First giant wave of liquidations is coming today. I want to talk about how these these liquidations will impact the market as a whole. And more importantly. How they'll these hedge funds.

Currently shorting amc. So stay tuned. And let's make some money and now we're going to dive straight. In with the key information so gold telegraph tweeted.

Saying breaking. News the swiss central bank just reported a first half loss of 10008 billion dollars now that's the biggest half year and quarterly loss since 1907 and they say that central banks are continuing to see losses. Now you might say tom i'm from the us why does it matter if the swiss central bank is taking on massive losses. But don't forget as a result of these stock market declines these falling bond prices and the dollars appreciation against other currencies.

Which severely dense the value of these other currencies. It's not just the swiss central bank taking on losses. We've got banks like credit suisse. We've got banks like bank of america and we've got the federal reserve themselves all taking on heavy heavy losses right now.

It isn't just one specific bank. One specific hedge fund or one specific central reserve bank. That's taking on these losses. These losses are being felt worldwide.

But the fact the swiss national bank reported their first half loss of a hundred billion dollars. The biggest six month loss since the central bank was founded back in 1907 just goes to show how screwed these banks really are credit suites. Economists said the loss is historic. But most of its unrealized paper losses relating to lower valuations of bonds and shares.

And. While that is the case and that's also the case for many other banks and many other hedge funds. Don't forget that many of these hedge funds that are very over leveraged and very overexposed have been borrowing money against their unrealized gains. Many of these hedge funds have generated unrealised gains over the last year or two years and they've borrowed money against those gains to reinvest further into the market.

They leverage and re leverage and re leverage their money. Many separate times. Until you have some instances like citadel. That are leveraged at a ratio of seven to one that means that for every 40 billion dollars of citadel's money.

They've borrowed against that 40 billion. An extra 240 billion on top of that and therefore. While many of these hedge funds. Many of these banks.

Central banks and other institutions have taken on heavy losses. While they are technically unrealised paper losses. It does still bring them closer to these margin. Calls now.

Tim young tweeted. Saying. I've never seen biden move. Faster than today.

When he said that it doesn't sound like a recession to me and immediately ran away from reporters. That doesn't sound like a recession to me. Thank you very much president biden walking out of the state dining room. There after uh refusing to accept that the country has slipped into recess.

Now with many of these not just smaller banks. But also larger banks and central banks taking on heavy heavy losses. It's clear to see why president biden doesn't want to admit the us is falling into a recession. But the most interesting part of all of this for me is the fact that fox news is absolutely convinced that we are indeed in a recession.

Firstly. You have these titles down. Here. That says.

Biden pushes for spending as the us enters a recession and then updates to say that biden denies recession as the us enters. The recession. Again you also then had this commentator. Saying.

That biden is currently refusing to accept that the us is indeed in a recession. So this goes to show that right now even though the white house is denying that we're currently in a recession. Mainstream media. Many reporters and economists all believe and they all know that we are indeed in that recession and as a result you may have seen the new bank of america memo.

Which revealed they hoped that conditions for american workers actually get worse and guys. If you haven't already be sure to sign up to moomoo right now using the link in the description. Below you can currently get 10. Free stocks worth up to a whopping total of 25 moomoo is very easy to use it's incredibly customizable they've got tons of technical indicators and advanced charting tools from moomoo's latest customer agreement they officially state they do not benefit from your order.

Flow and they do not sell your order flow to market makers like citadel or to clearing houses. Like apex clearing in fact they clear their trades on their own through food to incorporated. Which does also not benefit from your order. Flow and therefore moomoo is brilliant for buying those amc and gamestop shares.

You may say tom why is bank of america. Hoping for this recession and hoping that conditions for us workers and the us people actually gets worse well as for acorn tweeted. He said. Bank of america was one of the key players in the 2008 recession and mortgage crisis.

And he said and more likely than not they've gone over leveraged themselves to oblivion again and they need retail capitulation. Maybe. Bank of america are very heavily over leveraged and could soon be slipping into bankruptcy. Okay they need retail to capitulate.

