Now that we have a new thread, in order to ensure that this thread continues to meet TL standards and follows the proper guidelines, we will be enforcing the rules in the OP more strictly. Be sure to give them a complete and thorough read before posting!
NOTE: When providing a source, please provide a very brief summary on what it's about and what purpose it adds to the discussion. The supporting statement should clearly explain why the subject is relevant and needs to be discussed. Please follow this rule especially for tweets.
Your supporting statement should always come BEFORE you provide the source.
On January 29 2021 08:02 Gahlo wrote: Good, they should go out of business.
They can after I withdraw my monies. You cray bruh bruh. There's a lot of people who weren't able to do anything this morning and now they can't access the app at all. I'd expect those class actions to grow and I'll be one of them.
On January 29 2021 04:06 Nevuk wrote: There's definitely gonna be some hearings on it and I personally think robinhood is fucked. They affected too many people with this decision, did it super sloppily (like, they revoked trades without notice or cause and left PROOF that they did it), and they have openly noted massive conflicts of interest. Additionally, all of their positive PR is gone now. Their entire motto and mission statement are now openly contradicted by their actions.
Some of the people affected are already doing things like trying to coordinate small claims court cases. This is what a class action is usually for, but those have been exceptionally limited recently.
The basic premise is that if you take RH to small claims for the $500-2k they owe you, they're not going to be able to send lawyers to respond to each of the people with a valid claim (the argument is that they arbitrarily blocked their customers from using their service). Whether this is a super strong claim or not doesn't actually matter, as at this point it's almost entirely about spite and forcing RH to burn all their capitol defending themselves from thousands of small claims (this is actually on the very low end of cases: apparently 40% of their fairly large userbase owned gamestop stock).
Whether or not that's a good plan, I dunno, but as most of the people doing this seem to have been doing it entirely to fuck over a couple hedge funds, you can bet they're willing to burn a bit of additional cash to make it stick. That's just one example of something I read earlier that has already had paperwork filed by some individuals.
There are thousands of people trying to find a way to fuck RH over in addition to any hedge funds now, and they've found some amusing state laws and regulations in the process.
This was a calculated move on Robinhood's part. They're owned by the same that own Melvin Captial who stand to lose billions of dollars. Any losses in court or a fine by the SEC will be chump change compared to what they would have lost.
Robinhood itself is dead, though.
Who is going to use an app that claims to be for the little people after it openly sold them out to save a hedge fund?
Robinhood was always owned by big money though. If people bought the lies last week, last month, last year then why not next week?
Most people didn't actually know this. They do now. If GME stock owners had made up .4% of their user base then this could have been brushed under the rug. 40%? No way.
On January 29 2021 04:36 Nevuk wrote: It's still probably cheaper than a short squeeze for citadel... but I don't think it stopped the short squeeze at all. There are other trading options being used to do the same thing now.
The price tanked this morning. That allowed them to lose less money.
Yeah, but they were SO brazen about it. Are they going to face what they should? No. But they're going to face a lot worse than anyone since Maddoff. When you are seeing reports like this within 2-3 hours of the issue then there's bound to be paper trails out the wazoo.
<snip>
This is also an issue where there's not much disagreement politically. Hedge funds are despised by everyone and there's a huge sentiment on both sides that they never paid for their part in the 2007-8 crisis. They have gotten away with a lot of their shit simply by almost never having attention focused on them - they're a boring, complex topic and their wrong doings usually involve confusing mechanisms like tacit agreements about short selling.
This is now a very easy to understand issue : they directly colluded to prevent poorer people from buying a stock. It also puts to lie a lot of the "stock market is for everyone" myth (it already wasn't, but not in the same brazen way - before it was mostly about buying able to trade after hours) that is a direct threat to the power of the wealthy in the country. If it becomes apparent that you're playing on a tilted table, then the fish that the wealthy make much of their money off of will stop playing. Other billionaires aren't going to care that the poor people got screwed over. They're going to care about how blatantly OBVIOUS it is that they were screwed over, as that's a threat to their way of life.
