Wall Street Ruling Elites Strike Back
If you've ever been in a Las Vegas casino when somebody is on a winning streak, you know that the casino won't just let them keep winning forever. Eventually large men in tailored suits will appear and escort the lucky gambler out of the casino. The casino will simply change the rules.
Gotta admit it’s really something to see Wall Streeters with a long history of treating our economy as a casino complain about a message board of posters also treating the market as a casino
— Alexandria Ocasio-Cortez (@AOC) January 27, 2021
This is what the powerful do. When Bernie Sanders was running in 2016 and suddenly appeared that he might win, the DNC, the media, and the political and financial establishment all came together to crush his campaign. They changed the rules.
When Julian Assange committed the unpardonable offense of journalism and exposed our war crimes, he was suddenly charged with espionage. They changed the rules.
— Alexis Ohanian Sr. (@alexisohanian) January 28, 2021
Today we have a bunch of retail investors beating billionaire hedge fund managers at their own game, and that can't be allowed. The ruling elites will sacrifice the thin fake veneer of earned meritocracy at the first sign of trouble.
The stock plummeted as much as 68% Thursday after Robinhood, Interactive Brokers and others took steps to curtail activity in several high-flying stocks, including GameStop and AMC Entertainment Holdings Inc...
The clampdown by brokerages extended beyond GameStop to other high flying stocks such as BlackBerry Ltd. that have surged this week, burning short sellers and hedge funds. The phenomenon attracted the attention of regulators Wednesday, with the Securities and Exchange Commission saying it was actively monitoring the situation.
Does this suit mention Robinhood's relationship with Citadel, who are deeply interested in the shorting of GME?
— Biden Removes Visa Restrictions on Kyrgyzstan (@Ayyyyten) January 28, 2021
The list of restricted stocks keeps growing.
In addition to GameStop, the wild trading affected other heavily shorted stocks, including AMC Entertainment, BlackBerry and Koss.
“We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AAL, $AMC, $BB, $BBBY, $CTRM, $EXPR, $GME, $KOSS, $NAKD, $NOK, $SNDL, $TR and $TRVG. We also raised margin requirements for certain securities,” Robinhood said in a statement.
Raising margin requirements increases how much money an investor using leverage and derivatives must have in their brokerage account after a stock purchase.
Interactive Brokers said: “As of midday yesterday, Interactive Brokers has put AMC, BB, EXPR, GME, and KOSS option trading into liquidation only due to the extraordinary volatility in the markets. In addition, long stock positions will require 100% margin and short stock positions will require 300% margin until further notice. We do not believe this situation will subside until the exchanges and regulators halt or put certain symbols into liquidation only. We will continue to monitor market conditions and may add or remove symbols as may be warranted.”
Stock trading app Webull stopped allowing clients to open new positions in GameStop, AMC Entertainment and Koss.