Welcome back to the channel everyone today, i want to talk about whether the amg squeeze will be ruined by the paper hands. All those hedge funds and those retail investors selling early ruin the squeeze or will the sec the fed and the overall government step in and put a cap on. Your amc sell price, so stay tuned and let's make some money now, i'm not saying that amc is going to be capped at 200, 300 or 500 per share. I personally believe that that is a load of fun, but i do think these things are going to get in the way and prevent amc from reaching over a million dollars per share.

So today i want to break this video down into three main segments. I want to start by talking about institutional investors. I then want to talk about retail investors selling early and then finally, i want to talk about the sec, the fed and the overall government, stepping in and controlling the squeeze. So, let's start by talking about those institutions, potato says here: institutions are going to use their shares to temporarily control the squeeze.

Obviously blackrock and vanguard hold a lot of amc shares, but so does jim simon's rentec fund. Now, obviously, we know that these funds hold a lot of amc shares and could potentially be persuaded to selling the 200 to 500 per share region because they could be persuaded that doing so would save the economy. I personally believe that blackrock, vanguard and rentec would love to hold their amc, shares to 10 000 per share or 50 000 per share, or at least five thousand dollars per share, because doing so would mean more profit for them. Blackrock vanguard and hedge funds specifically take their profit or commissions on, what's known as a two and twenty basis or something similar to that they take a fixed fee.

Maybe it's one percent two percent or three percent per year and also then take an additional 20 10 or even 30 percent of the overall profits they generate in that year. For example, if the rentec fund makes billions and billions, if not trillions, of dollars of profit on their amc position, that means the rentec fund and jim simons personally gets to keep 10 20 or even 30 of those profits. That way, not only is the rentec fund going to be very successful and very profitable, but also jim simons gets a massive personal payday and would effectively become a billionaire, potentially even a trillionaire. But it's very possible that these large funds, especially blackrock and vanguard, could be convinced by the sec, the fed and the wider us government to sell their shares between 200 to 500 per share to effectively save the economy.

I've gone through in previous videos that, depending on the number of amc synthetics, whether they're, zero, synthetics or 20 billion synthetic shares, then amc can only squeeze to somewhere between a thousand and a hundred thousand dollars per share before the entire us economy collapses. Obviously, all of the members of the dtcc have this asset basis or insurance policy of somewhere between 60 to 67 trillion dollars. The fed could, on top of that say print another 30 trillion dollars totaling between 100 to maybe even more than 100 trillion dollars in total. Obviously the sec, the fed and the wider us government would want to avoid an entire financial system collapse, because that would mean that every single american and every single american business would lose every single penny they've ever saved as a result of their amc squeeze and therefore Blackrock and vanguard most likely would be convinced to sell their shares at an earlier point to try and limit or cap the squeeze.

But i think it's important to remember that blackrock, vanguard and the other institutional funds only hold somewhere around 170 million shares, or around 30 to 35 of the legally issued flow. Yes, 30 to 35 of the legally issued float sounds like a lot of shares. But don't forget, the float has been sold many times over and therefore blackrock, vanguard and all of the other institutions actually hold quite a small proportion of the total issue shares and therefore, when blackrock vanguard and all of those other hedge funds sell off their amc shares. There's still going to be tons and tons and tons of shares that are held by retail investors like you and i that will refuse to sell their shares until the desired price is met.

And therefore, while blackrock and vanguard selling their shares could cause a hiccup. In the road it definitely won't cap, the squeeze to 200 300 or 500 per share and therefore, while many of the smaller short hedge funds can cover their shorts by buying back the shares from blackrock and vanguard, that's only the smaller short hedge funds and not the Larger short, hedge funds, obviously the largest short hedge funds - will need to buy back more shares than blackrock and vanguard have on offer, because they've printed tons and tons of synthetic shares and still need to cover those naked shorts and therefore they still need our shares. Whether they're real sheds or synthetic shares to close out their overall short position and therefore amc will still continue, squeezing even after blackrock and vanguard have sold off their shares. I think it's important to remember that these smaller short hedge funds only have legal short positions.

Smaller short, hedge funds can't create synthetic shares, because it's not the hedge funds themselves that create synthetic shares. It's the market makers and therefore it's only going to be the big hedge funds that are very pali, palli buddy buddy, with these market makers that can create synthetic shorts, the smaller hedge funds, the smaller short hedge funds, can't create them and therefore, during the squeeze we'll See tons and tons of the legal shorts being covered as they buy back the shares from blackrock and vanguard, but all of those synthetic short positions and naked short positions won't be being covered because for that they need our shares and therefore, even though blackrock vanguard and Other hedge funds, like rentec, have been buying even more amc and potentially doubling their overall position. I don't think this is gon na cap or destroy or ruin the amc squeeze just cause more of a bump in the road guys, if you're getting a little bit worried holding your amc, infidelity or an e-trade due to all the recent glitches and the fact that Fidelity actually supports short sellers. Mumu are currently buying you a free share of amc on top of their usual five free shares when you sign up using the link in the description below and make your first deposit when you sign up with moomoo and make your first deposit, you get.

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Mumu also publishes daily short selling data and position cost distribution, so guys be sure to sign up to moomoo, using the link in the description below and make your first deposit to get those five free shares, valued up to 17 500. Each and a free share of amc, but now i also want to talk about retail investors. There's many retail investors out there. I don't necessarily want to point fingers, but there's some retail investors out there that only believe amc can squeeze to a hundred dollars per share.

