Reposting - GME and the Market Crash
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| Author      | Source | 
|  :----:     |    :----:   |        
| [u/kekking_ass](https://www.reddit.com/user/kekking_ass/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/mvaaa7/reposting_gme_and_the_market_crash/) |

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[DD 👨‍🔬](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22DD%20%F0%9F%91%A8%E2%80%8D%F0%9F%94%AC%22&restrict_sr=1)

I posted this almost 2 months ago and folks thought I was wrong or fear mongering. Look at all the DD now and tell me I'm wrong. I wish I was wrong because this is a big deal as most of you have learned. Either way, we are going to the fucking moon and beyond!!! Enjoy your tendies when they come because you're going to be the apes who survived it and earned it for holding throughout all the bullshit so far.

I've only edited one part of the original post where I thought the date was going to be in early April but have now removed the date because putting a date to the moon is very bad. I'll also update it with the great DD that has been uncovered which lends to my theory. If you have more, send it my way and I'll update this post.

*ORIGINAL POST*

*_____________________________________________________________________*

$GME will be squeezed and the market will crash. I said it and I will show you why I think it to be true.

The stock market will crash and crash hard. $GME and retailer investors will NOT be the reason for it but the catalyst and where blame will be put.

I'm not normally a "cup half empty" type of person but the evidence is there and I thought I would share.

The Buffet Indicator

Quotes from the [article](https://markets.businessinsider.com/news/stocks/warren-buffett-indicator-record-high-overvalued-stock-market-crash-2021-2-1030067388?op=1):

- Buffett praised his namesake gauge in a [Fortune magazine article](https://archive.fortune.com/magazines/fortune/fortune_archive/2001/12/10/314691/index.htm) in 2001, calling it "probably the best single measure of where valuations stand at any given moment."

In 2020, Berkshire Hathaway sold many stocks which was possibly due to the Coronavirus pandemic but as other [articles](https://ca.finance.yahoo.com/news/warren-buffett-prepare-2021-market-135446132.html) reveal, they are sitting on 30-35% of cash or cash like assets.

Right now, the Buffet Indicator is signaling a [market crash](https://www.msn.com/en-us/money/savingandinvesting/warning-this-warren-buffett-indicator-predicts-a-market-crash/ar-BB15r0TO).

Dr Michael J Burry Warning

He is [warning](https://twitter.com/michaeljburry/status/1363226460979228673) and comparing the current US market to [Weimar](https://twitter.com/michaeljburry/status/1363226460979228673) 2.0. [Weimar Germany](https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic) experienced what was called hyperinflation making the local currency nearly worthless.

Overvaluation of Stocks

This is where there are a multitude of articles such as [this,](https://www.forbes.com/sites/jonathanponciano/2020/11/16/billionaire-bond-king-gundlach-thinks-us-stocks-are-way-overvalued/?sh=637473026c91) [this,](https://finance.yahoo.com/news/us-market-kicks-off-2021-224137492.html) and [this](https://markets.businessinsider.com/news/stocks/stock-market-analysis-wildly-overvalued-outlook-time-bulls-sell-2021-1-1029945485?op=1) showing why most of the stocks are over-valued. Not just $GME but right across the board.

Record Low Interest Rates and Treasury Bonds

The interest rates are [incredibly low](https://www.forbes.com/sites/amydobson/2021/01/08/mortgage-interest-rates-slide-again-to-a-brand-new-record-low/?sh=75b54a6c60c4) and has been low for over 12 years with only a slight bump up pre-COVID. Low interest rates introduce risk to [retirement](https://www.cnbc.com/2020/03/11/with-interest-rates-near-zero-preserving-retirement-income-gets-risky.html) income. These [rates](http://www.freddiemac.com/pmms/) are influenced by [treasury bonds](https://www.thebalance.com/treasury-yields-3305741#:~:text=Treasury%20yields%20are%20the%20total,of%20demand%20for%20the%20bonds). When interest in treasury [bonds](https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx) go up, so do interest rates. Although the fed has stated they won't be raising interest rates, it means banks won't experience it but consumers may see a spike in [mortgage and auto](https://www.fool.com/investing/2021/01/12/heres-why-interest-rates-could-spike-in-2021/) rates which are not directly influenced by the fed rate.

SPAC Mania

SPACS or *Special purpose acquisition companies* are companies which have no operating assets and are used to make private companies go public. They are basically "shell" companies or "blank check" companies. SPAC's raised [more money](https://www.cnn.com/2021/02/08/investing/wall-street-market-bubble-yusko/index.html) in the first 3 weeks of 2021 than all of 2019. SPAC's have been [claimed](https://www.investopedia.com/spacs-look-like-a-bubble-within-a-bubble-5105202) to be an indicator of a market bubble.

ETF Volatility

ETF's are generally stable places for investors and don't normally see volatility. When ETF's see [volatility](https://www.ft.com/content/464d8d78-a843-11e7-ab66-21cc87a2edde), it's an indicator of an unstable market. With GameStop, we saw a lot of Due Diligence on Reddit that ETF's were being shorted to cover the existing shorts.

GameStop as a Catalyst

There are already fingers being pointed at the mini-squeeze by retail investors of GameStop in Jan 2021 as causing instability in the market. News [articles](https://detroit.cbslocal.com/2021/01/28/gamestop-price-stock-market-bubble-optimism/) are now appearing to link a market bubble and GameStop. There are many such as this [one](https://apnews.com/article/wall-street-worries-bubble-gamestop-1f6918bbe537f2cc40c8f4629423f08a), [this one](https://www.forbes.com/sites/jonathanponciano/2021/02/12/is-the-stock-market-about-to-crash/?sh=856d1d571dee), and even international news articles such as [this](https://gulfnews.com/your-money/saving-investment/signs-point-to-an-imminent-stock-market-crash--how-can-you-protect-your-investments-1.1612103834934).

