They did though. Bank loans business 10K, that business decides to lend one of its suppliers 4K. 10K is the original loan but now someone else also owes 4K in the chain. So essentially the loan of 10K is now 14K in total because even if the business pays back its 10K loan they could still have an outstanding debt of 4K with the supplier.
@@cheesus8594 correct, in theory no extra shares were created I believe. Person A borrowed 10 shares from his broker, he then lets 4 shares be lend out from his account to another investor in order to gain interest on it. Lots of big investors make a good return by lending their shares to others for a certain interest rate.
This is why many people think the market is a scam. DFV bought shares and call options, many of which expired worthless. But, because his thesis ended up being correct and he made millions, he "beat the system".
Does anyone else think the Citadel CEO looks like a psychopath? He has the most calm and controlled face, but inside he's thinking all sorts of things.
@@sticklebacketienne Doesn't mean he's not a psychopath lol. There's a pretty well-established correlation between psychopathy and CEOs, and I think anyone who functions at that kind of a level in general (like a lot of high-level short sellers for example).
Because Robinhood’s own trading house didn’t have sufficient collateral to put up at the clearing houses. Really don’t get it how some of you people have been consumed with anger for weeks but didn’t even bother to do miniscule research on the subject.
They stopped trading because it was gonna be too much for the shorts to cover, stop us from buying and the price falls especially when people were able to sell, not fair trading practices
@@dankfranco2768 That is reasonable and is incompetent from RH. However I don’t get how some people still think RH stopped trading for a hedge fund that was short with which they had no business.
@@oBazh So why GameStop? Why other stocks, like CTRM? How did they choose which stocks to suspend? They only went after stocks that were mentioned heavily on WSB. How do they explain this, other than as retaliation?
@@willard2729 no I'm repeating his answer. He answered the question with a response that didn't provide the complete context of what he was doing The full answer should have been: "Short selling in a predatory manner with the intent to unnaturaly drive down a distressed stock (that was struggling but wouldn't have necessarily collapsed otherwise) with massive capital outflux IS market manipulation - even if the laws allow for it because market makers and hedge funds paid lobbyists to look the other way." But go ahead and defend hegefunds that destroy small businesses and livelihoods to pocket cash. No problem Edit: also technically any stock market activity is manipulation of some kind - I'll play your little semantic game. Even selling stock. But the manipulation in question is predatory and harmful levels of the activity which those affluent sociopaths have access to and execute on a regular basis, whose goal has nothing to do with the actual classical intent of the stock market, which is to raise shareholder capital for businesses.
4:10 The chair should have allowed for further challenge on Griffin’s position that ‘legislative corrections’ are not required to prevent excessive/naked short selling. Was this not the main reason for the hearing in the first place? For Griffin’s position to hold up, then the logical conclusion is that we should expect prosecutions to follow. I’d like to have heard his opinion on that...
Plotkin and Griffin: "It wasn't us who over-shorted, we follow the rules, it must have been someone else!" That should be used as a reason to regulate and shine more light on who exactly "fails to deliver" and when...
I have no idea how congress works and all this yada yada but these representatives don't seem to be qualified enough for the job. They're asking questions but don't have the expertise to pursue some of the half-answers they get, and they get like 5 minutes each? There are gaping holes in the answers here but I don't know who's gonna really hold them accountable, this seems like a formality
So much talking out of both sides of their mouth and deceiving congress with their explanations. "We don't naked short because we always borrow stock when we short it" -> Yep, that's what short selling is, but unless you can gaurantee that you can actually have money to buy those shares in the future at a currently unknown risk, then you have unlimited potential losses. Anybody can borrow something. I can borrow things all day long, any idiot can do that. The trick is being able to fulfill the obligations you incur for doing the borrowing. That's where things are getting messed up.
“A unique situation “ bs.......so the first time it’s happened , it was discovered.....lol . It’s more like it’s been overlooked, or not fully understood by retailers. It’s more likely a very common practice that suddenly got exposed by these pesky retailers. A historical analysis of over-shorted stocks need to be done. .
Much like the Pavlovian rat, repeatedly pushing the button but getting no reward, until they end up dead from starvation because they'd rather play the same old game they always have with people's money, than actually work for their keep
ah, the practice of naked shorting ended years ago? 200000+ FTDs on gamestop just in june. millions of FTDs of you look over the last 5 years... something big is comin...
For law maker to ask the hedge funds CEO/manager: tell me why this is not manipulating the market by shorting 140% of the stock. From those two guys answers, they didn't say "yes we manipulated the system. What they actually mean is: the system allows us to do so, and we have been doing that. Is this obvious the law needs to change?
the take away from this should be that no party pay exceed a short position over 100%. You shouldn't also be able to use margin to to short a stock either.
