(Part 1) What is the relation of the reverse repo market with highly shorted securities (such as $AMC, $GME, $KOSS etc.)?
As featured in @masked_investor livestream with @RogueTheLegacy , @ShortTheVix1 & @bigdawgstocks
As featured in @masked_investor livestream with @RogueTheLegacy , @ShortTheVix1 & @bigdawgstocks
(Part 2) The reverse repo market is essentially the FED acting as a pawn / maintenance shop borrowing from banks, effectively decreasing market liquidity in the financial world.
(Part 3) The FED and the government are two different entities - their interests don't always align with each other but their primary mandate is to serve the general interest of the public. Hold that thought.
(Part 4) At this stage of the bullish market, lots of institutions are overleveraged with absurd amount of margin, credit, and debt.
(Part 5) Being said, some players may face a rising issue / difficulty on securing a collateral to maintain their positions [ which is a rule under a specific clearing corporation - (DTCC, NSCC, OCC) ].
(Part 6) Going back with @POTUS, he has publicly stated his administration would fight against the malpractices of Wall Street and advocate their support for the American Middle Class.
(Part 7) Considering bad actors are bleeding out due to the reverse repo market siphoning liquidity, commercial / investment banks are less willing to lend their own cash to short sellers unless they increase their interest/borrow fees.
(Part 8) If institutional short sellers cannot find liquidity (either from selling their long positions or from banks), they would be pressured into falling into their margin balance.
That's why if they can't support their upkeeps, margin calls are being enacted!
*Mic Drop*
That's why if they can't support their upkeeps, margin calls are being enacted!
*Mic Drop*
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