How PR failings lead people to assume the worst: Robinhood's screwup encouraged a populist revolt

[@TheLiberalPanda]

I hate to say it but WSB refuses to believe this right now. They're stuck in the "robinhood corrupt, robinhood bad!!!" echo chamber. And while that is 100% true (robinhood fucking sucks), they're ignoring the truth of the situation: there was a very real liquidity crisis in these brokerages and clearing houses and THAT'S what caused the trading restrictions. Robinhood tapped $1Bn+ line of credit on Thursday for this exact reason, but they're completely incapable of communicating their intent properly. Edit: fixed a typo

[@rossmanngroup]

I think Robinhood earned this for themselves with how they chose to communicate this. I think the good that will come out of this, is that this garbage method of corporate-psuedo-communication will end. To be clear, I obviously have a more populist bias with my take on these issues. I think it stems from my general temperament. but you can't have an arm's length relationship with citadel, who bailed out the very hedge fund that was going bankrupt on $GME rising & then institute a policy that will result in $GME falling without being *very upfront about why this is happening with details* - Not in today's political climate. People have had enough. We get lied to and screwed over by powerful people regularly and the country is on pins and needles after COVID out of either fear of getting sick or fear of going bankrupt due to shitty economic/lockdown policy. After months of protests, stores burning, nancy pelosi on tv with a fridge that costs more than a week of my fucking payroll while americans wait 6 months for a $600 check, trump going on about a rigged election, storming the capitol thing this shady ass looking shit happens. The WSB people get slandered as alt-right, nazis, hackers, all in one week while much of the news reports how this has _"nothing to do with the fundamentals"_ as if 140% short interest isn't fundamental. These guys are up to here and have had it. They are on edge, for reasons I understand completely. Anything will push them over the edge. This week has been nothing but a shitshow. *There is no room for bs, vague, PR friendly half answers at this time in the US.* You halt trading days after a company you have a large financial relationship with bails out the firm who benefits from this, and then give a copypasta bs lobbyist sounding answer, this is what happens. A lot is going to change in short selling, and another thing that I hope changes out of this is a change in corporate culture when dealing with events like this. Do NOT send some social media intern out there to type up some garbage that makes no sense. Get out in front of the issue like a man or a woman and tell the truth. We as a country are FILLED with businesses that speak in these BS PR terms to people, rather than leveling with us like normal humans. We all hate being spoken to in that way, but it persists. Maybe this will be the end of it.

[@GrimsBar]

The user is not the customer...

[@sikckaputten]

@@GrimsBar When something is "free", the user isn't the customer, the user is the product.

[@dmac___]

@@rossmanngroup The alternative to this, though, is RH having to say "We can't undertake GME trades because we lack the collateral/liquidity". That would essentially be admitting to its user base that they can't facilitate the purpose they're being used for. In my opinion, that would be their death knell.

[@AliKhan-pv3oc]

True...

[@denoftools]

Robin Hood started out with a lie, they have been disingenuous on pretty much every issue that's cropped up since they launched and they are now blocking the spack for a competing product. everything that comes out of that CEO's mouth just makes him look more like a weasel every single day.

[@te1577]

I hate RH but can you explain what you mean by then starting on a lie?

[@LividAxis]

Fancy seeing you here, keep up the good work on your channel. Also, couldn't agree more on RH.

[@LuciusC]

@@te1577 The CEO explicitly denied having any kind of liquidity crisis on the CNBC interview. Even though he basically said the problem is "we didn't have enough cash on hand for deposits" which is a liquidity problem, unless they're about to go bankrupt and don't have assets period.

[@adriansand5890]

@@te1577 They said that was no liquidity issue and that was their decision in choosing not to trade certain stocks, and the last one? We did this to protect our customers!!!!

[@Patrick-857]

Fancy seeing you here. Love your content man. I'm a tool addict too.

[@SaadAhmed3000]

PR or not. Robinhood shouldn't have been in this position in the first place. The attitude of "move fast and break things" doesn't work in industries like this. Robinhood should have accounted for a worst case scenario leading to a liquidity crisis. There's a reason Fidelity didn't end up in this situation.

[@rossmanngroup]

I agree. There's a reason 12 years in I have one store and not 100. if I can't do something right I don't do it at all.

[@kirathekillernote2173]

The reason is they don’t have any real incentive to REALLY want to insure you are able to buy $GME at insane frenzy. In fact, since they are funded by Citadel, it might be that they deliberately made them capital scarce so trading could be halted. Anyways, too much depends on DISCRETION of broker and parent firm, and since they are in relationship with bag holder of the year, Melvin Capital, this becomes even more shady. Any investigation into this must account for not just their financial condition, but also why they didn't took action days ahead. Basically, we need to figure out if it was incompetence/lack of foresight or malice

[@lparker2390]

@Kevin I got the same message.

[@stephenwillis9571]

IG Index have just announced they are blocking purchases of GME and AMC due to volatility. Are we suggesting there are independent reasons driving both platforms decision to cease purchasines of the stocks or do we suspect they are in fact the same? And thy both won't have a problem with liquidity.

[@Mallchad]

I don't believe a single broker didn't have to pause trading on some of the stocks. Could be wrong but most of the ones I know of were stuck.

[@wolfsden6479]

Bottom line "free trading" was never free and this was inevitable, fees sucked but at least it ment that trading was the product not YOU.

[@ronrolfsen3977]

Indeed. I happily pay a fee to my bank (who is my broker) for transactions because I understand their business model. I avoided brokers like Robinhood because I simply did not understand their business model well enough to know in what way or shape I would be paying. Fine when I am visiting a random website, not fine when I am actually sending them most of my savings.

[@adamoresten5137]

When the service is free, you're the product.

[@DarthVader1977]

meant*

[@sparkyjones560]

@@ronrolfsen3977 their business model is putting your orders through market makers and the market makers taking a cut of it out of the spread between the buy and sell and then giving RH their cut for directing them the opportunity to make money. The more volume the more they all make and have no risk involved. It's just a middleman game. At least that's how it started, RH I believe is becoming more of the market maker and taking a bigger cut and basically selling you stocks they are buying first and putting a markup on them. This is their estimated buy/sell. Their fees are just baked into the trade out of the spread. They call it free because you don't see it. They make money other ways also out of it of course, but this was the starting and next steps. I'm sure at this point they've added services to take fees from too baked into the service provided.