The problem is that if the shorts are actually virtual shares borrowed across market makers, you can't keep track of these things and you can get yourself into this territory. This is why it takes days to settle trades and why there are the "failure to deliver" reports from the FTC. Those things are amazing to read. In practice, nobody really knows who has what shares until someone calls their bluff. And if nobody has them, there's a small fine and they just have some more time to produce the shares. They all cover for each other. When I say small, it's not small like you or I would say small but when you're making billions, it's just a few points.
Hey guys I just took a free online class in how to speak snake. I'll translate for you! "I'm not sure it's worth us delving into legislative corrections for a very unique situation..." means "We'd prefer if you allowed us to just change the rules on a daily bassssis to serve our interests, rather than making consssssistent rules that we have to follow even if it's not 100% convenient for us."
04:18 Griffin: "I wouldn't say it's worth us delving into legislative corrections (against shorting over 100%)". Rather than just a unique circumstance you could say this is a perfect example of why it needs to be regulated. Following true market forces, the stock would have gone to infinity. Which would obviously bankrupt everyone except shareholders, who would then have a balance of $infinity. Completely absurd situation which they luckily managed to avoid (through nefarious means). But the fact it just almost happened should give grounds to addressing it. Otherwise what is to stop it happening again in a month's time? More and more it looks like these market makers might as well be replaced by indexing algorithms. I mean arbitration is almost a thing of the past. The only time they can be more efficient than the market is when they directly manipulate it. But that is dangerous as we've just seen.
All he needs to do is explain that game hardware stocks are sold out everywhere, because they're being bought by speculating naked investors. Like a bunch of grown men taking all the dolls from the toy stores to whatever balmy reason.
Why is the Melvin guy next to a paper shredder? Also how bad does it look every part not representing the stock buying side is deflecting and wasting time like there is no tomorrow.
hmmm maybe its just the clip. but did anyone else notice. no one mentioned naked short selling except for kennyg. or was this because someone else already brought it up and hes just rebutting ?
We need legislation on politicians insider trading it’s no issue when ppl in Washington collude to inside trading but if the small guy does it it’s major problems
It is manipulation, and they better come better than this. They need to be held accountable, if that's the rule, it needs to change now... Although, I think they're lying.
Citadel securities was $50bn net short on stocks, many of them squeeze stocks, at New year. it's likely now increased due to market value increasing. Could be hundreds of billions by now, all in Jon existent shares, or 'synthetics'.
Stock market should be closed forever. Speculation has gotten out of control. People are making money while removing value from the system and just creating inflation in a game that is rigged to favor heavy money that can afford algorithms and media influence. I hate conspiracies but this is just too obvious. Imagine having a job that all you do is make money for someone else without actually inventing or contributing to society in any way, it's like a casino. No wealth is actually created, the globalized system is so convoluted that bending the rules and grey areas will always be present for people to make money. I'm disgusted by the stock system, everyone is graduating with MBAs of becoming real estate brokers, easy degrees on how to do nothing, just manipulate people and turn a profit for yourself.
How or u a market maker and a short seller that’s unfair to retail just controlling the market and price manipulation they or lieing and a lot of the rules or in there favor nothing is built for retail
Just force all shorts to be reported daily rather than fortnightly. Problem solved.
Why not in real time? It's the 21st century after all
@@zimboiii9025 crypto baby
@@kx65andyx85rider No that's just blockchain, not crypto
Bingo!
fortnightly? What are you queen elizabeth's butler or something?
guy literally choked when he mentioned naked shorting
@@americanmutt7425 objection!! You can not mention the unmentionable!
Why is this not manipulating the market?
“Because the rules allow it.”
Jesus
Exactly
When hedge funds lose millions and average joes make money they want to make sure you don't make this kinda money ever again
The peasants are not allowed to hunt in the king's Forest, or something
CNBC: free market
Citadel: yay
U/DFV: yay
CNBC: no not you
But the Hedge funds should explain the 140% short
They did though. Bank loans business 10K, that business decides to lend one of its suppliers 4K. 10K is the original loan but now someone else also owes 4K in the chain. So essentially the loan of 10K is now 14K in total because even if the business pays back its 10K loan they could still have an outstanding debt of 4K with the supplier.
@@oBazh yeah but the business got that 4k from somewhere, so if we consider the whole market, no money was created. Am I wrong?
@@cheesus8594 correct, in theory no extra shares were created I believe. Person A borrowed 10 shares from his broker, he then lets 4 shares be lend out from his account to another investor in order to gain interest on it. Lots of big investors make a good return by lending their shares to others for a certain interest rate.
