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AOC considering hearing over RobinhoodApp decision to block purchasers of GME

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51–60 of 74 posts

Re: AOC considering hearing over RobinhoodApp decision to block purchasers of GME

#51
post #3

The fact that Ted Cruz and AOC completely agree on this shows you how unprecedented this all is.

Yes, but... they're both wrong. The trades that Robinhood blocked were objectively bad trades, and the people they stopped from buying would almost certainly have lost all that money. Now, I agree that there's a good first principles argument (and also a bad populist one) that people should be allowed to trade their own money into scams if they want. But the idea of proving damages here based on the idea that GME was…

This case is not about lost damages and I doubt that is the motivation for someone like AOC getting involved. The narrative surrounding this whole thing has become the little guys have pulled one over the hedge funds and now the wall street is changing the rules. The bad trade that was done here was when GME was shorted to 140%, and now that retail has made a win, everything is being done to save the shorts. All this is highlighting for many more people in how the "game is rigged".

Re: AOC considering hearing over RobinhoodApp decision to block purchasers of GME

#52
post #3

The fact that Ted Cruz and AOC completely agree on this shows you how unprecedented this all is.

It reveals that the whole "left vs. right" culture war is a massive sham designed to occupy and waste the all the plebian's attentions and get eyeballs on advertisers while the rich and powerful sit back and laugh. And people already downvoting me...lol. Do you not realize you're just willing pawns?

Wait a minute. Are those big tech hearings not going to amount to anything? Approximately the exact same thing AOC's fake hearing/s will amount to. It's nothing more than populist grandstanding.

Re: AOC considering hearing over RobinhoodApp decision to block purchasers of GME

#53
I know everyone is excited to bring out their pitchforks, but let's take a moment to consider this from an objective position.

Imagine a broker knowingly profits from executing trades that are part of a market manipulation- the SEC can and does come after them with huge fines. Usually it's years later in the unwinding of some shady hedge fund or corrupt sovereign wealth fund or pump&dump operation.

In this case, it's not a boiler room in New Jersey or a Malaysian government insider manipulating the market, it's a bunch of different people on twitter and reddit. It seems perfectly reasonable that the brokerage firms who are complicit in this have legitimate fears that the SEC will come after them later, and so are trying to limit the risk that they're deemed culpable.

Re: AOC considering hearing over RobinhoodApp decision to block purchasers of GME

#54
post #42
post #3

The fact that Ted Cruz and AOC completely agree on this shows you how unprecedented this all is.

Cruz agrees with AOC. AOC took the opportunity to tell Cruz he "almost had me murdered 3 weeks ago": https://twitter.com/AOC/status/1354848253729234944

Holding someone accountable for their actions longer than one press cycle is a good thing.

Re: AOC considering hearing over RobinhoodApp decision to block purchasers of GME

#55
post #3

The fact that Ted Cruz and AOC completely agree on this shows you how unprecedented this all is.

Yes, but... they're both wrong. The trades that Robinhood blocked were objectively bad trades, and the people they stopped from buying would almost certainly have lost all that money. Now, I agree that there's a good first principles argument (and also a bad populist one) that people should be allowed to trade their own money into scams if they want. But the idea of proving damages here based on the idea that GME was…

Glad to know bad trades are illegal now. /s

Re: AOC considering hearing over RobinhoodApp decision to block purchasers of GME

#56
post #4
post #3

The fact that Ted Cruz and AOC completely agree on this shows you how unprecedented this all is.

Exactly - it really feels like a watershed moment of some kind, though I'm not exactly sure how

Agree. They, of course, have their own reasons for doing this. But regardless, I feel it is a very good thing to happen.

If influential people from both parties can work together for issues like this, it will make the world a better and fairer place for the middle class and the poor.

Re: AOC considering hearing over RobinhoodApp decision to block purchasers of GME

#57
post #8

Earlier quoted context omitted.

About that... https://twitter.com/AOC/status/1354848253729234944

AOC is such a firebrand. I love it. Not a lot of politicians who give me the sense that they're actually fighting for me.

You just described 75M Trump voters...

Re: AOC considering hearing over RobinhoodApp decision to block purchasers of GME

#58
post #50
post #3

The fact that Ted Cruz and AOC completely agree on this shows you how unprecedented this all is.

It's not just Robingood! I'm on Schwab and they blocked trading with GME this morning (didn't try it but SELL might still be open)

I think TD Ameritrade did the same.

Re: AOC considering hearing over RobinhoodApp decision to block purchasers of GME

#59
post #31

Earlier quoted context omitted.

Yes, but... they're both wrong. The trades that Robinhood blocked were objectively bad trades, and the people they stopped from buying would almost certainly have lost all that money. Now, I agree that there's a good first principles argument (and also a bad populist one) that people should be allowed to trade their own money into scams if they want. But the idea of proving damages here based on the idea that GME was…

"The trades that Robinhood blocked were objectively bad trades" Seriously? Do you want brokers making this call? That is not their job. Let people learn the hard way, that is what the markets are for. Now, don't let them do it on margin but if you're going to plow your savings into GME at $450 a share then I am sorry but it's your own fault for not doing any homework at all.

I agree that this is how it should be, but then we'll inevitably end up with a bunch morons who lost their money and then demand the government to right them. It's a lose-lose situation.

Re: AOC considering hearing over RobinhoodApp decision to block purchasers of GME

#60
post #28

The ironic thing is that the end result of this will probably be a ban on payment for order flow which will destroy the commission-free trading model. We’ll go back to paying $5/trade or whatever and everyone (except HFT) will ostensibly be happy.

It's not $5 a trade. Look at IBKR rates; most US trades are well under a dollar.
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