And what we learned is that in the clearing and the clearing process, that that a lot of the departments that are responsible for buying shares in if they're not delivered just wasn't happening. I believe, and i'll start out telling you this and i'll end up telling you this that this could truly crater uh us economies and world economies if it's not ultimately addressed at some level. Something along the lines of you know how stranger things had the upside down world, but this is literally what's going on here and i feel that i've never really realized this and the more i learn about it. The more i get terrified and i got ta - give a huge shout out massive shout out to the subreddit super stong, which i just found out about yesterday.

Phenomenal war guys - and i just got done watching one of the best amaze i've ever seen in my life - hands down 90 minutes of pure gold. They put her up. The guest was phenomenal and he really blew my mind. I'm about to share some of the golden nuggets, but i highly advise that you go and actually subscribe to the subreddit supersong.

You go check out the youtube channel, which is completely not monetized, it's not for profit, and you actually watch that 90 minute ama. It's worth every freaking. Second, the dude's name is james wesley christian he's referred to as west christian he's, a very, very known, litigator in securities and financial law and from what i understand he's one of the most vocal advocates against naked shorting synthetic shares and he's pushing for a reform. In the way we regulate our securities and this dude literally blew my mind, you absolutely have to hear about what he said in that interview.

We then filed that case, and we figured out in the process of that case that ultimately, the the mission of the bad guys was to rig the market from there we learned that uh massive fails to deliver existed in in many of those firms. So we learned there, including from emails and other things i can't talk about because the the information in that case is legally protected as they are in many of these cases. I learned that the perfect storm is to have them sell shares that they don't deliver. Uh get analysts to print bad stuff about you or people on the boards to say bad things about you go after your auditors, get an sec investigation, started team up with class action lawyers to sue you for something, and ultimately the mission is to do everything they Can to drive the stock down and in this video he talks about how he found out initially about naked shulling and synthetic shares.

So i'm just going to give you the few highlights that blew my mind, but you got to watch the whole video. Obviously so, first of all he's talking about how synthetic shares are created, which is quite very interesting and he's talking about the process where you create a put and a call option simultaneously, and then you never consummate the contract. That way, you have the appearance of a share that doesn't exist and from there we ultimately learned other things. Stock was being lent that doesn't exist, which is another systemic issue buying puts another group of people were buying calls and they put together synthetic shares.

Unfortunately, uh in, in many cases, what happens is that contract is torn up two days before consummation, so while they're able to show it to the compliance department. Ultimately, the the end result is, is the transactions a fake transaction and what happens later is that they actually hide the failures to deliver in offshore companies, or they give a locate tag on multiple occasions, based on the same share, which is just mind-blowing to me. We also learned during that period of time, in several cases that the fails to deliver were hidden in subsidiary companies. So the fails may go to canada.

They may go to uk. They may go other places uh. In addition, locates were being given on shares uh multiple times when there's only one share, so somebody would call you know merrill or goldman and say i need to locate those locates would be given multiple times and they would be done so when only there's one share Or two shares again: i'm making up the hypothetical. The other thing he was talking about is that i had no idea, but not only shares a margin gets lent out by your brokerages.

That's insane. If what this man is saying is true, which i don't have any way to verify, is essentially, if you have any shares in your brokerage, even if it's a cash account, unless you put a specific order not to lend out your shares, the brokerages will do it. Even though he is claiming that this is highly illegal, which sounds very reasonable to me, but this is actually insane so the brokerages, based on what he's saying here, are basically doing you twice. They'll sell you the share and then they'll lend it out from your account to make money on interest, which is unthinkable to me.

What kind of a double dip is this so, in addition to lending their clients, margin shares which don't forget each one of you out there who signs a margin agreement? It has the that gives them contractually the right to lend your shares. Another thing that you'll see in the enforcement actions, which we've seen in cases is they're using cash account shares cash account. Shares in the states are protected by rule 15 c33, and in doing so that that rule says the cash account shares. That is shares that aren't leveraged in a margin account have to be segregated in the united states.

They can't be touched, which is insane to me that this even exists. He talks about the lack of enforcement of the government, the sec for decades. The only thing they do is find these guys. They don't give a about the fine.

The people never get called out, never gets exposed, and they do it again and again. This is insane and here's the kicker. He actually confirmed something that i was suspecting in my video yesterday. He was saying flat out that the interest, the short interest reported every two weeks on certain stocks is completely trash is completely.

You can see it in some of these enforcement actions. We're going to post later is they're marking a lot of the tickets long. So one of the ways, the bad guys believe - hey i can circumvent rex show and that this only applies to the united states. Is i can market long because guess what happens when they market long? It doesn't go in short interest, which, incidentally, ladies and gentlemen, means that the reported short interest is garbage in many cases.

Why? Because all the shares that were marked long, he actually confirmed one of the concerns i voiced yesterday about the reliability of the short interest in the stock. Every two weeks we get an update about the short interest in a certain stock, so he's saying flat out that this is that this is trash, because what he's saying is that a lot of these players mark long, even if they're short, that way, they don't get Called out they're gon na examine they don't get regulated, but it completely distorts the short interest in the stock, which means that whatever we're seeing is probably just the tip of the iceberg. I guess all of these guys on reddit might have had a point. This isn't bogus, and also the one thing he mentioned here actually makes a lot of sense.

The reason that this thing never gets fixed is because every time they litigate this stuff, the guys settle, they don't want this to go to court. They don't want to lose. They don't want the government to get involved, so essentially these guys just settle they pay up and they make it go away. That's why we never go through the mid-grinder of the court system and actually expose this for decades, and just before i let you go.

I want to give a huge thanks, of course today to our channel members and the patreons, but most of all to the subreddit super strong, i'm not affiliated with them. I don't know none of these guys. I've never spoke to them. Of course, i'm not financially motivated to make any promotion.

I have no idea who they are. These guys are killing it phenomenal job and by the way, if you haven't seen it tomorrow, they're going to have the woman who actually wrote the article i showed in my video yesterday about kaufman's crusade that failed in 2009 to actually regulate this thing. So i do suggest you do watch the ama and you go to the subreddit and you follow up. So you can watch the next ama, which i think is going to be as good as always a huge shout out to the channel members and the patrons for being with us today.

Thank you. So much go apes! We'll see you guys next video.