Rules for Thee But Not For Me

[jazz]

It looks like new shorts have entered the trade now daring the reddit army not to sell this thing out back to its true value.

Are 5m guys in their basement really just going to hold this for ever? I guess if you only have a few thousand bucks in it.

Trump put stimulus money right in people's hands and look what they did with some play money. Govt has been putting stimulus money in wall streets hands for decades.

[TOM4CWB]

It looks like new shorts have entered the trade now daring the reddit army not to sell this thing out back to its true value.

Are 5m guys in their basement really just going to hold this for ever? I guess if you only have a few thousand bucks in it.

Trump put stimulus money right in people's hands and look what they did with some play money. Govt has been putting stimulus money in wall streets hands for decades.

Wall Street Journal
By Caitlin Ostroff
Jan. 29, 2021 2:20 pm ET
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"A swell of cryptocurrency trading coincided with a major bitcoin exchange outage and led to curbs on other platforms, mirroring the difficulties traditional brokers have had with a frenzy of stock-market activity.

Digital-currency exchange website Coinbase Global Inc. said it was investigating an outage Friday that prevented customers from trading on its web and mobile apps. Another exchange, Bittrex Global GmbH, said an increase in traffic created technical problems on its platform.

Coinbase later said that trading was back up and that it was monitoring for further issues. A spokesperson for Coinbase said that a sharp uptick in trading caused the technical issues that disrupted trading. Bittrex declined to comment.

Bitcoin rallied 4.8% Friday, with one bitcoin worth $34,436. The most popular cryptocurrency has risen sharply over the past year, winning converts from investors worried that central banks and governments, in their efforts to counter the economic effects of the coronavirus, risk devaluing fiat currencies."

Robinhood Markets Inc., which is under fire for suspending trading of popular stocks, also curbed activity in its cryptocurrency platform. Robinhood said it temporarily disabled instant deposits for cryptocurrency purchases citing extraordinary market conditions, according to its website.

[TOM4CWB]

Wall Street Journal
By Caitlin Ostroff
Jan. 29, 2021 2:20 pm ET
PRINT
TEXT
"A swell of cryptocurrency trading coincided with a major bitcoin exchange outage and led to curbs on other platforms, mirroring the difficulties traditional brokers have had with a frenzy of stock-market activity.

Digital-currency exchange website Coinbase Global Inc. said it was investigating an outage Friday that prevented customers from trading on its web and mobile apps. Another exchange, Bittrex Global GmbH, said an increase in traffic created technical problems on its platform.

Coinbase later said that trading was back up and that it was monitoring for further issues. A spokesperson for Coinbase said that a sharp uptick in trading caused the technical issues that disrupted trading. Bittrex declined to comment.

Bitcoin rallied 4.8% Friday, with one bitcoin worth $34,436. The most popular cryptocurrency has risen sharply over the past year, winning converts from investors worried that central banks and governments, in their efforts to counter the economic effects of the coronavirus, risk devaluing fiat currencies."

Robinhood Markets Inc., which is under fire for suspending trading of popular stocks, also curbed activity in its cryptocurrency platform. Robinhood said it temporarily disabled instant deposits for cryptocurrency purchases citing extraordinary market conditions, according to its website.

Wall Street Journal
By Jason Zweig
Updated Jan. 30, 2021 12:01 am ET
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TEXT

"This was the week when a bunch of amateur traders made Wall Street’s finest look like idiots.

From Jan. 25 through Jan. 29, a ragtag army of individuals sent shares in GameStop Corp. up 500%, and sent many others skyrocketing too. In three days, many of these stocks gained more than most do in a decade. The hedge funds on the other side of these bets lost billions.

This movement is the culmination of nearly five decades of the democratization of markets set off by none other than the late founder of Vanguard Group, Jack Bogle.

For all the hyperventilating over this week’s financial revolution, though, investors should regard it as the latest phase in a long evolution—and unlikely to disrupt markets overall.

Still, this is a remarkable moment. It’s as if a bunch of couch potatoes watching a Los Angeles Lakers basketball game on TV belted down their beer and nachos, barged onto the court—and proceeded to block LeBron James’s shots and mercilessly dunk on Anthony Davis."

TO READ THE FULL STORY

https://www.wsj.com/articles/the-real-force-driving-the-gamestop-amc-blackberry-revolution-11611965586?mod=hp_lead_pos7

[jazz]

The cryptocurrencies are all going to get banned by govts. There is no way they will allow parallel currencies to rise.

[TOM4CWB]

Wall Street Journal
By Jason Zweig
Updated Jan. 30, 2021 12:01 am ET
PRINT
TEXT

"This was the week when a bunch of amateur traders made Wall Street’s finest look like idiots.

