Many people talk about the coming, inevitable, stock market crash, however, it may never happen.
But, the crash will probably happen.
What will happens is that the stock markets will be closed due to wide spread, systemic fraud.
When people find out that there is more stock being traded than exists.
The MSM will tell people that this is only temporary, and the SEC and Cede and Company will work everything out.
Then they will find out that someone owns ALL the stock, and that everything that was being traded never existed.
The differences between the 1929 crash and the 2029 crash
Wide spread systemic fraud can't exist in the NYSE... right?
Well, actually it is quite evident to anyone who looks.
You didn't actually purchase any stock
When you go to your broker, or your broker's website, you are not purchasing a stock you are purchasing a promise, on a promise, on a promise to get a stock at a certain price.
Your broker buys it from a bigger broker who...
and each layer may not actually buy the stock. They may allocate you one from a pool. Or they may hold off buying until the stock price goes lower (making money on your purchase)
If the stock price doesn't go lower, they may just return your money.
You purchased a stock... that didn't actually exist
You also may get a "failure to deliver"
You actually purchased the stock, and want it transferred to you... but... no.
It happens all the time. Like you get a voice message, "please try your call again later"
(but most people who trade stock never actually want the stock, or even really care the stock is there)
There can't be that much fraud?
So, when the stock market shuts its door, and actually starts counting stock and who has it, they will find that it is not just a little oversold, or a lot oversold, they will find that most of the stock that was being traded, never existed.
How's that?
How the fraud happens
Well, there are things call shorts. And you can place a short with your brokerage.
Now, legally speaking, you are supposed to own the stock you are shorting. The contract is, you are selling it at a price in the future. But this rarely happens. Instead you "borrow" some stock from the brokerage who may or may not have purchased it (see previous paragraph) and on their good word, you sold it in the future.
Which should all work out, however, the pools may be multiply sold, and the brokerage may have sold stock they intended to purchase but didn't.
It all comes out in the wash, right?
Not really. These things can carry on a life of their own, being traded multiple times.
No one gets caught, because no one ever accounts for every stock
And, when that day of reckoning comes, whoa to all in the stock market.
There was a court case where the investors sued a company for their buyout purchase being too low.
Well, the investors won... but there were more plaintiffs than there were outstanding shares of stock.
The judge told the company to deal with it themselves.
There is widespread fraud in all stock exchanges around the world.
And when one is found to be full of fraud it will be a series of dominoes around the world.
I would advice everyone to get completely out of the stock market.
Sell everything, or have the stock transferred to you and register it with the corporation.
Because i believe that all the stock is already owned by someone, and they will just tell those in the stock market. To bad, so sad. We can't take stuff from people who weren't in the stock market.
Here is a long shot, but we all know that block chain is the way the new stock exchanges are going to go.
Veritasium (VERI) is probably the token that is going to be used when the govern-cements come, hat in hand, to Reggie Middleton to please fix the stock market and the trust in the stock market.
He won his court case for the patent of this technology.
So, in the future, VERI may be more valuable than bitcoin.
- Not financial advice