[@tams805]

The last time I checked in the UK, all brokerages had a fee. But it was like $10-15 a trade (often with yearly charges on top that were waived in some circumstances), so small trades were just not worth. No room for a retail trader to really do any experimenting. In other words: gatekeeping. A small fee though? That I wouldn't mind.

[@Will-oj3un]

When Robinhood said “we need to protect our customers” they were referring to the hedge funds. Since we used the broker for free, we aren’t customers, we are the product.

[@Aw3someOpZ]

Wouldn’t this just count as market manipulation as well or inside trading?

[@Will-oj3un]

@@Aw3someOpZ “It’s only market manipulation when poor people do it.” -Hedge funds But yes, people should be going to jail for what happened here. No fines, jail time. Hedge funds tried manipulating the markets by going on CNBC and reporting garbage and when that didn’t work, they restricted buying stocks on trading platforms to benefit them.

[@KingStix]

came for a Robinhood beat down Stayed for Right to Repair rant

[@lipayy9852]

King! Nice gnar video this morning, although not enough WUPAH

[@JK-co4lz]

KINGSTIX!!!!!

[@sebas8225]

Only idiots use Robinhood anyway😂

[@mariokarter13]

Louis "As a business owner myself, I understand" Rossmann

[@Shenorai]

And the kitty.

[@KhiTurner]

_Agreed, the lack of transparency is why we are so outraged. It sounds very suspicious_

[@Hugo-ew2ko]

Yep when a company like this is not transparent people just assume the worst, quick to cast their judgement and hop on the conspiracy bandwagon. RH PR is just clueless fucking boomers I'm thinking. Transparent and honest communication is the best form of PR but these idiots still think that withholding certain information gives them some position of power or is good PR or whatever, Idk what goes on in those brains.

[@kingatlas1931]

@@Hugo-ew2ko They didn't grow up in the age of the internet, whereas millennials grew up in the 90's when the internet was still the wild west. These old farts think they can still get away with dishonest old tactics, like with the MSM mockingbird media. We, the people, can see right through that crap.

[@tylert2413]

"We do not have a liquidity problem" - Robinhood CEO on CNBC

[@TheRealCaptainFreedom]

That kid is not going to do well in the federal penitentiary.

[@TheRealChese]

They made a smol mistake. Accidentally added 'not'.

[@KunjaBihariKrishna]

@@TheRealCaptainFreedom which means he will get house arrest in his island mansion in the Hamptons. With a team of high class prostitutes, cough, i mean psychological support nurses on standby.

[@darlantro]

They are very afraid of additional liquidity regulation and requirements. They must think it could destroy their bottom line. Or maybe the cost of lying was worth it under backroom pressures we don't directly see.

[@fenderrexfender]

Let them say that until they are fired

[@gingerbeargames]

The secret trick to come out of a situation without looking like a complete conman is to be as transparent as possible and stop assuming that people are too stupid to understand any explanation that you give them.

[@garylazer-eyes6196]

Honesty is not always the best policy when it might end with you being in jail.

[@visoriannull832]

@@garylazer-eyes6196 anything that can be destroyed by the truth deserves to be destroyed by the truth. Relationships. Corporations. Families. Countries. Ideologies. Lives. Doesn't matter. And before some braindead centrist comes in here with that tired old "truth is relative" narrative: ok buddy, you're right, go argue people into listening to you, you can do it.

[@YounesLayachi]

@@visoriannull832 100% behind that. information is sacred to me and thus few things piss me off as much as doublespeak and white noise

[@edwardhoffenheim3249]

@@garylazer-eyes6196 If the truth is gonna put you in jail dont tell lies that will get you more scrutiny and put in jail anyways.

[@MrJelllyo]

@@visoriannull832 "Anything that can be destroyed by the truth deserves to be destroyed by the truth." I like this, hadn't heard it before thanks.

[@chrisreiss5139]

You're probably the only guy on the internet serving up the real story here. Even if the truth forces you to double back on a previous video where you too were pissed off at Robin Hood - you're not letting emotion or ego cloud your reasoning. Props to you, sir. And you're very right, this is one of those cases where the Big Brains make a decision, and then throw it at the PR guy (whose life experience is basically advertising : writing cheery tweets and press releases). The Big Brains at Robin Hood failed to realize that PR guy is just a massage therapist - this job calls for a cardiac surgeon.

[@Kraus-]

Even if it's possible that the halt was done for a completely legitimate and legal reason... The blatant lying implies malicious intent.

[@hafadude69]

You should be one of the people that goes in front of Congress to testify. You have some of the best arguments that should be heard and you articulate it in the most basic way that everyone understands.

[@hafadude69]

@Louis Rossmann will look into it. Thanks.

[@Rhodiac]

@@hafadude69 Do not look into it. Louis is being targeted by bot accounts just copying his name and profile picture

[@hafadude69]

@@Rhodiac k. Thanks for the heads up.

[@evans7665]

its crazy how much more people respect your business when you're honest with them

[@simpleinverso8628]

Why is this so hard to understand for most corporations?

[@bamahama707]

It's crazy how many people will do business with you, period.

[@WanderTheNomad]

@@simpleinverso8628 Corporations are run by people, and like people, they are afraid of any possible backlash that will result from being honest and telling the truth.

[@simpleinverso8628]

@@WanderTheNomad I'd be more affraid of the backlash if they found out I was lying

[@WanderTheNomad]

@@simpleinverso8628 Maybe the people that run the corporations think differently from you because they know they have the resources to either continue lying or to mitigate the backlash that would occur if they got caught.

[@ChengTeoh]

Repeat after me "The Free Market Is Only Free Until The Rich People Lose Money"

[@DANTHETUBEMAN]

That's got a ring to it,, I could see a plaque on wall street

[@tobiasjenchen4647]

It is still a "free" market. Rich people are just free to do everything they can to keep others out. Monopolies and class divides are the consequences of unregulated (=/=free) markets.

