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> Robinhood and other brokers reactions were predictable enough to be factored into the risk posed by the volatility of the stock. You're saying the reactions

> Robinhood and other brokers reactions were predictable enough to be factored into the risk posed by the volatility of the stock. You're saying the reactions were predictable after brokers took measures and justified their actions. The reality is that no one, not even Robinhood predicted the volume of transactions and the capital requirements for it.

Rapzid 6y ago
Of that specific stock a year ago? No. But there are regulations and circuit breakers in place for extreme volatility already so situation like what happened are known possibilities. Robinhood can pause transactions anytime they need to in order to raise more capital or otherwise meet their deposit requirements. The stock exchanges can completely pause all trading to let things cool off if they deem it necessary. The dominant narratives coming out of WSB over the past couple weeks were narrow-picture, simple minded takes on a complex system(and conspiracy theories) rooted in ignorance. Anyone preaching a more nuanced view and displaying actual knowledge of how the market functioned, at a technical level, were painting a much different picture. I feel like the universe prob did a bunch of would-be investors a favor when those brokers had to temporarily pause buys on GME. Given how high the stock was and GME is down 80% today off the 5 day peek. I understand those who were super keen on taking a bunch of other peoples money in exchange for a worthless stock may feel differently. To each their own I suppose.
- libertine 6y ago
  I'm talking about the past week events of a specific group of stocks, and that they were unpredictable for everyone. It was unpredictable for WSB, for Robinhood and other brokers that paused transactions, for hedge funds, for the media, for everyone. Robinhood didn't know they would need to round up 2 billion + 3 billion USD, which according to the CEO he was notified of that capital requirement at a 3AM call (could be bullshit, but it was what he said). If Robinhood predicted any of this, they would have raised that cash sooner and save themselves a PR nightmare. You're the one that seems to not give the due credit to the whole thing - not credit in a moral/ethical sense, but in the achievement of an unpredictable set of escalating events. To be clear, I didn't participate in any of these, neither I think the decision of anyone that joined it for the "lulz" is a smart decision. But still, I need to acknowledge all the chain of events was impressive. The end isn't impressive, everyone knew how this was going to end.

Rapzid 6y ago

Of that specific stock a year ago? No. But there are regulations and circuit breakers in place for extreme volatility already so situation like what happened are known possibilities. Robinhood can pause transactions anytime they need to in order to raise more capital or otherwise meet their deposit requirements. The stock exchanges can completely pause all trading to let things cool off if they deem it necessary. The dominant narratives coming out of WSB over the past couple weeks were narrow-picture, simple minded takes on a complex system(and conspiracy theories) rooted in ignorance. Anyone preaching a more nuanced view and displaying actual knowledge of how the market functioned, at a technical level, were painting a much different picture. I feel like the universe prob did a bunch of would-be investors a favor when those brokers had to temporarily pause buys on GME. Given how high the stock was and GME is down 80% today off the 5 day peek. I understand those who were super keen on taking a bunch of other peoples money in exchange for a worthless stock may feel differently. To each their own I suppose.

libertine 6y ago
I'm talking about the past week events of a specific group of stocks, and that they were unpredictable for everyone. It was unpredictable for WSB, for Robinhood and other brokers that paused transactions, for hedge funds, for the media, for everyone. Robinhood didn't know they would need to round up 2 billion + 3 billion USD, which according to the CEO he was notified of that capital requirement at a 3AM call (could be bullshit, but it was what he said). If Robinhood predicted any of this, they would have raised that cash sooner and save themselves a PR nightmare. You're the one that seems to not give the due credit to the whole thing - not credit in a moral/ethical sense, but in the achievement of an unpredictable set of escalating events. To be clear, I didn't participate in any of these, neither I think the decision of anyone that joined it for the "lulz" is a smart decision. But still, I need to acknowledge all the chain of events was impressive. The end isn't impressive, everyone knew how this was going to end.