Today I Want to talk about the illegal agreements that hedge funds and market makers have been using so far to avoid the squeeze. But also I want to talk about how the Credit Suisse collapse will likely trigger The Squeeze rendering these agreements useless. So stay tuned and let's make some money. And now that I've straight in with the information, so hang loose, tweet is saying it's just dawned on me and it actually makes total sense.

It seems like this is how they're staying solvent against their massive short positions and kicking the can each and every day. He said they're using the reverse Reaper facility for virtually daily micro bailouts. These market makers are lending money to the FED in return for interest payments that they're using to pay the fines on their short position and pay that daily borrow cost on their synthetic shorts. Now as the conversation goes, it says: look through that threader all of the security sold and not yet purchased.

What's happening is they're collecting money for naked shorts and not buying the assets to satisfy the trade. as I've spoken about before, These Securities sold, not yet purchased have created related synthetic shares in two separate ways. It's where a market maker couldn't locate a share for a short to short, so they've just shorted it without locating it. But it's also where we wanted to buy some shares, but the market maker couldn't find any shares for us to buy slavery and us.

And IOU either way, they've sold a share into the market, creating a synthetic share and bringing them cash. And they've also taken our money when we wanted to buy shares and simply given us a phony IOU. So even though these market makers have tons of cash on hand, they're massively over leveraged in that short position. Even though they've taken our money for shares and sold shares into the market making them cash Rich, They obviously have tons of Ious to fulfill and tons of obligations to fulfill on the shorting side as well.

And it says so. What they're doing is using that cash to loan to the Fed so they can collect interest payments every single day to pay for the interest fees they're accruing on their short positions. They're using that cash down to lend to the FED in the repo program, collecting that overnight interest rate amount, and using that interest rate to effectively pay the shorting fees and the shorting interest rate costs. And it says so.

That's how margin calls are so far being avoided, The FED is paying the tab for them every day by that reverse repo program. And that's obviously why Reverse Repost started shortly after 28th of January 2021 and really ramped up around June of 2021 as well. And as most squeezed the cow out of, he said Yup, He's been saying that for like two years now. He said that they'll even admit to their financial statements that they use reverse Repo payments to cover short positions.

As the Tweet says, at the end of 2022, Citadel had 890 million dollars in reverse repo agreements in Reverse Repose The FED cells said that out a security or a note to repurchase later usually just a day later and pays them interest each and every day. And therefore Citadel uses those reverse repos to cover their short positions to pay out that interest, cost and any fees. Associated To re-hypothecate those shares, it says the company enters into reverse Reaper agreements to among other things acquire Securities to cover short positions and settle other Securities obligations and to finance certain of the company's activities. So right there it's showing clear as day that Citadel does actually use this reverse repo money to cover their short positions to make sure they have enough cash on hand at all times to pay those fines and borrowing fees.

And as Travis added, he said, your retail broker through a settlement agreement with Naked Short sellers can actually set or fail to delivers with other stocks and assets basically same. They can settle AMC Fdds by using and locating shares in another completely separate stock. And he said, now you wonder why some random stocks have started running to thousands of dollars with no holes seemingly overnight with zero news it says here. However, it's important to note that the use of other Securities to fulfill filter delivers is generally not allowed under current regulatory rules, but obviously we know these market makers don't abide by the rules.

It says the rules require Brokers to deliver the specific Securities that were sold in the original trade and using other Securities to fulfill the Ftds can result in regulatory sanctions or other penalties AKA a small slap on the wrist fine and in some cases Brokers may use other Securities as part of a settlement agreement with the buyer, but this would typically be done with the agreement and approval of all parties involved and would not be considered a standard practice like two Market maker or a market maker and a hedge fund agreeing to mutually settle the FTD with a completely separate stock and you may wonder what kind of Securities other than these random stocks are these hedge funds using to settle those Ftds with those market makers? Well, Travis has the answer once again, and it's over the counter derivative swaps and he said it's the only logical and legal way they are circumventing this rubbish. But as you can see, the clock is ticking. a liquidity crisis is here, and who are they going to swap with if the entire banking system collapses? As it says here, the question has been asked: can naked short sellers use swaps rather than be forced to buy in the actual Ftds and chat GPT replied saying it's not uncommon for naked short sellers to use swaps as a way to manage their risk exposure rather than being forced to buy in those Ftds swaps of financial instruments that allow two parties to exchange cash flows based on the value of an underlying asset such as a stock and in the case of Naked Shorts selling, a seller who does not actually own the shares they're selling could use a swap to hedge their position and limit their potential losses if they're forced to cover their position at a higher price. For example, if a seller has sold shares sure and doesn't actually own those shares, they could enter into a swap agreement with a counterparty that agrees to provide the seller with the difference between the current market price and the price of which the shares were sold.

