You know sometimes for christmas, santa will, leave you coles and uh that'll happen. You know bad bad children get colds, bad children, don't get nice things and sometimes for christmas. Uh santa will leave you a little hershey squirt and your your stock socking right and that's a that is kind of what we have here today heading into the freaking christmas season is some interesting news that has come from the u.s justice department now check this out. U.S justice department launches expansive probe into short-selling sources and uh, my god.

I can't believe that it's taking this long, what really captivates me is this right. People have been screaming at the sec for uh for months now, really ever since january. To uh perhaps do something about uh, i don't know pretty blatant manipulation that takes place on a day-to-day basis, whether it be with short selling, whether it be with bad actors on twitter and write it and mainstream media yada, yada yada and it kind of looked the Other way you know things haven't really developed that much, but here you have the the us justice department launching this uh. This is essentially investigation.

We're gon na read through the just the beginning of this new york december 10th. The u.s department of justice has launched an expansive criminal investigation into short selling by hedge funds and research firms. According to three people familiar with the matter, this is pretty uh, pretty fascinating. You know it's kind of a strange concept to think about.

You do illegal things, people investigate you for doing illegal things. I don't think i've ever lived in a world like that, but nonetheless we got a hershey squirt in our sock for christmas. Investigators are probing their relationships among the hedge funds and firms that publish negative reports on certain companies, often with the aim of sending the stock lower. The people said.

You know what this sounds. A lot like huh fascinating sounds a lot like predatory short selling and what is really cool about this? Is they actually named two of the many companies uh, i'm sure there are gon na be others that hopefully get exposed, maybe it'll be soon. Maybe not i'm not crossing my fingers by any means. I expect this to take probably quite a while, but the two names that got dropped in this were citron research.

This is one of them and the other being uh muddy waters. Capital now what's fascinating about this. Is if you look into uh these companies, they make some pretty interesting claims to be activist short sellers and i'm not saying specifically each company, but i just read up on. I believe it was muddy waters so check this out.

Muddy waters, capital, fines, you'll, see this article right here about activist short selling and what's fascinating to me, is uh that these guys will essentially wear two mess right. I'm an active, a short seller, i'm targeting companies that are bad they're scamming. You guys they're trying to take your freaking money and then you've got the other flip side of the coin. What's up what happens if they're wrong? What happens if all the research is wrong? You just purposely predatorily targeting a company right, you better, be damn sure you can brought some sort of report and what they're investigating here is the legitimacy of these companies targeting specific uh stocks in the stock market.

So we read on among the stocks was trading activity? The justice department is examining are luck and coffee incorporated in gsx tecado, on which carson blocks muddy waters, capital and andrew left's citron research circulated research. Bloomberg said in a statement: citron research said it knows of no wrongdoing and has cooperated fully with the government's investigation. Now this is a fluff statement right, obviously, if somebody's guilty, i just think of uh my opinion, obviously citadel uh citadel llc right considered all the freaking hedge fund, they're, not gon na, come out and say they're guilty they're gon na try and deny, because that's what Their attorneys are telling them to do they're, gon na say: listen. If you put your foot in your mouth right now and just don't say anything, we might be able to dig you out of this, but what's fascinating i say the word fascinating, a lot uh, but it's it's a decent word to describe this interesting.

Perhaps what's interesting about this is uh, i don't see any way that they can't, because this isn't the sec there's a difference between being investigated by the sec and getting slapped with a freaking one penny to a dollar fine and the u.s department of justice. These are can be some uh, some criminal offenses. This could be a big deal, so we're gon na read through the rest of this article justice department, probe comes after the u.s securities regulator earlier this year said it is considering measures to require big investors to disclose more about short positions or bets. The stocks will fall on the use of derivatives to bet on other stock moves, and what i like a lot is that they mention derivatives, because people think about this way too uh, simply sometimes it's not just as simple as i'm naked short selling in stock.

I'm predatory, shorting, a stock, yada yada yada derivatives are where things get hidden because they're confusing anything that is made confusing it's it's not simple for the sole purpose of being confusing, that's a problem. It allows loopholes, it allows bad actors and it allows like this right regularly. So all the regular, the regular, also moved to protect small investors from trading apps. They use features comments of video games in order to boost risky trading activity.

Honestly, i don't think this is really a big deal. I know there's statistics that say: yes, if you, if you rig things a certain way, they show certain colors that give you certain animations people are more likely to trade in a different way, but that is a much separate problem to me than than the people at The top right doesn't make it not a problem, but there are bigger, bigger issues at hand. The review of rules by the securities and exchange commission was prompted by january's gamestop saga, and the meltdown of rk goes capital citron one of the world's best known short sellers. In january said, it would publicly stop detailing companies shortcomings following backlash against it and others who said retailer gamestop stock is not worth its price.

So you know what citron said: hey look, we're kind of done making statements on this. We're done circulating research. We have. We have no interest anymore right, so let's just go check their twitter.

This seems like a pretty easily uh justifiable thing to do. You know you can kind of just back fact check them and see if they backpedaled at all, and let's just look at this right. Buying nv nvei right, that's a long position. I j m, i a jumia, accelerating sellers growth.

Huh second stock they've talked about they're talking about accelerated sellers growth. Could this be the start? Black friday stats show the inflection largest pan african platform. Company does not need money in years in front of comp, insider buying stock could be 22 before earnings asymmetrical, uh risk, slash reward, not an easy road. Another long seems like they're holding up pretty decent.

I'm actually surprised by that one. I expected that this this picture is misleading, but nonetheless these are the statements that they made right. Look at this. This is out there all the things that you guys have been talking about.

All retail investors we're not stupid. You can see in a plain view that there are people just simply looking the other way right. The sec, maybe they're, investigating certain things, maybe they're working on certain things. I do believe that they are, but the us justice department having to dig into what is literally their freaking job.

Oh my god, i want to drink boiling hot dog water. Look at that! That's just an absurd thing to me. I i think these guys need to get off the toilet and get back into their desks and start doing something and i'm glad to see the us justice department doing something now, like i said before, i'm gon na wrap it up with this. I don't expect anything in the near future.

I'm sure this sort of thing takes a long time i think, about the sec and how long it takes just to bust down on making short selling cases right it takes years it could take years. I don't expect anything massive to come in the next day, the next week, the next month, even right, but it is good to know that there are people watching for that and that's what i've got for this freaking video. So i'm going to be in dallas to saturday i probably will not be putting out a video uh tomorrow, but sunday i will be back and i'll catch you all in the next one. Much lovely taps.

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