What happens when Wall Street insiders get crushed by a bunch of self-described "degenerate" retail investors?
The Empire Strikes Back… That's the topic of today's episode.
I ended yesterday’s update with some open questions. One in particular:
Will regulators look for a way to stop this crowd-sourced destruction of hedge funds with over-exposed short positions? Or, as in the private sector deplatforming of deplorables, can it be outsourced to companies like Schwab, NASDAQ, and, once again, Reddit?
Today we have some answers.
Discord shut down the wallstreetbets server for “violating terms of service”.
Interactive Brokers, Schwab, and Robin Hood have all moved to eliminate trading in the so called ‘meme stocks’ including GME and AMC.
The bottom line:
Private companies are now (and will continue to be) the primary defense against heterodox thought & activity.
If your looking for a window into the minds of American millennials, you should pay attention to Dave Portnoy of Barstool Sports.
Portnoy of Barstool Sports was exasperated by the fact that Robin Hood cut off trading if its users.
How can they change the rules in the middle of the game? If they can do this what can’t they do?
Answer: They can and will do anything. Expect it. Plan on it.
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