Welcome back to the channel everyone today, i want to talk about how the chairman of interactive brokers actually exposed synthetic shorts live in an interview. I also want to talk about how somebody's just figured out that some big major banks have been secretly shorting the market. So stay tuned and let's make some money. I've also got something really important.

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So if you haven't already signed up with moomoo yet be sure to check out the link down in the description below to sign up and get all of that free money, and now i want to dive straight in with the key information. So this is an interview with thomas pettifey, the chairman of interactive brokers. I did actually show this interview on my channel a few weeks ago, but i only actually showed the first part of the interview and i completely missed the second potentially even more important part as well. How close we were to this system breaking something failing how close were we thomas? We were frighteningly close on on january 28th, when uh we had 50 million registered shares.

At the same time, we had 70 million shares short and uh 100. We had 70 million shares short at the same time. We had 70 million shares short the 28th, when uh we had 50 million registered shares. At the same time, we had uh 70 million shares short and 150 million uh 150 million shares short uh.

Our short call options, so if the core options had been exercised, the insurers would have had to deliver 270 million shares, while only 50 million shares existed. So, as the rules are today, the long broker has to if he can get the shares he has to go into the market and buy the shares at whatever the price is so that could have pushed the price uh further up into the thousands uh. When that happens, obviously the shorts cannot pay off uh, so the brokers uh they default on the brokers, the brokers default on the clearinghouse and the whole thing is a is a huge mess. That's uh impossible to untangle now that there is absolutely incredible.

What thomas petsfee has just admitted is that back in january, gamestop had a float of around 50 million shares, but interactive brokers themselves, as in just one broker received short orders for 70 million shares. On top of that, they also received options. Orders, i guess, put options for another 170 million shares as well, and that's just for interactive brokers. I can only imagine just how many shares were being shorted on robin hood, on weeble on fidelity and all of the other trading platforms and brokers back in january for gamestop, and therefore thomas pettifey has just admitted that back in january there were synthetic shares in existence.

If there's only 50 million shares in existence, how can one broker be shorting 70 million shares or have received orders for 70 million shorts? Yes, in this video thomas pets talking about gamestop, but it still applies to amc and other meme stocks as well. Don't forget back in january gamestop and amc and other meme stocks all run up at the same time and were also shorted in a similar fashion and retail was buying the stock in a similar fashion as well. In all of these stocks, gamestop amc and the other meme stocks, the shorts lost control and therefore doubled down on their short positions and began engaging in the practice of naked shorting. If they weren't already engaging in that practice, and i wanted to specifically clarify that - because i also had a lot of comments on my video yesterday that sec chairman gary gensler is writing a report on gamestop which, yes, he is writing a report on gamestop.

But that report is also still just as applicable to amc and other meme stocks as well, don't forget back in january, the trading wasn't just halted on gamestop and no other stock in the market. It was also halted on amc and all of the other meme stocks. As well, don't forget, gamestop, isn't the one stock in the entire market, where there is a practice of illegal naked short selling. It also applies to amc and other meme stocks as well, and probably other stocks.

On top of that that we haven't even yet figured out about, i want to keep bringing everybody back to this point that amc, apes and gamestop apes shouldn't be fighting each other. We should be working as a team. Yes, if a report mentions gamestop, it's also really talking about amc and other meme stocks, as well as a collective, because they're treated in the same way. Gamestop and amc both have the potential to squeeze.

No one stock is better than the other. You shouldn't sell your gamestop for amc, and you shouldn't sell your amc for gamestop. We should be working together to collectively defeat the hedges. Therefore, it's pointless commenting on video saying: oh, this only applies to gamestop or uh.

This doesn't apply to amc because it applies to all of them, because they're treated in the same manner trading was paused on all of them, they're all being shorted. It's all the same. For example, let's take this video. Yes, gamestop has a float of 50 million shares and, yes, 70 million shares were shorted against it.

Amc now has a float of 513 million shares and therefore it's very reasonable to assume that say: 700 million shares were being shorted against amc in just interactive brokers alone. Therefore, it's very very possible that we could have double or triple or five times or 10 times the flow of shares trading in synthetic shares for gamestop and amc. If, in just one broker alone, we have more than the entire float being shorted and there's also a comment from david that says just that remember, the black hole has only gotten bigger and deeper since january. The 28th now short positions on both gamestop and amc and other meme stocks have multiplied.

So anyone who says one is a distraction from the other is a pure shill. Of course, one will go higher than the other, depending on the buying pressure, the short interest and more, but both are rockers. Now i also want to talk about how some large banks have been secretly shorting the market with contingent coupon callable yield notes. Now, before i get into it, i just want to quickly explain what these contingent coupon callable yield notes actually are.