From Jan. 25 through Jan. 29, a ragtag army of individuals sent shares in GameStop Corp. up 500%, and sent many others skyrocketing too. In three days, many of these stocks gained more than most do in a decade. The hedge funds on the other side of these bets lost billions.

This movement is the culmination of nearly five decades of the democratization of markets set off by none other than the late founder of Vanguard Group, Jack Bogle.

For all the hyperventilating over this week’s financial revolution, though, investors should regard it as the latest phase in a long evolution—and unlikely to disrupt markets overall.

Still, this is a remarkable moment. It’s as if a bunch of couch potatoes watching a Los Angeles Lakers basketball game on TV belted down their beer and nachos, barged onto the court—and proceeded to block LeBron James’s shots and mercilessly dunk on Anthony Davis."

TO READ THE FULL STORY

https://www.wsj.com/articles/the-real-force-driving-the-gamestop-amc-blackberry-revolution-11611965586?mod=hp_lead_pos7

Robinhood Raises $1 Billion to Meet Surging Cash Demands
Infusion meant to help company meet rising demands stemming from recent frenzied trading
How Options-Trading Redditors Fed the GameStop Frenzy
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0:00 / 4:142:01
How Options-Trading Redditors Fed the GameStop Frenzy
How Options-Trading Redditors Fed the GameStop Frenzy
Wall Street is in an uproar over GameStop shares this week, after members of Reddit’s popular WallStreetBets forum encouraged bets on the videogame retailer. WSJ explains how options trading is driving the action and what’s at stake.
By Peter Rudegeair and Orla McCaffrey
Updated Jan. 29, 2021 10:25 pm ET
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TEXT
Robinhood Markets Inc. raised more than $1 billion to help meet rising demands for cash stemming from frenzied trading in hot stocks like GameStop Corp. , which rose sharply Friday to end the week up 400%.

Robinhood and other brokerages in recent days have experienced a surge in trading volume in a small number of stocks, prompting the clearinghouses that help process and settle trades to ask them for more cash to cover the transactions.

Thursday’s fundraising came together in a matter of hours after Robinhood received an early morning message from a clearinghouse asking for a sharp increase in deposits for that day’s trading, according to people familiar with the matter. While Robinhood executives felt they had the resources to cover that request, they worried that similarly high increases in the ensuing days could potentially strain the company’s finances, the people said.

A decision was made to restrict trading in about a dozen hot stocks and shore up the company’s finances. Robinhood also borrowed roughly $500 million from its banks this week, the people said.

“Part of the mechanics of what makes this difficult is things go viral on social media, and increases like that can be exponential,” Robinhood Chief Executive Vlad Tenev said of the trading restrictions in an interview late Thursday. “With something exponential, things can change very, very quickly. Part of this was also anticipatory in nature.”

TO READ THE FULL STORY

https://www.wsj.com/articles/robinhood-raises-1-billion-to-meet-surging-cash-demands-11611928504?mod=latest_headlines

[shtferbrains]

Thought I had some understanding of how markets worked but I'm beginning to se e I knew nothing.

This causes a lot of uncertainty which may cause big disrution.

Stock markets,money markets,commodity markets????

Big Chicom activity.

Stolen election.

Weak governments trying to reset as never before.

Reset might not go as advertised.

Pray for us Tom!

[jazz]

Thought I had some understanding of how markets worked but I'm beginning to se e I knew nothing.!

As the gamestop fiasco shows, the markets are full of free leveraged money. Options on margin let people with no money be players. Unlimited naked short sellers use margin on the other side.

I mean what could go wrong.

Lot of reckless players in the market right now. Might be time to exit for a bit.

[biglentil]

Let's pray the reset doesn't happen as advertised, I value my freedom. What WSB has done is truly a game changer imo and there is no putting the genie back in the bottle.They punched a hole right through the illusion of the free markets. Some are calling for Robinhood to change its name to Sheriff of Nottingham. There will be unintended consequences to Robinhood's nefarious actions that are a blatant attempt to squish retail to save their billionaire cronies. What's next making discussion forums and commodities like silver illegal?

[shtferbrains]

As the gamestop fiasco shows, the markets are full of free leveraged money. Options on margin let people with no money be players. Unlimited naked short sellers use margin on the other side.

I mean what could go wrong.

Lot of reckless players in the market right now. Might be time to exit for a bit.

How many are thinking might be time to exit?

[sumdumguy]

The cryptocurrencies are all going to get banned by govts. There is no way they will allow parallel currencies to rise.

I wonder how the governments and money changers will shut it down. I guess they can manipulate computers just like many a techie. Nothing is impossible when you’ve got the Gater and Bozo riding shot gun. 🥷