[@darius8652]

ok i repeat "The Free Market Is Only Free Until The Rich People Lose Money"

[@Jack-The-Gamer-]

@@tobiasjenchen4647 “free to do everything they can” no actually, their not. That’s why robinhood is facing a class action lawsuit.

[@xiupsilon876]

@@tobiasjenchen4647 You got this completely backwards. Heavy regulation is what monopolies lobby for to maintain their power.

[@mikeselectricstuff]

Compare the interviews with Robinhood and Webull CEOs - night and day. Vlad just looked shifty and evasive.

[@shinakuma1779]

Both full of bs. They still allowed their Wall Street buddies to buy while not allowing regular investors to buy.

[@tommygun9163]

Vlad was lying through his teeth

[@TheSlowpC]

Webull did do work to fix the issue and was able to get it back up and running after the apex clearing hold. They also aren’t even limiting tickers like they robinhood is. Starbucks ... of all stocks, they are limiting to a single share ... like why?

[@100foldreturn1]

@@shinakuma1779 They really should have stopped people from selling their shares if you are going to stop people from buying. Complete garbage what RH and other brokers did!

[@samuelaqimaqima100]

Yeah the 17k downvote said it all.

[@gp5]

Vlad Tenev answered everything in that interview the same way his customer service department answers all the help inquiries, you ask them one thing and they answer you with something else that has nothing to do with what you asked.

[@grizlord8864]

Webulls excuse sounds legit but the coincidences are to much. The brokers that restricted buying are all associated with each other, brokers->apex clearing ->citadel->melvin.

[@ProdByKirk]

WEBULL has no affiliation with Citadel or Melvin though. At least not that I am aware of.

[@grizlord8864]

@@ProdByKirk Not directly but it does through Apex Clearing. The way i see it they are using the brokers as meatshields. Do you think it was a coincidence they reloaded their bets right before the restrictions?

[@jarrodvsinclair]

How much do you want to bet that citadel called apex and pushed them to raise the equity requirements?

[@vineetpatel8512]

@@jarrodvsinclair apex doesn't set the equity requirements, the National Securities Clearing Corporation, mandated by the Dodd Frank Wall Street reform, which mandate clearinghouses adjust collateral levels according to volatility levels.

[@TheBandit7613]

Janet yellen is connected too. She took around $800,000 in speaking fees from citadel. The corruption in this country makes Mexico look straight up.

[@jaromor8808]

who cares... half of the country voted for a dude who on mfkin camera boasts about being corrupt

[@MrCyberamp]

Mexico is straight up that's why they are poor.

[@westdiddy4825]

@@jaromor8808 real votes is around 40 million, the truth will come out soon, look for the unedited videos of The inauguration and don’t use Google when searching

[@casualthurs3243]

@@westdiddy4825 don't turn what happened with the brokers into your "election fraud" garbage. Your guy lost just move on.

[@thejoblesscoder]

TFW North Korea is starting to look like a reasonably decent country to move to

[@allyf9047]

WE LIKE THE CAT

[@wolfsden6479]

WE LIKE THE CAT

[@martins3885]

WE LIKE THE CAT

[@flowdugie399]

DIAMOND PAWS 💎🐾

[@deekdouglas3055]

Mr. Clinton sitting at his PC trading with the pink panther theme playing in the background

[@DarkPlaysThings]

WE WILL BUY AND HOLD $CAT TOO 💎🐾

[@geizigeratze]

I ain’t gonna leave until they are squeezed into oblivion.

[@MrB1923]

Worth every cent.

[@wolfsden6479]

It needs to get boasted higher then ever to actually do it.

[@Anankin12]

They already are, but until they get fucked in the ass publicly it's safe to assume they had a backup plan

[@JRock3091]

Diamond fucking hands

[@liquidminds]

The longer it takes, the more other hedge funds gave them money, the more of these hedge funds will go down. All you gotta do is Hold and keep going on with your life. No matter how long it takes. March. August. December. 2022. 2100... doesn't matter. Just hold.

[@tams805]

You shouldn't even talk to children like that. You should give reasons. Even if someone doesn't understand the reasons for something, at least if you give them: 1. They have no excuse. 2. It makes you think about why you are doing something, which increases the chances of you detecting any flaws.

[@CrashForce]

Lets admit it, we're all here for Mr. Clinton!

[@MidnightBloomDev]

The truth is WE LIKE THE STOCK

[@dalltex]

Hold the line! 🚀🚀🚀

[@Ninjamaster222333]

you seem to really like it. like really, REALLY like it

[@thetruckersmanifesto3873]

I'm selling early buying puts at the top n holding till it hits bottom..

[@alexc664]

@@thetruckersmanifesto3873 Billionaire tears is quality entertainment for many people so even if i lose every $ i invest it's worth it... hahaha xD We like the stock 🚀🚀 Hold the line.

[@dingleberrysnigglefritz]

The only truth that really matters.

[@angnobel]

It definiately has to do with robinhood selling itself as the broker for the people but the fundemental way it makes money is to sell user trading data to hedge funds for them to screw retail investors.

[@rossmanngroup]

If you are not paying for the product, you are the product.

[@damien4197]

@@rossmanngroup Yeah, but TBH if it hadn't come up I would have assumed the point was to get a bunch of people with shares and debt in margin accounts... you have to specifically opt out of this and "downgrade" to cash (and, again, I would have assumed that the percentage who do were just considered the CODB)... so they could charge you interest, and get the fees from all the stock that they then had available to lend out to people shorting :P And not selling the order flow to those their users would be directly competing against O.o

[@darthsiddious7469]

Time to graduate to a real platform instead of a children's toy to conduct real business. Schwab has great fills, yes it's an ugly boomer platform, but it does it's job. No restrictions on buying with your own cash this week. RH started out as Anakin Skywalker, but now it's full Darth Vader. Death Star's aren't cheap.

[@beardedraven7285]

I had no problem with them selling the info on what trades I was making. I just wanted free access to purchasing stocks. I do have a problem being lied to. I do have a problem with them force selling stocks. Sell my data not my stocks.

[@Declan4253]

How do you know that? You are suggesting their business model is illegal. I doubt that. Their are various ways they make money legally without 'selling info', which would be illegal. What Robinhood did in stopping trading should land someone in jail, but don't spread information that is likely false and for sure you don't know what you just said to be true.