Sure, this way, if the seller is forced to buy in those Ftds, they will have the cash necessary to cover their position without having to buy them shares themselves in the open market at a much higher price. Now you may be asking, but Tom Who exactly is writing these over-the-counter derivative swaps on AMC But actually, we've known the answer for a few years now. and if you didn't know the answer as to who it is writing those swaps for AMC it's of course credit. Suites and a Stephen Gaga tweeted.

He said, everyone's saying the FED needs to pause and cut rates instead with inflation at six percent is just silly. He said, why car because garbage VC Banks died and Credit Suisse is struggling He said, call me when real banks have real issues He said, until then let those swimming naked finally drown. He said it's part of finally moving away from Zirp. Now you may remember Warren Buffett Famously said, only when the tide goes out do you discover who's been swimming naked the entire time now.

Obviously, we believe for some time that it is indeed Credit Suisse that are swimming naked writing all of these swaps with the these market makers and now that Credit Suisse is indeed in trouble, many are saying to leave Credit Suisse out to drown because they're the ones that are swimming naked. and obviously if Credit Suisse is indeed left out to drown, all of these swaps go Kapur And then all of these hedge funds and market makers have to close out of their Ftds and have to close out of their short positions as well as they can no longer hide the Ftds in the options chain or with these swaps just for a better throwback. Information: As Bird Bear tweeted, he said I too remember the glitch that showed Credit Suisse holding over 70 of GameStop shares outstanding input contracts. Obviously, if Credit Suisse had 540 000 shares of GameStop in perk contracts or input options obviously pre-split credit, Suites are likely still holding them.

And again, you'll also remember that Credit Suisse was a huge perpetrator of AMC shorts in a dark pool which I think was first announced by Peter Han And obviously Credit Suisse also suffered massively as a result of of the archaicos Fallout And is likely still holding Arcagos. It swaps on GameStop and likely AMC as well. And as Biotech Moves tweeted, he said, let's check in to see how the Arcados fall out and Credit Suisses AMC Sure, it's going now. You may know that yesterday, the Swiss National Bank announced to lend Credit Suisse around 50 billion dollars as a bailout or backstopping package.

But obviously the Swiss National Bank already took on losses of 141 billion dollars last year as Credit Suisse also took on losses of around 7 to 10 billion as well. And here it is: Yeah, it says Credit Suisse says it will borrow up to 54 billion dollars from the Swiss National Bank. Now obviously Credit Suisse is struggling massively Yes Credit Suisse have been given this 54 billion Lifeline but I don't think it's nearly enough if you look at Credit Suisse's total deposits. As Jiren tweeted, he said Credit Suisse's total deposits declined by a whopping 140 billion Swiss Francs or 37 in quarter Four of 2022.

Now from the picture, this reduced Credit Suisse's total deposits from around 400 billion dollars all the way down to around 233 billion just in one single quarter now Joe and added saying that is disturbing and it seems unlikely that the deposit outflow will actually stop. Who would want to bring their money to Credit Suisse now and he said, more likely, everyone wants out Now remember this is just of quarter Four of 2022 alone. This doesn't include what's happened over the last few days. So back in Quarter four, Credit Suisse had 233 billion.

But on Monday or Tuesday alone Credit Suisse suffered withdrawals of over 50 billion dollars in one sink in a day. So I imagine over January and February and a bit of March Credit Suisse probably lost another 100 billion dollars, bringing them down to 133 billion. They then lost another 50 billion in one single a day. But it did get that 50 the billion support package.

so they kind of left around 133 billion. But obviously if they also suffered withdrawals last week during the Silicon Valley Bank and Signature Bank collapse and staff withdrawals over the next few days or the next week or two, Credit Suisse could soon be out of cash very very quickly. Credit Suisse may require a second bailout package of 50 billion isn't enough. and considering they had 50 billion dollars of withdrawals and one single a day, I don't think 50 billion is going to cut it.

So therefore, Credit Suisse may need a second bailout package, which they may not end up receiving and Credit Suisse may just be left out to dry. And that is why I think that AMC's massive amount of Ftds could soon be coming home to roost. I said a few days ago that I wanted to keep an eye on AMC's Ftds to see how the second half of February FDD is shaped up. Remember, in the first half we had two separate days of over 6 million Fdds in a singular day.

But what about the second half of Feb We see here in the first half of Feb AMC had two separate days of six million Ftds, but then in the second half we had 11 million, 9 million, 10 million, and 10 million and so on. Over the second half of February AMC was racking up a major amount of Ftds and continued to do so through late February and likely the first week or two of March as well until AMC was finally removed from the threshold Securities list again. I Just think these Ftds have likely been hidden with their greens that I touched on in the first half of the video, but as soon as credit Suite is left out to dry I Imagine all of those Ftds are going to be closed all at once. But 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.