@@oBazh just add in the equivalent of fractional reserve and you can have infinite shares! Shares for everyone!
Short interest is a percentage of float, not shares outstanding.
YES or NO? Vlad: I had the same haircut when I was a little boy in Bulgaria.
Rep.Blaine just caught the hedgers with there pants down ... manipulation of the stock
Perfect!!!!
Why do Vlad & Roaring Kitty look like they could be brothers 💀
Sperated at birth lol. One clearly chose the path of evil and the other the path of light.
You are assuming it's not the same person. Ever seen them in the same room? Neither have I, I smell a conspiracy.
@@jcmb5708 lmfao, This comment
Jesus and Satan were brothers
Both need haircuts like most of us
Griffin had 5 people in a room typing on a teleprompter. You can see his eyes looking up reading each time he answered.
I even saw this in the movie 😭
Please have knowledgeable people at the hearing.
No. Political talking heads only.
I'm still waiting for Plotkin and Griffin to answer the question 🤷🏽♂️
You will find your answers if you go to Bulgaria
@@DRIVECLUBistimelessPS4 I was a young boy in Bulgaria
This is why many people think the market is a scam. DFV bought shares and call options, many of which expired worthless. But, because his thesis ended up being correct and he made millions, he "beat the system".
Does anyone else think the Citadel CEO looks like a psychopath? He has the most calm and controlled face, but inside he's thinking all sorts of things.
He’s just reading off a teleprompter with an assistant writing his responses
@@sticklebacketienne Doesn't mean he's not a psychopath lol. There's a pretty well-established correlation between psychopathy and CEOs, and I think anyone who functions at that kind of a level in general (like a lot of high-level short sellers for example).
So why did the brokers need to stop GME trading, if the HF being shorts where within their rules? BS
Because Robinhood’s own trading house didn’t have sufficient collateral to put up at the clearing houses. Really don’t get it how some of you people have been consumed with anger for weeks but didn’t even bother to do miniscule research on the subject.
They stopped trading because it was gonna be too much for the shorts to cover, stop us from buying and the price falls especially when people were able to sell, not fair trading practices
@@oBazh we're mad because Vlad repeatedly said its not a liquidity issue, when its clearly a liquidity issue
@@dankfranco2768 That is reasonable and is incompetent from RH. However I don’t get how some people still think RH stopped trading for a hedge fund that was short with which they had no business.
@@oBazh So why GameStop? Why other stocks, like CTRM? How did they choose which stocks to suspend? They only went after stocks that were mentioned heavily on WSB. How do they explain this, other than as retaliation?
“The process of Naked Shorting was..” AAAAND CUT! That’s about all the time we have folks!
"Short selling within the context of the rules" isn't the answer to the question. Manipulation is manipulation
Short selling is simply buy low sell high reversed to sell high buy low
So according to your logic selling stock is manipulation?
@@willard2729 no I'm repeating his answer. He answered the question with a response that didn't provide the complete context of what he was doing
The full answer should have been: "Short selling in a predatory manner with the intent to unnaturaly drive down a distressed stock (that was struggling but wouldn't have necessarily collapsed otherwise) with massive capital outflux IS market manipulation - even if the laws allow for it because market makers and hedge funds paid lobbyists to look the other way."
But go ahead and defend hegefunds that destroy small businesses and livelihoods to pocket cash. No problem
Edit: also technically any stock market activity is manipulation of some kind - I'll play your little semantic game. Even selling stock. But the manipulation in question is predatory and harmful levels of the activity which those affluent sociopaths have access to and execute on a regular basis, whose goal has nothing to do with the actual classical intent of the stock market, which is to raise shareholder capital for businesses.
As if the SEC would have stopped naked shorting 😂😂😂
Can somebody explain to me how they were allowed to short gamestop 140 percent
4:10 The chair should have allowed for further challenge on Griffin’s position that ‘legislative corrections’ are not required to prevent excessive/naked short selling. Was this not the main reason for the hearing in the first place? For Griffin’s position to hold up, then the logical conclusion is that we should expect prosecutions to follow. I’d like to have heard his opinion on that...
⬆ THIS 💯%
"Was this not the main reason for the hearing in the first place?"
I THOUGHT SO TOO
Plotkin and Griffin: "It wasn't us who over-shorted, we follow the rules, it must have been someone else!" That should be used as a reason to regulate and shine more light on who exactly "fails to deliver" and when...
I have no idea how congress works and all this yada yada but these representatives don't seem to be qualified enough for the job. They're asking questions but don't have the expertise to pursue some of the half-answers they get, and they get like 5 minutes each? There are gaping holes in the answers here but I don't know who's gonna really hold them accountable, this seems like a formality
You thought 140% short is normal...?
