(Part 1) What is the REPO market?

Consider this area of the financial world being a pawn shop or a plumber of the stock market.

In my last lesson, we have discussed the necessity of maintaining liquidity requirements under the rules of a clearing corporation via the SEC.
(Part 2) REPO stands for Repurchase Agreement.

Consider the financial world as being a network between institutional parties, with pipelines transferring liquidity in and out. Once a pipeline falters and someone runs out of cash, that's where the REPO comes in.
(Part 3) There is typically a lender and a borrower.

Lender = Central banks, money market funds, insurance companies, reserve banks, FED etc.

Borrower = Hedge funds, investment banks, brokers, mortgage REITs.
(Part 4) Let's throw a hypothetical that a lender has more cash than they need (ideally the FED) and the borrower could exchange their treasury bonds in order to raise cash in a repurchase agreement.

Eventually, that lender expects that money back (usually overnight to 48 hours)
(Part 5) What happens if the world is running on credit, margin, and debt - overextending themselves - needing to meet their liquidity requirements -constantly asking for maintenance plumbers more than what the REPO market could possibly offer.

The system implodes.

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More from @CringleKitten

2 Jun
$AMC

(Part 1) Delisting.

I'm tired of it - but whatever - free lesson.

A stock can be delisted if the underlying security on the NYSE is getting devalued as being a penny stock which would be then listed in the OTCMKTS
(Part 2) Another way to get delisted is through intrinsic illegal practices within a company with market security manipulation.

The SEC reserves the right to delist such security for investigation purposes for a period of time, as part of their agency's mandate.
(Part 3) Is AMC involved into illicit market activities. Of course not.

I don't understand the talk about dilution today which was already explained. The CEO already used the remaining 43M shares this year of an existing proposal, approved back in 2013.
Read 9 tweets
2 Jun
$AMC

(Part 1) Does this cat care about the story of Mudrick Capital Management, LP?

Nope.
(Part 2) Adam Aron is not intrinsically involved with the sales of 8.5M shares of the company. It was done through a purchase agreement by Blackwell Partners, an authorized issuer of shares.
(Part 3) It was effectively done from using an existing reserve pool of certified outstanding shares distributed by AMC. There was no dilution involved.
Read 7 tweets
1 Jun
(Part 1) Let's throw a hypothetical scenario where we have our deserved tendies from the $AMC #MOASS.

Congratulations! You are at the bottom of the 1%.

70% of you won't be able to maintain that status. The moment you stop working / learning - you will meet stagnation/failure.
(Part 2) Staying wealthy means you make the right individual decisions to grow that money and make that work for you a.k.a passive income - above your burn.

This step requires some intrinsic homework and research to choose the right investments for you on a daily basis.
(Part 3) These investment choices could be penny stocks, growth stocks, dividend-based stocks, REITS, real estate, physical assets, limited assets or appreciative commodities.
Read 6 tweets
31 May
$AMC - #Squeeze

(Part 1) The best poetic justice of retail investors against Wall Street.

In the 2008 financial crisis, many middle class workers have lost their homes following defaulted mortgage payments.
(Part 2) Institutions and banks have tricked them into a world of spending where they stole every penny from their wallets. The COVID financial correction was not so different.
(Part 3) In post-squeeze, many retail investors will rejoice themselves buying the dip of the upcoming crash.
Read 4 tweets
31 May
Food for thought - Follow the money

China's working age population has been declining putting a significant pressure on labor costs meaning this country won't be the world's factory in the next decade or so.
Considering they have recently allowed a third child per couple policy to solve this innate working age productivity problem, China's fertility rate has been declining as well.
From the 1980's to early 2000's, this country has adopted a booming strategy ensuring an empowerment of the local economy first while expanding their military footprints in order to become the next superpower competing with the US.
Read 5 tweets
30 May
(Part 1) How come have they not covered yet?

Every security trading-related institution (hedge fund or investment bank) is bound by market regulators under a clearing corporation (CC).

$AMC - $GME - $SPCE
(Part 2) Every CC has their specific criteria for their registered members using their services (AUM, custody, validity of transactions) including maintaining a minimum level of liquidity in their brokerage accounts. Consider a CC being a payment processor like Paypal.
(Part 3) This required level of liquidity requirements is somewhat a failsafe to maintain borrowed assets, especially shorts dealing with margin.
Read 13 tweets

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