This story just keeps getting more and more crazy.
The above is not actually Robinhood's statement on the situation. This was their actual release. In the release they announce they are restricting trading on certain stocks such as GameStop. That "clacking" sound you hear is from all of the keyboards closing their Robinhood accounts. If Robinhood was a public company I think Melvin Capital would be shorting the stock about now.
The small investors aren't taking this sitting down - they have already filed a Class Action Lawsuit against Robinhood.
Discord the hosting service for WallStreetBets shut down their server for "hate speech, glorifying violence, and spreading misinformation." They wanted to be clear they "did not ban this server due to financial fraud related to GameStop or other stock." Yeah right. The timing here is merely coincidental.
Morgan Housel has a post upon the situation titled, Why It's Usually Crazier Than You'd Expect. This paragraph struck me:
The reddit campaign to push its stock up started two months ago. At first shares rose a little. That caught people's attention, those people bought, which pushed prices up more, which caught more people's attention - and on and on - until this week when virtually every investor in America is paying attention to GameStop because it's risen so high, and it's rising high because every investor in America is paying attention to it.
Hmmm - what else happened two months ago? I know Morgan's post was titled "Why it's crazier than you'd expect" but I won't go there or speculate.
Well one thing that also happened about two months ago was Janet Yellen was made Treasury Secretary for the Biden Administration. The same Janet Yellen who made millions giving speeches to Wall Street firms. Including Citadel which is at the center of this controversy. Found this bit interesting:
Citadel is founded by Ken Griffin, a major Republican donor who has funded the presidential campaigns of establishment candidates including Mitt Romney and John McCain.
Is it me or is there one name conspicuously absent there?
Of all the things I read on the situation today - this resonated the most with me: An Open Letter to Melvin Capital, CNBC, Boomers and WSB. This was the key line, "We're not enemies, we're on the same side."
Amen brother! Amen! I hope all who view this situation with an open mind take away that message and in many ways take back the country from the elites who don't think rules apply to them.