Both parties largely agree on a short-term extension of federal funding through december 3rd, but democrats attach the debt ceiling suspension to that must-pass measure. It is imperative that congress swiftly address the debt limit.

If it does not, america would default for the first time in history. The full faith and credit of the united states would be impaired, and our country would likely face a financial crisis and economic recession. An alternative would be to strip the debt ceiling provision from the government funding bill and move that separately. That legislation to fund government operations would also provide 28.6 billion dollars for states recovering from a series of hurricanes and wildfires, as well as 6.3 billion dollars to resettle afghan refugees and likely would have bipartisan support in the house and the senate.

The debt ceiling could then be moved through a process called reconciliation that would allow democrats to pass it in the senate, while avoiding a republican filibuster and the mata threatens to distract from the task of completing negotiations on the economic package, because it could take nearly two Weeks to move a debt cap increase using that tactic, therefore, they may have to split the government funding economic package into two separate legislations for the economic package of 3.5 trillion dollars and for the separate debt cap ceiling increase, but obviously that might entail a fairly lengthy Reconciliation process and supposedly it's going to be pretty obvious to the american public after we vote on this a couple of times between now and then they're purposely tanking, the economy. The s p 500 fell two percent today and if it continues falling for the rest of this week and breaks this small support of 428, things could get very, very messy. Indeed. Supposedly jpmorgan chase has begun preparing for a potential u.s credit default.

As debt limit talks go to the wire ceo, jamie dimon says, and he says he does expect. Policy makers will address the debt limit in time, as a failure to do so would be potentially catastrophic. Although it does seem very, very unusual that he seems confident that policymakers will address the debt limit in time, but yet he's making preparations and putting things together for a u.s credit fool. Now you may have seen this clip of jeanette yellen talking today about over leveraged banks.

Many people have thought that she's talking directly about amc and she kind of is but not directly. Let's watch the clip and i'll explain after the financial stability oversight council that i had has taken that up as a topic that we're looking at and examining. There are issues relating to hedge funds and the possible the possibility of leverage there that can trigger financial runs. That's another topic, so there she was talking about over leveraged banks causing potential financial runs now she's, not necessarily directly talking about an amc run, but i think she's, more talking about a bank run or a hedge fund run.

So a bank run occurs when a large number of customers of a bank or other financial institution or hedge fund withdraw their deposits simultaneously over concerns of the bank's solvency. As more people withdraw their funds. The probability of default or margin calls increase, prompting more people to withdraw their deposits. In extreme cases, the bank's reserves may not be sufficient to cover the withdrawals, so, as the economy starts to tank and many of these over-leveraged hedge funds start losing significant amounts of asset value because all of their long positions, their very over leveraged long positions, start decreasing Rapidly that could potentially cause investors to withdraw their cash.

Obviously, as those hedge funds are getting absolutely decimated because all of their long positions are disappearing into thin air, that means they're going to get margin called and be forced to cover their short positions. Obviously, if a hedge fund like citadel, who is massively massively long on companies like amazon, start tanking, then they could potentially be margin called and forced to cover their short position on amc. So therefore, this indirectly would cause amc to run upwards and not run downwards and by jeanette yellen's calculations. She reckons the us treasury is going to run out of cash at extraordinary measures by october 18th unless congress raises the debt ceiling now, i personally think it could happen even quicker than this.

In my video yesterday i said they had about nine days left when they're spending, on average around 20 billion dollars a day. Obviously, on some days they spend less and on some days they do actually get inflows. Therefore, it's probably going to be a bit longer than nine days, but i don't think they'll last until october. The 18th guys be sure to let me know down in the comments below what you think about citadel's response to ken griffin lying and also what you think about jeanette yellen saying that there could be financial runs and, as always guys.

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