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Uspolitics

Zero Commission trading: GME, AMC & others get blocked and crashPrice is crashing on low volume for GME & AMC. TD Ameritrade restricted operations on GME, AMC & other securities Robinhood removed GameStop, AMC, Blackberry, Nokia and others Interactive Brokers has put AMC, BB, EXPR, GME, and KOSS option trading into liquidation Charles Schwab raised the margin requirement to trade GME (blocking small accounts from buying it) Those brokers cover most of the US retail market, and it is possible more have enacted restrictions "Robinhood". "Take from the rich to give to the poor". Here it's rather take from the poor so the rich can crash the price and exit. Melvin Confirms $2.75 Billion Investment from Citadel and Point72 Following Losses, Including GameStop (GME) Short I heard but could not confirm Citadel were short on some of those securities Citadel is Robinhood major client that buys their client order flow So this is how it is: They make money by taking the opposite side of retail, and when they lose they ask their zero-commission pets to stop their clients from buying This is from CNBC: “This is a big problem of the e-brokers’ own making as they are so beholden to their payment for order flow overlords and shows the real fragility of the zero commission business model,” said Timothy Welsh, founder and CEO of wealth management consulting firm Nexus Strategy. And world famous AOC criticized the brokers actions, she is a member of the Financial Services Committee and would support a hearing. A few days ago senator Elizabeth Warren said something had to be done, I believe she meant bail out her billionaire buddies. As you may know there is a divide in the US democrat party, between socialists (incl AOC) and "typical" dems. This will get politicized, and your portfolio returns will depend directly on US politics. Also, if these plays continue to be possible will depend on US congress and NOT on magical indicators. The left in the US (the people around Bernie Sanders) will likely fight in favor of the small guy, republicans and old school democrats will defend "systemic risk" in other words the big funds, libertarians (a few republicans + Tulsi Gabbard I'd say) might defend retail investors. But I really expect the same old dems & republicans to win and stop the infinite free money hack, a lot of people really won't like it, and it adds another brick to the wall of divide+tensions+radicalisation. Billionaires will get bailed out, but since they burned themselves I think they are going to calm down with the shorting and fear mongering. Unless crazy laws that overwhelmingly favor them get voted, at that point this would not even surprise me... For once the little guys won and beat the corrupt insiders, and so they cheated to avoid losing.
NYSE:AMC
by MrRenev
12