AOC, of all people, is asking for an investigation into RH
I know a lot of people on this site don't like her, but she is pissed at Robinhood for messing with retail investors.
I know a lot of people on this site don't like her, but she is pissed at Robinhood for messing with retail investors.
+188 | Creepy MD - what do I do? | 58 | 21h | |
+75 | Finance Fiction Sub-Forum? | 17 | 2d | |
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Career Resources
I mean that's pretty fucked. I agree with her on this one.
When someone hates every business on the planet, you're bound to eventually come into agreement at some point.
Not a fan of hers but I agree 10000% with her on this.
Even a broken clock is right twice a day. She, Omar and Rashida have earned more of my respect over the last couple days.
.
Tbh man, I do disagree. Just because we disagree on methods isn't a reason to completely disregard them, because we agree on a number of root issues. Also I have the hots for AOC no shame 🚀🚀🚀
She was right about Amazon in NYC, too (for all the wrong reasons, but I agreed with her conclusion). A broken clock is right twice a day.
I mean, in that instance she could reasonably be said to have represented the consensus of her constituents.
Moreover, she had no say in where Amazon went or what tax breaks they were given. It was a local issue.
I do not like AOC but she is right.
ftfy
and I have absolutely no clue what's going on with all of this, just entertaining to see the craziness
I wonder if this would've happened if Covid never happened?
people really think she's hot?
Here is my question: Why are politicians outraged about Robinhood but saying nothing about the perpetrators of the market manipulations? There was a crime committed here, a coordinated effort to manipulate security prices. The crime had the effect of manipulating a share price 10x higher, and resulted in massive financial losses to the victims of said manipulation. Something had to be done to protect those people. Blaming Robinhood but saying nothing of the people manipulating share prices in plain day is like allowing a drug trafficker who sends narcotics through the mail to walk away scott free while attempting to prosecute UPS because their infrastructure was taken advantage of. If you attempted to benefit from this clear, textbook market manipulation, you absolutely deserve to lose all of the money you invested into it.
this will be an interesting legal case. everything I've read about pump and dump and its short selling equivalent "short and distort" relies on spreading false information in order to profit from price swings. however in this case, the people manipulating are quite clearly stating that their intent is to hold, not to realize gains. so yes, the intent is to manipulate the price, but in my mind no false information is being spread, similarly to when Ackman and Icahn were being very public about their actions surrounding Herbalife, no one batted an eye. I suppose the distinction is that Ackman/Icahn were trading based upon fundamentals, whereas the GME crowd seems to not care about fundamentals and they do not seem to be dishonest about their motives nor their actions.
is it unethical? absolutely
is it nefarious? most certainly
is it illegal? I'm not sure, but this is definitely not a pump and dump, so far it's just a pump, no dump.
if the organizers of this turn out to have done this to dump their stock on other newbies, then yes it's fraud and they should be held accountable, I've just not heard/seen evidence of that yet, and it'll be incredibly hard to prove given the anonymity of this whole thing.
and while I firmly believe two wrongs don't make a right, the hypocrisy is interesting, all of a sudden people are getting their undies in a bundle having their shorts get fried meanwhile no one has gone to jail over GFC, which was quite literally a pump and dump, they pumped up home values and artificially inflated credit ratings (pump) in order to get business (dump). in my mind, if you enter into a short sale, just like an options transaction with incredible amounts of risk and limitless downside, be prepared for a squeeze, whether it's Icahn, a neckbeard, or Michael Burry, be prepared. caveat emptor.
How is this market manipulation? Most of the buying is being done by hedge funds desperate to cover their naked shorts (yes, I know it's not only hedge funds shorting, but it's what is being represented in the media so lets roll with as shorthand) and thus driving up demand.
And by your definition, any action that moves a share price is market manipulation. Everyone is in the market to make a gain, so theoretically my saying to my coworker "hey lets buy five shares of GE" is market manipulation if I want to sell it for a profit later on.
Maybe the answer is "don't overleverage your bets in a stupid manner." This idea that large institutional players should be insulated from having their gambling punished is so arrogant and insular that it's almost breathtaking. The implication is that only Wall Street has the right to make a profit, and that any pain inflicted needs to be done by someone else in the Old Boys Club. If what happened this week is "market manipulation" than the entire financial news and services industry is about to go to jail - after all, going on television and touting a stock is nothing if not coordinating an effort to buy a stock and thereby drive up it's price.
Yup. So far the only criminality I’ve heard is some redditors going after Andrew Left’s family with violent threats
AOC (and Dave Portnoy from BarStool) is flat out wrong and uninformed. Brokers have regulatory capital requirements...and RobinHood was under capitalized. When GME volatility increased with corresponding volume in that name on the RH platform, RH found itself short of regulatory capital, because of GME and a few other stocks. RobinHood needed to post ITS OWN CASH (not customers) with DTCC immediately, and they didn't have it. Instead, RobinHood has a credit line with banks that it can tap in times like this...but it takes a few hours to tap a Billion $ credit line...and in the meantime, RobinHood was afoul of regulatory capital rules...so they either needed to post a Billion $ more cash immediately (which they didn't have) or they needed to reduce their customers ownership in the stocks that created the regulatory problem.
After they got the cash from their credit line (took a few hours) they removed / reduced the stock ban.
This is why RobinHood sucks as a broker....they are undercapitalized (just like Lehman and MF Global..slightly different stories, but same outcome, overleveraged and undercapitalized).
If you want to trade a squeeze stock, then you should trade with a well capitalized broker, like JPM (which is also free)
https://www.chase.com/personal/investments/you-invest/trade
Non-Target
I would stick my robin under AOC's hood
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