[@ggeett12]

I can watch that man talk for hours. I have no idea why. This is f***ing awesome. I hope you will succeed with right to repair.

[@rossmanngroup]

Thank you!

[@Ulyssestnt]

As a former hedge fund equity derivatives manager now trading on my own professional account for myself,I still am very much on the side of the retail guys. But there is significant nuance to this and i applaud you Louis for getting into these nuances because the optics looks like shit for Robinhood and the likes when they come out with a bullshit PR line like this. Thank you brother!

[@BrittanyVenti]

Stayed for the cat

[@LeSyd1984]

@@gerthddyn It actually was a near perfect imitation of the Federal Reserve Printers... in real time! lol!

[@pallmall7385]

So hot that you commented on this video... BURRRRPPPPPPPP

[@nickodgor3581]

@@pallmall7385 she commented strategically.... 😂 She’s fishing for subscribers to her channel..😁🤣😂🤣😂😂

[@islandaerial3414]

Everyone loves a little pussy...

[@totalutternutter]

i remember when wall street traders in their suits were sipping Champaign and laughing while watching the occupy movement through their windows as it amassed in the streets below, now i'm eating pot noodles in my dressing gown and laughing as i watch wall street through my laptop protesting on main stream media.

[@simpleinverso8628]

They made my relatives in the US suffer, loose their homes, and almost starve and they even boasted about it with Champaign? These bastards deserve to be tortured!!! REMEMBER MONDAY _HOLD THE LINE_

[@Youbetternowatchthis]

The second best way to torture them is the stock market. and I really love gamestonk. But if you want to get downright SATANIC and EVIL propose some sort of minor tax.

[@simpleinverso8628]

@@Youbetternowatchthis evil? That's not evil, that's fair!

[@darealrulezbreaker9493]

@@simpleinverso8628 diamond hands brother

[@bryanl1984]

I especially loved the litteraly crying billionaire live on CNBC ranting that "It's bulshit! People are using their free goverment stimulus checks just to attack us poor rich people!" Oh and asset strip the hedge funds instead of being asset stripped for once. It was like watching a 3 yo complaining that only they're allowed to do something.

[@vikipoyta]

I'm holding my GME and my AMC until they go to infinity or bust.

[@UpdogGolf]

I'm going to ride it into the ground

[@midnightgamer505]

Doing the same but with BB too

[@Sith90lord]

Holding with average buy-in of 282. I just happen to rly like this stock.

[@vikipoyta]

@@midnightgamer505 Don´t give it too much love now or GME gets jealous

[@vikipoyta]

@@Sith90lord Gamestop has a bright future. When this bet makes me a gazillionaire I´m gonna buy Gamestop gift cards and hand them out on the street for the rest of my days.

[@gadkinson]

2020 was the year of chaos, will 2021 be the year of rebellion?

[@TrollProductionsMC]

@vATA NAM America will fall

[@CertifiedBullpupHater]

@@TrollProductionsMC I don’t know about that....I think that the mirage the elites have been feeding of America will fall...hopefully we return to classic Americanism ...I’m not exactly extremely hopeful though.

[@GreatSageSunWukong]

Happening all over the world in different ways, something new always happens after a massive crisis that exposes the majority to shit, the country's worst hit by pandemic are ringing in change, not necessarily rebellion but change for sure

[@cdgonepotatoes4219]

@vATA NAM and it's a matter of participation, don't forget that.

[@tomnguen4200]

@vATA NAM the thing is US dollar are the global reserve and everyone is printing as equally fast right now. They gonna try everything to hide the inflation in the stock market.

[@saphy9805]

It's really odd how the PR classes I'm taking teach you to make apologies or statements based on honesty and transparency because being dishonest makes you lose credibility and customer faith, but yet these big companies keep practicing the latter.

[@emanuelcr777]

When you have a firm that bails out another firm and controls whether you can purchase a stock owned by that other firm and purposely stops this stock from being traded to benefit this other firm. This is called conflict of interest and is a crime. Send them all to jail! Absolutely disgusting!

[@emrazum]

The only thing that has changed since the Gilded age is the efficacy and extent of oligarchic propaganda

[@TheNobleFive]

That was a bit edgy and short sighted. There's a lot more regulation and different norms than the gilded age.

[@MoreEvilThanYahweh]

@@TheNobleFive And the workarounds have similarly adapted

[@jonathanedwardgibson]

Robinhood does collude : they inform the mothership about your Sells and Buys before they go through, so the Big Boys can place their bets before Wee Folk.

[@brunodosreis]

That’s worse than selling your data. They upped the abuse to selling user activity. Basically snitching for a buck

[@michaelluciano1980]

Order Flow

[@kevincousino2276]

but it is public knowledge everyone using robinhood knows this is the case. no one anywhere is forcing anyone to use the app.

[@BlueHells]

I heard they got sued about 2 months ago because of that and it's coming up again right away. This goes to show that monetary penalties aren't enough. Jail time without bail has to be served from those responsible!

[@timmoe3370]

Go on Webull and look at the flow chart showing sells and buys, now take this dumbass statement and shove it back up your ass. This is PUBLIC information much like people being able to see hedge funds being short over 140%. Good lord so many people talking about this shit that shouldn’t be lol

[@bazwillrun]

but when asked "who do i sell to because people cant buy " he never answered it, just waffled on...i stilll dont understand, if i cant but but only sell ,who do i sell to ?...if he cant come up with a name to sell to then if theres no buying, then theres no stock movement, but thats clearly not the case, so WTF is going on

[@rossmanngroup]

You would be selling to buyers who use brokerages that charge their customers trading fees that allow them to be well enough capitalized to pay more collateral to the clearing house when the clearing house asks for it. Even scottrade back in the day charged me $7 a share or something like that... robinhood charges nothing. Hard to be properly capitalized when you offer free trades. here, the idea is that it is a coincidence that the shitty brokerage that was not well capitalized with a liquidity problem was also the brokerage dealing with citadel on trades and getting money from citadel right after they bailed out melvin capital, which looks super shady.