Also, according to what I've been reading, the price crash this morning was entirely market manipulation by hedge funds selling to each other to simulate the drop.
A year ago a bunch of senators got information about the pandemic and did some insider trading. I'm not convinced anything will happen, especially when we're talking jail time. If they end up getting fined it doesn't even matter as they made the correct decision to lose less money.
On January 29 2021 04:06 Nevuk wrote: There's definitely gonna be some hearings on it and I personally think robinhood is fucked. They affected too many people with this decision, did it super sloppily (like, they revoked trades without notice or cause and left PROOF that they did it), and they have openly noted massive conflicts of interest. Additionally, all of their positive PR is gone now. Their entire motto and mission statement are now openly contradicted by their actions.
Some of the people affected are already doing things like trying to coordinate small claims court cases. This is what a class action is usually for, but those have been exceptionally limited recently.
The basic premise is that if you take RH to small claims for the $500-2k they owe you, they're not going to be able to send lawyers to respond to each of the people with a valid claim (the argument is that they arbitrarily blocked their customers from using their service). Whether this is a super strong claim or not doesn't actually matter, as at this point it's almost entirely about spite and forcing RH to burn all their capitol defending themselves from thousands of small claims (this is actually on the very low end of cases: apparently 40% of their fairly large userbase owned gamestop stock).
Whether or not that's a good plan, I dunno, but as most of the people doing this seem to have been doing it entirely to fuck over a couple hedge funds, you can bet they're willing to burn a bit of additional cash to make it stick. That's just one example of something I read earlier that has already had paperwork filed by some individuals.
There are thousands of people trying to find a way to fuck RH over in addition to any hedge funds now, and they've found some amusing state laws and regulations in the process.
This was a calculated move on Robinhood's part. They're owned by the same that own Melvin Captial who stand to lose billions of dollars. Any losses in court or a fine by the SEC will be chump change compared to what they would have lost.
Robinhood itself is dead, though.
Who is going to use an app that claims to be for the little people after it openly sold them out to save a hedge fund?
Robinhood was always owned by big money though. If people bought the lies last week, last month, last year then why not next week?
Most people didn't actually know this. They do now. If GME stock owners had made up .4% of their user base then this could have been brushed under the rug. 40%? No way.
On January 29 2021 04:36 Nevuk wrote: It's still probably cheaper than a short squeeze for citadel... but I don't think it stopped the short squeeze at all. There are other trading options being used to do the same thing now.
The price tanked this morning. That allowed them to lose less money.
Yeah, but they were SO brazen about it. Are they going to face what they should? No. But they're going to face a lot worse than anyone since Maddoff. When you are seeing reports like this within 2-3 hours of the issue then there's bound to be paper trails out the wazoo.
<snip>
This is also an issue where there's not much disagreement politically. Hedge funds are despised by everyone and there's a huge sentiment on both sides that they never paid for their part in the 2007-8 crisis. They have gotten away with a lot of their shit simply by almost never having attention focused on them - they're a boring, complex topic and their wrong doings usually involve confusing mechanisms like tacit agreements about short selling.
This is now a very easy to understand issue : they directly colluded to prevent poorer people from buying a stock. It also puts to lie a lot of the "stock market is for everyone" myth (it already wasn't, but not in the same brazen way - before it was mostly about buying able to trade after hours) that is a direct threat to the power of the wealthy in the country. If it becomes apparent that you're playing on a tilted table, then the fish that the wealthy make much of their money off of will stop playing. Other billionaires aren't going to care that the poor people got screwed over. They're going to care about how blatantly OBVIOUS it is that they were screwed over, as that's a threat to their way of life.
Also, according to what I've been reading, the price crash this morning was entirely market manipulation by hedge funds selling to each other to simulate the drop.
