Today I Want to talk about and show you this video of the biggest and best ever Short Squeeze Rage ever recorded. I Also want to talk about what's likely to happen to the shorts over the next few weeks if we do see a short selling ban. So stay tuned and let's make some money. And now I'll arrive straight in with the cubation.

So I Want to start by giving you the back story to this video, explaining what's actually going on and explaining who both of the callers are and what they do. So what you're about to hear is a call between a hedge fund manager and a broker that works at a marking making firm. Now this hedge fund manager is currently short 25 000 shares of Taylor Woodrow which is a UK British homebuilder that's currently experiencing a short squeeze. Now, obviously, this hedge fund manager doesn't want to take a loss and he's trying to organize a sneaky over-the-counter deal to buy back his 25 000 shares at a lower price than it's currently trading for.

If you can't get that, he wants to buy back his 25 000 shares at the current market price without pushing the price up even as single penny. He basically wants some of the inventory that the market maker has and he doesn't want to impact the market price, making his loss greater. Now the broker at this Market making firm basically says that it's not possible this guy's gonna have to buy back his 25 000 shares using a market buy order, pushing the price up and he's just gonna have to take a loss. He says they may be able to work it gently through the book, splitting the transaction up into multiple separate orders.

Instead of buying 25 000 shares all at once, they could try buying, say 5 000 shares and then hope the price comes down in a few hours. If loads of people sell out, then they can buy another 5 000 and again hope for the price to come down in a few more hours after that. Now obviously as you're about to hear this hedge fund manager is not best please and actually you could even say he's a little bit angry as a result I Want to ask each and every single one of you to drop a like down below because this video is going to take me ages to edit. so I can edit out all of the swearing.

But enough of that. let's take a listen. Hello good morning It's Ben from Gni hello Mike hi there Uh, this is Taylor Woodrow yeah I'll speak to about five people Uh, no one's really got any form of bumps into um, another another buyer as well. So what I would suggest you probably do is let's not sold out Really? Now this is the London Stock Exchange can I buy some China Woods on? let's not forget about it, you can.

you can if you let me just work it on the book. No, it's a joke. No, you know what, You don't use the book. Oh how could I use the book? There's a thousand shares on the offer because I just work it generally through the rest of the morning.

Oh right, What about if they move them up then? well I'll just take the loss because you can't buy shares in the market. If I was happy National or if I was Bloody Investment Company I'd be out by 25 000 shares. Yes, I would No, you do that too. It makes no difference where the order comes from.

I'll just say I'm just telling you I want to fall out with you I'll just fall out with someone in a big big way if I cannot buy stock from the London Stock Exchange You know, buying stocks from Orlando Stock Exchange You're buying the stock from market makers, aren't you? It's already checking out now. let's see what this should be before being useful that night for one of our clients. And you straighten this out or you wear the loss because I am fuming If you cannot find me these shares I'm going to go off my nuts off your nuts. Okay, would you want to listen to us? Please comments yourself.

otherwise we will fall out. I'm not some you can repeat to like a parrot. I've asked you to do one order to me. Yeah, right.

Keep you. keep your selfie coming to yourself because I'm in a mood for little boys like you. Now you go and do whatever you've got to do. I've given you know to go and fill it.

Phone me back within five minutes with it still son. All right. Can we just get back to what I'm saying originally. Oh dude, put someone on who can go the older please I've already spoken to be honest with you.

One of me Powers has already said you can't feel free, don't make it so right. Don't be a prick with me boy. put someone on a dirty shoulder because if you cost me money, I'll explode. Sure.

Well I I if I just speak to you about it I've spent four or five guys already. Okay, one, um, one is one, is a buyer, three others haven't really got any thoughts. All right? So I'm gonna get this right here. go to the market and finally do I Have been to the market already, right? So what I'm just suggesting is that we just work it gently on the book.

I'm sure. God Listen, Listen, do me a favor. Do me a favor, put me on someone up and speak to because I'm telling you mate, if you can't buy me 25 000 Taylor Woodrow in this market in this River Market There's something wrong. Don't put me on to someone who came please.

