Today I Want to talk about other shorts will lose trillions of dollars as time goes by until they finally succumb to the mother of all short squeezes I Want to explain and run through the numbers on how this user has been offered a trillion dollars to lend out his aims he shares for the long term. So stay tuned and let's make some money now. Drove straight in with the compilation, so this user posted saying trading 212 is telling him he can be a trillionaire if he lent out his AMC shares. Now, obviously, Trading 212 is using a number of assumptions here and it's lending out shares for the long term, but it says over an 11-year interest projection, this user could earn over a trillion dollars.

Now, this isn't going to be a video trying to convince you to lend out your shares I'm just going to explain how the shorts will pay trillions of dollars until they finally end up going bankrupt. Now Trading 212 is assuming this user lends out fifteen thousand dollars worth of shares over an 11-year duration and continues to reinvest his earnings obviously on a Sky High AMC cost to borrow rate. Now you may say Tom I don't have 11 years to wait for the squeeze and I think many would agree. but don't forget it's not just one individual user out there lending out just fifteen thousand dollars worth of shares.

There's many funds institutions and Banks lending out Millions tens of millions and hundreds of millions of dollars worth of shares. Those funds are continuing to lend out their shares and will likely continue doing so for the foreseeable future, costing these Shorts billions if not trillions now. We did ads saying I know this is assuming the APR or Costa borrow fee stays constant and I reinvest my shares. but God damn they want me to lend out my shares so bad I was blind fantasy.

Also added he said it's just simple compound interest. but I Thank Op for sharing this because it illustrates how this must go. Option: A The Shorts paid trillions of dollars in interest to all of these hedge funds market makers Banks and a few individuals that are lending out shares until they go bankrupt. He said there is a limit on how many fakes the hedges and government can print and continue to pay interest and fees on until everyone starts falling like flies.

And option B is this all ends with the mother of all short squeezes, a cataclysm that ends with a market correction that makes AMC shares finally behave like a normal company post squeeze. So I wanted to go through the numbers on how this is very much possible. even with a fairly small shareholding size like fifteen thousand dollars, they may say Tom I don't have fifteen thousand dollars worth of shares, which is absolutely fair enough. There obviously is some out there that do have fifteen thousand dollars worth of shares, and obviously hedge funds, institutions and banks that have hundreds of thousands if not Millions if not hundreds of millions of dollars worth of shares as well that are all lending out those shares.

So assuming a cost to buy a fee consistently of two hundred percent which at the moment is fairly low considering that AMC cost to borrow is over a thousand percent at Year Zero, you just have your fifteen thousand dollars worth of shares. After one full year, you all of a sudden have 40 25 000 worth of shares because of your lending earnings. Now assuming you reinvest those earnings and lend out all of the shares for another year at that same 200 cost to borrow fee. at the end of Year Two, there's a hundred and thirty five thousand dollars that goes on over time until for example, year 11, where one individual user just starting with fifteen thousand dollars worth of shares would have over 2.6 billion dollars.

Now assuming a one thousand percent cost to borrow fee which is more akin to today's borrowing fee. still just using that fifteen thousand dollars worth of shares, even by the end of year A that user, that one individual user would have 3.2 trillion dollars worth of shares. Now again, many of us may not have 11 years or eight years that we want to wait for the squeeze to happen. But as I said, don't forget, there's way more than just fifteen thousand dollars worth of shares that are being lent out.

Looking at Vanguard and BlackRock together Vanguard has 221 million dollars worth of shares, and BlackRock has 90 million dollars worth of shares. Together, that's 300 million dollars worth of shares that are being lent out consistently. 300 million dollars worth of shares being lent out at a 1 000 cost to borrow fee just for one single a year is 3.3 billion dollars worth of Interest. That's 3.3 billion dollars worth of Interest These shorts have to pay to Blackrock and Vanguard who will likely end up buying more shares of AMC this year as well, just adding to next year's borrowing fees.

If BlackRock and Vanguard managed to rack up 3.3 billion dollars worth of AMC shares for next year and then lent out those shares for another full year, that's over 30 billion dollars worth of Interest next year alone. So we can see that in the matter of just one, two, or three years, these shorts will be paying hundreds of billion, if not trillions of dollars just on those borrowing fees. And remember, that's just on a legally disclosed shares held by BlackRock and Vanguard not including all of the fees they have to pay for those hundreds of millions, if not billions of synthetic shares. Well, this isn't me calculating borrowing fees on a two, three, four five, six, seven, eight, nine, or ten billion synthetic shares that are out there as well.

