Happy Friday. It gets messier and messier...
1) The big news of the day is how trading platforms such as Robinhood tried to de-platform (pardon me) retail investors by restricting trading in stocks at the centre of the controversy (GameStop, American Airlines etc). Read this summary from CNET
2) This led to a serious backlash from:
- Wallstreetbets (of course)
-Alexandria Ocasio-Cortez (AOC)
-Ted Cruz (what??) AOC slapped away this gesture like an unwanted hand from a creep
-Elon Musk Which is to be expected given his own complicated history with short sellers
amongst many many others...
3) At least 1 lawsuit is in the works
The perception here is that the big professional traders are unfairly preventing retail investors from playing at their own game, after they got their ass whooped by the retailers.
In case no one has realised this, Robinhood is able to offer zero commissions because its clients are the product, not the other way round. Read this article from Vice
As of now, Bloomberg has revealed that Robinhood had to curb trading because they are financially squeezed by clearinghouses.
In other related news:
-some beneficiaries of the stock rises
-this saga has led Jon Stewart to tweet out. Brings back good memories of his takedown of Jim Cramer. Part 2, Part 3
-this has also inspired some Malaysian investors to try the same thing
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