's just been announced that a number of different hedge funds are currently down over over 90 for the year and are on the brink of being liquidated so stay and let's make some money and i want to dive straight in with the key information. So this information comes from some snippets from the owl media research pitch decks. Our media research is the company behind fdx and sam bachmanfried so this pitch deck mainly talks about how ftx and sam batman freed are setting up a new high frequency trading hedge fund to exploit the crypto market. It talks about how most high frequency trading firms.

Buy and sell shares in the same stock on the stock exchange. However ftx plans to buy cryptocurrency on one exchange and sell it on another exchange. If they see a large buy order coming in on coinbase. They can use their connections with block fi to buy some bitcoin at a cheaper rate and sell it to this newer expensive buyer on coinbase now he talks about how so far his fund is up 26 over the last four months which equates to 99 return per annum.

But what really stood out to me is this sentence. Here where he talks about his capital preservative strategy. And he says. This strategy is much better versus other funds that are down 90 this year.

That means that right now there are a large number of hedge funds that are currently down 90 or more this year that haven't yet gone bankrupt. But are obviously on the cusp of being liquidated and something very interesting that builds on this is this tweet from pk lance. He said the bank of england warns the marginal model may underestimate hedge fund risk this bloomberg article. Says that some funds may need to post more collateral.

The uk regulator. Says. However is the defense its model and says it will engage with the uk's regulators clearly the current is the regulations are suggesting these funds are okay. And don't yet need to deposit any more collateral.

However. Uk regulators are saying these funds are basically screwed and need more cash. It says banks may not be demanding enough collateral from hedge funds to satisfy new margin rules that are set to go live in september. The bank of england's pra has told banks that a widely used model to calculate margin requirements doesn't appear to accurately reflect the risks some funds face in unlisted securities trades.

The warning comes months before hundreds of hedge funds and other firms come under the scope of rules expected to drive up the costs in the 124. Trillion. Dollar. Derivatives market basically.

These funds are down. 90. On the year. And are soon gonna have to stump up much more collateral orb face.

These coming liquidations. They either stamp up this additional collateral or lose. The additional 10 of their fund and end up going bankrupt. Now as i spoke about in my q.

A video a few weeks ago when these funds go bankrupt. It doesn't mean they lose every single penny. The fund is managing. They only lose the money.

The fund has put into the trades themselves for example. We know that citadel trades using an 8 to 1 leverage ratio. When citadel goes bankrupt. They don't lose every single penny of that 240 billion dollar fund size by going bankrupt.

It means they've only lost the 40 billion dollars. That citadel put into those trades themselves the remaining 200. Billion dollars. Has been borrowed from other large banks like jp.

Morgan bank of america. And many others when citadel loses that first 40 billion and has lost 100 of their fund size. That's when citadel is liquidated forced to sell off its long positions force. The clothes out of his shorts and return any money to those lending banks.

Therefore. There's clearly a number of funds that right now are down 90 this year. And are obviously just about to be liquidated and on that note. Gold.

Telegraph. Has tweeted. Saying breaking news. The major crypto broker voyager digital.

Has just suspended all trading deposits and withdrawals and the news comes. A few days after one of voyager's customers ak. 3. Arrows capital failed to make payments on a loan worth hundreds of millions of dollars fueling growing concerns of an insolvency contagion effect across the industry.

Now. As you may know. The crypto lender blockfi provisionally agreed a bailout deal with ftx voyager digital. Also recently agreed a similar deal with ftx as well fdx just pumped in over 600 million dollars into voyager digital and if voyager digital are indeed insolvent and end up going bankrupt that's 600 million dollars.

That ftx has just lost like that this article talks about a massive hole in voyager digital's financial statements. It talks about how nearly half of all of their assets are currently loaned out and most of those lent assets did go to three hours capital. Approximately. 28 of voyager's assets were lent directly to three areas capital and are now in default.

Now that added to the fact that voyager digital has lost millions and millions of dollars over the last three months alone hundreds of millions of dollars in the last few years may potentially make voyager digital insolvent ak meaning. They've ran out of cash right now in the last three months alone. Voyager took on losses of 61 million dollars in the first three months of 2021. They also took on losses of 68 million dollars in the last nine months alone.

Even with their 75 million dollar private raise voyager digital lost 194 million dollars. Now if voyager digital ends up going under that could potentially take ftx alongside it and block fire alongside that as well and something very very interesting is this post from danny demonic. He said. I called the fdic earlier and they said that voyager digital llc was not a bank and therefore.