A year ago a bunch of senators got information about the pandemic and did some insider trading. I'm not convinced anything will happen, especially when we're talking jail time. If they end up getting fined it doesn't even matter as they made the correct decision to lose less money.
Congresspeople are legally allowed to trade based on their inside knowledge. They conveniently left an exception for themselves. That exception does not extend to hedge fund managers.
On January 29 2021 04:06 Nevuk wrote: There's definitely gonna be some hearings on it and I personally think robinhood is fucked. They affected too many people with this decision, did it super sloppily (like, they revoked trades without notice or cause and left PROOF that they did it), and they have openly noted massive conflicts of interest. Additionally, all of their positive PR is gone now. Their entire motto and mission statement are now openly contradicted by their actions.
Some of the people affected are already doing things like trying to coordinate small claims court cases. This is what a class action is usually for, but those have been exceptionally limited recently.
The basic premise is that if you take RH to small claims for the $500-2k they owe you, they're not going to be able to send lawyers to respond to each of the people with a valid claim (the argument is that they arbitrarily blocked their customers from using their service). Whether this is a super strong claim or not doesn't actually matter, as at this point it's almost entirely about spite and forcing RH to burn all their capitol defending themselves from thousands of small claims (this is actually on the very low end of cases: apparently 40% of their fairly large userbase owned gamestop stock).
Whether or not that's a good plan, I dunno, but as most of the people doing this seem to have been doing it entirely to fuck over a couple hedge funds, you can bet they're willing to burn a bit of additional cash to make it stick. That's just one example of something I read earlier that has already had paperwork filed by some individuals.
There are thousands of people trying to find a way to fuck RH over in addition to any hedge funds now, and they've found some amusing state laws and regulations in the process.
This was a calculated move on Robinhood's part. They're owned by the same that own Melvin Captial who stand to lose billions of dollars. Any losses in court or a fine by the SEC will be chump change compared to what they would have lost.
Robinhood itself is dead, though.
Who is going to use an app that claims to be for the little people after it openly sold them out to save a hedge fund?
Robinhood was always owned by big money though. If people bought the lies last week, last month, last year then why not next week?
Most people didn't actually know this. They do now. If GME stock owners had made up .4% of their user base then this could have been brushed under the rug. 40%? No way.
On January 29 2021 04:36 Nevuk wrote: It's still probably cheaper than a short squeeze for citadel... but I don't think it stopped the short squeeze at all. There are other trading options being used to do the same thing now.
The price tanked this morning. That allowed them to lose less money.
Yeah, but they were SO brazen about it. Are they going to face what they should? No. But they're going to face a lot worse than anyone since Maddoff. When you are seeing reports like this within 2-3 hours of the issue then there's bound to be paper trails out the wazoo.
<snip>
This is also an issue where there's not much disagreement politically. Hedge funds are despised by everyone and there's a huge sentiment on both sides that they never paid for their part in the 2007-8 crisis. They have gotten away with a lot of their shit simply by almost never having attention focused on them - they're a boring, complex topic and their wrong doings usually involve confusing mechanisms like tacit agreements about short selling.
This is now a very easy to understand issue : they directly colluded to prevent poorer people from buying a stock. It also puts to lie a lot of the "stock market is for everyone" myth (it already wasn't, but not in the same brazen way - before it was mostly about buying able to trade after hours) that is a direct threat to the power of the wealthy in the country. If it becomes apparent that you're playing on a tilted table, then the fish that the wealthy make much of their money off of will stop playing. Other billionaires aren't going to care that the poor people got screwed over. They're going to care about how blatantly OBVIOUS it is that they were screwed over, as that's a threat to their way of life.
Also, according to what I've been reading, the price crash this morning was entirely market manipulation by hedge funds selling to each other to simulate the drop.
A year ago a bunch of senators got information about the pandemic and did some insider trading. I'm not convinced anything will happen, especially when we're talking jail time. If they end up getting fined it doesn't even matter as they made the correct decision to lose less money.
