(Part 1) Remember the Big Short (2015)? - $AMC
A couple of geniuses finding out many B / BB mortgage bonds are defaulted and rating agencies covered everything making the public believing the market was still going strong because it's "good business" for banks.
A couple of geniuses finding out many B / BB mortgage bonds are defaulted and rating agencies covered everything making the public believing the market was still going strong because it's "good business" for banks.
(Part 2) These geniuses bought credit default swaps (CDS) and shorted the entire mortgage market betting against the stupidity of greedy institutions. When these bonds went bust, bankers were literally crying because these shorters controlled all of the supply needed to survive.
(Part 3) Fast forward with $AMC (& any highly shorted securities) - the bullish market lasted for so many years - many parties being overextended with large amount of margin, credit, and debt.
(Part 4) Many greedy institutions have decided to short the entire market with synthetics and naked shorts during the COVID crash and doubled down into believing some fragile businesses would be wiped out - taking into consideration what happened in 2008.
(Part 5) These institutions borrowed so much in order to make huge profits since the crash and have yet covered their short positions in some securities.
(Part 6) Retail investors have found some loopholes into the stock market and highly shorted securities just happen to be (imo) the "new CDS" of the year. We now control the supply.
This movement is into the "Reverse Big Short".
Welcome to the Big Long!
Ba-dum-tss!😂
This movement is into the "Reverse Big Short".
Welcome to the Big Long!
Ba-dum-tss!😂
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