Protestors show up at Robinhood

My view is that this situation is far more muddy that it being portrayed. The idea that this is "good" small investors versus "evil" hedge funds isn't exactly the case and the more I read about it it seems to me while some hedgefunds are hurt by it there are others that are benefitting from it. At the same time small investors are likely going to be one's hurt when Game Stop stock inevitably plunges.

This is the problem I see frequently with things like this that are essentially flash mob justice. It's driven by emotion and hype with little thought of what exactly the consequences are.

 

you cannot possibly think that robinhood's actions are pure. when have they ever bailed out small retail if they lost it all? meanwhile all the hedge funds are getting bailed out left and right.

markets are inherently risky, bottomline... stopping or limiting trades is market manipulation which is illegal. if you think robinhood committed a crime out of the goodness of the heart lol please...

 

The mere fact that u normies are already talking about it is a win....the small day traders know the actual battle to be fought is against wall street which is in bed with politicians on both sides, duh, current centralized banking has left a lot of americans on both sides behind, one of the reasons why populism has increased since 08

 

I don't think Robinhood's actions are pure. I am skeptical of the claims made by Robinhood but frankly I'm skeptical of the arguments coming out of WSB also. I don't know what Robinhood did was illegal. From what I'm seeing it sounds like this was a possibility in their terms of service. I don't think it was a good thing but at the same time there is an argument that with the amount of trades being made that yes the system could be overwhelmed.

I don't have a Robinhood account and didn't buy any GameStop stock this past week but Schwab that I'm through did send out a message that trades were being slowed and some trades I made not related to the situation were slowed down.

Also viewing this as some altruistic stick it to the big guy by saving the little guy GameStop we have to consider there was good reason to short GameStop. Their fundamentals aren't strong as the market has greatly changed around them. Pumping their stock up to $400 is the definition of a bubble and even with restructuring there's nothing to indicate that they are worth anywhere near that value. It's going to come down and likely fast at some point. When that happens the small investors are likely going to be the one's hurt by it.

 

I read an interesting take on the GME debacle. The TL;DR take is fractional reserve vs counterfeiting. For banks, depending on what asset class they belong in (and if the rules have changed), banks can lend out 90%-97% of reserves. What they can NOT do is lend out money they do not own. That is counterfeiting.

The same principle applies, albeit, not the same exact rules apply to stocks. Bottom line, you can not counterfeit stocks.

There are 71 million GME stocks issue. Those associated directly with GameStock owns 75%, so 53 million of those stocks are accounted for. That leaves 18 million GME stocks in play. So Melvin Capital shorted 139% of total GameStock shares, roughly 100 million shares. If they have rights to the shares, they can do fractional lending provided they have the capital to back it up.

So it appears the true play is to account for every GME stock out there, not to bleed Melvin Capital. This is where the Robinhood debacle comes into play. Robinhood literally can't find stocks to sell. Nor can the others like TD and Webull and others. If they can't find it, why can the hedgefunds find it and keep trading? As long as nobody sells and keeps buying and squeezing out every stock being shorted, eventually every stock will be accounted for. And if the hedgefunds keep trading stocks that are 100% accounted for, then WTH are they really trading? You can't fractional lend unless you own the stock and if Melvin Capital is out of the game, they obviously settled up their fractional lending, right?

Now this is in the global spotlight, investigations will be had. Counterfeiting stocks will be determined the cause of this chaos. Next will be the demand of an audit. Soon people will know the dirty secret; It takes 2 to 3 days to certify a stock ... and now they will know exactly why. And how deep does this problem go?

This is essentially what happened in 2008. Iceland sent their bankers to jail. This time I think the Americans will too. Don't be surprised to find out Robinhood is complicit and used to launder counterfeit stocks.

This could be way off, but it certainly make sense of what is going on.

 

Awesome synopsis. Lol at American bankers seeing jail time.

 

I absolutely agree there needs to be an investigation. There are a lot of questions from many sides about this that need answers.

 

Nice summary, with the amount of calls that expired ITM on Friday and shares that have to be delivered to those that are long calls over the weekend, it'll be very interesting to see what happens this week.

 

The housing market crash could have killed the entire economy.

AIG goes down, everybody goes down. The entire industry

 

Heard this the last time . . . .
sounds like maybe we need to ween ourselves off this kind of TOO BIG TO FAIL ****

Rocket River

 

I don't blame them. I wouldn't touch Game Stop stock..

FYI I'm seeing on social media a lot of talk to buy silver. Here comes the next bubble..

 

We weened ourselves post Great Depression. We put legislation in under FDR, the Glass Steagall Act. Republicans tried to kill it for years and finally did under GWB. Less than 8 years later we have the 2008 collapse

 

You may be late to the party.

https://www.wsj.com/articles/reddit-users-fuel-rally-in-silver-11612182810

 

Real players have safe deposit boxes.