Welcome back to the channel everyone today, i want to talk about how the fed is absolutely out of control and how margin calls are likely coming very very soon, and obviously these margin calls are great news for that. Amc squeeze so guys stay tuned and let's make some money, and now i want to dive straight in with the key information so occupy. The fed reserve tweeted saying breaking news: the fed made more than 17.5 trillion dollars in stealth repo bailouts from january to march 2020. During the pandemic that included a 3.84 trillion dollar bailout to one singular bank, the trading arm of france's bnp paribas.

Now this is in addition to the 20 trillion dollars in repo bailouts performed between october and december 2019. During that liquidity crisis and occupy the fed reserve said, as many recall, bmp's overexposure to the subprime mortgage derivatives was one of the first catalysts of the great financial crash. Of course, they wanted 3.8 trillion dollars in repo bailouts at great risk to u.s taxpayers and guess what banksters are still massively overexposed to derivatives. Nothing has changed.

The fed claims tens of trillions of dollars in illicit stealth wall street repo bailouts was just about market liquidity and providing support, but obviously this isn't just normal provision of liquidity, because the fed hasn't performed a repo of this sort. Since december 2008 he said the fed is backstopping. The risk shadowy, quadrillion dollar plus global derivatives markets are a great risk to the u.s people and you may see why the cumulative repo totals matter because they're running over trillions in non-market nearly zero percent interest loans to potentially insolvent firms. The fed is literally giving trillions and trillions of dollars for free to these banks, which are practically insolvent, because the amount of risk and dangerous derivatives that they've taken on now this chart shows a number of banks that received these stealth repo loans during the pandemic.

Barclays for one received two trillion dollars directly from the feds now. Obviously, bnp paribas received 3.84 trillion dollars, but on top of that citigroup also received 2.67 trillion. Goldman received 2.85 trillion jp morgan, 3.6 trillion and nomura 2.7 trillion. It says, as thousands of businesses were forced to close in the u.s as a result of the pandemic and millions of americans were financially struggling.

The federal reserve was pumping what would become a cumulative 3.84 trillion dollars in secret repo loans into the u.s trading unit of the giant french global bank, bnp. Paribus. Now it says the repo loan market is where banks brokerage firms, mutual funds and others make loans to each other against safe collateral, typically treasury securities repo stands for repurchase agreement. The fed only comes to the rescue of this market when there is a liquidity crisis and wall street firms are backing away from lending to each other.

September 2019 was the first time the fed have had to intervene in the repo market since the financial crisis of 2008, and it was months before the pandemic was discovered anywhere in the world, and it says what may have led to the scramble for money by bnp. Paribas securities is wait for it: risky derivatives, the same financial weapons of mass destruction that blew up the u.s financial system and economy in 2008.. Now, obviously, these same risky derivatives are used by these over leveraged longs to take massive long positions in the stock market. Well, above their risk tolerance and again, these risky derivatives are also being used to short, both amc and gamestop, because these derivatives are being used to hide true short positions.

Now the bmp paribas information and this overall chart comes directly from a repo loan data dump by the new york fed themselves, and it says the fed has withheld the release of the names of the banks that got these massive loans for two years now. But it's forced to release them under the provisions of the dodd-frank financial reform legislation of 2010.. Now you may say tom, these repos and these reverse repo loans only happened in the very first quarter of 2020 right. Surely they can't still be happening to this very day.

We've probably also seen me talking about the reverse repos for some time now, on thursday, we hit a new recent high of 1.87 trillion dollars in reverse repo loans. That's only overshadowed by the all-time high on the 31st of december 2021, where we had 1.904 trillion dollars in reverse repos and obviously, if we look at this chart of reverse repos, which is trending upwards, the moving average has now eclipsed that december high. This red line shows that moving average of reverse repos performed, and now the moving average has just set an all-time high eclipsing those previous december highs. I don't think it'll be long until we breach that 2 trillion dollars in reverse repo loans and again these reverse repos and stealth.

