Someone remind me again how this is even legal? You can SELL but not BUY, thus automatically suppressing all stock values?!
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
#42Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…
So FYI, the Reddit WSB "shutdown" was temporary and on purpose (by the mod admins) to clean up the page a bit. It was private for an hour or two and back up.
Discord, not so. Looking at the financial backers of Discord, you can pretty quickly draw a link to the short sellers. Presumably some phone calls or dinners were had last night and strings were pulled to shut the discord down.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#43Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…
This is just a guess, but I imagine the hedge funds that own shares of these platforms are pulling some strings. That's a bit conspiratorial, but is it really that unbelievable?
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#44Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#45Wow. First the Discord ban and then this - clearly the billionaire hedge fund managers have been busy pulling strings overnight. Limiting it so you can't buy, you can only sell... Very clearly helping the hedge funds here.
Luckily, I used my Vanguard account instead of making a Robinhood.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#46This 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…
It’s a pretty classic tactic in the history of conflict. By pushing your opponent into a tight position, you force him to strike first, thus giving you complete justification in your disproportionate response.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#47Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…
As far as I understand it robinhood makes (most of their?) money from selling their order flow to hedge funds.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#48Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…
Robinhood makes most of its money by selling "dumb money" order flows to bigger Wall Street firms: https://fortune.com/2020/07/08/robinhood-makes-millions-sell...
It seems plausible to me that some of Robinhood's real paying customers have asked them to tame their unruly product.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#49This 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…
Oh please. Robinhood's business model is not designed for this kind of thing. They are not required to tank their own business to allow malcontents to feel better about themselves.
How does allowing trades tank their business? That is their business.
Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop
#5099.99% (or more) of people who buy lotteries, lose ALL their money. However, government allows anyone to buy them. There is no meaningful restriction for an assured destruction of wealth for most of those who buy them.
While this GME/AMC run will not end well for many people, restricting people from buying those stocks - whether it is through actions of trading platforms or governing agencies - smacks not just of paternalism, but downright favoritism. Only certain parties benefit from this.