Welcome back to the channel everyone today, i want to talk about how hedge funds are starting to turn on each other and write each other out and how liquidations are absolutely incoming, so stay tuned and let's make some money, and now i want to dive straight in With the key information, so, as you can see from this eloquent photo there's a number of hedge funds out there that are saying guys. We've already covered our short positions like melvin capital, for example, but yet there's other hedge funds and institutions like credit suisse that are starting to rat some of the other funds out. We can see that credit suite is trying to aid in the u.s department of justice, block trading and short selling probe of credit. Suite's rivals credit suisse, while saddled with billions of dollars in losses from the collapse of archagos capital management last year is trying to help the us justice department potentially build a case related to block trading against rivals, morgan stanley and goldman sachs.

This is obviously part of the wider department of justice investigation into short selling, they're investigating spoofing and scalping they're investigating the communication between hedge funds and research firms and they're now also investigating these very large block trades and just the pattern of trading they're, obviously trying to Identify any cases of market manipulation like spoofing like ladder attacks and also such as placing large blocks of trades after the market is actually closed and obviously credit suite is trying to aid the department of justice in this investigation to get some revenge on goldman sachs goldman Sachs obviously started the liquidation of our chaos, capital management and credit suisse took on the largest losses, as they were the last fund to the door. When archaegos started going down, goldman sachs threw their hands up and said guys we're gon na liquidate them. We're gon na be the first ones to get out of that door. Credit suites were obviously caught in the panic.

They were the last of the door and therefore took on the heaviest losses, but now obviously credit suisse wants its revenge and they're trying to aid the doj and try and get some dirt on goldman sachs. But it's not only credit suisse, that's starting to turn on the other hedge funds, the ex goldman banker, trial, revealed greed and the graph from the 1mdb scheme. Bloomberg article said that goldman sachs's dirty laundry has been aired in a new york courtroom from a fast escalating racket to loot, malaysia's wealth fund to the handsome compensation given to a high flying grifter. And it says the charges stem from one of the biggest financial scandals.

In history, in which u.s prosecutors say that 4.5 billion dollars of the 6.5 billion that goldman raised for 1mdb was diverted to government official bankers and their associates through bribes and kickbacks. A few years ago, goldman sachs raised tons and tons of money for the malaysian wealth fund, but ended up. Seeing most of this money returned in bribes and kickbacks. Lesnar says that from the first bond sale in 2012, he personally received 35 million dollars from low and transferred half of it to ng.

Both then discussed crafting a cover story to explain the payments, so the bank's processing, the funds would not grow suspicious and i think, as corey says one by one, they will start to turn on each other and i think it's already happening the first to cover their Shorts survives and the first, the squeal gets the best plea deal when amc starts, to run up and starts to squeeze the first short hedge fund to the door. The first hedge fund to cover their shorts will effectively suffer the least amount of losses. The first hedge fund that starts to cover amc when the price is running up over 70, a share will effectively have a much higher chance of survival than some of the other hedge funds that try and hang on. While amc runs over 500 a share and then they'll be forced to cover when their entire position is liquidated and they end up going bankrupt.

And obviously when this happens, it's going to be a mad rush to the door. A mad rush to the exit and many of these hedge funds aren't going to care which other hedge funds get hurt in the process. And it's now starting to seem that these hedge funds are already starting to turn on each other rat each other out and helping the department of justice investigate the other hedge funds. Already guys.

A lot of you may not have a lot of confidence in the stock market at the moment. There's all of this market manipulation and market fraud. That's going entirely unpunished and that's why i personally also invest in crypto, especially at the moment during this big dip with blockfi. You cannot only invest in crypto, but you can also get up to 250 dollars in free bitcoin, just for signing up to block fi, using the link in the description below and making your first deposit.

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Now you may wonder tom who's actually holding any of these russian bonds. Well, blackrock is among the russian bondholders, tangled in a 15 billion dollar round. On top of this, capital group and legal in general are also top holders of the russian dollar. Dare and foreign says that these could be catalysts, creating liquidity issues that will result in margin calls this upcoming week.

Smaller players will not survive the rising tide, liquidity issues. Obviously, roll downhill just ask melvin capital. These bonds are obviously crashing heavily, and some bonds created by ubs have even been written down to absolute zero. These bonds were previously included in the aaa section of bonds, meaning they faced a zero percent haircut, meaning the full face.

