Economics Thread

[nsacpi]

Looks like Robinhood caved. They've restricted purchasing of any of the shorted stocks.

sorry, what happened? who did what to whom?

[nsacpi]

Asked my son (HS senior) if he knew about GameStop. He said one of his classmates made $2,000 on it. So the kids are in on it too.

[striker42]

sorry, what happened? who did what to whom?

Several other services like TD Ameritrade had restricted purchasing of Gamestop. Robinhood, the principle app behind this, just restricted purchasing of Gamestop as well as AMC and other shorted companies. Not sure what pressure they're under. My guess is either the regulators have had their leashes tugged by members of congress owned by Wall St or else the hedge funds are throwing their weight around in what goes on behind the scenes and so pressuring Robinhood with repercussions if they don't do something.

[nsacpi]

My guess is thier legal counsel told them too. When this is over and GME goes back down to $10 there’s going to be a lot of finger pointing and someone is going to take the fall for it.

I think this is the equivalent of a flash mob. There is no mastermind behind a curtain manipulating the market. So unlikely to be a crime.

I do wonder if the trading platforms have clients they allow to trade on margin. If that's the case then they are protecting themselves with these restrictions.

[nsacpi]

well...there it is

How does Robinhood make money?

Robinhood earns money by offering: Robinhood Gold, a margin trading service, which starts at $6 a month. Earn interests from customer cash and stocks, just like a bank collects interest on cash deposits. And from rebates from market makers and trading venues.

Thanks Siri

[sturg33]

Of course the authoritarian favors restricting a persons liberty in buying or selling an equity.

Of course he does

[nsacpi]

Of course the authoritarian favors restricting a persons liberty in buying or selling an equity.

Of course he does

I'm just pointing out that trading platforms like Robinhood might want to exercise some care with regards to what clients can do when trading on margin. How does that make me an authoritarian?

You continue to deteriorate at an alarming rate.

[sturg33]

I'm just pointing out that trading platforms like Robinhood might want to exercise some care with regards to what clients can do when trading on margin. How does that make me an authoritarian?

You continue to deteriorate at an alarming rate.

I own NOK and RH isn't allowing me to buy more or buy or sell calls.

I'm not trading on margin.

Of course you support the institutions. You always do. Predictable as the sun

[Krgrecw]

I own NOK and RH isn't allowing me to buy more or buy or sell calls.

I'm not trading on margin.

Of course you support the institutions. You always do. Predictable as the sun

Why are you trading on RH. Don’t you have a brokerage that offers you cheaper trading?

[sturg33]

Why are you trading on RH. Don’t you have a brokerage that offers you cheaper trading?

I trade options on RH. It is the fastest and easiest (and cheapest) way to do it.

My account has ballooned based on the success of last year. Thanks Federal Reserve and governments for ensuring the rich get richer

[sturg33]

Oh and crypto too.

But this experience makes me want to take my business elsewhere

[nsacpi]

I own NOK and RH isn't allowing me to buy more or buy or sell calls.

I'm not trading on margin.

Of course you support the institutions. You always do. Predictable as the sun

options are one way to increase leverage...if you have a naked short on a stock, you're potential downside is unlimited

so if i were your broker i'd put some restrictions on what you can do with regard to options on those stocks

anyhow, if you're not happy with Robinhood I'm sure there are other options (pun intended) out there

[sturg33]

options are one way to increase leverage...if you have a naked short on a stock, you're potential downside is unlimited...same if you sell a call

I only trade cash secured. Try again mr authoritarian

[nsacpi]

I only trade cash secured. Try again mr authoritarian

then take your business elsewhere

surely there is a libertarian friendly trading platform out there

[sturg33]

Nsacpi always finds himself on the side of censorship and banning... restricting liberty at every turn

Pathetic that old men insist that others must be as restricted as they are

[sturg33]

You'd think this one is bi-partisan...

But the authoritarians always aim to protect their institutions

[nsacpi]

Nsacpi always finds himself on the side of censorship and banning... restricting liberty at every turn

Pathetic that old men insist that others must be as restricted as they are

the ageism is kind of sad dude...you have such a dark soul

[sturg33]

the ageism is kind of sad dude...you have such a dark soul

Whats sad is your insistence on others being forced to stay home, can't freely speak, or need to be protected for their own good. You're always on the side against liberty. Every single time.

You're upset I'm calling a spade a spade. It hurts bc its true.

(This is the part where you insult me saying I'm crazy or whatever. Predictible as the sun).

[striker42]

You'd think this one is bi-partisan...

But the authoritarians always aim to protect their institutions

The only question is whether anything will be done about it. It's getting increasingly clear that the hedge funds, being unable to maneuver out of their bad bets, are starting to take a cudgel to the access points of retail investors. You're very likely getting into actual crimes territory.

[sturg33]

The only question is whether anything will be done about it. It's getting increasingly clear that the hedge funds, being unable to maneuver out of their bad bets, are starting to take a cudgel to the access points of retail investors. You're very likely getting into actual crimes territory.

The playback has been written from the parler saga.

Big institutions collude to choke off the citizens they dont care for.

Now its in the money system.

The usual suspects cheered for both of these maneuvers.

Poor billionaires