Welcome back to the channel everyone today, i want to talk about the massive increase in the amc, borrowing cost for short sellers, and also i want to talk about gary gensler's brother who's. The vice president of a fund currently investing in amc, 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 4 300 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, and just a quick one before i dive in with the key information, if you haven't already got your free shares with either free trade or moomoo, be sure to check out the links down in the description below and also be sure to head On over and join the team on the private discord, also linked in the description below as well, and now i want to dive straight in with the key information. So you can see that since the june run up in the amc stock, the borrowing fee has remained at between one and two percent for the last few months.

Last night again, it was still one percent. However, in the aftermarket hours of yesterday evening that increased to a whopping 5.6 percent, if we head on over to stonco tracker, we can see that that borrowing fee is still at 5.6 percent. There were around 750 000 shares to short available and those have all been taken up and will likely be shorted at the market open. However, that's not really a bad sign, because 750 000 shares isn't really that many compared to what they've had in the weeks previously, where sometimes there was two three five million shares available to short at the market open.

In addition, the increase of the short borrowing fee to 5.6 is brilliant news for amc, because it now makes it 5.6 times more expensive to shore amc or 560 or 460 percent more expensive for short amc stock for the short hedge funds, hopefully over the rest of Today and next week we see that short borrowing fee increase from six percent to seven percent eight percent and maybe even as high as 18 or even higher. If we start seeing that short boring fee going up towards 18 and even higher, it would just become ridiculously expensive for hedge funds to shore amc, and they would likely cover their positions because it would be too expensive and obviously those short hedge funds covering their positions Is exactly what we've all been waiting for, because that would absolutely enact the short squeeze now be sure to keep people updated if that borrowing fee does increase any higher in my later videos today and over the next week now you might have already seen this, but I thought i'd share. It anyway turns out gary gensler's brother robert is the vice president of an investment firm holding 130 000 shares of amc. If we actually go to that website, robert n gensler is the vice president of tea row.

Price group incorporated, and the more important part is that he's a portfolio manager in the equities division and therefore he has direct say in which specific equities and stocks, the company purchases or the fund purchases - it's not as if he just works in it or the accounts Department and has no impact on what shares the fund purchases he's literally on the front lines as a vice president. If we head on over to where wisdom, we can see that price t row associates holds 218 000 shares of amc recently increasing their position by 87.9. 000 shares that's an absolutely massive increase of 67 of their original position, and it now brings their position to 12.3 million dollars worth of amc. You may also remember a few weeks ago, nancy pelosi's husband also bought some amc and therefore it looks like all of the insiders and all of the high-ranking politicians are jumping on the amc train and buying up as much as they possibly can now.

I think this is absolutely brilliant news for amc, especially because nancy pelosi's, husband and robert genzler's fund were holding amc at the end of june after that june run up. Therefore, they clearly see amc going higher than seventy dollars because they held the stock at seventy dollars and didn't sell it when it came back down to say thirty forty dollars now. I also wanted to touch on the supreme court blocking the eviction moratorium and how this could effectively cause the market crash and the amc squeeze. The u.s supreme court has blocked the biden administration's order, extending the federal eviction moratorium to a large swathe of the country in a decision expected by both legal scholars and the white house.

The ban on evictions, a two-month order was issued by the cdc. The pause covers parts of the united states that are experiencing what the cdc equals substantial and high spread of the pandemic. The currently unsigned decision from the court was won in favour of six to three of not extending the eviction moratorium, but how exactly could a surge in evictions turn into a financial crisis? A surge in rental property evictions could have a domino effect on the broader housing market and the economy. This could be catastrophic and it extends beyond just the rental industry and could affect the single housing market and the economy as a whole with eviction moratoriums lifting across the country, landlords could eventually default on their mortgages and the pandemic could worsen in the country.

If tens of millions of renters are put out of their homes in the midst of a tough economy, if all these renters get evicted, they're going to be out on the street they're going to be in shelters, they're going to be staying with friends and family massively Increasing the amount of contact with other people and therefore potentially increasing the spread of the pandemic. You're also going to see a lot of financial losses to not only those renters, but also to the mortgage owners, as obviously it costs a good amount of money to evict a tenant. Nearly two in five tenants across the country, particularly low workers, are in danger of being served. Eviction notices.

The imminent eviction could morph into a financial crisis bleeding into other industries, giving the rent payment servers, income for landlords. Those property owners may have less revenue to draw on for their own mortgage payments. Furthermore, kicking a tenant out of an apartment in the eye of an economic downturn will mean. Landlords may have a tough time finding a replacement that could lead to a decrease in home values even in the owner-occupied market, and he says, if you look at the data right now about eight percent of mortgages are in forbearance.

That's the program that lets you defer. A mortgage payment for about a year in january, the delinquency rate was about three percent, so if eight percent of mortgages are currently in forbearance, that means the mortgage delinquency rate could increase to at least eight percent and, if not, potentially, eleven percent. If that eight percent ends up on top of the three percent, but what kind of delinquency rate do you need for a property market crash and also for an economic downturn? Well, if we refer back to the big short, a mere default rate of seven percent would cause the triple b rated bonds tranche to approach a value of zero. So, therefore, back in 2007 and 2008, a delinquency rate of only seven percent would have caused the housing market crash and economic downturn which it did cause.

Therefore, if we're currently already approaching a delinquency rate of between eight and eleven percent, it may look like the big short is going to be happening all over again, just this time, not in 2007 and 2008. But this time in 2021 and as we've previously discussed, an economic downturn would effectively cause the amc squeeze and the gamestop squeeze, because it means a lot of those funds out. There are going to lose massive amounts of capital and they won't be able to meet margin requirements. Therefore, they're going to be forced to close out of their positions, such as covering their amc short position.

Yes, the dtcc have put procedures in place, making sure their long positions don't get sold into the open market worsening the crash. The dtcc will effectively lend the money as collateral and they can use that money to cover their short positions and not have to sell off their long positions. And obviously the dtcc is covering those long positions and has put procedures in place for the long positions. But has not put procedures in place for their short positions, because shorts are so highly over leveraged and therefore, short positions are going to have to be closed.

I personally am very excited to see how the next few weeks plays out for that amc, stock and also for the wider market as a whole. I also actually wouldn't have even found these news articles if it wasn't for my new partner. Moomoo mumu are an excellent beginner. Investing platform and they've got super up-to-date news.

They've got the full extended trading hours. They're insured and they've got early ipo access as well. So if you do want to sign up to moomoo and get some free shares as well, be sure to use the link down in the description below and be sure to. Let me know down in the comments below what you think about the massive increase in the amc short borrowing fee and also what you think about gary gensler's brother working for a firm that holds and is buying amc, stark and as always guys.

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