I know this got piled on, but think about this for a minute. Do you actually think some random tech employee is in a office with the CEO during a pandemic? Nah, they'd be working remote.
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Robinhood Has Restricted Users From Buying GME, AMC, BB, NAKD, and NOK Stocks.
- Thread starter Lucky Aces
- Start date
TBH RH and most brokerages are SIPC-insured.
www.magnifymoney.com
It does not matter to you, the consumer, if they go out of business, unless you have $500,000 in RH for some bizarre reason. Uncle Sam was protecting you the entire time. They halted AMC and GME to protect themselves, that's it, any bloviating about the wellbeing of their customers is PR-speak.
What Is SIPC Insurance and How Does It Work?
Securities Investor Protection Corporation (SIPC) insurance protects your assets and cash held in brokerage accounts. Learn how it works.
www.magnifymoney.com
It does not matter to you, the consumer, if they go out of business, unless you have $500,000 in RH for some bizarre reason. Uncle Sam was protecting you the entire time. They halted AMC and GME to protect themselves, that's it, any bloviating about the wellbeing of their customers is PR-speak.
Who?
Their governments would then need to cut the benefits of the retirees. It'a why you see the massive underfunded liabilities in some states. Who wants to be the politician coming out and saying we are going to cut all the defined benefit plans by 25%? They would rather pray they hit their returns.
RH just hid the major stocks again. Can't even look them up now. It'll be interesting to see their actions in the morning.
I hate being grammar police but that should be "any more" at the end of the second paragraph, not "anymore".
It might kill one or two but it's not like they were all at risk here.
Likely other hedge funds are riding this wave and killing it off with us.
With the volume that is being traded this is certainly the case
Most edge funds are intrinsically more likely to ultimately short GME. It's like crack to them. They are 100% the company will go bust so they'll come back to shorting as soon as they feel comfortable doing so.
Liquidity. They didn't have the cash to float the deposits. It's why they drew. They essentially have to front the cost to settle.
I forgot who asked before but I'm sure AOC, Warren and Cruz all knew this right?
OP
OP
Here's RH's response... thoughts? (Streaky might be worth a threadmark)
An Update on Market Volatility - Robinhood Newsroom
This past year, we’ve seen the financial markets become a voice for the voiceless. We’ve seen a new generation ofblog.robinhood.com
Sorry for the late thread mark. Just got out of work.
If they didn't have enough money to clear the GME, AMC + other stocks, why were the buys for other stocks able to be cleared? It's the same money that's being withdrawn just for different stock no?
Jon Stewart Joins Twitter Because of This Event
OP
OP
Jon Freaking Stewart just joined Twitter just to make this post. Even Jon Stewart is so pissed about this, he went out of his way to make a twitter account! 🤣
God I miss that man.
Not an expert, but less volatility and lower volume means there's not nearly as much of a gap that needs to be covered. Volatility is a shitshow for a bunch of reasons which is why trading is halted briefly under rapid swings.
my guess most stocks arent 300+ and arent traded at the valume gme are. most people trading stocks in that range are doing it via brokrage firm.
Got it. I'm not an expert so that's why I'm asking since I don't understand these things.
GME is 300+ (now aftermarket), but what about AMC and NOK that are ~$10 - $20 range. That's what I'm also wondering about because they closed those off too. It's still the same funds in the end of the day being used by WeBull + Robinhood to clear trades.
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This reeks of coming up with an excuse after the fact. It's a great explanation...and also easily explained at the beginning of the day when you first initiated the limitations. Why does it take weibell til lunch time and Robinhood 8 hours to start using this excuse?
Not only that...they ran with the excuse of "protecting traders" as the first excuse. Seems like they realised that wasn't gonna fly.
This reeks of coming up with an excuse after the fact. It's a great explanation...and also easily explained at the beginning of the day when you first initiated the limitations. Why does it take weibell til lunch time and Robinhood 8 hours to start using this excuse?
Not only that...they ran with the excuse of "protecting traders" as the first excuse. Seems like they realised that wasn't gonna fly.
A fair point. Plus didn't they stop trading the stocks at different times? Also, was it ever confirmed that robinhood closed some positions for people or was that just vague online images claiming such?