Congresspeople are legally allowed to trade based on their inside knowledge. They conveniently left an exception for themselves. That exception does not extend to hedge fund managers.
I understand the STOCK Act has never been enforced, but it definitely isn't legal like you're saying.
GameStop frenzy: up 40% in pre-market The US video games retailer GameStop has reversed last night’s after-hours losses, and jumped a further 40% in pre-market trading as the frenzy continues, with an army of small investors buying the shares. The shares are trading around $490, after briefly venturing above $500. The shares were worth $40 a week ago, and $3.25 in April.
It feels so wrong to me that you can make literal millions with the click of a button (i.e. 'investing'), but someone working 12h a day in two part-time jobs can still be in poverty.
It’s bollocks lets be honest.
The reason such a chunk of society put credence in the stock market is either it’s making them money, or they’ve never had the capital to invest and thus they assume from ignorance that it’s a sensible system where smart people can make money.
I recall once describing some of the kinds of trades in the sub-prime mortgage market prior to 2008 and what they entailed in real, real layman’s terms to someone, and she just flat out said I didn’t know what I was talking about because what I was describing was utterly ridiculous and it must have been more complex and nuanced than I was outlining.
No, I was 100% accurate albeit explaining via analogies and not using jargons, given my undergrad dissertation was on this.
If you explain to people without jargon at a fundamental level some of what goes on in this domain (not all of it of course) they literally won’t believe you because it seems insane smoke and mirrors stuff, but ultimately some of it actually is and it’s seen as legitimate because it’s baked in to the system and is the preserve of relatively privileged people who by virtue of succeeding in the system must know what they’re doing.
On January 29 2021 11:46 Lmui wrote: Can we just take a minute to appreciate that a quarter of a million people are watching AOC talk about the stock market?
Me too. I think the big takeaway is how different the response is to ordinary people playing financial games with stocks, versus the super-wealthy who make disgusting amounts of money on the daily by gambling with our livelihoods. The little guy doesn't get to do it, because now it's suddenly risky to do so. You can't trade anymore for your own protection. Meanwhile...
The platform being named Robinhood is akin to Citizens United. The dissonance that has to be ignored is startling.
On January 29 2021 04:06 Nevuk wrote: There's definitely gonna be some hearings on it and I personally think robinhood is fucked. They affected too many people with this decision, did it super sloppily (like, they revoked trades without notice or cause and left PROOF that they did it), and they have openly noted massive conflicts of interest. Additionally, all of their positive PR is gone now. Their entire motto and mission statement are now openly contradicted by their actions.
Some of the people affected are already doing things like trying to coordinate small claims court cases. This is what a class action is usually for, but those have been exceptionally limited recently.
The basic premise is that if you take RH to small claims for the $500-2k they owe you, they're not going to be able to send lawyers to respond to each of the people with a valid claim (the argument is that they arbitrarily blocked their customers from using their service). Whether this is a super strong claim or not doesn't actually matter, as at this point it's almost entirely about spite and forcing RH to burn all their capitol defending themselves from thousands of small claims (this is actually on the very low end of cases: apparently 40% of their fairly large userbase owned gamestop stock).
Whether or not that's a good plan, I dunno, but as most of the people doing this seem to have been doing it entirely to fuck over a couple hedge funds, you can bet they're willing to burn a bit of additional cash to make it stick. That's just one example of something I read earlier that has already had paperwork filed by some individuals.
There are thousands of people trying to find a way to fuck RH over in addition to any hedge funds now, and they've found some amusing state laws and regulations in the process.
This was a calculated move on Robinhood's part. They're owned by the same that own Melvin Captial who stand to lose billions of dollars. Any losses in court or a fine by the SEC will be chump change compared to what they would have lost.
Robinhood itself is dead, though.
Who is going to use an app that claims to be for the little people after it openly sold them out to save a hedge fund?