[@vociferon-heraldofthewinte7763]

@@rossmanngroup The other option might be: when you sold through RH, you sold to the hedge funds who were RH’s actual paying clients.

[@timmoe3370]

You would be selling to other brokerages lol

[@nyankers]

@@rossmanngroup or at least a broker that passes some of the clearing house rules to its customer, which I assume is how Fidelity operates given their terms have this two day settlement period built in (albeit a less strict version)

[@yaktojason]

You're selling primarily to people using brokerages in other countries like Mexico, Europe, Canada, Australia, etc. Who are all in on it to get their tendies

[@areyoutheregoditsmedave]

Me: sees video about clarifying the Robinhood situation and clicks Louis: “...Apple is the shittiest company in the world” Me: “I understand.”

[@zombiecat7799]

I also didn't expect to be greeted with a purring cat. It's not like I disliked it, though.

[@rockmcdwayne1710]

The way i see it, this kind of short selling as done right here is perfectly ok. AS LONG as they dont prevent regular people taking advantage or ''revenge on them''. Government shouldnt bail them out and stopping buy-ins shouldnt be allowed. Just let them crash and burn, i mean they did bring this shit onto themselves so now its time to eat it. That alone should be incentive enough for them to not take such a gigantic risks in the future, no?

[@fredmanly3122]

That doesn't actually work though. People are buying stock at $300, figuring the shorts will be forced to cover and end up buying them out at $3000. The problem is that there are something like 80 million short shares out there, and buying them out at $3k each (and it could easily go higher) would cost hundreds of billions of dollars. The hedge funds don't have that. Their brokers don't have that. So it can't actually happen, even though the rules say it should. This isn't unlike 2008. These shorts borrowed stock they couldn't afford to pay back in this situation. The only way to fix a problem like this is to prevent it from happening in the first place. Sure, you can let those funds go bankrupt (and send them to jail), and they should do that, but that won't let you sell your shares for what you expected, because nobody has the money to buy them from everybody at that price. Sure, a government bailout of small investors would be nice, but that just dumps the problem on the taxpayers. When the hedge fund makes money they keep it, and when they lose it they just declare bankruptcy and then everybody else pays the bill. Maybe that fixes it this one time but that can't be the rule going forward. The government really has to greatly reduce the amount of margin and leverage the financial systems run on. A little margin makes things go smoothly, but selling 150% of the entire float when you don't own any of it is not reasonable.

[@rockmcdwayne1710]

@@fredmanly3122 Well, im no expert of the matter myself so perhaps you know more than me. Just, for me it feels like government is sticking its nose into markets more than it should and often screws it up for everybody. Its like that 2008 bollox. Instead of letting these greedy bankers crash and burn, like they should in free market situation, they bailed them out using billions of tax payer money. It seems like they are preparing to do it again. I think these hedge fund firms should crash and burn, make an example out of the basterds!

[@fredmanly3122]

​@@rockmcdwayne1710 So, that is precisely the problem. Those greedy bankers/brokers/etc are the ones who hold your retirement savings, mortgages, handle the payroll for your employer, and so on. It sounds nice to just say "F these losers - burn it all down." However, most people don't live on a farm growing their own food, and having the entire economy shut down because there are no banks is a big problem. The 2008 bailout was the lesser evil. The greater evil was letting it happen in the first place, and not doing enough to make sure this stuff doesn't keep happening. Nonsense like this is easy to prevent - just don't let people sell stock they don't own. Don't let brokers lend out shares without explicit permission from whoever owns them (right now when you buy GME your broker can just lend it to somebody else to short at the same time). Or if you're going to do it at least keep it under control. These hedge funds may very well crash and burn, but that isn't going to do anything for the people who bought GME for $300/share. They're not going to get their money back from the hedge fund, because the hedge fund doesn't have it. The finance sector is just one of those things that is necessary but has to be regulated. There is just a TON of history of banks doing crooked things when they aren't heavily regulated, and it is always the little guy or the taxpayers who end up paying for it. This isn't rocket science. We don't have to pretend that we're living post-apocolypse and switch to buying things with bottlecaps. We just need to actually start regulating this nonsense.

[@bazwillrun]

you only have to look at the terminology used by these "big boys" to show the contempt they have for the small investors ...they call the small investors "dumb money"...well fuck the lot of them, not so dumb now are we !? Louis thrives on stuff like this...personally i think hes wasted on board repair, hed make a superb commentator !

[@tw629108]

Yeah, I really liked how one of them put it: "they just got their stimulus checks and they're sitting at home all day" Assholes.

[@speedgeek5494]

Agreed, Louis is very engaging. He makes the makes the mundane interesting.

[@MrJelllyo]

We are "unsophisticated investors" while they are "sophisticated".

[@tams805]

Many are dumb, which just makes it more volatile. And that's just how it is because they also have a right to trade.

[@sparkyjones560]

You won a battle not the war. Lol. Whether small investors are dumb money or not remains to be determined. But it sure looks like they were right. Anyone else would leave emotions and ideologies aside take the win and move on already yall seem to desire to ride it back to the bottom and let the sharks feast on ya'll all the way back down. I suppose we will see huh?

[@reidyoung724]

Im holding the line for the movement.. a story to be hold for generations and generations.

[@eirikarnesen9691]

just bought 1k doge. refuse to engage with stocks, but we help where we can

[@mcchikin2751]

eirik arnesen huh??

[@timmoe3370]

It’s really not that deep lol

[@reidyoung724]

@@timmoe3370 you must be fun at parties

[@reidyoung724]

@@timmoe3370 it is that deep because the common man and woman, did what the world has never done before.

[@ex_ceed]

They dug their own grave deeper than they already have with this one!

[@whatsgoingon407]

These firns should go broke. IT will be a great and cautionary lesson to ALL the rest to not do this OR not be able to do this. Great coverage Louis.

[@kamikazeeOG]

I remember the good ol' days when corrupt investors lost a lot of money, they would jump from a building. I miss the good ol' days.

[@raulmorel1]

Jajajajajajaj

[@inconvenientexistenlism]

“We/I want to PROTECT you” it’s the most overused cliche cheesy lines on every CW shows. STOP using it.