Its a very convenient excuse. If it was that simple, they would have come right out from the start. Why would they put themselves through the blender of hate from teh retail investors?
Not saying you are wrong but today was unprecedented and it could be WeBull couldn't just throw their partner under the bus.
that is a real possibility here. in business relationships are everything.
What this does is put the brakes on shorting stock. It's been a legit strategy since forever, but now that shorted stock is going to get targeted by this meme nonsense, nobody will want to risk shorting stock again.
Fair argument that shorting stock is sometimes considered stock manipulation, but it's been an acceptable investment strategy for a 100 years.
Meme stock is BLATANT stock manipulation. There is no doubt about that. It wouldn't surprise me if the SEC does something about stopping blatant meme stock manipulation.
Fair argument that shorting stock is sometimes considered stock manipulation, but it's been an acceptable investment strategy for a 100 years.
Meme stock is BLATANT stock manipulation. There is no doubt about that. It wouldn't surprise me if the SEC does something about stopping blatant meme stock manipulation.
yah why not come out and say this on jump. Makes no sense.
not sure they can. its one thing if a bank does it, but a highly decentralized group from around the world on reddit is very different. prity sure the sec has come out and said no rules were broken.
The rich help each other get richer. /shock
Too big to fail as they say.
No rules were broken, but they can change the rules.
This is obviously a big deal. Meme stocks have thrown a monkey wrench into the investment market. Who knows what will happen and how this all plays out.
Sent on Robinhood Contact us a message, probably they don't care but felt the need to so 😑.
Why are you stopping us from buying Gamestop? Isn't your platform supposed to enable everyone to trade freely? Isn't that how you built your whole success and wealth on? This is the first platform I've ever used to learn how to trade and do it and it has been great so far. This however is a sad misstep showing maybe we were wrong in assuming you have the best interests of most of your clients at heart, clients that made your fortune. I hope our opinion matters to you and we weren't misled in the very premise of this platform.
Thank you
Thank you
Why? What do you hope to get out of it? Do you think that rather than being worth 100x what it was six months ago it should and will be worth more? What is your strategy for selling it at a profit?
Big Tech doing their level best to prove people saying 'Big Tech is the enemy' correct.
Yeah, I'm kinda worried about rules changing after this. Something is definitely gonna happen. If not legislation, then at the very least brokers and retail trading apps will use a lot more red tape in their TOS and EULAs that will let them stamp out shit like this when it happens. Also apps like Robinhood might their barriers of entry a lot more stringent.
Edit: these are all just more of my tinfoil hat thoughts btw. I hope I'm wrong lol
Good. Fuck the stock market. Neoliberal's strategy from the beginning was to transition the public's retirement savings from safer, more conservative investments of pensions to the stock/equity-based 401ks to fund the rich's low-to-no-risk gambling habit (i.e., socialize the risk, privatize the profit), thereby massively inflating the value of these secondary market assets by syphoning off of the real, production-based economy.
What should happen is that 401ks are made illegal, liquidated, and that money transferred back into pension funds. Then the rich can go fuck off in a fire, watching their equity assets' value plummet back to earth.
Yeah their twitter is commenting on it every once and a while.
It's leaning into the meme situation a lot.
The idea is that tomorrow is the last day Melvin has until they have to buy stocks. So price will increase a craptop and you can just sell high.
this is a good question, have they made any kind of statement?
It allows the investors to own a percent of the company itself and being allowed voting rights with certain types of shares. As well as the company to be allowed ways to generate funding for different situations
Sell high to who, though? You need to be wise enough to be the person that sells to the one that is forced to buy, but lots of people will be trying to sell at that time. The price will fall precipitously after the waves of forced purchases over the short squeeze.
What do you think the absolute peak sell price for GME will be through all of this? You buy at 400... and what is the absolute peak, and what are the odds of the person actually selling at that peak? To me, it looks like there's much higher likelihood of basically losing most or all of that $400.
Nah dawg, I'm thinking if they change rules, they'll be changed for us, not them.
Once again, I hope I'm wrong, but that's how my gut feels rn.