Basically credit suisse and a few other large banks are selling some coupon yield notes which in a way, are kind of like loan notes. When you buy this loan note or this yield note, you basically hold the no and then credit suisse pay you an interest rate on top of that note. Most high yield loan notes can be say five or six percent per year. But this specific yield, note or low note is 12.25 per year, which is absolutely huge, so basically in a way, you're kind of buying a small portion of a loan from credit, suisse and they're, paying you 12.25 per year for buying part of their loan or their Coupon yield note: if the value of that low note or the value of that coupon yield note goes up, you don't really benefit from it, because you're still holding the yield note or the low note, but you do get your 12.25 interest but as you'll find out.

If the value of this yield note goes down or the value of this low note goes down, then effectively you don't get your interest and credit suites get to keep the money you paid, or maybe you can sell it off for pennies on a dollar now, as You also later find out this isn't a low note where you're actually buying a portion of a loan. It's a coupon yield note where you're buying a basket of underlying assets. Interestingly enough, the underlying assets in this yield note is three banks. Therefore, if the share price of these banks goes down, then the value of your coupon yield note goes down as well, but obviously, if the value of these assets and the value of these stocks goes up, then you don't benefit from that, but you do still get Your interest and therefore credit suisse, is basically saying if the value of these stocks goes up.

We'll pay you 12.25 interest per year, but if the value of these assets goes down, which it most probably will, unfortunately we're gon na keep all your money and pay you nothing. So basically, credit suisse is betting. The value of these assets or the stock price of these banks is gon na fall massively, so they can get to keep your money too long. Didn't read.

These yield notes have short positions with baskets of three underlying assets. Credit suite is taking the short side of the yield notes and whoever buys is going long or getting 12.25 annual interest. In the event, the lowest notional value of the three underlying assets decreases below 41. The value of this note will proportionately decrease until it hits zero and you lose your investment.

So extorter says he's decided to glance over these sec filings. These products are being called coupons, but in reality it's a derivative think mortgage mortgage-backed security, the underlying assets. Here, though, interestingly are three banks which banks, citigroup, commercia and first horizon it seems these coupons are for sale by credit suisse for a thousand dollars per coupon. Their value is derived from the lowest performing asset of the three underlying banks share prices.

However, the value of this derivative can never exceed the amount you paid for it. If you paid a thousand dollars and the share price for the poorest performing bank is the same as the day you bought it or better or even doubled, you do not participate in the profit side best you can do is break even so. You get all of your money back and your 12.25 interest if the lowest performing asset stays above negative, forty percent. If the asset goes to negative forty one percent, then you only get five hundred and ninety dollars of your initial one thousand dollars back.

If it goes to negative fifty percent, then you're only at five hundred dollars negative, seventy percent, then only three 300 and so on and so forth, and if the stock goes bankrupt or if the bank goes bankrupt, you get nothing and obviously if the product goes up, You get your initial investment back and your 12.25 interest if it stays at the current price. Again, you only get the same, and if it loses forty percent, you only get back your six hundred dollars. There's also some very interesting notes and some very interesting fine print. For example, it will not be listed on an exchange, although at credit suisse's discretion, they can transfer it through a secondary market.

However, the price will not reflect the market value. The price is at which credit, suisse or its affiliates is willing to buy the securities. Therefore they basically decide the underlying value of this coupon yield. Note.

Yes, it's supposed to reflect the lowest value of the poorest performing stock, but it's up to credit suisse's discretion. So, therefore, as a bit of a summary, it's fixed to reflect interest payments. So this is a financial instrument where the underlying assets are three banks share prices, citigroup, commercia and first horizon the lowest notional value dictates the value of this contract. Although it's up to credit suite's discretion, you can't make any money if the stock prices go up except your 12.25 interest per year.

If you purchase this agreement and the stock price goes down, then credit suisse will keep the corresponding portion of your initial investment. Therefore, giving credit suisse lots of additional cash and lots of additional liquidity. So therefore the buyer is long and credit. Suisse is short.

If you want to exit your position quickly, there is no guarantee you can. But if you do credit, suisse dictates the price, not the notional value of the stocks, and therefore this is a way for credit suisse to profit from the full in the price of those shares the crappy bank stocks without having to sell them or short them themselves. If the price goes down over 41, then they pocket that amount of the principal return the rest and keep the shares. If the company goes bankrupt, they profit from the liquidation dividend down the line and if the price bounces back, they have a good asset as well.

I personally think this is a very, very clever way for credit suisse to generate tons and tons of cash in the event of a market crash and that's great for them, because then they can use all of that cash to pick up very heavily discounted stocks. Guys be sure to, let me know down in the comments below what you think about thomas pattafy, the chairman of interactive brokers, admitting to synthetic shares and also what you think about credit suisse and some other large banks secretly shorting the market with these coupon yield notes And also, while you're down there be sure to sign up with moomoo to get your free shares using the special thomas james, investing promotion and as always guys if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.