THREAD on Robinhood/Reddit/GME: CONGRESS is calling for action, but no one has clearly articulated what they actually want.

We could look back on this as the biggest “Pump & Dump” in history... with the little guys carrying all the water & then getting it dumped on their heads.

It started with a SMART discovery, Melvin Capital (hedge fund) broke the cardinal rule of short selling. They took on way too big of a short position given the size of their fund, how heavily shorted the stock already was and the amount of shares outstanding.

Technically, they were RIPE to get squeezed, but there was virtually no case for anyone following fundamentals (earnings, growth etc...) to want to buy this sleepy, brick and mortar video game retailer.
Short selling is absolutely legal and adds to efficiency of the market.

More often than not, the short seller gets hurt & not the company. But there are many who believe it’s harmful to American businesses and short sellers to use media and unsavory practices to put struggling companies in further distress.

This week will definitely bring back the debate on banning short selling. This is a huge win for Elon Musk who has been battling & defeating short sellers for years and wants the practice irradicated.
He’s been unsuccessfully trying to get lawmakers to focus on this for a while.

THREAD: It’s #ImpeachmentDay and I’ve got money on my mind.

We learned yesterday that Trump’s largest lender, Deutsche Bank, is done doing business with him.

Before he took office, no U.S. major bank was willing to do business with him.

And in the last 48 hours, we’ve seen scores of major companies respond to last week’s riots & the refusal to certify the free & fair election (all fueled by Trump himself), cut off political donations, and some terminating business/payment processing for the Trump Campaign.

The PGA cancelling the upcoming championship at Trump Bedminster was another major blow to Trump’s bottom line & brand.

None of this would have happened if Trump was simply ending his term like any normal President.

Two weeks ago he was considered the Replican party “king maker” whose influence would be looming for the foreseeable future.

Last Wednesday changed everything and that’s part of what this impeachment hearing is all about.

Unlike the first impeachment which was Republicans vs Democrats, Trump is in his own lane- along with some lawmakers who pushed misinformation, tried to block certification and welcomed the “Stop The Steal” movement to DC.