Value of these bonds could be used to meet margin requirements, but now these bonds have been downgraded to junk bonds and some have even been completely written off to a flat zero and therefore that's billions and billions of dollars of collateral availability to meet marginal requirements. That's just entirely disappeared and, as foreign said, this could create liquidity issues that will result in margin calls this upcoming week, but not only are russian bonds being written down to zero, but it seems there's going to be a run on the russian banks. Blackman says i wouldn't want to keep my money in a bank that can't access the swift system once a bank can't transfer or receive funds from other banks. Its solvency can be a risk.

He said if i were russian, i would take my money out of the banks right now and bank runs could begin in russia as early as monday morning, but world news is reporting that bank runs are already underway in russia, as the us and eu agreed to Cut off the entire country from the swift system, this is russian people waiting outside of russian banks, so they can obviously withdraw their money and either convert it into us dollars or maybe even into bitcoin or ethereum. For example, the russian ruble is losing tons and tons of value at the moment and obviously russian banks can't even access the swift system and therefore they can't even make payments using their russian money and therefore, there's obviously going to be hundreds of thousands of people wanting To take their money out of the bank, so they don't lose tons and tons of their savings, and so they can continue making transactions and lou says just wait until our banks shut down in the us in canada and in the eu as well. Obviously bank runs and hedge fund runs are massively problematic when people start withdrawing their money, whether it's withdrawing their money from the bank or withdrawing their investments from hedge funds. Those hedge funds have to sell off assets to meet those redemptions.

We all know that citadel have already restricted investor redemptions and therefore it wouldn't surprise me if a number of other hedge funds have a massive influx of redemption requests over the next few weeks. And if that is the case, that means tons and tons of hedge funds are going to have to start selling off their long positions and also covering their short positions and, as we all know, by now, if hedge funds have to sell off massive amounts of blue Chip stocks, it will cause these blue chip stocks to crash and thereby also causing margin requirement problems for other hedge funds. The massive amounts of unrealised profits that some of these hedge funds are holding will end up getting substantially smaller, which is gon na cause. These hedge funds to run into margin requirement problems as they won't be able to meet their margin, calls and will end up being liquidated now.

I've also got some positive news for amc as well. Moody's investor service has recently upgraded their amc outlook from negative to positive moody's, which is one of the rating agencies has said that the average cost of movie tickets remains one of the most inexpensive forms of out of home entertainment and they think there is a strong Pent-Up demand for moviegoers moody's have upgraded amc's credit rating, which suggests the probability of default is ever decreasing. Moody's have said the rating upgrade reflects moody's, expectation for continuing improvement in amc's operating performance and liquidity amid growing attendance levels at the global box office, combined with our expectation for a strong movie slate in 2022. They said this will be supported by the planned release of numerous blockbuster and franchise titles, as well as moody's belief that most of the big studios will adhere to the new 45-day theatrical window for major film releases before distribution to video on-demand streaming platforms.

Now i personally think this is absolutely huge that amc can still command this premium over streaming platforms like netflix, amazon, prime and disney, plus and i'll touch on. Why, in a few minutes, stonks batman said that my opinion is that amc will have yet again another good earnings result. He said, i believe the price of amc will remain undervalued following the earnings for the meantime until the squeeze he said. He personally believes that if the price wasn't suppressed by the substantial amount of synthetic shares and naked shorting, then it would be over a hundred dollars per share, just based off the current sentiment, but they have not allowed the price discovery.

Now you may say tom: a hundred dollars per amc share without the squeeze sounds absolutely ridiculous. Surely, there's no way that amc should currently be valued at a hundred dollars per share without the squeeze a hundred dollars per share would give amc a market cap of around 50 billion dollars. Now it's worth noting that a 50 billion dollar market cap for amc would still make amc around six times smaller than netflix, and i have to admit that for a cinema chain that commands a 45-day premium over netflix to be valued any less than six times less Than netflix's value is unfair. I personally think that amc should have more than a 50 billion dollar market cap.

Considering that amc commands this 45-day exclusivity period over netflix, amazon, prime and disney plus to me, it makes absolutely no sense that amc is currently worth around 20 times less than netflix. I personally think they're based off the current sentiment, not just our current sentiment, but also moody's and other hedge funds. Current sentiment of amc, the amc is massively undervalued, even without the squeeze guys be sure to. Let me know down in the comments below what you think about the hedge funds, turning on each other and causing liquidations, and as always guys, if you enjoyed this video, be sure to check out some of my others.

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