/wallstreetbets Just Pooped in the Punch
I really, really, hate Reddit. So much.
Alright so we all know by now that a group of retail investors on Reddit just screwed the pooch. Now when you go to Google wtf I’m talking about, and wonder why Robinhood is getting sued and how Gamestop got popular again…. The narrative is that Robinhood locked out users from buying GME, AMC, and others. Yes this is true, but not of their own accord (though they claim it was).
I figured it out because I have accounts with EVERY BROKERAGE. See, while I found Wednesday’s antics to be amusing, I had planned on buying tons of Puts on GME. Reason being, is that with what /wallstreetbets was doing (buying lots of cheap over-shorted stock) being all over YouTube, as well as the cable news channels (I actually agreed with AOC for a brief moment), it was obviously going to drop like a rock on Thursday morning.
That was going to happen even without the real investors touching the stock. What I don’t think anyone counted on was having Robinhood refuse to let anyone buy the particular stocks. They banned their users from buying certain stocks. They could still sell, though. Great, like that’s not price manipulation.
ANYWAY, it wasn’t Robinhood acting on their own. They are under the thumb of a certain group, as are several other brokers. They all had blocked buying GME at market open.
Some companies have nothing to do with any of this Tom-foolery, and you could still trade like normal. Thanks, Fidelity! (wonder why Reddit users couldn’t figure that one out TROLOLOLOLOL)
I’ll leave you to your own devices to figure out the respected narratives of David and Goliath. There’s lots of good points to be made, and it’s a discussion that is a long time coming. Too bad none of it matters.
The people on Reddit are STILL running their mouths. We’ll be lucky if the worse thing that happens out of all this are new regulations on short-selling. Chances are we’re going to see some serious restrictions in the near future. Perhaps an outright ban on retail investing. For hate speech. (Yes, that happened. Conspiracy is now hate speech).
I don’t get it, you’d think it’d be obvious. Reddit censored them. Discord censored them. Other social media (All of them probably) had similar censorships activated. Webull and Schwab blocked them from buying stocks. And it’s a good thing they did. Well, sort of. It’s actually terrible and scary that they can do that without being shut down.
If Reddit had their way and wrecked the big bad hedge fund, it would be bittersweet. Unless you want to see half our neighborhood lose their homes. Or did we all forget that mortgages get chopped up and spread around in such a way that basically ensures a failing Wall Street = a failing Main Street?
Arkenstone Freeps can explain this whole thing way more articulately than I can. The whole situation is just super frustrating. From the initial greed, to r/tards, to Robinhood somehow singularly taking all the blame, to the fact that the rest of us who recognize and respect the unwritten rules of reality are going to suffer.
