261–270 of 316 posts
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It wasn’t rh alone, it’s also most other discount brokerages.
https://www.marketwatch.com/story/gamestop-amc-trading-is-no... Not just discount brokerages.
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Justin Kan, founder of Twitch and Atrium(net worth over 9 figures) tweeted that he got a tip that Citadel(the company that executes trades for Robin Hood) reloaded their shorts before they told Robinhood to stop allowing users to buy GME. If you think Kan is a conspiracy theorist making baseless accusations, we see the world very differently. Which is fine. Diversity of thought is always welcomed in my opinion. But I…
I would believe Justin got that tip but that does not mean it was true. It doesn't even make a lot of sense as the part of Citadel that executes trades cannot talk to the part of Citadel that takes short positions, and vice versa.
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Isn't buying a house on margin... basically just a normal mortgage?
You don't get a margin call if your house or car is underwater. You can just keep making the payments until you own it.
Except... You can!
If you ever took a mortgage, take a very, very, very good look on the loan agreement.
A surprising amount of banks simply put it as "bank reserves the right to recall the loan in full, at its sole discretion, at any moment"
we placed it to mitigate the risk on your account Wow, that's pretty awful since liquidating the position may actually put the user at a net loss, which wouldn't avoid risk: It would actually "instantiate" the potential risk of having to sell the stock after falling below the purchase price. Why not give users the opportunity to provide more collateral for their margin?
Because they are using an app with no fees. This is what fees get you on some other platforms.
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Justin Kan, founder of Twitch and Atrium(net worth over 9 figures) tweeted that he got a tip that Citadel(the company that executes trades for Robin Hood) reloaded their shorts before they told Robinhood to stop allowing users to buy GME. If you think Kan is a conspiracy theorist making baseless accusations, we see the world very differently. Which is fine. Diversity of thought is always welcomed in my opinion. But I…
If there's no evidence backing it then it is a conspiracy theory, whether coming from an anonymous Reddit post or from a billionaire's Tweet. I don't know Justin Kan's background but he could very well have his own angle behind all this, or just faulty information. And even if he is correct, he is saying something very different from the post I mentioned.
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Isn't buying a house on margin... basically just a normal mortgage?
No like I said they are fundamentally different. In a normal mortgage the bank cannot take your house if you make payments. With margin they can force you to sell if your account becomes too risky (usually happens because your positions lost value, but could also happen in cases like these where an investment is deemed to have a high probability of losing value). They can do this even if you are paying the interest o…
Depending on a loan agreement... It can
The last time this has happened en masse was as recently as 12 years ago.
Since then, people started reading loan agreements a bit more carefully, hence the decline in the number of banks demanding completely unconditional recall clauses.
Browing the top of reddit right now is really reminiscent of /r/The_Donald, particularly the shift from a bunch of 'ironic' jokers to conspiracy theories and shouty chest beating and calls for upvotes. I'd treat anything like this with a huge pinch of salt.
One of the top posts on WSB this morning was a supposed Robinhood engineer who overheard a call between their CEO and the White House instructing them to stop trading $GME. The /r/The_Donald comparisons seem apt at this point.
Isn't everybody working from home? How do you overhear things?
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It's going to pop no matter what actions RH (or anyone else takes). Who cares which needle pops it?
No, it's not going to pop no matter what, that's not how the market works - and presumably most everybody cares how it happens. Most people aren't big on artificial market manipulation.
No one believed GME was worth over $40 a week ago, but now suddenly they pretend they honestly believe it's worth $300+? There's no book depth beyond the short squeeze.
If Valve made a full buyout offer at $100/share, management wouldn't take it?
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> I will most certainly take care to properly read and understand And when you don't understand the dense legalese how did you get clarification? Did you pay a few hundred dollars to have a lawyer review the contract and explain it to you? Perhaps call the company up to have a minimum wage call center employee explain it to you? Or just come up with an interpretation of the text that seems to make sense and conclude…
> when you don’t understand the dense legalese This confuses me a bit because I have personally never encountered anything in a legal document that I didn’t understand. I am not in support of reading all of the TOS, as that seems like an impossible feat, but when I have read any TOS or contract, it seemed understandable. The hardest thing for me is comma separated if statements written in plain English. But that’s ma…
> We calculate interest each month based on the lowest Daily Closing Balance. We pay interest on the last Business Day of April and October. To earn any interest, the account must stay open for one full calendar month before the payment date.
Not dense language at all. But, note how Daily Closing Balance is title case, so that means its been defined elsewhere, so I need to flip back and refer to the definition then flip back to page 8. The definition which by the way isn't how you'd likely define a closing balance. Next part of interest is April, and October. So, interest is only paid twice a year⁉ That makes no sense, so I scan around and see this is for the Savings X account. But, I don't think that's what the name of my account is called, so now I have to flip through all 8 docs to find what specifically my account is named. Except none of the docs actually tell me which product I signed up for, instead I figure this out by comparing the fees outlined in the account types with what I wrote down when choosing the plan with the agent that I spoke with earlier.
Now back to the paragraph above and realize I'm realizing I've been analyzing the interest schedule for an account that isn't relevant to me. Scanning for my account I find that the interest is calculated as one would expect--some special conditions around the daily closing balance.
I'm frustrated and growing tired, but that is only 1 paragraph in 1 of 8 documents. The bank clearly made no effort to include only the sections that apply to me. So there is a great chance that I'm either going to miss a nuance in a section (like how they've defined daily closing balance to have some exclusions), or ignore a section believing that it doesn't apply to me.
Keep in mind you and I are likely both college educated, have training in logic and can figure this out if we spend the time/energy. Do you think the average American has a chance to understand what they've signed?
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No, it's not going to pop no matter what, that's not how the market works - and presumably most everybody cares how it happens. Most people aren't big on artificial market manipulation.
This whole kerfuffle is a blatant publically advertised mass market manipulation effort. The reddit posts are still visible. No one believed GME was worth over $40 a week ago, but now suddenly they pretend they honestly believe it's worth $300+? There's no book depth beyond the short squeeze. If Valve made a full buyout offer at $100/share, management wouldn't take it?