So much talking out of both sides of their mouth and deceiving congress with their explanations.
"We don't naked short because we always borrow stock when we short it" -> Yep, that's what short selling is, but unless you can gaurantee that you can actually have money to buy those shares in the future at a currently unknown risk, then you have unlimited potential losses. Anybody can borrow something. I can borrow things all day long, any idiot can do that. The trick is being able to fulfill the obligations you incur for doing the borrowing. That's where things are getting messed up.
Robinhood should change its name to the Sheriff of Nottingham.
NottySheriff 0_o
VLAD FOR PRISON HEAD CHEF
The last 3 guys need to go to prison
“A unique situation “ bs.......so the first time it’s happened , it was discovered.....lol .
It’s more like it’s been overlooked, or not fully understood by retailers. It’s more likely a very common practice that suddenly got exposed by these pesky retailers.
A historical analysis of over-shorted stocks need to be done. .
"The practice of naked shorting was largely curtailed by SEC mandate years ago". -Ken Griffin. LARGELY CURTAILED. Not eliminated.
I hope congress doesn't restrict Wallstreet from shorting over 100%. In fact, I encourage Wallstreet to short over 100% every chance they get.
Much like the Pavlovian rat, repeatedly pushing the button but getting no reward, until they end up dead from starvation because they'd rather play the same old game they always have with people's money, than actually work for their keep
"Naked shorting was largely curtailed by the SEC" this guy is slicker than snot
Vlad looks like that King from Shrek. Damm I forgot the name
Lord Farquaad!
E
Plotkin, he's still at his tricks to this day.
Just shows you how broken the system truly is.
Not really, i and lots of people are making annualized 30% yoy returns investing for the long term. Not sure what's wrong with you.
@@InvestingAlex When hedgefunds can pull the plug anytime thats a broken system. Not talking about returns.
How are 360 degree cameras not used for these types of interviews? Would be interesting to see the room full of lawyers reacting.
is it just me or it is hard telling the different between the kettie and the ceo
yeah similar hair style
Like the responsible twin and the younger meme twin
Important question comes out
- your time is up
ah, the practice of naked shorting ended years ago? 200000+ FTDs on gamestop just in june. millions of FTDs of you look over the last 5 years... something big is comin...
It's a difference between "the sistem didn't worked" and "the system didn't work in your favor".
For law maker to ask the hedge funds CEO/manager: tell me why this is not manipulating the market by shorting 140% of the stock. From those two guys answers, they didn't say "yes we manipulated the system. What they actually mean is: the system allows us to do so, and we have been doing that. Is this obvious the law needs to change?
And yet they’re still naked shorting to-date.
Notice Ken Griffin blinks twice when he says naked shorts lol.
Pay no attention to the men behind the curtains
the take away from this should be that no party pay exceed a short position over 100%. You shouldn't also be able to use margin to to short a stock either.
Shorting is margin like water is wet. Go find a kardashian thread if you don’t understand the issue
The problem is that if the shorts are actually virtual shares borrowed across market makers, you can't keep track of these things and you can get yourself into this territory. This is why it takes days to settle trades and why there are the "failure to deliver" reports from the FTC. Those things are amazing to read. In practice, nobody really knows who has what shares until someone calls their bluff.
And if nobody has them, there's a small fine and they just have some more time to produce the shares. They all cover for each other. When I say small, it's not small like you or I would say small but when you're making billions, it's just a few points.
Hey guys I just took a free online class in how to speak snake. I'll translate for you!
"I'm not sure it's worth us delving into legislative corrections for a very unique situation..."
means
"We'd prefer if you allowed us to just change the rules on a daily bassssis to serve our interests, rather than making consssssistent rules that we have to follow even if it's not 100% convenient for us."
04:18 Griffin: "I wouldn't say it's worth us delving into legislative corrections (against shorting over 100%)". Rather than just a unique circumstance you could say this is a perfect example of why it needs to be regulated. Following true market forces, the stock would have gone to infinity. Which would obviously bankrupt everyone except shareholders, who would then have a balance of $infinity. Completely absurd situation which they luckily managed to avoid (through nefarious means). But the fact it just almost happened should give grounds to addressing it. Otherwise what is to stop it happening again in a month's time? More and more it looks like these market makers might as well be replaced by indexing algorithms. I mean arbitration is almost a thing of the past. The only time they can be more efficient than the market is when they directly manipulate it. But that is dangerous as we've just seen.
The system 100% worked. Volatility is the only thing promised in public securities.