Robinhood was always owned by big money though. If people bought the lies last week, last month, last year then why not next week?
Most people didn't actually know this. They do now. If GME stock owners had made up .4% of their user base then this could have been brushed under the rug. 40%? No way.
On January 29 2021 04:36 Nevuk wrote: It's still probably cheaper than a short squeeze for citadel... but I don't think it stopped the short squeeze at all. There are other trading options being used to do the same thing now.
The price tanked this morning. That allowed them to lose less money.
Yeah, but they were SO brazen about it. Are they going to face what they should? No. But they're going to face a lot worse than anyone since Maddoff. When you are seeing reports like this within 2-3 hours of the issue then there's bound to be paper trails out the wazoo.
<snip>
This is also an issue where there's not much disagreement politically. Hedge funds are despised by everyone and there's a huge sentiment on both sides that they never paid for their part in the 2007-8 crisis. They have gotten away with a lot of their shit simply by almost never having attention focused on them - they're a boring, complex topic and their wrong doings usually involve confusing mechanisms like tacit agreements about short selling.
This is now a very easy to understand issue : they directly colluded to prevent poorer people from buying a stock. It also puts to lie a lot of the "stock market is for everyone" myth (it already wasn't, but not in the same brazen way - before it was mostly about buying able to trade after hours) that is a direct threat to the power of the wealthy in the country. If it becomes apparent that you're playing on a tilted table, then the fish that the wealthy make much of their money off of will stop playing. Other billionaires aren't going to care that the poor people got screwed over. They're going to care about how blatantly OBVIOUS it is that they were screwed over, as that's a threat to their way of life.
Also, according to what I've been reading, the price crash this morning was entirely market manipulation by hedge funds selling to each other to simulate the drop.
A year ago a bunch of senators got information about the pandemic and did some insider trading. I'm not convinced anything will happen, especially when we're talking jail time. If they end up getting fined it doesn't even matter as they made the correct decision to lose less money.
Yeah, I also doubt there will be any particularly serious consequences for this. I think its more likely we see regulations preventing reddit/non-hedgefund types from doing this again than hedge funds see any major consequences.
On January 29 2021 04:06 Nevuk wrote: There's definitely gonna be some hearings on it and I personally think robinhood is fucked. They affected too many people with this decision, did it super sloppily (like, they revoked trades without notice or cause and left PROOF that they did it), and they have openly noted massive conflicts of interest. Additionally, all of their positive PR is gone now. Their entire motto and mission statement are now openly contradicted by their actions.
Some of the people affected are already doing things like trying to coordinate small claims court cases. This is what a class action is usually for, but those have been exceptionally limited recently.
The basic premise is that if you take RH to small claims for the $500-2k they owe you, they're not going to be able to send lawyers to respond to each of the people with a valid claim (the argument is that they arbitrarily blocked their customers from using their service). Whether this is a super strong claim or not doesn't actually matter, as at this point it's almost entirely about spite and forcing RH to burn all their capitol defending themselves from thousands of small claims (this is actually on the very low end of cases: apparently 40% of their fairly large userbase owned gamestop stock).
Whether or not that's a good plan, I dunno, but as most of the people doing this seem to have been doing it entirely to fuck over a couple hedge funds, you can bet they're willing to burn a bit of additional cash to make it stick. That's just one example of something I read earlier that has already had paperwork filed by some individuals.
There are thousands of people trying to find a way to fuck RH over in addition to any hedge funds now, and they've found some amusing state laws and regulations in the process.
This was a calculated move on Robinhood's part. They're owned by the same that own Melvin Captial who stand to lose billions of dollars. Any losses in court or a fine by the SEC will be chump change compared to what they would have lost.
Robinhood itself is dead, though.
Who is going to use an app that claims to be for the little people after it openly sold them out to save a hedge fund?
Robinhood was always owned by big money though. If people bought the lies last week, last month, last year then why not next week?
