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It doesn't matter whether RH acted legally or not there fact is they destroyed their brand. The only reason there hasn't already been account closures en masse is because people don't want the hassle of transferring their $gme. Read all the technical legalese you want every broker makes you sign an arbitration agreement I am sure RH is the same. Lawsuit is DOA but RH is circling the drain slowly. Looks like fidelity is the largest gme shareholder and the wsb crew is imploring everyone to open an account with them. RH and their crappy marketing is done.
When you pull back the media hype and all the noise around what is actually happening you realize that although this may have been started, it was not the sole doing of the retail investor. Yes it makes for some fantastic headlines, "a new paradigm", "the rise of the retail investor", blah blah. Peel back the onion and the reality is that 60% of the float is held by institutional investors, this would not have been possible without them just standing by and watching it unfold, the wont sit by and watch their Billions of gains evaporate. Yes hedge funds lost billions, but most of those Billions went to other hedge funds, wealthy investors, and institutional investors. The run up has been so dramatic that new shorts will come in at these and if it goes higher even more will come in. This is not as David vs Goliath story as many think as they pile money in to fight the good fight. This is Goliath vs Goliath, with David getting in a few kicks to the shins. Yes new Robinhood millionaires will be printed the early buyers holders will back some nice profits if the are smart enough to get out and dont get lost in the stupidity that this is the way to support Gamestop, its not if the want support Gamestop they should buy from the store. The End$GME is billionaires were lost and made amongst the billionaires, the foolish holders and latecomers will be left holding the bag and the shorts old or new will get their pound of flesh.
As for Robinhood and others that prevented buying, I hope they get theirs both from regulators and the account holders. I for one closed my account and I didn't even have any skin in this fight.
In the grand picture nothing much will change for Wallstreet, even if regulations are put in they will eventually go away if anything the retail investor will get more restrictions. I'm sure everyone is aware of how they gave it to wallstreet last time buy limiting day trading to the retail investors.
Thats my two cents for what its worth.
This is an interesting twitter thread by somebody reportedly to be a stat-arb trader. Interesting in that it actually has an interesting explanation of what stat-arb is and how it provides liquidity to the markets, but also what the potential consequences of moves like this are.
This is a tweet about something funny that happened in SF yday related to Robinhood. (Has pictures and video. Something similar happened in Houston this week as well, but with a sign begging the Team owners to sell the Texans!)
I've had a reddit account for a while, though I hardly look at /r/wallstreetbets. From recently perusing it, it seems to have amassed about over six million new subscribers since the commotion started. A lot of them seem to be disenfranchised, disgruntled young people, mainly gen-Z, or millenials , with many claiming to put in their GME share as a virtual anti-wall st. "protest" buy. And during this past covid year, there seem to be have been reported at least a million more newcomers to retail trading or investing. I guess, in summary of my thoughts on this, I'm kind of concerned this may lead to overreacted regulation action by the feds and lawmakers, and I dread a future FTT coming sooner.
A meme https://en.wikipedia.org/wiki/Meme explains how Bitcoin get its value, how "Alternative facts" has its followers. If a meme collects large group of followers history could be altered, witness Jan 6 event with Q guy leading the charge if officer Eugene Goodman made a turn in diff direction we could be all under Martial law by now. This is to say short sellers have been presenting their facts for a long time until a WSB guy presented his facts. Just like the Jan 6 crowd when someone ready "prepare to die", for the WSB followers somebody was prepare to have the margin call. It will not be just another dot com bubble, it feels different this time.