4:58 when they mention Naked Shortening it gets muffly lol
All he needs to do is explain that game hardware stocks are sold out everywhere, because they're being bought by speculating naked investors. Like a bunch of grown men taking all the dolls from the toy stores to whatever balmy reason.
It looks like Congress is on the side of the people(retail) that is... Until they realize how BAD the situation really is.
The respondents don’t seem to be answering any of the questions....
Behavior analysis plz when he says the words "naked short selling" at the end
hahahahahahahahaha you noticed that
Someone thought they were on mute and hit the table lol
Saying naked shorts looking like these clowns chokes a bundle of dollars.
I'm going to short 140% of my taxes.
He is really a great speaker.
Congressman do you know who I am?
I am Anton Chigurh.
Why is the Melvin guy next to a paper shredder? Also how bad does it look every part not representing the stock buying side is deflecting and wasting time like there is no tomorrow.
gabby plucky didn't answer the question lol. He also has a slappable face
"Naked shorting was largely curtailed by sec mandate years ago"
So it curtailed it, it didn't stop it. Interesting
Gabe Plotkin trades on inside information. Hold him accountable.
Can we all not talk about that awesome Garth Brooks songbook in the background of Rep. Blaine 🤣
Shorts haven't closed. We are going to uncharted regions of space.
Mr. Griffin..what you reading there boyy 😂👀 can clearly see your eyes moving right to left haha..what a jokeee
hmmm maybe its just the clip. but did anyone else notice. no one mentioned naked short selling except for kennyg. or was this because someone else already brought it up and hes just rebutting ?
Time to put the big hedge funds in the witness stand.
Vlad Tenev and Keith Gill are the same person and you aint gonna convince me other wise
7 months later this "unique situation" as Griffin describes it is communality of big hedge in every day market trading..
Please explain the short, isn't 140% market manipulation? Both 1% trash "but we followed all rules and regulations, so no".
We need legislation on politicians insider trading it’s no issue when ppl in Washington collude to inside trading but if the small guy does it it’s major problems
I had to come back and watch again before AMC and GME short squeeze
I think perhaps government needs to stay out of this.
Then citadel will jus us their money to overpower us again???
Where the f*** is katie porter 😭😭😭
It is manipulation, and they better come better than this. They need to be held accountable, if that's the rule, it needs to change now... Although, I think they're lying.
why is the melvin guy sitting next to the big printer.
Citadel securities was $50bn net short on stocks, many of them squeeze stocks, at New year. it's likely now increased due to market value increasing. Could be hundreds of billions by now, all in Jon existent shares, or 'synthetics'.
Coward need a teleprompter! Guilty guilty lock him up! Look at his track record! He will keep paying the fines, just cost of doing business to him
The art of saying nothing by saying alot of bs
F' Ing Lawyers
I liked Vlad better when he used to do stand up comedy using the name Demetri Martin
His name is Vlad... Tenev...
They’re out numbered and scared
Question is too long and weird.
GME 🚀 🌙 💎 👊
I buy a lot of stocks while naked and I don't see a problem with it
I bet he didn't aspected In one day to speak for cnbc when he choose that nickname
these guys these are not the laws you are looking for ahahaha,
Buy AMC and hold for the squeeze🦍
Vlad tenev is not a melvin ceo label your videos better
Lol yeah have Robinhood and Citadel's intellects to help write laws.
Is that Garth Brooks in the background?
Stock market should be closed forever. Speculation has gotten out of control. People are making money while removing value from the system and just creating inflation in a game that is rigged to favor heavy money that can afford algorithms and media influence. I hate conspiracies but this is just too obvious. Imagine having a job that all you do is make money for someone else without actually inventing or contributing to society in any way, it's like a casino. No wealth is actually created, the globalized system is so convoluted that bending the rules and grey areas will always be present for people to make money. I'm disgusted by the stock system, everyone is graduating with MBAs of becoming real estate brokers, easy degrees on how to do nothing, just manipulate people and turn a profit for yourself.
I think Keith Gill may very well be a vampire.
And I think that Ken Griffin dude's mom was an alcoholic. At the same time that he was a growing fetus.
How or u a market maker and a short seller that’s unfair to retail just controlling the market and price manipulation they or lieing and a lot of the rules or in there favor nothing is built for retail
Does Vlad get coaching from Zuckerberg when it comes to answering questions
Liar liar pants on fire!
naked shorts, yeah
Naked shorts, yeah.
Lol you can see the lie on his face
ขอบคุณ
Thanks for the comment for crypto advice and guidelines.
soon
Kenny Kenny Kenny cant u see sometimes your stock manipulates me