150, maybe 300 or maybe 500 per share, there's some people that when they see 300 per share, they're going to be dumping and selling tons of their amc shares, potentially up to 500 000 shares per retail investor. Now many retail investors won't have 500 000 amc shares. Some retail investors might actually have more, but many will also have less, but when you combine a number of retail investors together, that could be tons and tons of amc shares that are being sold at fairly low prices. Now, obviously i don't know every single retail investor.

That's currently holding amc shares and of that i also don't know what proportion of people plan to sell at 200, 300 or 500 per share. But from reading through my comments section, i personally believe that the majority of people will be selling their shares at higher numbers than these and won't be paper handing their shares quite that early. Obviously, in my videos, previously i've gone through those different scenarios and i do think that if there's 20 billion synthetic shares, the amc may only squeeze up to two thousand to five thousand dollars per share. But, as i also said, i personally believe there's less than 20 billion synthetic shares.

I think there's maybe only around two billion synthetics and therefore amc could squeeze between 20 to 50 000 per share. Obviously, those are the very tippy top prices and i do believe the majority of investors will be selling somewhere lower than those levels. But i do think that the majority of people will be selling above 300 to 500 per share and therefore, if i am correct and the proportion of people selling between 200 to 500 per share is a fairly small proportion, then again, this won't cap destroy or ruin The amc squeeze yes, it will mean that hundreds of thousands, if not potentially hundreds of millions of shares, are sold at lower prices and therefore amc may not squeeze over a million dollars per share, but it definitely won't cap the squeeze to 200 to 500 per share. As i said, those smaller hedge funds will be buying those shares from blackrock, vanguard and many other funds and then buying these retail shares at slightly lower prices.

But then it's only the smaller short hedge funds that have covered their shorts and not the larger short hedge funds. Obviously, as i said, these larger short hedge funds have created billions of synthetic shares and sold the float multiple times over and therefore they still need your shares and they still need my shares, and i don't know about you, but i personally am not going to be Selling, all of my amc shares between 200 to 500 per share. Now what about the sec, the fed and the wider us government? Obviously, as i said earlier, these bodies are going to want to prevent the amc squeeze from getting too out of control. So out of control that it destroys the u.s financial system, if this happens, it means that every single american and every single american business loses every single penny they've ever saved, just because of the amc squeeze.

If that actually happened, there'd be riots in the streets and the entire us would probably be burnt to the ground as the financial system would have collapsed, and therefore, i do believe the sec, the fed and the wider us government will step in before amc reaches a Million dollars per share or even higher, because that price would definitely collapse the financial system, but, as i've said in previous videos, where i've calculated these different scenarios, based on the number of synthetics amc, can squeeze to between twenty to fifty thousand dollars per share. Before the us financial system collapses and therefore i do think the sec, the fed and the wider us government will step in and cap, the squeeze at some point around those price levels, but obviously that's way way higher than 200 to 500 per share. And therefore, i suppose to answer the question. Yes, i do believe the squeeze will be capped, ruined or destroyed, whether that be by retail institutions or by the sec.

Stepping in because effectively the sec need to ensure the financial system doesn't collapse. But i don't think these paper hands will be ruining the squeeze at 200 to 500 per share. I think it's likely gon na be capped somewhere between twenty to fifty thousand dollars per share, so the economy doesn't collapse, but obviously, as i did say earlier, that does depend on the true number of synthetic shares which obviously i don't know the true number - could the Sec, the fed and the wider us government step in earlier than these levels to try and preserve these larger short hedge funds. Yes potentially, but i do think the sec stepping in will be more of a last resort.

I do think that many of these over leveraged short hedge funds, need to go bankrupt to protect the overall integrity of the wider financial system. The sec has been reporting over the last year that a massive threat to financial stability is these over-leveraged hedge funds and therefore, in some ways, these over-leveraged hedge funds going bankrupt is actually good for the sec and for the fed because it preserves overall market integrity and Therefore, actually the sec and the fed need these over leveraged short hedge funds to go bankrupt, but they need to obviously make sure the squeeze doesn't get too out of control and collapse. The entire market. Now you may say tom: how can the sec, the fed and the wider us government cap the squeeze in this way and force you to sell your shares? You may say: isn't it our decision? If we don't click the sell button in our trading platform, then surely that amc shares won't ever be sold until we get the right price.

But i think it's important to remember that with many of these trading platforms buried in their agreements somewhere, it does say these trading platforms can ultimately sell your shares when they see fit. Obviously, these shares are still registered in the street name. The majority of people aren't holding their amc shares in their own name because they haven't drs those shares they're still being held in the street name as they're registered by the brokers and therefore, ultimately, it's the broker's decision. When you sell your amc shares, even if you don't click the sell button, they can still sell them for you, because, ultimately, these shares are registered in the broker's name.

But as i said, i do believe this is going to be more of a last resort thing because i do believe the sec and the fed actually need these over leveraged short hedge funds. To go bankrupt to protect the integrity of the wider market. Guys be sure to, let me know down in the comments below whether you think the squeeze will be ruined by the paper hands, whether that be retail institutions or by the sec coming in and capping the squeeze and as always guys if you enjoyed this video, be Sure to check out some of my others, alternatively, subscribe to channel and ding that notification bell, because that way, you'll be alerted. When i upload a new video cheers.

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