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01-28-2021, 11:35 AM | #6901 |
The Seated Villain
Join Date: Apr 2007
Location: Seattle
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Posts: 10,689
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01-28-2021, 11:40 AM | #6902 |
MVP
Join Date: Sep 2004
Location: San Diego, CA
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The **** it is. This whole thing basically bankrupted Melvin (hedge fund), and Citadel helped bail them out. The guy who founded Citadel owns a huge stake in Robinhood, so he made a call. This is protecting the hedge funds, and has nothing to do with protecting its users. I hope RH gets buried over this.
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Posts: 5,165
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01-28-2021, 11:47 AM | #6903 |
NFL's #1 Ermines Fan
Join Date: Jul 2001
Location: My house
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To me, this is an interesting comparison of "market mentality" versus "pump and dump". It's illegal to pump an dump, so what were the motivations and actions of the people who started this?
Of course, we all know that the game is rigged anyway. I bet 0.00000001 percent of insider trading is investigated, and then you've got things like that one big player rigging the software to execute their trades a microsecond before retail trades so they can take the difference. Sometimes I worry a bit that the entire stock market is an unintentional ponzi scheme and at some point someone will do some math and the whole thing will collapse. For example, I give some money to google via stock that they use to fund growth. The promise that I get in return is that they'll grow and I'll then be able to sell the stock to the next people, who themselves buy it on the promise that google will grow. It seems kind of pyramid-like. With dividend stocks I like the equation better, because I'm getting a return on my money, but with non-dividend stocks I sometimes feel like I'm buying air. |
Posts: 142,672
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01-28-2021, 11:56 AM | #6904 |
MVP
Join Date: Oct 2012
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So should i remove all investments from robinhood with a class action suit being filed?
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Posts: 11,575
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01-28-2021, 11:58 AM | #6905 |
The Seated Villain
Join Date: Apr 2007
Location: Seattle
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The motivations were pretty simple. By over-shorting GME, hedge funds essentially forced themselves into a captive market. Someone noticed and decided to try to take advantage to make money.
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Posts: 10,689
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01-28-2021, 11:58 AM | #6906 |
2 Legit 2 Colquitt
Join Date: Sep 2010
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The people calling it a pump and dump are way off base. This is not a pump and dump. WSB are buying and holding trying to cause a short squeeze. Look at what happened to VW in 2008. The squeeze has not happened yet. If that happens it will be like something out of a movie. Ever see Trading Places?
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Posts: 4,752
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01-28-2021, 11:59 AM | #6907 | |
Kind of a mod
Join Date: Aug 2005
Location: Donkey Land
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Quote:
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Posts: 52,338
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01-28-2021, 12:00 PM | #6908 |
The Seated Villain
Join Date: Apr 2007
Location: Seattle
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Posts: 10,689
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1 0 |
01-28-2021, 12:02 PM | #6909 |
Cheat Death
Join Date: Nov 2007
Location: Land of Drincoln
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How does one move out of RH to another platform?
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Posts: 35,092
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01-28-2021, 12:05 PM | #6910 |
The Seated Villain
Join Date: Apr 2007
Location: Seattle
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Posts: 10,689
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1 0 |
01-28-2021, 12:05 PM | #6911 | |
NFL's #1 Ermines Fan
Join Date: Jul 2001
Location: My house
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Quote:
And that's not even considering my big picture question of how the market outperforms inflation over time. It leads to bigger and bigger discrepancies between the stock market and the rest of the world. It's kind of the only game in town so I keep playing it, but I try not to think about what the foundation is under this big house of cards. |
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Posts: 142,672
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01-28-2021, 12:07 PM | #6912 |
Banned
Join Date: Jan 2013
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This actually worked out for me real well. My orders placed last night and to fund at opening were all cancelled by RH and cleared it out. I transferred to Fidelity and bought the dip.
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Posts: 53,803
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01-28-2021, 12:10 PM | #6913 |
Kind of a mod
Join Date: Aug 2005
Location: Donkey Land
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Posts: 52,338
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01-28-2021, 12:10 PM | #6914 | |
NFL's #1 Ermines Fan
Join Date: Jul 2001
Location: My house
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Quote:
These days there are so many games played around betting and leveraging and options and stops and stuff that I've probably never heard of. I wonder how much money is actually invested in stocks versus the money that's invested in placing bets on the financial manipulations surrounding stocks. I understand theoretically why that stuff exists, but it's all poker. It's money that's not invested in anything but trying to guess the behavior of other people. |
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Posts: 142,672
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01-28-2021, 12:18 PM | #6915 |
MVP
Join Date: Jan 2012
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Posts: 6,156
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