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Yes. Is that one way of describing the "find a bigger fool" strategy of investing? Is that the purpose of these apps? To get uninformed liquidity into the ma
by worik 6y ago
Yes. Is that one way of describing the "find a bigger fool" strategy of investing?
Is that the purpose of these apps? To get uninformed liquidity into the market to benefit investment banks?
- bilbo0s 6y agoAs a general rule, we should always keep in mind that startups are founded to make money for the startup's founders. If other stakeholders such as customers, employees, investors, and so on are able to make money off of it, that's a plus. But we shouldn't expect founders to do anything other than act in a manner facilitating the generation of wealth for themselves. RH is no different than any other startup in this regard. They aren't going to open themselves up to the risk of not following a margin agreement in the name of "the revolution!" They are in the business of making money, even if that means users lose their shirts. And if people have been trading GME, AMC, et al on margin? (I mean, unless the government steps in or something?) I'm afraid a lot of them are going to be losing their shirts in the coming weeks.