[@thejoblesscoder]

Screw protection. If I want to gamble $1000 away in a casino that's my right to do so and if I lose it all ohh well

[@thewildcardperson]

That what every abuser and rapist says

[@AC3handle]

I have learned that the most DANGEROUS set of words someone can say to you is: "I'm doing this/did this for your BEST interest" That is now my 'nuclear reactor going critical' red flag set of words.

[@plushwiz]

*BABE WAKE UP LOUIS ROSSMANN JUST UPLOADED*

[@andrescrux]

🤣🤣👍

[@wolfsden6479]

Lol, I am still up from last night, I am gonna watch this then pass out ...

[@pinklightninggacha]

Sure it was Louis and not Mr Clinton

[@hootiehoo3000]

Had to go and wake up my wife’s boyfriend to show him this

[@bakedbeans9404]

It dropped at 330am my time. Its just after 630am now, and hell yeah waking up to a new Rossman video is the way to go!

[@KiithnarasAshaa]

As Leonard French likes to reiterate, "When you must eat Crow, eat Crow while it is young and tender, for surely you will eat it when it is old and tough."

[@SuperMassman]

Well said

[@KunjaBihariKrishna]

I'm something more of an aged crow jerky connoisseur myself.

[@DirtRoadAutoRepair]

As a small business owner I agree 100%. You can not go wrong being 100% honest and transparent in your business dealings.

[@br45entei]

I fully agree with you Louis. People at my workplace all want to change the truth to make us look better, but I always tell the truth to our customers and then get yelled at by my fellow employees later if they happen to hear about it. Not only does it just plain feel wrong, but you make better relationships with people when you tell the truth no matter what. I'll never understand how they operate ...

[@devfromthebay2587]

A lot of people started making content on the situation but you're the only one I can stand watching the entire video for because I'm actually interested in your opinion on this. I'm a broke fool who bought in, so I'm gonna ride til the end. Idk what I'm trying to say, I've slept 4 hours in the last 72. I guess I just appreciate what you do Louis. Thanks for sticking up for us and getting the word out. We like the stonk.

[@rossmanngroup]

Thanks. To be clear, I obviously have my own clear cut bias here in the populist direction, so I don't know what makes my content any more bearable.

[@ovidiubodolan4146]

@@rossmanngroup your content is more bearable cuz you state facts and opinions that are true-not the bs that media and others shove in our face.For me,you are no.1 source in here.😘

[@deekdouglas3055]

@@ovidiubodolan4146 exactly like he says about his business he is with us sometimes the message just is "look I'm sorry but you're fukd" and that's okay cause we aren't children, we can accept that

[@ovidiubodolan4146]

@@deekdouglas3055 exactly.I appreciate when someone tells me the truth,even if i dont like it.

[@egg5474]

I think this is what they meant by "the roaring 20's"

[@edheldude]

People speculated in the same manner. Now it's just easier and faster.

[@SueWoo702]

I just read a headline saying " Blame it on Trump". They were saying the same thing about Hoover.

[@docbaztardyt2342]

Man, I've become addicted to your opinion videos about GME and the stock market. Please keep these coming!

[@rossmanngroup]

Thank you. I wish people were addicted to PPBUS_G3H and right to repair but... I'll take it.

[@liquidminds]

@@rossmanngroup In Nov the EU voted in favor of a right to repair. You might get your wish after all. At least it seems to go in the right direction.

[@Wasmachineman]

@@rossmanngroup consider setting your ppbus_g3h on fire that'll give you 1 million views instantly /s

[@targetthetank]

@@rossmanngroup more people have a relationship with money, than are technically savvy. Keep up the vids on money issues, because it will drive more traffic to right to repair and tech issues. We believe in you being you, keep being you.

[@moosedancer1]

Louis we need more vendors like you who is honest and to the point.

[@user-se2xg7tq5u]

Why are people focused on the clearing structure? Fact is they allowed to sell not to buy. Doesn’t matter what the clearing terms were. If they allow only selling this drives the stock down and only down. If they truly wanted an unprejudiced, unbiased market, they would have halted ALL activity on the stock, NOT just allowed selling .

[@alyw1988]

You can't sell something without a buyer. Someone was allowed to buy. This was pure market manipulation

[@joshn1307]

how does he do it? he goes from mac book repair to real estate to dodgy builder series now stock market drama news? i think louis is destined for greatness

[@Trucy-Wright]

Check those 10 tricks! Apple hates him!

[@JeffKomarow]

He does live literally next to these guys.

[@o0Avalon0o]

Don't forget the cat videos. That's top tier content you're leaving out there.

[@JaquesBobe]

I feel like everyone is missing the *REAL* question: Why did DTCC raise the required collateral for buying GME shares to 100%? Did they give any explanation? Are they allowed to do that for no reason?

[@thedarklordx]

They didn't think the brokers could pay (presumably they wanted to avoid taking IOUs). I think thats what the webull CEO said.

[@Blackwolf4436]

They wanted to drive the price down because they were afraid Melvin would not be able to afford to buy the stock at higher prices. Us buying stock isn't risky in less we don't have the money, in which case we should not be allowed to buy any stocks. But that's not the issue, the issue is when Melvin has to buy and can't afford it, they don't want to have to pay if Melvin can't So in the end they are protecting Melvin and themselves who allowed 140% shorts

[@Nydas]

So take collusion out of the equation. Pretend The CEO of the DTCC got cucked by the CEO of Melvin and hates the fuckers. They know that if the short squeeze continues at its current pace, they know Melivin will go bankrupt and be unable to pay for the shares that were sold. So through no fault of their own, they are now at serious risk. So they require the money upfront to handle the trade.

[@vineetpatel8512]

By law its mandated. It came from the 2008 crises, where investors were worried banks wouldn't hold up their end of the contract. So Congress mandated clearinghouses keep enough collateral (based on volatility levels). GameStop was and is volatile (losing half of its value in a day and then recovering after hours),

[@vineetpatel8512]

@Fraxinus Cavum Who's they? Also GameStop wasn't volatile as much as it was sharply appreciating. Volatile is moving up and down in significant amounts. GameStop's volatility really rose this last week, along with it's trading value. Jumping to a 100% is a safe move, there's literally no risk. Also from DTCC's perspective, this shouldn't be an issue. These are multi-billion dollar firms (many of which manage trillions of dollars in assets). Any major broker should be able to find the cash for this in a couple days. Now the problem with Robinhood is that it's a tech startup acting like a financial institution. Fidelity had to increase their collateral too, but they're well a financed firm, so it wasn't a problem.

