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1- RH is one of hundreds of brokers, not all of whom stopped taking trades for opening positions in GME. Is your point then that RH traders are the only buyer
by beezle 6y ago
1- RH is one of hundreds of brokers, not all of whom stopped taking trades for opening positions in GME. Is your point then that RH traders are the only buyers? Is it a ponzi scheme then?
2- It is NOT an EULA. Your agreement with a brokerage is not a software license. It is exactly like a mortgage or credit card agreement. Good luck in court trying to claim your were damaged and want to walk from one of those because you did not bother to read the terms.
3- An "investor" is not a pattern day trader. An investor does not take positions with a time horizon of minutes and hours. The kindest would be to call those involved in GME speculators. If these individuals bought GME because they really believed in the recovery story they would have a long time horizon and would not care about a temporary halt in new purchases at a handful of brokers.
4- The biggest short is in the press saying they are out.
4a- Ex: Margin call is triggered on account at GME price of $290. The first bid that RH can hit is at $265. Who is eating the difference? Suppose not all is filled and balance is at even lower price? This is not an orderly liquid market. Try to recall trading in index futures during March. Moves that would typically take weeks happened in moments.
5-Politicians latch onto anything that will get themselves in front of a camera. RH is not impeding the free market. You are free to DTC your entire account to another broker at any time.
6-Are you out front with the same critique when Joe Hedge fund is on Squawk box saying how great the new iWhatever is and how we should all buy Apple even at record highs? Even though he is long and has an interest in it going higher? But it is bad when a short seller publishes why they think a company may eventually fail because of mismanagement or other trends? And the nerve of them to suggest others should sell before it does fail.
6a-Unless GME needed to raise funds by an equity sale, the price of their stock is irrelevant to day to day operations. Do you look at the price of Pepsi shares before buying Doritos? If the new CEO of GME has a legitimate and convincing recovery plan he should be able to persuaade banks to lend... unless the debt load is already so high that even a recovery makes it dubious that they can service their debt.