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the USA is effectively dead in the water. 2022 will be the year that China overtakes the USA as the world's strongest power, as the rapid inflation to come will devalue the USD. CHINA CHINA GOOOOO CHINA WOOOOOOO IT'S CHINAMAN TIME BABY WOOO YEAR OF THE CHINESE WOOOOO
https://www.reddit.com/r/Superstonk/comments/o0scoy/the_bigger_short_ho…
People can poo poo on GME hype subreddits all they want, they did the same to Michael Burry until he was proven right back during the Great Recession. This sub has had some amazing posts in it over the past month with real research efforts being put in. This one in particular stood out to me. Long story short is all the bad stuff from '08 has been bubbling around in the background but was pushed off thanks to QE. Now it's coming to a head. COVID should have brought it all toppling down but it was delayed with a bunch of hastily thrown together regulation that's going to end this year + throwing the money printer on ludicrous mode. The Fed has been trying to buy time in the repo market but time is running out. Inflation is bearing down, and there's nothing the Fed can realistically do unless they decide to hike rates (which they more than likely won't.
Tl;dr from thread - you will need to read to have full context
The market crash of 2008 never finished. It was can-kicked and the same people who caused the crash have still been running rampant doing the same bullshit in the derivatives market as that market continues to be unregulated. They're profiting off of short-term gains at the risk of killing their institutions and potentially the global economy. Only this time it is much, much worse.
The bankers abused smaller amounts of leverage for the 2008 bubble and have since abused much higher amounts of leverage - creating an even larger speculative bubble. Not just in the stock market and derivatives market, but also in the crypt0 market, upwards of 100x leverage.
COVID came in and rocked the economy to the point where the Fed is now pinned between a rock and a hard place. In order to buy more time, the government triggered a flurry of protective measures, such as mortgage forbearance, expiring end of Q2 on June 30th, 2021, and SLR exemptions, which expired March 31, 2021. The market was going to crash regardless. GME was and never will be the reason for the market crashing.
The rich made a fatal error in way overshorting stocks. There is a potential for their decades of sucking money out of taxpayers to be taken back. The derivatives market is potentially a $1 Quadrillion market. "Meme prices" are not meme prices. There is so much money in the world, and you are just accustomed to thinking the "meme prices" are too high to feasibly reach.
The DTC, ICC, OCC have been passing rules and regulations (auction and wind-down plans) so that they can easily eat up competition and consolidate power once again like in 2008. The people in charge, including Gary Gensler, are not your friends.
The DTC, ICC, OCC are also passing rules to make sure that retail will never be able to to do this again. These rules are for the future market (post market crash) and they never want anyone to have a chance to take their game away from them again. These rules are not to start the MOASS. They are indirectly regulating retail so that a short squeeze condition can never occur after GME.
The COVID pandemic exposed a lot of banks through the Supplementary Leverage Ratio (SLR) where mass borrowing (leverage) almost made many banks default. Banks have account 'blocks' on the Fed's balance sheet which holds their treasuries and deposits. The SLR exemption made it so that these treasuries and deposits of the banks 'accounts' on the Fed's balance sheet were not calculated into SLR, which allowed them to boost their SLR until March 31, 2021 and avoid defaulting. Now, they must extract treasuries from the Fed in reverse repo to avoid defaulting from SLR requirements. This results in the reverse repo market explosion as they are scrambling to survive due to their mass leverage.
This is not a "retail vs. Melvin/Point72/Citadel" issue. This is a "retail vs. Mega Banks" issue. The rich, and I mean all of Wall Street, are trying desperately to shut GameStop down because it has the chance to suck out trillions if not hundreds of trillions from the game they've played for decades. They've rigged this game since the 1990's when derivatives were first introduced. Do you really think they, including the Fed, wouldn't pull all the stops now to try to get you to sell?
Lol I see the Reddit meme stock bots are getting more sophisticated.
Being an intern you're clearly too young and dumb to have the slightest understanding of what happened in '08 beyond what you saw in The Big Short so I'll give you a pass. But you really should try shutting the fuck up, reading, and learning something for a change lol
Wow, thanks for sharing. I have maintained since the Archegos blow up that the size of the derivatives market and disgusting amounts of leverage would be the next "big one", if you will, but more as a hunch as opposed to having real data behind it. I will certainly read that reddit post. Scary stuff
Silver banana for honest effort and sharing ideas. Can you please elaborate on the rich shorting the stock market? What do you mean by the rich and how are they collectivley shorting the market?
Powell did mention the dot-plot for 2023 isn't to be taken too seriously and isn't certain, I feel like that's what caused the rotation out of financials and back into growth today. I'm still confused on inflation and whether or not it's transitory, hope some others can chime in or provide some good reading material.
My thesis for inflation is that it's temporary but I'm really just going off of what I see in the market right now. I know real estate is somewhat a hedge against inflation lumber futures saw a pretty big move down; gonna keep an eye on what VNQ does moving forward. USD and Bonds also caught a nice bid up; gold and crude otherwise. So I think the inflation fears are wearing off.
Powell also said "I think we have to be humble about our ability to understand the data", which is a major red flag
Yeah I hear you. I'm a newbie in general but I think looking at the bigger market movements paint a better picture than his actual words, it'll better represent what the market is collectively thinking imo.
Who knows...we are in a weird spot. How is everyone preparing financially? Something big has to happen eventually. I guess the question is when eventually is.
Either you allocate into assets that are at an all-time high or you sit on cash and inflation eats it?
There's a third option. Spend all your cash, enjoy life. If the shit hits the fan,money won't matter or you can ask for a PPP loan.
This is an excellent question. Would like to see how others answer. We are in a very bizarre spot and really the only way out is a massive implosion of the system. Unclear as to when that will happen, however, and perhaps that's what they want to happen. What I can tell you is most people not in tune with finance, the markets, etc. are pretty clueless. They just see an increase in prices and think that it's normal. My family and I bought assets back in late 2019 and haven't bought much since. I bought stocks and crypto and metals during the dips in 2020 but haven't allocated that much since. The rest is all cash which I'm not comfortable with but can't shake the feeling that things will collapse and there will be buying opportunities. Question is, when? And will there be much of the dollar left when it does?
BRRRRRRRRRRRRRRR
LETS GOOOO
OP needs to relax--we can always print our way out of ANY crisis
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