Are you guys watching Gamestop? Up another 92% today.

Natural Citizen

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Apparently, Robinhood just screwed all the little guys and halted all transactions in Gamestop today. Wow. I wonder how much of a payoff the Robinhood folks got from the hedge funds?
The hedge funds are the ones who feed the robinhoods. That's where it starts to get a little deeper. These apps are basically data peddlers.
 

Natural Citizen

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Really? You know more about this than me. What do you mean that the hedge funds fed Robinhood?
It's really a bit technical. The billionaire class investors are the ones who are responsible for these apps. In effect. They're basically pushing all of the risk in that direction whereas they set themselves up to make the profit. It's all just a bunch of statistical science.

That's how they're able to just shut it down the way they did when it doesn't work out in their favor.

It's kind of tough to explain. And I don't know exactly how they use that data.
 
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MarathonMike

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Really? You know more about this than me. What do you mean that the hedge funds fed Robinhood?
It's really a bit technical. The billionaire class investors are the ones who are responsible for these apps. In effect. They're basically pushing all of the risk in that direction whereas they set themselves up to make the profit. It's all just a bunch of statistical science.

That's how they're able to just shut it down the way they did when it doesn't work out in their favor.

It's kind of tough to explain. And I don't know exactly how they use that data.
Well that tells me that Robinhood is toast as a platform then. All the technical stuff aside, it still comes down to a violation of trust.
 

Jim H - VA USA

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Robinhood “completely blocked retail investors” from buying GameStop stock “for no legitimate reason,” the lawsuit goes on to say, adding that the move appears to be calculated to benefit individuals and institutions who are not Robinhood customers but are “large institutional investors” into the company...
I Like a citizen who posts facts and links. Thanks.

Robinhood CEO, Vlad Tenev, was interviewed by CNBC, and it did not go so well, IMO.

He seems to indicate a liquidity problem, and then says it's not a liquidity problem, but can't really give any reasonable justification for halting buying of a stock, while allowing selling of it.

This guy ranks right up there with Jack Dorsey regarding too-woke self-appointed global dictators, IMO.

 

Natural Citizen

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Well that tells me that Robinhood is toast as a platform then. All the technical stuff aside, it still comes down to a violation of trust.
Someone's going to jail about this. There's no doubt about that. In my view anyway.
 
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MarathonMike

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More than one hedge fund got crushed by this short.
Yup.

It boggles my mind that anyone would short a stock with a 140% short interest.

I'm shocked that the short interest is that high. I thought re-hypothecatation went out the door after the GFC.
Do you think it was pure hubris? "We are going to teach these little pukes a lesson"?
 

Tommy Tainant

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Watching this with some interest over here. In the UK hedge funds are major donors to the tory party and the leading lights were big backers of brexit .They made huge amounts of money on that vote.
That tells me that nothing will get done over here.

It seems to be blindingly obvious that regulation is needed in this area. This episode has exposed the casino aspect of the markets, again, and it is not just that buyers can be stopped but not sellers. That is market manipulation.

Can any financial crisis NOT be traced back to Wall St ?
 

Natural Citizen

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Google just deleted over 100,000 negative reviews of the Robinhood app after peed off retail traders expressed their discontent with the malfeasance by the big guys.

It's kind of funny how the tech industry steps in and serves as big government's censor in every way, isn't it?


So, who all do we have running interference for the them in the thread so far?

I recall facebook, Redddit, now Google. The apps themselves....

 

Deplorable Yankee

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Robin hood is finished...theyre done for

What was great about it was its simplicity
 

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