Most people didn't actually know this. They do now. If GME stock owners had made up .4% of their user base then this could have been brushed under the rug. 40%? No way.
On January 29 2021 04:36 Nevuk wrote: It's still probably cheaper than a short squeeze for citadel... but I don't think it stopped the short squeeze at all. There are other trading options being used to do the same thing now.
The price tanked this morning. That allowed them to lose less money.
Yeah, but they were SO brazen about it. Are they going to face what they should? No. But they're going to face a lot worse than anyone since Maddoff. When you are seeing reports like this within 2-3 hours of the issue then there's bound to be paper trails out the wazoo.
<snip>
This is also an issue where there's not much disagreement politically. Hedge funds are despised by everyone and there's a huge sentiment on both sides that they never paid for their part in the 2007-8 crisis. They have gotten away with a lot of their shit simply by almost never having attention focused on them - they're a boring, complex topic and their wrong doings usually involve confusing mechanisms like tacit agreements about short selling.
This is now a very easy to understand issue : they directly colluded to prevent poorer people from buying a stock. It also puts to lie a lot of the "stock market is for everyone" myth (it already wasn't, but not in the same brazen way - before it was mostly about buying able to trade after hours) that is a direct threat to the power of the wealthy in the country. If it becomes apparent that you're playing on a tilted table, then the fish that the wealthy make much of their money off of will stop playing. Other billionaires aren't going to care that the poor people got screwed over. They're going to care about how blatantly OBVIOUS it is that they were screwed over, as that's a threat to their way of life.
Also, according to what I've been reading, the price crash this morning was entirely market manipulation by hedge funds selling to each other to simulate the drop.
A year ago a bunch of senators got information about the pandemic and did some insider trading. I'm not convinced anything will happen, especially when we're talking jail time. If they end up getting fined it doesn't even matter as they made the correct decision to lose less money.
Congresspeople are legally allowed to trade based on their inside knowledge. They conveniently left an exception for themselves. That exception does not extend to hedge fund managers.
I understand the STOCK Act has never been enforced, but it definitely isn't legal like you're saying.
My bad. It was (disputably) legal up until 2012. It is not now. My information was old.
On January 29 2021 04:06 Nevuk wrote: There's definitely gonna be some hearings on it and I personally think robinhood is fucked. They affected too many people with this decision, did it super sloppily (like, they revoked trades without notice or cause and left PROOF that they did it), and they have openly noted massive conflicts of interest. Additionally, all of their positive PR is gone now. Their entire motto and mission statement are now openly contradicted by their actions.
Some of the people affected are already doing things like trying to coordinate small claims court cases. This is what a class action is usually for, but those have been exceptionally limited recently.
The basic premise is that if you take RH to small claims for the $500-2k they owe you, they're not going to be able to send lawyers to respond to each of the people with a valid claim (the argument is that they arbitrarily blocked their customers from using their service). Whether this is a super strong claim or not doesn't actually matter, as at this point it's almost entirely about spite and forcing RH to burn all their capitol defending themselves from thousands of small claims (this is actually on the very low end of cases: apparently 40% of their fairly large userbase owned gamestop stock).
Whether or not that's a good plan, I dunno, but as most of the people doing this seem to have been doing it entirely to fuck over a couple hedge funds, you can bet they're willing to burn a bit of additional cash to make it stick. That's just one example of something I read earlier that has already had paperwork filed by some individuals.
There are thousands of people trying to find a way to fuck RH over in addition to any hedge funds now, and they've found some amusing state laws and regulations in the process.
This was a calculated move on Robinhood's part. They're owned by the same that own Melvin Captial who stand to lose billions of dollars. Any losses in court or a fine by the SEC will be chump change compared to what they would have lost.
Robinhood itself is dead, though.
Who is going to use an app that claims to be for the little people after it openly sold them out to save a hedge fund?
Robinhood was always owned by big money though. If people bought the lies last week, last month, last year then why not next week?
