Language advisory as to the above video. We seem to be part of a huge experiment in what happens as the American people have all their institutions revealed to be corrupt and rigged. Interesting times.
Wallstreet Explains It All
Donald R. McClarey
Cradle Catholic. Active in the pro-life movement since 1973. Father of three, one in Heaven, and happily married for 41 years. Small town lawyer and amateur historian. Former president of the board of directors of the local crisis pregnancy center for a decade.
Yes, now comes the reckoning. Our Lady said it would happen if the Church didn’t obey along with the rest of us Catholics. From now on the world situation will get progressively worse. But we know what to do. Just do it.
The hedge funds were Robinhood’s customers. The App was free, so the user was the product. Robinhood sold the data created on the user’s to the hedgefunds. Additionally when a order to buy or sell was placed Robinhood held it, notified the hedgefunds of the action, allowing the Hedgefunds to act on the knowledge before the action took place.
The lawsuits over this commercial treachery will be a joy to behold!
What the [expletive-deleted]!
For decades, they paid to protect the rigged system and who gets blown away?
No longer are markets ruled by fundamentals. Trump and the Fed pumped in $4 trillion in 2020; and ‘they’ believe Fraudulent Xiden will pump in another $2 trillion and stocks go through the roof. Total US stocks’ values are 188% of US GDP – The Buffett Index. That is huge.
It used to be high risk, high yield. The hedge fund’s sole purpose is to jump in and out of big positions and make quick, big gains.
You get 30,000 Redditt-reading pajama kids in their mother’s cellars with credit cards in on the arbitrage/scam du jour and the ‘jig’s up.’
Monday they were bidding up silver. ‘Why’ (fundamentals) eludes me.
It’s a risky business. For years, TSLA short sellers have been getting slaughtered.
I’m not sure Don. Viva Frei’s review of the class action lawsuit brought up a fundamental error. They are suing because they violated the agreement with the user’s, which they self identify as. Robinhood could simply identify that the hedgefunds are their customers and the user’s are their product. Those suing suddenly don’t have standing…
Only if a court recognizes that the App user’s ARE customers too, even if the App is free, will this go forward. I’m not holding my breath. This has been set up this way on purpose.
If that is their legal strategy JFK, I believe it is doomed to fail. Their advertising campaign alone would be enough to convince a court to treat the app purchasers as customers, and would also add the element of fraud necessary for punitive damages and fees to be awarded. I would take the case in a heartbeat.
Additionally when a order to buy or sell was placed Robinhood held it, notified the hedgefunds of the action, allowing the Hedgefunds to act on the knowledge before the action took place.
I think there might a discrete legal term for this action and it’s been unlawful for a long time. “Front running” perhaps?
Art, is it illegal if you agree to the practice when you download the App?
I feel confident that no SEC action will be coming from Peter Strzok’s wife or the Justice Department.
Art, is it illegal if you agree to the practice when you download the App?
Contract of adhesion. I doubt if it would stand up in court. We shall soon see.
Art, is it illegal if you agree to the practice when you download the App?
IANAL, but I wouldn’t wager contractual agreements protect you from criminal liability.
https://www.investopedia.com/terms/f/frontrunning.asp
I’m glad I participated in this, if only for $16. Usually stay away from stocks and go with ETFs and index funds instead.