Okay, I'm just saying I'll put you through So as you can tell that was a short seller that was not best pleased that he was going to end up pushing the price up in Taylor Woodrow and taking a pretty solid loss during this short squeeze. And that's why is Wall Street H tweeted instead of Short Selling gets banned even temporarily? It's over. It's game over for the hedge funds. it's game over for Wall Street And for the entire Financial system, he's at AMC ape and GameStop will run so high.

Day one, they'll have to leave the trading horizontal day to try and figure out what to do. Obviously, if Short Selling is banned on all stocks in the entire Market, the market will end up going crazy. an AMC and GameStop will end up squeezing. But it's interesting because when short selling is actually banned, it has a very profound effect on a wider Market itself.

alien. Tweed Saying the last time Short Selling was banned on financials. check out what followed after in the S P 500. so it says in 2008 U.S Regulators banned the short selling of financial stocks.

fearing that the practice was helping to drive the state deep drop in stock prices during the crisis. However, a new look at the effects of such restrictions challenges the notion that short sales exacerbate Market downturns. In this way, it says the 2008 ban on short sales failed to slow the decline in the prices of financial stocks. In fact, prices fell markedly over the two weeks in which the ban was in effect and stabilized once it was lifted.

Basically, even if they ban the short selling of banks, Bank stocks still decrease because the shareholders Panic so much and just bail out of their positions. They sell their entire long position all at the same time because they know that banks are in a terrible, terrible situation. If Short Selling needs to be banned and therefore Banning the short selling on banks actually speeds up the price or speeds up the rate at which the stock price. Falls because all the long share owners sell out of their position all at the same time because the panic and you can see from this chart, both the stocks subject to the ban and a Cato's Financial stocks and also stocks not subject to the bat AK tech stocks And you can see when the short sale ban was in effect.

So in August to September there was no short sale ban and stock prices did fall in both Banks and regular tech stocks, but not too significantly. On the day of the ban or the day the ban was rumored, you did see a little bit of a short squeeze obviously because Shorts were closing out of their short positions because the panic, But as soon as this short sale ban actually happened, everyone realized just how bad the market actually was and not only bailed out of their long positions in Banks but also bailed out of their long positions in every other stock as well. This led to not only banks crashing, but also tech stocks crashing and pretty much every single stock in the entire S P 500 crashing all at once as institutions dumped their shares. But this is exactly why a short selling ban, even only just on financial stocks or on banks will cause the AMC Swift Because if they ban short selling on banks, it means that banks are likely going to fall further.

it means that all stocks in The Wider Market are also going to fall further, causing some massive massive margin calls and margin calls go hand in hand with the AMC squeeze and that's going to end up with many, many hedge fund managers or hedge fund owners having a very unpleasant conversation with a number of market makers out there. Just like that video I showed you at the start, we're going to see some very angry hedge funds participants tweeted that would also be great for AMC as a company as well as the banks start falling AMC and ape will have a great day because AMC can buy back and pay off all of its debt at a massive massive discount. If these banks are going bankrupt, they'll do anything to get cash into the door. And therefore, even if AMC wanted to pay off that debt at a 50 discount or a 75 discount, they'd probably still go for it just to get the cash.

On top of that, you'd see shorts covering due to liquidity needs as they'd be desperate to meet their margin requirements to avoid margin calls. But if all else fails, Big Howie has an excellent idea as to how AMC can avoid being shorted. Further, he tweeted saying good Morning Activist Investors I Just had a thought and I don't know if it's been discussed. he said Teddy.com is registered as a bank.

If the government bans short selling on banks today, I think we'll see Teddy merging with Bed Bath and Beyond on Monday. Now this tweet itself isn't really too applicable to AMC but I did have an excellent idea on what AMC could do instead of AMC registering as a theater company AMC should just register as a bank. That way the government would have to Halt the short selling on AMC if AMC is registered as a bank because there's no shorting of financial institutions like AMC. That way, these shorts would be unable to short AMC for multiple days on end as ordered by the government causing the squeeze.

But guys, be sure to let me know what you think down in the comments below. As always, guys, be sure to ding that notification Bell because that way you'll be alerted when upload a new video. Cheers.