[@CantankerousDave]

4:40 - pay very close attention to the fact that he didn't define who their customers *are*. Hint: it ain't the users of their app. They're the product.

[@justinpridham7919]

Vlad going on air as "dead man walking"... rightfully shitting his pants with an inner dialogue of "I'm fucked and I'm going to jail". No way he was thinking what you were saying that the truth would provide an outcome 10x better. Robinhood was always in over their heads, never would've even became a thing if they hadn't risked insolvency. Louis, I'm a new sub because of your work this week. Thank you

[@michaelharmon8041]

I 100% agree with your approach to proper PR. I just retired from the corporate world as an electrical engineer and countless number of times management tries to explain something technical when they have no clue about what they are actually talking about. It is so frustrating and usually adds to the problem. That is not exactly external PR in most cases but internal BS. Follows the same principle. I believe there will be investigations and Congress will have hearings,etc. They can’t let a good crisis go to waste. However, I honestly believe that whatever regulatory changes are made will net out to be beneficial to the big guys and not the individual investors. Behind the curtains, Congress is not going to penalize their billionaire friends. And BTW, you were quoted in this morning’s Yahoo Finance morning summary email. Making the big time - I like that! Keep doing the good job.

[@waynelau7228]

The Robin Hood situation is what business schools salivate over in terms of case studies

[@slavkobozic8922]

Keep going ! Im from germany and your videos help me understand this all. Thank you for that !

[@AlexAlex-sz2pc]

I'm curious to see if more corruption arises as the situation progresses

[@wolfsden6479]

If, you are so innocent.

[@TheNobleFive]

Just wait until the government response.

[@timmoe3370]

Issue is you idiots calling it corruption in the first place with no proof of it.

[@simpleinverso8628]

@@timmoe3370 Are you just trying to be an asshole? Check the subreddit instead of the news for a bit and you'll see everything they've done.

[@Cory_Springer]

Not everyone appreciates the straight-up honesty, but most will. And the people who do, make the best customers as well. It's one of the small win/wins in business.

[@rabidlenny7221]

I love this guy, he’s great at using exactly the right words, and hitting exactly the right points on this issue.

[@ItumelengS]

i came for the cat, and stayed for the info

[@buckackerman9256]

Just discovered you from your comment over at Peter Schiff. Im liking your show so far. 👍

[@rossmanngroup]

Thanks and welcome!

[@chrisgonepro9648]

He explains it a lot better and answers and addresses the real questions. Everyone else just summarizes but doesn’t really reflect on the seriousness of the situation.

[@KiloShank]

Who needs PR when dealing with multi million dollar transactions. Just tell everyone "Nah we good fam" and theyll understand

[@Dan-uy5pc]

100% with you on this Lou, I've been in business probably longer than you've been alive and I've had to say many times "I screwed up on the price of the job" but I always honored the quote given and get it done. I usually get the repeat work at the corrected price The big boys got caught with there pant's down with GME and are facing ruination because of it. To bad, so sad. I've gambled on jobs but I've never taken one that could ruin me. They got an expensive education.

[@cirious1703]

I'm not mad because they blocked the trade. I'm mad because they *LIED* about why they did it, to let the Hedges buy open while retail was locked to Sell Only "To protect the customers from volatility"

[@bc-se6kb]

The best thing about this is the more they cry about Robin Hood the more people hear about wallstreetbets and want to get involved 😂 Think about how much publicity this has had now and how many people want to teach the rich a lesson.

[@TheNobleFive]

@Frames P3rSecond Oh come now. You're not going to kill anyone and people deserve to live. Don't cosplay as a violent revolutionary online.

[@bthemedia]

Sounds like they needed a “legal” or at least “justifiable” reason to crater the stock and save their ass.

[@phoenixamaranth]

It's a complete scam and yeah, a cover. Clearing houses cannot make such demands on the fly. The claim the wanted so much coverage is bs. In fact clearing houses dont care. They process the cash transactions for a fee. They don't care about a company's business dealings beyond that.

[@Blackspidy619]

And now that they're getting sued, they relented and "let the people trade" allowing the purchase of... only one share GME per account. Those corrupt assholes.

[@o0Avalon0o]

Thanks for the cat purs... This has been the best moment in my years of viewership; even when you taught me how to fix my phone screen (but I chickened out at the last second & just clear taped it, but kept watching anyway).

[@justvince87]

The thing about this whole thing is that this isn’t just about being honest in PR

[@SpontaneityJD]

If Louis Rossmann were a stock, I would go all in. $LRM to the moon!

[@sebas8225]

If Louis Rossmann was crypto It would go all the way to the Sun.

[@d1agram4]

14:58 sort of like how social media handles it’s PR problems.. using the most socially awkward people they can find.

[@missraeray]

Remember everyone if you use anything that’s free, more than likely you are the product . Robinhood proved that heavy. They used us and played us .

[@TheBandit7613]

Isn't it kind of ironic that the hedge fund they were protecting was the hedge fund that gave them most of their money? Or was this going to happen sooner or later?

[@Utoko]

True, but not that it has to be any different if you pay. They have a little more incentive to be loyal to the customers, but if they can make money on both sides, they will. When push comes to shove, they'll still side with their big customers.

[@missraeray]

@@Utoko good point , so very true

[@missraeray]

@@chrissi.enbyYT praying for it 🙏🏽😂🚀

[@missraeray]

@@TheBandit7613 seems like it was a sooner than later situation. Lol. I don’t think most of us realized how deep they were in with Melvin capital until they played us on Thursday with even using the app. Pure craziness

[@xchazz86]

Corrupt Elites: "We should screw the pleebs because they hurt our feelings."

