Can’t stop, won’t stop. Photo: SHAWN THEW/EPA-EFE/Shutterstock Robinhood is a stock-trading app that exists to “democratize finance” — but will also, on occasion, prohibit you from buying stocks because democratically unaccountable experts have declared them overpriced.
Intelligencer spoke with Arnade Thursday about how Robinhood’s banning of GameStop spotlights the fraudulence of the “free market,” why Reddit’s GameStop bulls would be hailed as geniuses on Wall Street , and what “the trickle-down corruption of the rich” is doing to American culture, among other things.
And they really did both: They took a position, and they talked their book! Somebody actually laid out a pretty good presentation on why GameStop was undervalued, a presentation that would have gone down pretty well in hedge-fund circles a while back. And then they built on that and they all piled in. They did it in a very clever way to take advantage of the positioning of Wall Street.They did it through “call options.
To play devil’s advocate: When hedge funds execute clever feats of market manipulation, the losers are generally other rich people. By contrast, when charismatic Reddit posters try the same maneuver, they do so by encouraging a bunch of non-wealthy amateur investors to pile into a trade that many likely do not understand. So the losers are potentially less insulated against financial strife.
Yeah. I think it was. Look, I don’t think this is all going to end well. I think when the dust clears, you’ll probably see that there wasn’t a net transfer of wealth from Wall Street to retail investors but a transfer of wealth from Wall Street to Wall Street, from some firms to other firms. But you’ve got two choices here in my mind.
I think you just said it perfectly. It’s a caricature. One of the dirty secrets of investing on Wall Street is that you just have to get people to buy your story. Most prices are largely untethered to “value,” in my view. Value is a hard-to-define word anyway. But the credentialed class, professionals, the legitimate people, have defined the legitimate way to value GameStop, or the legitimate way to value Nike. And we’re going to play the game by those rules.
Chris_arnade Well said. Excellent piece. 📈🚀
Chris_arnade Yup! The game is up. Usually they hide their exploits in complex deals, but this was out in the open. It stinks of desperation of an industry on the way out. Decentralised finance has matured to the point it can take over:
Chris_arnade 'proper credentials' - WTF does that mean? It's gambling no matter who your employer is.
Chris_arnade The GameStop corruption accelerated Bitcoin by 2-3 years. As Elon just said... “it’s inevitable”. You cannot print money endlessly, allow corruption to run thru our society, & have super debt at every level. $’s will become worthless, $BTC is the only alternative. 1luv
Chris_arnade Problem is you don’t need the credentials in a truly free trade because I should be able to buy whatever I want yet the market is show to be controlled so what’s to say all these Fortune 500 companies not colluding?
Chris_arnade it served the rich. And then the rich become richer, the poor become poorer, they will pay the price.
Chris_arnade The free market has been a lie since the government bailed out S&L’s in the ‘80’s and have continued to bailout financial and other industries since. Now we bail out everyone, from shitty plane builders to cruise ship lines. Except, of course, starving, uneducated people
Chris_arnade Says a lot about the real value of credentials, when boots on the ground traders do way better than them.
Chris_arnade Melvin Capital 😂 retweet
Chris_arnade Hedge funds 😂 retweet
Chris_arnade What 'proper credentials'?
Chris_arnade This is a result of people uniting. If enough of the small guys gather it will be enough to take down the big guy. Sorry but you don't need that yacht.
Chris_arnade I love this article! TBH, I wonder if there are any other struggling company that is being short seller and this happens again...
Chris_arnade Keep hammering DOGE LETS GET THIS THING OVER $1. Fuck just $1. Let’s get this thing to $10. Selling my car and putting it all on DOGE!! I got a feeling!! DOGE TO THE MOON 🚀 🚀🚀 DOGE BABY LETS GET RICH
Chris_arnade grifinapp is a healthier alternative. better feeling, automatic investing, with no monthly fee.
Chris_arnade ROBBING HOODS
Chris_arnade This. Is. True.
Chris_arnade Seriously?! It’s a freaking PYRAMID SCHEME. Jeez.
Chris_arnade Who's our Chief of Police? while in court for NYS bank charges/noone contacted us his staff there or in Gov Housing, to go to court he knocked us out w Military/CIA drug. Why begrudge the $, it's treason immediately. Be lowered outside NYS then & where to go? DC? D shaped prisons
Chris_arnade