They need situations and circumstances to get worse for american investors. They need the stock market to bottom out as soon as possible before they end up going into bankruptcy. And before they end up being liquidated. It says bank of america executive stated that we hope working americans will lose leverage in the labor market in a recent private memo obtained by the intercept.

Clearly bank of america is hoping that circumstances get worse for the american people potentially to save their own skin. If bank of america is one of these banks or is one of these institutions that have heavily leveraged their money borrowing against their unrealised gains. They're soon going to have a very sore surprise as the market continues falling as inflation continues to get worse. And as rates continue to hike.

The stock market will continue falling. And we may see some major players like bank of america or credit. Suisse. Going bankrupt.

And interestingly enough. Tremendous blog is reporting. That wall street banks are actually turning on each. Other.

As the federal pro blooms now obviously. We know that morgan stanley has been under federal investigation since february. But now banks are turning on each other and unidentified sources are leaking information. It says.

According to reports two of morgan stanley's competitors credit suisse and goldman sachs have gone so far as to alert the us. Attorney's office and the hong kong regulator sfc respectively about potential issues around block trades. Executed by morgan stanley. Now obviously.

We know that morgan stanley has this block trading business. That's being investigated by the sec and the department of justice. But it seems like other banks are already snitching on morgan stanley. Now what's very interesting is that all of these other major banks also handle large block trades.

So it seems very counterproductive and counter intuitive for these institutions to be snitching on morgan stanley. Unless. It's to be saving their own skin. Now.

The author said that nothing has been proven against morgan. Yet and it is possible they were just conducting big trades in a straightforward and honest way. But he said but watching these big banks turning on each other gives me pause. He said.

I've rarely seen major banks reporting each other to regulators as goldman and credit suisse did with morgan and obviously. He says. What's more is that morgan has suspended some of its block trading staff. And he asks why would they do that if they'd done nothing wrong.

And he said interestingly. It's not just the big banks that are talking and snitching on morgan stanley. He said. Unidentified whistleblowers are also offering up information on possible wrongdoing at morgan.

I think maybe these other major banks. Know they're in trouble because they've likely been committing the same crimes or they know they're in trouble and close to liquidation therefore. They can't afford to pay. These giant fees coming their way and therefore they're snitching on morgan stanley.

You may say tom isn't it just citadel. That commits all these crimes and isn't it just citadel. Shorting. These companies taking on this massive over leveraged risk.

And while citadel. Does have 65 billion dollars of security sold not yet purchased. It's not actually anywhere close to being the largest institution. Goldman.

Sachs. Has 165 billion dollars of securities sold not yet. Purchased jp morgan. Has 189 billion.

Citigroup has 199 billion. But bank of america has a whopping 416 billion dollars of security sold not yet purchased. So it seems like actually bank of america has the largest short position or potentially the largest synthetic short position on many of these stocks out in the market. We thought citadel was bad with 65 billion of securities sold not yet purchased.

But bank of america has nearly eight times. That amount and vegas chef andrew has retouched on these ftds from the second half of. June while we did have 96. Million ftd shares that's a whopping 137 million dollars worth of failed delivers now the t plus 35 date for those ftd's is the 2nd of august.

So on the 2nd of august that's 137 million dollars worth of amc. That these hedge funds have to buy to cover their ftds now again. While that may not necessarily cause the squeeze on the 2nd of august. Exactly it's a whopping amount of ftds and a whopping value of ftds that these hedge funds have to buy and have to cover now.

We also know that citadel just lost their lawsuit against iex as the sec and the corps sided with iex. But that means that citadel just got deprived of billions of dollars of easy money. Which was being robbed out of investors pockets by latency arbitrage order execution. So again that's now billions of dollars.

That's been chipped away at citadel's profits. It seems like citadel's profits are just getting. Smaller and smaller and citadel's losses or the fees they need to pay are just getting larger and larger. This is billions of dollars that citadel securities.

Now won't make and now won't have and now can't use to meet their marching requirements and as shay said it's just another source of liquidity that's just dried up ouch every single source of citadel's liquidity that dries up just brings us one step closer to that amc squeeze. 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.