[@simpleinverso8628]

@Frames P3rSecond they're like "I fell down and I blame you guys for that" It was completely their fault, and if they didn't short 140%, they wouldn't have created this situation

[@simpleinverso8628]

@Frames P3rSecond www.reddit.com/r/memes/comments/l865xt/their_tears_are_delicious/? I saved this meme that I think represents this situation perfectly

[@thewildcardperson]

@Frames P3rSecond amen fking kill em all

[@gemx4849]

Appreciate your news! It's good to see someone with a platform calling out the bs!

[@keybutnolock]

Louis's vids have a start, middle, and end... but not always in that order - even the board repairs. Brilliant ! Thanks.

[@HNO3_68]

"With great greed, comes great risk" is my favourite line from Spiderman.

[@OperationsAndSmoothProductions]

Honesty is not the best policy, Honesty is THEE policy.

[@tahu1349]

8:00 Error 53 is one of the reasons why I never buy Apple.

[@paulallen-01]

Your spot on with this brother. If RH was transparent and honest upfront I wouldn’t be saying to delete them. I don’t know if I would have believed it upfront but I like to think I would have. But it’s a what aboutism because they didn’t do that. They went on TV and lied, and we’re not transparent. And For the record, I’m still holding GME, AMC, BB, and NOK. 🚀🚀🚀💎🤚

[@astarteswillum5259]

Mr. Clinton must be suffering from severe stress from all this.

[@jaytang4954]

if u use robinhood or any other no commission brokerage YOU ARE NOT THE CUSTOMER, YOU ARE THE PRODUCT THEY ARE SELLING robinhoob routes orders into dark pools where bigger firms can pay to essentially front run you

[@toufikstl7480]

Hoooold, hold, HODOR. a movie needs to be made out of this. #AMC you know what to do

[@wolfsden6479]

Lmfao they don't make the movies

[@GeorgeVCohea-dw7ou]

@@wolfsden6479 AMCX can. kzbin.info/www/bejne/eouqYZ-Ljc-rnLs

[@toufikstl7480]

@@wolfsden6479 i know what AMC is! there is a first time for everything!! time for them to free themself from these F**king hedgefunds and open a movie production studio. they dont make movies smh 🤦‍♂️ i know genius

[@wolfsden6479]

@@toufikstl7480 I mean if they did it whould be awesome

[@falconeshield]

They should call it BIG FUCKING VALUE

[@blairarthur302]

I will always deal with a company again that gives me the straight goods but once you try and blow smoke up my butt not only am I done with them and every chance I have I will bad mouth the company to anyone that will listen .

[@johnson280]

"If you think that the world is not a horrible place, you have to believe that, when you tell the truth, whatever happens is the best possible result." Louis Rossmann

[@williammabreyv2097]

Thank you for being one of the only two people I've been able to find who are giving an honest and complete take on this.

[@woswasdenni1914]

140% overshort is simple: john borrows 100 shares to alvin (short one) alvin borrows 40 of those to sue (short two) voilla 140 shares need to be cleared even tough only 100 exist

[@Original-Yellow]

Stock ponzi scheme.

[@philliploree9280]

@Frames P3rSecond no, because whoever holds those shares that those other people borrowed still own those shares that “don’t exist” and the borrower needs to facilitate them to whoever they borrowed from, if everyone else owns the shares and won’t give the shares back to the one who is still alive, they’ll have to keep raising their bid price until they can buy back the shares to give back the borrowed shares to whoever they borrowed from

[@jlebrech]

Lends*

[@neatlife8049]

That purr was soothing -AF-

[@kuuryotwo5153]

Opening with a purring cat for the KZbin algorithm...clever.

[@planetd]

So, on their website, Robinhood says they do not use Apex anymore. Only their own clearinghouse. "if your taxable events happened on or before November 9, 2018, your activity was cleared by Apex clearing. If your taxable events happened November 10, 2018 or later, your activity was cleared by Robinhood Securities." It's on their "common tax questions" page on their website.

[@adlorin]

Eli made an excellent point, and it shows the brute honesty of this whole ordeal: Citadel and c.o. pay Robinhood for their trade data, which makes them their customer. Us who use the platform do it at no financial cost, thus we are users (not customers). They were not wrong when they said that they did this to protect their customers.

[@Kackpuh]

25:10 This is funny, because there is a german retailer called Rossmann. It literally menas "horse man" (or centaur) and it's probably where Louis' name comes from.

[@Phroggster]

I'm just going to take a second and offer my congratulations for your "Reddit user" promotion. Seems like Yahoo! finance is really going long on your stonks!

[@TheNinjaDwarfBiker]

"Louis Rossman, Wallstreet Bets User". I would have never thought this day would come

[@nocturnechanson]

I worked for a couple years at an Apple factory building laptops. It was before they sent the manufacturing offshore but right after the self combusting battery fiasco. Many of us in testing kept telling the managers and line engineers there was something wrong with the notebooks. We were told “it’s the test software don’t worry about it.” Later they had to do a recall for the problem we were trying to alert them to. The problem was the computer was self booting even when closed.

[@jameskelly8543]

The insurance for shorting a stock is called a Short Collar where example you short sale GME and buy calls to offset the risk. This is also called hedging which is primarily what options are designed for.

[@Mikroa9BEt8zCnOQ]

This is now a Cat ASMR channel.

[@moraeza]

heehoo!

[@Mikroa9BEt8zCnOQ]

@@moraeza Hee Hoo

[@o0Avalon0o]

They are nice cats. What a great intro.

[@joefowble]

And it's wonderfully soothing.

[@marcellkovacs5452]

Cat ASMR and stock reviews

[@Woodside235]

The Apple situation, where they lied about a bug being a "security feature." Why the hell? Why would a PR person pull that out of their ass, just as a wild guess? That makes no sense. Forget customer relations for a second, it's just complete nonsense to do that instead of consulting with the engineers first.

[@willia_music]

It's this "do no wrong" mentality. As long as they don't admit guilt then it makes them look like they are always in control. But people like us who ask questions are ready to poke holes

[@Woodside235]

@@willia_music It just makes them look more incompetent in the long run, and like they have zero cross-department communication.

[@ericknudsen2082]

I love how they bought “GameStop” As if they were saying “The game stops NOW!”

[@ericupdegrove9103]

Honesty is best in all things, and that is why we love your videos. You not only speak honestly you speak your mind.