Current Affairs Stocks and shares and stuff
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Sassy Colombian
Member: Team PoP
Robinhood's CEO better get ready for the questioning beating he will be receiving from Maxine Waters lol
carolinablue232
Player Valuation: £70m
We’ll likely learn nothing new. They’ll pepper him with questions for a couple hours. Most won’t understand what they’re asking and why after getting some questions staffers put in front of them, but they’ll use stern voices. Some will actually understand what happened, but to them he’ll just repeat himself about clearing house requirements and that it had nothing to do with other financial institutions pressuring them. And then everyone will go home.
Remember Zuckerbergs Judiciary testimony from a couple years back? Most didn’t have a clue what was actually going on.
Sassy Colombian
Member: Team PoP
Hopefully this hearing will be different. The Facebook hearing was lead by the Commerce Committee, this hearing will be lead by the Financial Services Committee. Waters is currently the chair and has been member since 1991 so she has vast knowledge about Wall Street. In 2010 she worked and helped pass the Dodd-Frank Wall Street Reform and Consumer Protection Act and is very much aware about the financial abuses that take place in our financial system. She has also gained a reputation as a fearless questioner so Robinhood's CEO is not going to be able to run over her. And now that Democrats are in control of Congress this hearing may be the impetus for passing new finance regulations over Wall Street.
carolinablue232
Player Valuation: £70m
I don’t doubt Waters will ask good questions. But I don’t think he’ll deviate from his script. It needs an investigation on top of this show for us to know what actually went down. I’m confident we’ll get one.
Martin Alvito
Player Valuation: £50m
The line between short squeeze and "pump and dump" gets real blurry when the short squeeze is executed via internet forum.
As with 2008, the fundamental flaws in trying to manage modern markets with a 1930's system have been exposed. Our stock markets are a lot like Windows - there have been a lot of heavy updates over the years to an underlying antiquated system, to the point that the system no longer functions well.
My systemic concern here is a the potential for a broad-based bubble caused by short-sellers becoming skittish about getting squeezed by an Internet horde backed up by big money. AFAIK, if well-financed third parties shove a bunch of chips onto the table behind whatever this group targets, that's 100% legal. The potential result is the removal, or at least blunting, of market forces that ordinarily keep prices in check and a short-term rally leading to a spectacular collapse.
This is why banks' trading actions last week have come into question. If it turns out that they ultimately moved the needle on the share price, well, the congressional hearings could be lively.
Normal behavior. Share prices are based on prospective expectations of profits, not retrospective results. If the market thinks that current news signals risks to the future of the business that outweigh the positive signal sent by current results, the share price declines.
It's best to think of short-term share prices as the result of a strategic game played by investors. That's how stuff like Gamestop happens - if you can catch enough short sellers in a position, and you bring enough money to bear, you can force them to buy at an inflated price to cover the short and comply with the law.
In the long-term, fundamentals do win out.
As with 2008, the fundamental flaws in trying to manage modern markets with a 1930's system have been exposed. Our stock markets are a lot like Windows - there have been a lot of heavy updates over the years to an underlying antiquated system, to the point that the system no longer functions well.
My systemic concern here is a the potential for a broad-based bubble caused by short-sellers becoming skittish about getting squeezed by an Internet horde backed up by big money. AFAIK, if well-financed third parties shove a bunch of chips onto the table behind whatever this group targets, that's 100% legal. The potential result is the removal, or at least blunting, of market forces that ordinarily keep prices in check and a short-term rally leading to a spectacular collapse.
This is why banks' trading actions last week have come into question. If it turns out that they ultimately moved the needle on the share price, well, the congressional hearings could be lively.
Normal behavior. Share prices are based on prospective expectations of profits, not retrospective results. If the market thinks that current news signals risks to the future of the business that outweigh the positive signal sent by current results, the share price declines.
It's best to think of short-term share prices as the result of a strategic game played by investors. That's how stuff like Gamestop happens - if you can catch enough short sellers in a position, and you bring enough money to bear, you can force them to buy at an inflated price to cover the short and comply with the law.
In the long-term, fundamentals do win out.
“Buy the rumor, sell on the news” is pretty standard price action anyway.
You can argue that real time settlement is something that we should have the technology to do now but this seems like just trying to pass the buck for poor company management
Mrk
Player Valuation: £40m
Feel for those who jumped in late out of fear of missing out while others quietly sold at the high while telling everybody else to hold.
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