Replies to post #80296 on AMC Entertainment Holdings Inc (AMC)

[GoodGuyBill]

Does it matter? At the end of the day those institutions/hedgefunds, more than anything else, want to make money too... more so than Aps (who want to change the system). Do you really think that if Black rock can run AMC up to $1,000 per share, they won't.

We have a perfect storm brewing. While it is clear AMC, GME and several other companies have been shorted to the extreme (and this is an understatement) as indicated by the buy/close button fiasco and the recent federal reserve reporting. At the same time, we have the collapse of China's real estate industry (THE stabilizing anchor in that economy) which WILL catastrophically effect the U.S. economy. Additionally, we have the highest reverse repo rates ever by an extreme magnitude which means banks feel they have nowhere to safely invest their money (or they, for some reason, see the need to hold cash) and, at the same time, we see the Fed beginning to initiate a safe landing by pulling money out of the economy by increasing interest rates and tightening SEC rules with a shit load of new regulations. On top of all of that, Apes who are holding AMC no matter what, have made the hedgies' superweapon-- their artificial intelligent behavioral algorithms-- obsolete right when the economy is teetering on the edge of crashing!

When the smoke clears, IMHO the Apes will be the last men/women standing.


Did you read the Barron's article? Doesn't that sound like a validation of what Apes have been saying about hedgies' over-leveraging? Sooner or later every god damn short position will have to covered which, according to the Federal Reserve, "could risk the [entire] financial system"!!!

https://www.barrons.com/articles/fed-meme-stocks-financial-stability-51636420320

Fed Says Meme Stocks Pose Risks to Financial Stability

Nov. 8, 2021 8:12 pm ET

The Federal Reserve said stock market volatility linked to a surge in new investors who share tips on social media and invest in meme stocks could be a risk to the financial system, according to the central bank’s latest twice-yearly financial stability report.

The Fed said new commission-free trading platforms that offer partial share ownership and flashy graphics have encouraged a generation of young traders to jump into the stock market, and the size of this new group makes it important for regulators to monitor.

Swings in the prices of popular meme stocks such as GameStop (ticker: GME) and AMC Entertainment (AMC) so far have had a limited effect on financial stability, the report concluded, but new, younger investors tend to have higher debt and often use options, two factors that could exacerbate losses in a downturn.

The Fed said financial institutions should consider the potential for increased volatility that the meme stock phenomenon could endanger and that “more frequent episodes of higher volatility may require further steps to ensure the resilience of the system.”

Other vulnerabilities include valuations for stocks and real estate, which are elevated relative to corporate earnings and rents. The Fed noted there is little evidence of deteriorating credit standards or highly leveraged investment activity in the housing market.

U.S. public health and its potential to worsen because of Covid-19 remain the greatest near-term risks to the financial system, the Fed said. Deterioration could slow the recent economic recovery, especially if businesses close and supply chains are disrupted further.