OT: Stock and Investment Talk
- Thread starter RU-05
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Yes. Facts. Are you saying that RH’s receipt of at least $1.6bn in capital infusions yesterday is false? If so, state your case. Are you stating that multiple brokerage firms stopped trading in GME for reasons other than a demand in more collateral from the DTCC? If so, show evidence. Because the above items I stated are facts.
That’s fine, but there is really no basis for your views in the clips. Cooperman is a tough SOB. I can certainly agree With and attest to that statement. And he’s not some saint, either. But I don’t find it helpful when a narrative that inflames mob like behavior is fanned by false statements. If you wanted to criticize come hedge funds for unethical practices, there are far better guys to select,
OK. That's your opinion. Like the litany of topics discussed on here you haven't moved me to your side of the aisle and i haven't moved you.
You take offense with my critique; I take offense with the fact that guy gets on CNBC during one of the most contentious periods in financial history and says what he says. With the backdrop of the retail buy side being frozen out of those equities, his comments were particularly chaffing
You’ll excuse me, but my patience for narratives unsupported by evidence and facts which inflame mob like behavior expired sometime in early January, and it’s incumbent to call BS on opinions derived from such narratives.
And I'm fine with that. Follow the money brother. Who's paying you? It's probably perfectly rational for you to defend him, and hedge funds in general. It's also perfectly rational for me, at my point in life, to watch that clip and think the dude is lost.
This is a great republic when we can each have a viewpoint and express it.
I’m not defending him. I’m saying the statements you’ve ascribed to him are not supported by his actual statements. I’m not defending hedge funds. If a bunch of funds get their faces ripped off because of short positions manipulated by a bunch of reddit users, tough luck. I’m interested in facts, and am against lies.
OK. So...what are we doing here. I don't feel I'm lying. You do. I guess we're at an impasse. And I'm not an occupy wall streeter or a bernie bro or any of that. I have no real agenda beyond my disgust at what occured this week. I can admit I'm pissed about that.
Well, anyone who attempted to trade and was prevented from doing so has every right to be pissed. The questions is, where should that anger be directed? It seems emotions were directed at any and all of the following: hedge funds, Wall St, Robinhood, the elites, the N.Y. Mets, Janet Yellen, Ken Griffin and, as we’ve covered, CNBC and Leon Cooperman. Something surrounding this notion that all of these people and entities were trying to keep the little guys down by rigging the system to prevent smaller “investors” from taking advantage of a market opportunity,
But the reality of what led to yesterday’s events is simpler and less devious.
A new online brokerage firm catering to novice investors allowed them to invest smaller sums while giving them access to somewhat sophisticated trading derivatives. To boot, they allowed their customers to use margin. And they charged zero fees on trades. When this group massed into a few incredibly volatile stocks, it led to capital issues where the DTCC said “we need more collateral” and RH didn’t have it. So they could not take on more risk exposure and halted GME purchases. People were angry about that, and pointed fingers not at the real issue, but at “ the man.” Seems RH did raise more capital, and presumably that will be sufficient. Time will tell.
What situation? Just the general market being down this week or the RH saga?
Former = keep buying and take advantage of the opportunity (we have a 16-year time horizon)
Latter = the saga doesn't impact me directly, except for market volatility, which happens from time to time
I'll buy what you're selling if you can address this: why did several broker dealers restrict? It wasn't just RH. It was concerted. And it followed a huge AH selloff on Wed night.
"The restrictions, from brokerages including Robinhood Markets Inc., Webull Financial LLC, E*Trade Financial Corp. and Interactive Brokers Group Inc., left traders hoping to capitalize on this week’s eye-popping gains with only two options: hold or sell."
Source: https://www.wsj.com/articles/online...amestop-amc-amid-frenetic-trading-11611849934
What percentage of retail is RH, webull, etrade, and IBG? That's a HUGE number cut off from the buy side at just the moment when the sell side was most vulnerable.
The DTCC required more collateral from several brokers. Seems they were able to furnish it, but in the interim they could not take on more risk exposure related to GME. RH’s capital problems required more significant measures, including incremental investments from their owners along with borrowings under their credit lines.
OK -- so is this now the precedent we've set. The DTCC can shut down a broker dealer from executing buy orders and there's no advance notice to the market? No transparent communication? Retail just logs into and can't buy?
I don't think this is behind a paywall. Posted without comment
https://www.wsj.com/articles/keith-...it-mania-he-talked-to-the-journal-11611931696
https://www.wsj.com/articles/keith-...it-mania-he-talked-to-the-journal-11611931696
Read the same article and a couple others about him.
So the leader of the "Resistance":
Has a CFA (major props to him);
Worked in investment banking for years;
Started his own investment services firm;
Most recently was working for the investment branch of a major insurance company.
If that doesn't say "Wall Street Insider" than I don't know what does.
Good for him on his call for GME months ago - although if the #fundamentals were so good why the need to rally his WSB friends to help.
There's going to be a lot of "failure to deliver" situations with GME options too. Not a good look for a company (RH) looking to IPO soon.
Can you imagine GM still investing in ICE cars after 2030? WTF are they thinking? Who are the dinosaurs running this company? Doomed.
Presumably the DTCC reacted to a rapid rise in exposure, and didn’t (couldn’t) provide any “advance” warning because the situation developed so rapidly. Suffice to say this is a bit of a unique situation (at least unique to date). Since several brokers had to all deal with this, I don’t think any advance warning was given. All of the players were reacting to real time, massive moves in GME,
I bought more TSLA today. If it drops again tomorrow, I'll buy more again. I love this company.
Robin Hood just expanded the list of stocks for which they will have restrictions/limitations to 50. Some are much larger cap stocks (e.g. Starbucks, GM) that I don’t think have large short positions. I’m not sure of the criteria.
Perhaps it would be easier to limit people from buying on margin too much. Isn't that what caused RH's problem?
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Margin is part of it, yes. It seems like RH was not sufficiently capitalized to deal with the extreme volatility and volume.
I think RH makes money from margin lending and selling trade data to high frequency traders. They are private, so not clear what the mix is between those two sources, but cutting back on one of two revenue streams probably won’t look good on an IPO roadshow. Not that they should be worried about that after this week.
