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Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

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Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#291
post #56

Big if true (have to take everything with a grain of salt nowadays). Can anyone with more knowledge than me comment on what Robinhood's exposure is in all this? My understanding is they do not have any direct financial exposure, only reputational risk (and of course downsides from their users potentially losing a lot of money, but that should be part of the game). Is that correct? And does blocking specific trades to…

Maybe they have indirect exposure derived from loans granted to users that are holding those stocks? Just trying to guess.

Edit - related comment (about "margin requirements"): https://news.ycombinator.com/item?id=25942150

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#292
For a lot of young people, the only paths to a regular life are either work hard for 5-10 years, live like a poor student, save the majority of their money and gamble that life will be affordable at the end, or just gamble away their money today. It’s so much harder to reach regular milestones that it’s sometimes not even worth the effort. I don’t think taking this away from a bunch of nihilistic young men is going to end well...

On an unrelated note, start preparing yourself for a neo-feudal society now and you will still live well. You will own nothing, and you will be happy.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#293

What SEC thinks of this GameStop madness? Is this normal market activity or pump and dump scheme? They only said they are monitoring ongoing market volatility. [1] I didn't research this whole situation a lot but I know brick and mortar game selling is almost dead and everything moved online especially to Steam which basically has monopoly on digital online video games selling. I don't agree with Chamath when he said…

This isn't a fundamental based investment on both sides. Even if you believe GME is about to go out of business, shorting it at 140% is ridiculous. This is momentum trade on both sides. The difference is all establishment (news media, hedge fund bros, brokers and government) is against one side (retail).

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#296
post #136

Earlier quoted context omitted.

> the powers that rule USA don't realize that soon the only tool left to common people is violence? Do you honestly believe this? Somehow we'll go from not being able to buy certain stocks to violence? Banning collecting rain water on your own property didn't do it. Abject failure of politicians keeping drinking water clean didn't do it? Not being able to buy cheese from unpasteurized milk didn't do it. Can't grow a…

I think it's important to put this in the context of many other related issues/pressures: * Increasing wealth inequality for several decades now * older generations holding onto more wealth and power in society than ever before - with a large share of their wealth in the stock market * Wall Street is seen as entirely unaccountable due to 2008 bailout * Pandemic this year has basically been a huge wealth transfer from…

Nailed it. There is a context for all of what’s happening. GME may seem like a funny oddity but there is real resentment boiling underneath the surface of this event. I know it because I feel that way myself.

Everything I’ve seen from how the media covers it to how our financial institutions are forming ranks to condemn retail investors sickens me. It’s making obvious the informal lines of control the investor class use to maintain their wealth and their anger to have the average person attempting to play their game.

It’s like a giant metaphor for how screwed up our society has become.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#298
post #9

This sort of stuff will put people more and more on edge, there is the deplatforming going on, people asserted their power financially, and now getting that removed too, the powers that rule USA don't realize that soon the only tool left to common people is violence? Even more with some irresponsible newspapers blaming the whole thing on GamerGate and Alt-Right, effectively pushing away people that previously could b…

Honestly, I don't see where the attempt to equate the WSB people out to make a quick buck by gambling and hope they win out over the hedge funds as being that connected to the deplatforming of right wing people - I'm sure given "the right" and "wall street bets" are large groups that there is some overlap, but in Europe I know plenty of people following along the stock market with no connection to current US issues.

People have found an unpopular target (large funds, still a lot of dislike built up over the 2008 recession, current inflated housing markets in many cities) and there's a swing in popular emotion and yes, public figures have egged it on at this stage, but it's not really a protest against donald trump's deplatforming or liberal elites that some people are trying to make it out to be.

Plenty more people willing to take risks on that among the middle class when the stock market is the only way to even keep the value of their savings anyway. My savings account has an actual interest rate that was cut from 0.50% to 0.01% this year, whereas 2020 excluded, inflation has been around 1% in my country. Many of my friends in similar situations have gotten involved in stocks under a similar background and a not insignificant number of them are operating under logic like "90% in long term stocks, 10% for whatever crazy long bets" (like which airlines are going to come out of this, whatever stock reddit is pumping at the moment, bitcoin or companies like AMD a few months ago which they're like "I use this stuff and so many insitutional investors are completely clueless on the market dynamics").

So you get people with "stupid bets" funds, and an idea that gets momentum (The shorts cannot not buy, let's outwait them), and this is the result.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#299

Earlier quoted context omitted.

It's absolutely paternalism, IMO. I'm less sure whether I think it's a good thing or not (because I think people buying new positions in GME at this point are unlikely to end up happy about that in mid-Feb.) I'm all for "let 'em play" in general but this is not going to end well for a lot of folks...

I ended up buying a couple stocks late in the game, fully expecting to lose the money. First, it's not my retirement or long-term cash, more of a hobby. And that hobby quickly turned into sending a message after watching those rich SOBs literally cry about being hurt by the free market, and then try and end/manipulate it to their advantage.

I missed the boat, but I'm cheering all of this on from the sidelines.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#300
post #247
post #136

Earlier quoted context omitted.

> the powers that rule USA don't realize that soon the only tool left to common people is violence? Do you honestly believe this? Somehow we'll go from not being able to buy certain stocks to violence? Banning collecting rain water on your own property didn't do it. Abject failure of politicians keeping drinking water clean didn't do it? Not being able to buy cheese from unpasteurized milk didn't do it. Can't grow a…

> Banning collecting rain water on your own property What does that refer to?

Exactly that, a number of US states used to ban it so water utilities, and water rights buyers can make more money.

As of now, I believe the last explicit ban on that was repealed decades ago.

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