Cuomo: 1. Vlad the liar: 0.

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https://www.cnn.com/videos/business/202 ... investing/

This entire game stop thing has been absolutely amaaaaaazing. Wish I would have heard about it on day one vs. when it was almost over. I haven't paid any attention to stocks or investing for a couple years for a few reasons but am just now clearing my mind and other things and preparing to keep tabs on the business world again and decide where to invest some new capital. Oh well, at least my older brother was paying attention and jumped in with enough money to make himself $5800 in a few days and get out.

As for this interview.. liar, liar, pants on fire. Blah blah regulations blah jargon jargon bs lies - no; they put a stop to it because their biggest clients are the short selling hedgefunds that got burned in this reddit move. I've never heard of Robinhood before (not in Canada) but the way they make money is by essentially cheating their user base. Free trades for the little guy, but the software in the background is collecting their trade info and selling it to the big guys in ultra rapid fire real time, and then the big guys' software facilitates bigger buys/sells/trades as middle men to the retail little guy traders - essentially making money for nothing off of their data by intercepting their trades and making lightning fast back room deals in between to skim a little off the top for themselves. Like they say: When something is free (especially in tech/apps/software), You are the product!

I didn't get it at first but now I do, sort of, and it's glorious.

Exactly! Even Billionaires like Elon Musk and Mark Cuban were giddy about it.

Cliff notes:

Big giant companies bet BIG on certain stock prices going down - they make money when the price goes down by a certain date.. and they make big enough bets and control a large enough amount of shares to all but guarantee their bet will be accurate, the price will go down, and they will make big $ off of it. They weren't just gambling on the price going down, they were manipulating trades to all but guarantee that the price will go down because they have enough money to make massive plays.

So, when people decided they didn't like this, MANY people banded together to buy shares of Gamestop and other companies these guys have targeted in order to drive the prices up HUGE, and keep them up passed the due dates of the big short sellers bets, so that then they lose their bets and have to pay out.. to the tune of A COUPLE BILLION DOLLARS! Because all these little guys with a few bucks each pumped the price up 1,000x higher than it was, so the amount of losses for the big guys is astronomical.

It's a big middle finger to the giants with deep pockets that manipulate markets and screw companies and small investors.

However.. the fallout from this is going to hurt a lot of little people, too. Because there is no way that prices will be sustained that high unless people just stop trading the GME stock and no one buys or sells - but then what good is the high priced stock to an investor if no one buys it from them ever at any price? Basically, what goes up must come down.. and the people who bought in, let it rise some, then sold and made money (like my brother) will have come out ahead. Or the guy who started the whole movement by putting in $50k that turned into $20M - he'll be able to sell up above his initial $50k for sure, but anyone who bought near the peak of the prices is sure to lose their money when the price drops back down to something reasonable.

Fascinating bit of internet history being made.. the power of social media forums and the masses working together. I missed the boat on all of these trades, but this is far from the last time something like this will ever happen I'm sure, and hopefully the next time I hear something about it soon enough to gamble a few dollars on it myself and ride the momentum up, cash out, and move on.

This might give the "middle finger" to the rich folks----but it's still bad because this invites the sort of speculation which led to the Great Crash of 1929 (and, hence, the Great Depression).

How is it bad for the little guys to win one and the big $ controllers to lose one? Why should people just accept that the game is rigged and never fight back?

I don't disagree with that---but the stock markets should be better regulated.

A little "middle finger" to the rich folks hopefully won't turn into a big "middle finger" for poor people all over.

Stock market regulations favour the Goliaths. Always have, always will.

Wall Street has pretty much perpetually had its finger up to poor people all over.

Nice to see a legion of little David’s sticking it to the man once in a while.

Let's hope this doesn't bite people in the butt later....that's all I'm saying.

I'm not exactly "rich" myself. I'm pretty much out of debt, fortunately.

As already stated, it’s going to bite whoever bought at the peak. We know that via basic math.

But it doesn’t change that BILLIONS in wealth was taken from a couple Goliaths and redistributed to a bunch of Davids.

It’s just that there are Also a bunch of David’s that are going to be collateral damage out of the whole process, too.

By the time people started messaging me about the GME news, I realized that the music must be about to stop and that even if I had $ transferred into my trading account ready to buy that i would be foolish to risk it. Usually by the time you hear of things like this and they make headline news all over the place the big $ has already been made and it’s too late. But clearly there are a lot of people who got caught up in the hype and jumped aboard near or at the peak - those people will lose that money.

Those filthy commoners! Don't they understand the importance of financial regulations? Those poor millionaires didn't bribe politicians persuade politicians with campaign contributions for decades to twist regulations in their favor just so a bunch of peasants could try and make a few K's at the millionaires' indirect expense!

An article from Jacobin (before this Gamestop incident) clarifying Robinhood's predatory business practices:
https://www.jacobinmag.com/2021/01/trading-app-robinhood-investors-scams-sec

The capital class is fine with Silicon Valley using manipulative business practices to squeeze money out of the working class, just as long as it doesn't threaten market oligarchy and stability, apparently.

Many people had a similar attitude during the Roaring 20s. That led to the Depression 30s.

Sticking it to the Man doesn't always yield benefits.

Riiight!!?

Thanks for investigating, Sherlock. :p

We've already established that there are little guy winners and losers in this play. That's reality. BUT, the d-bag hedgefunds DID lose Billions - so that's awesome.

I'm not saying this isn't cool, you understand. Screwing those rich bastards and all that!

All of saying....is that this could set a dangerous precedent.

Oh noes, danger for hedgefund a**holes who've hardly had to take any real risks ever while they make a game of screwing hourly wage earners out of their retirement savings.

I don't agree that it's only dangerous for those hedge-fund folks....

I'm not an advocate for business, by the way. I'm not a businessman.