Pensions are being destroyed by unlimited leverage. Aka unlimited shorting and outlandish fees. Conflicts of of interest. And questionable valuations.

Today. I want to talk about how these questionable valuations already led to billions of dollars in losses. And is likely to throw the economy into a recession. So stay tuned and let's make some money and i want to dive straight in with the key information.

So edward cedar who's a pensions. Forensic expert and record setting whistleblower award winner talks about the ohio teachers pension fund and their private equity secrets. The article starts by saying the sec's website. Warns.

Private equity investors to be vigilant about fees and expenses as well as alert to conflicts of interest a lawsuit has just been filed against the 100 billion ohio pension fund the sdrs ohio and its wall street investment advisors remain intent upon maintaining secrecy regarding tens of billions in state pension assets invested in over a hundred of these costly high risk private equity funds. Many of these pension funds like the strs ohio have been investing in these private equity funds with obscene and non transparent fees and expenses. And it says while the fcc website doesn't include warnings about the use of leverage or borrowing by private equity funds all such fun documents. The author has drafted as a lawyer.

All reviewed over the course of his career permit unlimited use of leverage and he says unlimited leverage greatly increases the risk of loss and worse still in his experience many pension funds fail to adequately monitor leverage on a timely basis and he said given that public pensions are already severely underfunded and are increasingly turning to leverage in a desperate gamble to boost investment. It's likely. Many of these pension funds will end up blowing up. I've spoken before on the channel about these private investments or these non listed investments.

Many of these investments in companies like blockfi that once had a valuation of 5 billion. Now has a valuation of only 250 million or less. Because these private investments aren't measured. Regularly or aren't valued regularly.

While these pension funds may think they have billions and billions in unrecognized profits they may actually have billions in unrecognized losses. Many of these private equity investments have a valuation a fraction of the size of what it was last year. As a result of the current market dynamics and as a result of the current recession. It says since the sdrs ohio pension fund.

Refuses to disclose to participants the nature and amount of assets held in private equity portfolios. It is impossible for teachers and taxpayers to determine whether the valuations are appropriate or more likely over inflated this past week it was reported that the 440 billion dollar calpers state pension sold a record six billion dollars in private equity stakes to wall street at a 10 discount and he says in his opinion that amounts to a 600 million dollar transfer of workers wealth to wall street and obviously. He says discounts on private equity secondary sales can be far greater as much as 50 or nowadays. Even 90 or above.

Many of these pension funds like calpers are already unloading record sales in private equity investments at a steep discount losing billions. I think it's important to remember this isn't high net worth individuals investing in hedge funds. Losing billions of dollars in cash. This is regular working americans that work in the public sector.

This is the pension funds of teachers policemen firemen and many other people in the private sector losing billions and billions of dollars. This is genuine working people's pensions that are effectively being blown up by these risky investments that are spiraling out of control. I also want to talk about this tweet from the average ape who's just discovered that many major banks like goldman sachs actually helped to aid the 2008 financial crisis and make it significantly worse this article says those short positions did more than just avoid big losses for goldman. They generated a large profit for the firm.

Internal documents show that it was more than just. A reasonable hedge. It was what one top goldman executive described as the big shore. A goldman.

Trader said. The prevailing opinion within the department was that we should just get close to home and pare down our long he then touted the fact he urged goldman sachs not only to get flat. But to get very short goldman sachs effectively shorted the mortgage market for profit and actually helped push the mortgage market down further than it should have even gone. Goldman.

Actually helped put together. Many of these mortgage products sold. These mortgage products and then. But against these mortgage products making money.

While their investors lost millions. If not billions. So it's not only these pension funds and these private equity funds that are taking ridiculous risks. It's actually these major banks that are helping to exacerbate the problem and push the market down further and that's why.

Susan trimbath says we need to see actually who fails to deliver and who fails to receive. She says. The sec fails data should be a list of total shares and value ftd's and fdr by each nscc member each settlement day. She says not just which stocks are being played.

But which broker dealers are doing the playing this way. We could see which market makers. Which hedge funds. Which major banks and which broker dealers are helping to exacerbate the problem and make the situation even worse this way we can weed out the serial naked shorters and weed out the serial firms and funds that are causing all of these fail to delivers.

But in terms of amc. As stephen hagenbach. Tweeted. Amc is currently having the best quarter.

Three today since 2013. Over the last two weeks. Amc has already generated nearly 500 million dollars at the global box office better than any year on record since 2013. Better than 2019 better than 2018 and every year before that so far amc and the global box office is averaging 86.

Million dollars per showing significantly higher than any year on record nearly three times as large therefore amc could be on track for the best quarter three potentially since its inception. But interestingly another sign of the coming recession is this tweet from danielle. You said companies in the business of repossessing autos are among the first to know when economic trouble is brewing and now those companies are buying car lots to handle the flood of repossessed used cars coming to the market clearly tons and tons of people are failing to pay off their auto loans and are having their vehicles repossessed inflation is rising costs are rising savings are falling because pay is staying flat and therefore people can't even afford the necessities. Nowadays such as mortgages and car loans and as lawrence.

Says. One place. The trouble is starting to show up lopez says is on banks balance sheets. He said.

Banks were giving auto loans with loan to values or ltvs of around 140 percent. And they're now getting around 70 at auction. Meaning. They're losing substantial money.

Graham points out the craziness by saying. These banks are offering 140 ltv on depreciating assets. Many of these banks clearly disregarded the rule book on risk and weren't just offering 100 ltv. They were offering 140 ltv.

Many of these banks were actually giving you additional cash to take out loans on your vehicles. So you have additional money to pay for gas insurance repairs and god knows what else but many of these banks are obviously starting to take losses as more and more vehicles are being repossessed and more and more discounts are being seen basically many of these funds major banks and institutions are all rushing for the exit. Because they know the ship is sinking and everyone is trying not to take on significant losses. Obviously the last one to the door not only in terms of the coming recession.

But also in terms of the amt squeeze will be the rotten egg and will be the fun that ends up being liquidated. But again. It's likely not just to be one singular fund that ends up being liquidated. There will be tons and tons of individual funds that end up going bankrupt during 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.