Repo loans aren't the only thing that shows the fed is absolutely out of control. At the moment, gavin tweeted saying the rally in the last two weeks was most likely funds trying to make up for their quarter. One performances guys, if you didn't already know moomer and future have just officially announced that food 2 does not accept payment for the flow and therefore you don't have to worry about your buy orders, going through sketchy, dark pools or being given to citadel right now. If you sign up to me, you can currently get five free stocks worth up to three thousand five hundred dollars.

Each all you have to do is sign up to moomoos the link in the description below and make your first deposit moomoo also recently won the award of best trading platform at the fintech breakthrough awards. Moomoo is also entirely commission. Free has tons of technical indicators and advanced charting tools, moomoo publishes daily short selling data position, cost distribution and much much more moomoo is also incredibly easy to use, is very customizable and will help you to trade like a pro so guys be sure to sign up To moomoo, using the link in the description below to get up to seventy thousand five hundred dollars in free stocks, i think these funds have effectively been propped up by the fed to show a strong quarter. One performance, even though the s p 500 took a massive dip in january and february effectively the fed and these hedge funds pumped the s p 500 over the last month to show a strong quarter, one performance so that investors don't withdraw their cash.

He said quarter, one ended yesterday with two days to settle the last day would have been tuesday march 29th. Coincidentally, the same day, this short-lived rally came to an end, so basically, these trades from tuesday march 29th won't clear until the 31st of march aka. The end of the month and therefore these hedge funds can still report strong quarter, one earnings and therefore it would not surprise me if the market crash continues in april and these liquidations and margin calls start flowing in and on top of that, we're seeing tons and Tons of trading halts because over 208 chinese companies are unable to provide audited books over a hundred chinese property developers and others have been suspended from trading indefinitely. This screenshot shows that this year, over 208 companies, so far in china have failed to provide audited accounts and are now suspended.

Firms such as evergrande sunac, modern land, logan group, shimao, kaja, agile group link holdings and many many other chinese companies have failed to provide audited accounts and aren't releasing their figures. Now again, i think this is another sign of the fed acting irresponsibly and being absolutely out of control, because they will not allow these chinese companies to default on a us dollar there by allowing these companies to evade default. Obviously the fed believes they are saving the u.s financial system, because obviously these chinese companies have borrowed so much money from the us that you default would cause havoc on the u.s banking system, but really by allowing these companies to avoid default. It's effectively making it even worse, because these companies can continue losing more and more money and can continue borrowing money from other unsuspecting sources.

Obviously, the fed and the large u.s banks are helping these chinese companies to avoid default, so they don't have to recognize these chinese losses. But again it's just making it even worse, because now these u.s banks can continue borrowing money against their chinese debt and can continue taking out more risky derivatives, but as gargavin tweeted, the tiger global hedge fund has sunk 34 this year as key stocks fall. Softbank has liquidated most of its portfolio at the nasdaq whale unit, and he says sir begins. I think tiger global are going to be a bigger version of our chaos, capital management, which could end up causing the entire u.s market to crash.

Obviously, back in march of 2021, our arcagos capital management defaulted with many of the large u.s banks losing billions and billions of dollars and many u.s stocks crashing up to 90 percent tiger global is obviously significantly larger than our chaos capital management and is likely to do Much much more damage, but in terms of amc, i believe that diane garrett, the ceo of highcroft mining, is giving us a bit of a sign if you hadn't already seen. Diane is wearing a rocket ship pin on her blazer during an interview suggesting that hymc and amc are likely to be going to the moon and guys. I also wanted to quickly talk to you about options for amc and whether options help the squeeze or whether they harm the squeeze. Now i'm going to read a bit of a thread from darkpool and then also give my opinion.

On top of that darkpool said i don't care if people want to buy and hold inexperienced investors should not aimlessly buy options because you will get burn. He said what i do care about is that short sellers are spreading. The options are giving money to citadel and they'll just hit max payne and take your options because darkpool believes that's completely false. He said if you still think this is all citadel is doing.

Then you are not paying attention i've dove into short sellers short reports and found they download the options chain in order to either a see if there's unusual options, activity that would likely spike a gamma squeeze. This is an extract from one of those short reports that says, remarkably, things got even worse than this. In the first quarter, the aggressive buying of short dated options produced the gamma squeeze. The idea was that short dated options could force market makers to buy huge quantities of stock if the stock was to rise and said, the most important variable for many stocks became open interest in weekly options.

