Why GME, AMC, UWMC and many other shorted stocks are still being shorted.

Hi,

Here's my perspective.

(TLDR: Shorts think after the economy opens up people will probably stop investing as much and that the retail investors will disappear).

The shorts have been shorting specific stocks with commonalities. GME, AMC, BBBY, etc have been targeted for being Brick & Mortar, not adapting to the digital age, declining revenue, and so forth and targeted these companies at their weakest point, during COVID-19.

Stocks like UWMC, RKT were targeted because of the real-estate boom/bubble, SPAC (UWMC before going public), Inflation, thinking the world will collapse and another mortgage crisis will occur like back in 2008-2009.

Actually, real quick, I want to talk about that to explain that. Back in 2008-2009, the American Banks were creating what are called CDO's or mortgage back securities, and trading them. These mortgage back securities were essentially mortgage loans bundled up and borrowed against and traded as a security. There's levels of quality of CDO's such as AAA,AA,A, BBB,BB,B, CCC,CC,C etc. They're called tranches. What these banks were doing was instead of having tranches of AAA loans in the AAA security they would mix match them and rebrand them as a higher "quality" then they really were. Example, mix a bunch of B's, C's, D's with the A's and sell them at overvaluation. Additionally, the nation was at all time highs for home purchases and lenders/banks were approving and giving out loans like peanuts because there was very little regulations at that time in comparison to now. So, there was a multitude of people who had very poor credit scores, bankruptcies, defaults, etc that we're being approved. Essentially, a lot of people who shouldn't have qualified and had very little consistency for making payments were approved. This came into the grading of the CDO's. The crooked banks were pushing these CDO's and were buying a bunch of them. Little to what they knew is the ones who created the CDO's were selling absolute shit. Securities sold as A or B quality but were filled with C and D dogshit. Michael Burry among others noticed that these CDO's were starting to default and when they looked into it further they found out what I just mentioned. Once the defaults started occurring one after the other, all the major banks holding these CDO's where trying to off ramp them and smaller banks/investors who bought them were out of the loop. Didn't take long for big banks to realize and do the inverse and actually short their own product "CDO's" to not only profit from it but to get out of they're fuck up which crashed the economy.

CDO's shouldn't exist, but when CDO's were first created, I forgot the guys name, they were actually a good thing when used correctly. These banks started leveraging these CDO's and CDO concept, creating new CDO's out of other CDO's which would than be termed synthetic CDO's etc and selling them for more profit.

You'd be surprised, CDO's still exist after 2008-2009, but both CDO's and mortgage lending is now highly regulated with strict guidelines to ensure what happened in 2008-2009 wouldn't occur again. This is the biggest reason for the 2008-2009 mortgage crisis and crash. Also, UWMC for example is a mortgage originator/lender. They don't lend the funds, the banks do. They process the applications and make money from the mortgage servicing rights.

Anyways, what the shorts didn't expect is the retail investors rising from out of left field and seeing value in all these stocks. Include the acknowledgment of ridiculous short interests and with the full intent on capitalizing on COVID-19 to drive companies to bankrupt themselves and profit heavily from it.

The shorts thought us average Joe's or Johanne's were retarded, but they didn't factor in how retarded we actually were. They thought Harambe died in 2016, but his spirit lives for ever within us, and we went ape shit and the shorts had no idea on what to do. Mass manipulation, media, FUD, everything was being thrown but it never worked. They stayed in their positions kept accruing losses and continued playing and underestimating the average investor.

I believe these fuck nuts are staying in their positions because they anticipate inflation from when the economy opens up after COVID-19. I think they believe that once that occurs people will no longer be at home as much and will lose interest in investing in stocks. But here's the kicker, just as many companies have grown and adapted to the new age of technology especially with COVID-19 being a catalyst and pretty much forcing them too, the same occured with us everyday humans apes. A lot more people have been educated in investing and FD's. Everything is now at our finger tips on our phones. No one is leaving.

So, while they keep adding to their positions and believing in their convictions, they haven't lost yet, don't forget that. They might be at these massive losses, but their mostly unrealized losses. They have big money in their pockets to back them. These aren't just one time squeezes, they know/think that they can just wait it out until the economy reopens. What they don't realize is the extreme retardation of our communities and fellow apes.

The game has really only begun, so they can fuck off. This is a fucking casino sir, they want to treat it as such, so will we.

Sincerely,

I see you're bullshit.

submitted by /u/ShortChecker
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