This is just me calculating borrowing fees on the shares just held by BlackRock and Vanguard. And speaking of additional expenditure for those shorts, let's take a look at this tweet from Boss Blunts. He tweeted saying shorts of AMC and Ape also have to pay the share settlement approved by the Delaware Chancery Court. He said this is why they were fighting to prevent the reverse split, conversion, settlement, and share issuance.

Now, from the Occ's memo, they've updated a new deliverable for anyone holding AMC options. So the new deliverable for one AMC options contract is a hundred pre-split AMC Entertainment Class A shares. On top of that, there's also 13 pre-split shares for the settlement as well. And finally, the real kicker for the Shorts is the cash in low of approximately 0.3333 fractional AMC shares post split.

So what does this mean and what exactly is Boss Blunts trying to get at? So basically what that means is that with the AMC conversion, reverse split, and settlement, if you're currently holding an odd number of AMC and Ape shares AKA a number not divisible by 10, then any amounts left over from the amounts divisible by 10 will be paid cash and low. Basically, if you hold 13 shares pre-split post split, you'll have one share of AMC and also three in a bit shares paid to you in cash I Say three in a bit shares because obviously you get a little bit of extra bonus share from the AMC settlement as well. But what that means for the Shorts is that during the conversion settlement and reverse split, they have to pay cash to Holders of AMC for the shares they're shorting that aren't divisible by 10.. So this cash that's payable by the Shorts for any shares that you are holding not divisible by 10 is going to be paid as an AMC dividend.

So that is effectively Shorts being responsible for paying an AMC dividend to anyone not holding shares that are currently divisible by 10 which again is just additional expenditure. The Shorts will have to Fork out during the AMC conversion settlement and split now I Also saw this paragraph here that I thought was really interesting which has also been covered by Practical Stocks, but it's headed to late settlement. It is tweeted saying the OCC will delay their AMC options contract. He said they're going to scramble to find a solution to the already existing toxic and synthetic swaps they allowed to be issued in the open market.

We know during the issuance of Ape last year in August it was a giant giant mess. Many people were waiting days if not weeks to receive their Ape shares and many people also receive fake placeholder ape shares until the real shares were actually delivered. This was obviously caused by the massive mess that is the AMC synthetic shares and Practical Stocks is thinking the exact same thing could happen this time round as well. It's likely going to take days if not weeks to receive the correct amount of AMC shares post split and also to receive the correct amount of dividend from the shorts.

Again, because it's going to take a short ages to figure out exactly what to do with their billions of synthetic shorts. Practical Stocks Added saying: in my opinion, once they find another solution to their massive problem, they may try to confirm deliverables and continue the Ponzi scheme. Now unusual. Wells has also tweeted saying the Chinese Asset Manager Zongzi says that it's currently in a liquidity crisis.

Now, the way AMC is shaping up and the way the current S P 500 chart is shaping up AK resuming this crash, it wouldn't surprise me if it's not long until U.S Asset managers like BlackRock Vanguard and other market makers like Citadel are also experiencing liquidity crises as well. We know Citadel is already trying to limit withdrawals and it wouldn't surprise me if they do end up suspending them all together if they lose too much money. These institutions, market makers, hedge funds and Banks and asset managers will try and do anything they possibly can obviously to avoid a liquidity crime CIS and avoid liquidations. I Think the way we can tell when we are really winning and when we are really, really close is where more hedge funds end up suspending withdrawals and even end up requesting secret bailouts.

And when that happens, it won't be long until we start seeing headlines like this from the future. This user has posted this news article from Ape Street Journal on Friday August 25th AKA a few days if not a week or two in the future saying that AMC stock hits the moon I Personally am very excited to see real news articles like this in the future for individual Apes selling shares at 69 420 per share if you haven't already I'd really advise giving this article a read because the last sentence really tickled me. It said when asked for a comment on how billions of fake shares were allowed to exist, the SEC said to us the Dtcc who said to ask Finra who said to ask the SEC We know all of these institutions and all of these government entities completely try and avoid taking any kind of responsibility whatsoever. but taking responsibility won't matter when the mother of all short squeezes ends up happening.

So guys, be sure to let me know what you 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.