Now, obviously, that is suggesting the short sellers are scared of short dated options, because mass buying of these options can cause a gamma squeeze, as many market makers have to buy massive quantities of shares, and he also said that these hedge funds download the weekly options data To b hit max payne and neutralize the options chain, you need to break this down because it's not just us versus citadel, he says citadel is solely the market maker and they have to delta hedge options. In case an investor wants to exercise, data, hedging happens on the le exchange and he said short sellers posed as quants that worked at citadel and said to keep buying options because we'll take your money, they don't actually work at citadel. They work at these research firms and they are happy that their anti-options fund campaign has worked and again. This is an extract from one of these short sellers that says the most excessive sign of retailmania massive investment of short-dated.

Far out-of-the-money call options has slowed dramatically and they said we are far less scared of a gamma squeeze in one of our names than we were back in february. Therefore, by not buying options, we are effectively removing the possibility for a gamma squeeze entirely. You can't get a gamma squeeze without any options, because obviously, options create gamma, which creates the volatility in the stock, because these market makers have to hedge for all of these options being purchased by buying real shares, and he said when the options chain is clear. It gives short sellers the ability to control the price through derivatives, the other way, because they can actually short the stock.

Obviously, a hedge fund can short by borrowing shares, but a better way to do it is to short the stock by buying put options, because that creates gamma in the opposite direction. But a better way to short the stock is by selling covered calls directly to unsuspecting retail investors, but the best way to short the stock is by selling naked calls to those retail investors without ever actually owning the stock. But this leaves those hedge funds and market makers in a massively unsuspecting position, because they've sold tons of call options and they don't actually hold any stock. Obviously, if amc starts to rise by retail investors, buying more stock and more options, it means those market makers have to go into the market and hedge for their naked calls by buying actual shares in massive quantities, and he said what shocks me the most is: how Well, the campaign spread after the most beautiful gamma squeeze i've ever seen on june.

The 2nd cost of borough was high, the stock was 100 utilized and there was a huge amount of open interest on the 20 and 40 calls. Obviously you can see here back in january 2021, we had a gamma squeeze, as there was a massive amount of open interest. We then had months and months of buying and holding followed by a massive gamma squeeze again caused by tons of open interest in the options chain and again, just over the last week, we had tons and tons of open interest on those 40 and 50 dollar calls And again, the price of amc ran again down from 15 all the way to, at one point nearly 35 per share. But the incredible thing is the open interest in last week's options chain was absolutely nowhere close to what we saw back in june of 2021.

In fact, it was less than one-tenth the amount of options that we had back in june. Back in june, there was around 1.5 million open interest in call options, but last week there was only around 150 200 000 call options. Now i personally do think the options will be very, very important for the squeeze, but i do think we have to strategically time the options purchases again if we start purchasing the massively far out of the money call options like the 60 calls, while the price of Amc is falling. That is not going to help the squeeze and we are effectively going to lose our money.

Obviously, while the stock is falling, there's not much point in buying these options, because obviously it doesn't help as the hedges will just push us underneath max payne and our options will expire worthless. But when we have circumstances like last week when the price is rising at great great speeds, i think options are the perfect time then, to add to the speed of the increase in the amc price and effectively cause the gamma squeeze which could end up causing a Short squeeze when the price is running, tons and tons of our call options will be in the money and will have massive amounts of unrealised gains, at which point we could even exercise those call options directly for those amc shares and the market maker will have to Go into the market and buy all of those shares. I think last week, when we had an open interest of 150 000 call options if everybody jumped on those call options and pumped that number from 150 000 to 1.5 million call options. When the price of amc ran from 15 to 25, we could have had a massive breakthrough of the 30 40 and 50 dollar regions of resistance.

And again, i think we managed to coordinate that mass buying in options it would have thrown us through that 50 region and effectively. Amc would have been running so fast that we would have caused the gamma squeeze and would have caused the short squeeze guys be sure to. Let me know down in the comments below whether you think the fed is out of control and whether you think that buying options is good for the squeeze 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.