It's not fdic insured. They said for future reference llcs cannot be banks ever so when you see llc any claim of fdic insurance is false and bitcoin versus gold said. No fdic insurance for voyager digital customers in other words. It's game over and he said to get your coins and money off of brock five and nexo as soon as possible it could be very very possible that a number of these crypto exchanges like block.

Fi. Coinbase. Bitfinex. And many others may not be fdic insured.

Because they're actually llcs and not formally banks and therefore if these exchanges like coinbase bitfinex and blockfi do end up going under it's very possible that investors and customers may not get their money back. Obviously. I've been talking about the potential block fight default for some time now. And since news of their struggles.

Was announced. Obviously i've removed their link from my description below and obviously stop promoting blockfy as well before giving any promotions and including links in my description. I do try and do my due diligence. But when companies change their policies or when companies start to struggle like free trade for example and now blockfi.

I have been removing links and halting advertisements as well and something very interesting from mac. 10. Is that every new low in bitcoin. Has led to a greater nasdaq implosion.

If we look at the chart of bitcoin especially over the last six months every time bitcoin drops significantly or substantially. We see the number of new lows in the nasdaq 100 spiking. This is the same thing with the s p. 500.

Every time the s p 500. Falls down bitcoin is falling down alongside it now i don't necessarily think that bitcoin is causing the entire s p 500 to fall. But i do think bitcoin and the s p 500 are very heavily correlated. These hedge funds that are currently shorting stocks like amc.

When they need additional liquidity to continue propping up their short positions. They have been selling off crypto and they have been dumping their blue chip stocks therefore when they need to pump in additional liquidity. We do see the crypto market and the stock market falling at every single interval and the fact that both bitcoin and the stock market fall at the exact same time basically to the day just shows. This isn't a coincidence and it is being planned and executed and that is also leading to a greater crash in the economy and leading to greater and greater chances of a recession.

It's been tweeted about some of the recent comments from those at the fed. Janet yellen. Said on june 9. That a recession is unlikely mester said on june 19th that he's not predicting a recession.

Jerome powell on june. The 22nd said that a recession is not likely but bullard on june 24th said. It's too early to have a debate about the recession probability. But the atlanta fed just updated their estimate for quarter.

Two gdp growth or quarter. Two gdp shrinkage. The other day it was only one percent and now they're expecting shrinkage of two point one percent in. Quarter one we only saw shrinkage of 16.

Percent. So the atlanta fed is expecting. Quarter two was even worse than. Quarter one obviously a heavy drop like 21.

Percent is guaranteed to show signs of a recession six months of the gdp shrinking is technically determined as an official recession. But as alf tweeted. He said. I get the feeling fintwit and potentially the amc crowd as well is kind of cheering for a recession.

And he said. This is your kind reminder that a recession is nothing to be happy about it generally involves quite some people losing their jobs their homes and potentially their lives as well yes. We know that a recession and the crushing of the stock market will cause the amc squeeze because when these funds are liquidated. They will be forced to cover their shorts and close out of their short positions.

But at the same time if the us economy. Does officially enter a recession that could lead to millions of people losing their jobs millions of people losing their homes and potentially losing their lives. As well and therefore. Even though a recession is good for the squeeze and a recession is a healthy part of the business cycle.

It's still nothing to be happy about and it's still nothing to cheer about as it was said in the big short yes we are right. But just don't dance and speaking of which six billion dollars of deposits has just vanished from banks. China since mid april. Customers deposits in several village banks in hunan.

China have vanished. More than 400 000. Depositors were unable to withdraw their deposits of nearly 40 billion. Rmb.

The incident caused depositors to take action to defend their rights and also sparked public concerns. So where did the 40 billion rmb go can these 400 000. People still get their money back. It's crazy that over six billion dollars can effectively just be stolen from the chinese people.

But i guess at the same time this is pretty much exactly what will happen over in the us and in the uk during a recession. When these big banks end up being bailed out by taxpayer money and as i've stated in previous videos. I do think that during the current recession. A run on the banks or potentially some banks going insolvent and being liquidated is very very possible i do think banks like credit.

Suisse and bank of america may end up going under like we saw back in 2008 with bear. Stearns and lehman brothers. And therefore. If you haven't already i urge you to open a number of different bank accounts at a number of different financial institutions and spread your money around these bank accounts.

So you're not holding more than the fdic insured limit in these individual accounts and again. If you are holding money in these crypto exchanges like coinbase like bitfinex like blockfi and many others i do suggest getting your money off of these exchanges into fdic insured bank accounts as it's likely these exchanges aren't covered by that fdic insurance. 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 put a new video cheers.

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