Most people didn't actually know this. They do now. If GME stock owners had made up .4% of their user base then this could have been brushed under the rug. 40%? No way.
On January 29 2021 04:36 Nevuk wrote: It's still probably cheaper than a short squeeze for citadel... but I don't think it stopped the short squeeze at all. There are other trading options being used to do the same thing now.
The price tanked this morning. That allowed them to lose less money.
Yeah, but they were SO brazen about it. Are they going to face what they should? No. But they're going to face a lot worse than anyone since Maddoff. When you are seeing reports like this within 2-3 hours of the issue then there's bound to be paper trails out the wazoo.
<snip>
This is also an issue where there's not much disagreement politically. Hedge funds are despised by everyone and there's a huge sentiment on both sides that they never paid for their part in the 2007-8 crisis. They have gotten away with a lot of their shit simply by almost never having attention focused on them - they're a boring, complex topic and their wrong doings usually involve confusing mechanisms like tacit agreements about short selling.
This is now a very easy to understand issue : they directly colluded to prevent poorer people from buying a stock. It also puts to lie a lot of the "stock market is for everyone" myth (it already wasn't, but not in the same brazen way - before it was mostly about buying able to trade after hours) that is a direct threat to the power of the wealthy in the country. If it becomes apparent that you're playing on a tilted table, then the fish that the wealthy make much of their money off of will stop playing. Other billionaires aren't going to care that the poor people got screwed over. They're going to care about how blatantly OBVIOUS it is that they were screwed over, as that's a threat to their way of life.
Also, according to what I've been reading, the price crash this morning was entirely market manipulation by hedge funds selling to each other to simulate the drop.
A year ago a bunch of senators got information about the pandemic and did some insider trading. I'm not convinced anything will happen, especially when we're talking jail time. If they end up getting fined it doesn't even matter as they made the correct decision to lose less money.
Congresspeople are legally allowed to trade based on their inside knowledge. They conveniently left an exception for themselves. That exception does not extend to hedge fund managers.
I understand the STOCK Act has never been enforced, but it definitely isn't legal like you're saying.
My bad. It was (disputably) legal up until 2012. It is not now. My information was old.
Its still legal for them beacuse they're rich and the rules don't apply to them.
The Robinhood CEO blames financial regulatory requirements for stopping buying in an incredibly unconvincing interview. The fact that they are partly owned by a hedge fund who had shorted Gamestop had nothing to do with the decision, apparently.
Can be both. It's probably true that they didn't have the liquidity to put up as collateral for buying the stocks at the clearinghouse. That's some aweful risk management though so it's pretty bad either way.
GameStop frenzy: up 40% in pre-market The US video games retailer GameStop has reversed last night’s after-hours losses, and jumped a further 40% in pre-market trading as the frenzy continues, with an army of small investors buying the shares. The shares are trading around $490, after briefly venturing above $500. The shares were worth $40 a week ago, and $3.25 in April.
It feels so wrong to me that you can make literal millions with the click of a button (i.e. 'investing'), but someone working 12h a day in two part-time jobs can still be in poverty.
Well, you can also make literal millions with the click of a button in a casino
The difference here is that in a casino, the odds are against you and the longer you gamble, the more likely you are to lose all your money.
This does not really apply for the stock market, where you can make money even when you do worse than just 'invest randomly'.
Well, the other difference is that when You lose money in casino noone cares. But if You lose money gambling on stock exchange if You are big enough You will be rescued by government.
On January 30 2021 01:25 Silvanel wrote: Well, the other difference is that when You lose money in casino noone cares. But if You lose money gambling on stock exchange if You are big enough You will be rescued by government.
This is exactly why Obama passed Dodd Frank, which aims to separate retail and investment banking.
It is a huge deal because the government absolutely should bail retail banks when necessary, but certainly not investment banks. DF is not as flashy as the ACA, but it's one of the great political achievements if the last 20 years.
EPT
