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Business, Economics, and Taxes: Capitalism. Yay? >=(

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dxmnkd316 said:
Interesting. Robinhood May have had no choice but to limit trading. Has something to do about the fact that they were running out of reserves they’re required to have. Either by law or by contract.

there’s some other shady sounding shot going on, but I have no idea if it’s real or not.
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He can spin it how he wants, they have a liquidity issue and Sorkin knows it which is why he fought him on it.
 
BassAle said:
you can transfer your assets to another trading platform, but it takes time. Like days. You can also cash out and withdraw your money, but it takes days to clear. These people don’t want to buy GME next week. They want to now.

Robinhood Gold accounts can trade on margin. If you’re using your current assets (which may be highly volatile) as collateral to make more risky buys, it may end very badly for you and Robinhood. It’s think this is why Robinhood is worried.
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Except standard and gold were BOTH margin accounts.
 
So, the stock market is just something people with gazillions in cash manipulate to make even more gazillions? Just gamble with the economic security of an entire country in pursuit of that?

Who knew?

I think Handy said it, if these reddit dudes want to risk whatever money they have gambling in the stock market, whose right is it to stop them? The big brokerage houses do it with an entire country's money every single day, and they're supposed to be admired for it.

They're just pizzed that the great unwashed masses just beat them at their own game. And maybe took some of their money in the process. That money doesn't belong to the great unwashed masses. That's the one percent's money, they're entitled to it. All of it.
 
aparch said:
Exxon supports this. GM is going electric. 150 businesses are on board. Seems like they all got their ducks in a row and found ways to make money in the after gasoline era.
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The worst kept secret was all the oil companies have been developing this stuff for years just waiting for the US to move into the 21st century. If people in a few states would just take the time to learn how to work in the field (instead of the fields pun intended) they could be cleaning up.
 
Bizarre. Just read as far as you want. And note that the guy whose letter they are referencing is Goser of all people.

We really are in the End Times.
 
Interesting time capsule of a video from a week ago from a YouTube channel I watch reporting on the sudden rise on GameStop stock.

From the comments:
Graham, the GameStop price spike is actually very well understood in the finance world. They're burning shorts. See, people can make money on the stock market by either betting ON a company (buying shares or "calls" which are contracts that give you an option to buy shares at a later date) or by betting AGAINST a company. When you bet against a company it's called being "short" because you short-sell the shares. In other words, you sell shares you don't actually have, expecting the share price to go lower. The only catch is you HAVE to buy those shares back at some point. So if you sell at $10 and re-buy at $5 you just made $5 a share. A "short squeeze" is when a heavily shorted stock's price unexpectedly rises, forcing short-sellers to buy at a higher price (losing LOTS of money) and driving the stock price up to completely obscene prices. GameStop had been such a total s-show and its share price collapse made it easy for millions of traders to "short" it continuously to make a quick buck. Someone on r/wallstreetbets realized there were actually very few outstanding shares that were NOT sold short, and if they could just all buy the outstanding shares, causing a short squeeze. Now you know, and knowing is half the battle.
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(Here's this week's video BTW)
 
SJHovey said:
A somewhat superficial view of some WSB participants.

https://www.cnn.com/2021/01/29/investing/wallstreetsbets-reddit-culture/index.html

Should help with Joe's student loan forgiveness proposal.
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WallStreetBets is — by the low standards set by others — a relatively well-behaved online community. "It's kind of not a bad behaving sub," said Blackburn.
"Minus the fact that people are getting wrecked money-wise."
 
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if WSB is "relatively well-behaved" USCHO posters are saints :)
 
BassAle said:
if WSB is "relatively well-behaved" USCHO posters are saints :)
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That's pretty good!


I will tell you that as I read that article, I had a sense of deja vu. That is literally the same article that was written about day traders, and the same article that was written about the online poker players 10-15 years ago.

Young, disillusioned, computer savvy, probably socially awkward, mostly men, who are basically willing to gamble in return for a possible big score. It's too bad, because 99% of them end up broke and have a 10 year setback in their financial lives, while all we hear about are the 1% who "made it" (although I still think it would be interesting to look back 20 years after they did "make it" and see if they "kept it.") The problem is, those 10 years that they are set back are important, simply due to the time value of money.

If you want to be rich today, take your student loans, go to Vegas, find a roulette table and put it all on red. You might go on a heck of a ride and come home with millions. Almost certainly not, but the chance is at least there.

No one wants to work hard, put the money away, watch it grow at a snails pace.

It is, in my opinion, simply a feature of lacking patience.
 
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