Conclusion and Opinion

The market was moving towards a crash even without GameStop but when it does finally squeeze, it will be felt throughout the markets which were already on the way. This [video](https://www.youtube.com/watch?v=2g8PawZIRrk) also provides other indicators of a market crash.

*My opinion of what would happen next:*

-   GME will squeeze. *(date removed).*

-   Market bubble will pop.

-   Crypto will also take a dive. (There are many institutions now invested in crypto which will need the liquidity to recover or take a new position. Also a good opportunity to buy a crypto dip).

-   The US dollar will trend downwards, with gold and other precious metals going up.

-   Government will intervene.

-   New regulations and other unrelated laws because "you never let a crisis go to waste".

-   We apes enjoy our tendies and the bad press coverage.

**Edit 1** [u/Flacier](https://www.reddit.com/u/Flacier/) has similar thoughts with some data [here](https://www.reddit.com/r/GME/comments/lqruwa/gme_short_will_crash_the_market_this_is_my_buy/).

**Edit 2** [u/Wonderboi1995](https://www.reddit.com/user/Wonderboi1995/) get's in to detail about Michael Burry's and the Big Short 2.0 [here](https://www.reddit.com/r/wallstreetbets/comments/lr8h1v/why_father_burry_is_calling_the_big_short_20_i/).

**Edit 3** More evidence of [Buffet](https://finance.yahoo.com/m/3b026604-df9a-3c74-a949-f0706778fb75/warren-buffett%E2%80%99s-berkshire.html) pulling money out of the market.

**Edit 4** [u/throwawayable8236](https://www.reddit.com/user/throwawayable8236/) posting about the ties to [crypto](https://www.reddit.com/r/Superstonk/comments/mv6wl0/a_possible_tie_in_of_the_cryptocurrency_market/).

**Edit 5** [u/SuperstonkBot](https://www.reddit.com/user/SuperstonkBot/) and the [hype induced market crash.](https://www.reddit.com/r/Superstonk/comments/mtistc/are_we_headed_toward_a_hypeinduced_market_crash/)

**Edit 6** [u/socrates6210](https://www.reddit.com/user/socrates6210/) and an example of the banks selling record levels of [bonds.](https://www.reddit.com/r/Superstonk/comments/mrrwz5/jp_morgan_spoofed_their_earnings_to_get_investors/)

**Edit 7** Great explanation by [u/Calluma93](https://www.reddit.com/user/Calluma93/) on the [Everything Short.](https://www.reddit.com/r/Superstonk/comments/mrrwz5/jp_morgan_spoofed_their_earnings_to_get_investors/)

**Edit 8** [u/jsmar1](https://www.reddit.com/user/jsmar18/) did this great DD on Michael Burry's tweet and the explanation of [repo's and reverse repo's.](https://www.reddit.com/r/GME/comments/mil875/michael_burry_handed_us_the_missing_piece_on_a/)

**Edit 9** [u/JustBeingPunny](https://www.reddit.com/user/JustBeingPunny/) post continuing to cover the Everything Short with respect to [SPAC's and Bonds.](https://www.reddit.com/r/GME/comments/mit0eu/the_everything_shortcontinued_citadel_spacs_and/)

**Edit 10** I almost forgot to include some of the best DD yet from [u/atobitt](https://www.reddit.com/user/atobitt/) which is the original "[Everything Short](https://www.reddit.com/r/GME/comments/mgucv2/the_everything_short/)" post

**Edit 11** A different perspective by [u/karasuuchiha](https://www.reddit.com/user/karasuuchiha/) on how retail winning is good for the [economy](https://www.reddit.com/r/GME/comments/mm959z/world_war_3_longs_vs_shorts/?utm_medium=android_app&utm_source=share) and investment.

**Edit 12** The original Michael Burry tweet is deleted. I can't find the original tweet but the document he had referenced can be found [here.](https://docs.google.com/document/d/11ul_lcNWwJHd4DHFwxZlwyh1lIFmYN6peGO5D8X7434/edit?usp=sharing) Thanks to [u/biobey1](https://www.reddit.com/user/biobey1/) for catching it and linking it.

**Edit 13** [u/drakefin](https://www.reddit.com/u/drakefin/) has found the backup of the Michael Burry [tweet](https://web.archive.org/web/20210223035327/https://twitter.com/michaeljburry/status/1363244089576022016). Thanks!

**Edit 14** An anonymous user has also pointed to an interview with Jeremy Grantham also talking about the [next big crash](https://www.youtube.com/watch?v=RYfmRTyl56w).

**Edit 15** [u/Alert_Piano341](https://www.reddit.com/user/Alert_Piano341/) has more information on SPAC's in this [post.](https://www.reddit.com/r/Superstonk/comments/mv5h61/citadel_may_have_no_clothes_but_they_have_a_shit/?utm_medium=android_app&utm_source=share)

**Edit 16** u/[GMD_1090](https://www.reddit.com/user/GMD_1090) is collecting and organizing DD like a true autist. I would suggest everyone take a [look](https://docs.google.com/document/d/191xpr5xt19ou1TjCuqfQy-SltK6wR5dugHRH1xeKzRk/edit).

**Edit 17** [u/fortifier22](https://www.reddit.com/u/fortifier22/) just released more [great information](https://www.reddit.com/r/Superstonk/comments/mvj8fz/where_there_is_smoke_there_is_fire/) in a recent post.

**Edit 18** [u/According_Bee2757](https://www.reddit.com/user/According_Bee2757/) does a comparison of negative beta and distribution [days](https://www.reddit.com/r/Superstonk/comments/n0htur/the_end_is_near_market_tops_distribution_days/).
