Thursday, January 28, 2021

Something absurd

"The People vs. Wall Street." (Saul):

"Now consider this: Gabe Plotkin, the hedge fund investor behind Melvin Capital, is one of the best in the game. He recently bought a $32.2 million mansion with nine bedrooms after overseeing 30% average yearly returns at Melvin Capital. He joined Melvin in 2013, after paying a $1.3 billion fine and pleading guilty to insider trading at his previous gig with SAC Capital. When Melvin Capital was getting bulldozed by Reddit, SAC Capital injected them with cash. So did Citadel, the hedge fund that is currently benefiting from the pause in trading on Robinhood. 

“Robinhood was never what it pretended to be,” Gemini CEO Tyler Winklevoss said. “It built its business on selling Wall Street Bets order flow to the hedge fund Citadel. In the moment of truth, we learned which customer it cares about the most.”

How might you feel if you were someone who had lost their house in the 2008 financial crisis that was manufactured by these same kinds of institutional, big-money investors, then spent 12 years watching those same investors skate around scot-free, and then made a few thousand dollars on a miraculous, speculative trade — only to be told what you were doing was actually bad now, maybe even illegal, and perhaps required punitive measures?

How is it possible to examine this and not see the obvious fault lines — the many vs. the few, the populist vs. the establishment, The People vs. Wall Street?

Something absurd happened this week."
"The System Is Rigged - Episode 4537: Game Stop Corp" (Moon).

Added:  tweets by Justin Kan.  Citadel is looking like the big villain/criminal.  The Robinhood name now has new meaning, and the Citadel and Robinhood people should all be in jail.

Added:  tweet (Tyler Winklevoss):
"Who made the call to @RobinhoodApp this morning? People deserve to know."
Reply (Yakes):
"The white house did"
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