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I'm finding these posts about GameStop suggesting that somehow reddit owned Wall Street to be sad. reddit triggered a big Wall Street firm to crash. but, another Wall Street firm, Citadel, made money on all sides of it. Citadel handles most of Robinhood's transactions, so they made money from every day trader who bought up GameStop, and will make money when they sell. meanwhile, Citadel bought Melvin, the hedge fund that crashed, so they got a bunch of assets at a big discount.

these scum have a couple centuries lead on you, guys. it's a nice story to think a bunch of nerds defeated Wall Street by day trading with their computers, but that's a false narrative. the scum were ready to profit from it, and they did. all you did was help them discover which assets were distressed.

I'm all for sticking it to Wall Street and would love to see that happen for real. but you have to be honest and clear eyed to get there, in my opinion.

@walruslifestyle I'm not sure you understand how Robinhood works. The trades are free -- in as much as Gmail is "free." It runs on data.

I see your point, but sharks eat each other when there's blood in the water. This wasn't orchestrated by Citadel. They actually tried to bail Melvin out at first. But yes, they've certainly profited from it.

Taibbi reported on Robinhood last year if you're interested.

taibbi.substack.com/p/pandemic

@walruslifestyle

And, nobody knows who is 4CHAN.

Same with Bitcoin.... The "institutional investors" are just people able to leverage other people's money (OPM) to rise value; there's no prohibition from those same people placing a bet in advance if investing OPM.

I learned PayPal was considering investing in Bitcoin 18 months ago but speculation is gambling against house eventually your money will become OPM.... In my lifetime there have been a dozen Ponzi schemes.

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