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.
A few VERY savvy and somewhat anonymous investors spotted this Melvin situation and masterminded a way to enlist this never-before seen “Wall St Betts-Reddit Army” and en masse went on a buying frenzy.
BUT HERE’S WHERE DAVID ABSOLUTELY DID NOT BEAT GOLIATH:
Melvin DID get crushed, but they’ve been completely out of the trade for 2 days, which means the Reddit Army’s
“STICKING IT TO THE MAN” crusade is currently sticking it to your fellow man & possibly getting yourself stuck.
At this point, GameStop is worth $23b and a lot of retail investors own stock in a company worth a tiny fraction of where its stock is currently trading. They could lose 90% because they didn’t understand how the market actually functions.
And other companies in this bonanza, American Airlines & AMC- they’ve already sold shares to raise money, which dilutes everyone and will continue to do so.
And AMC is held by Silver Lake Partners (a massive private equity firm). They already sold out of a massive chunk making hundreds of millions of dollars. That was gifted to them by the Reddit Army marching the stock higher.
There are still SOME shorts, but there are lots of players BIG and very small who own these stocks.
When the music stops and the stocks drop, there will be a lot of pain.
CEO’s of publicly traded companies are worried. Watching how a group can mobilize & go after a target in such force w/ such little underlying logic is very worrisome. Many are huddled up in virtual boardrooms today wondering “what happens when the mob decides they don’t like me?”
As for ROBINHOOD- NO GOOD NEWS to report:
ROBINHOOD proved this week that they are NOT what they promised.
The CEO was happy to announce they have the most popular app, but it’s worthless if it cannot execute trades.
Robinhood users learned The PRICE of “free trades” meant your broker was undercapitalized and couldn’t support the business when you needed it most.
How did that happen?
Robinhood’s model was offering  “free trades”
They drew in scores of individual investors & then sold that order flow to Citadel (which is both a broker/dealer AND a hedge fund - confusing).
But when volume was massive and volatile in a few names, they didn’t have the $$ to meet capital requirements needed when you can’t borrow shares (which is why it only impacted one side of the trade).
They raised $1bn from existing investors Thursday night, so they could fully operate on Friday- but their problems are far from over.

More from Politics

My piece in the NY Times today: "the Trump administration is denying applications submitted to the United States Citizenship and Immigration Services at a rate 37 percent higher than the Obama administration did in 2016."

Based on this analysis: "Denials for immigration benefits—travel documents, work permits, green cards, worker petitions, etc.—increased 37 percent since FY 2016. On an absolute basis, FY 2018 will see more than about 155,000 more denials than FY 2016."
https://t.co/Bl0naOO0sh


"This increase in denials cannot be credited to an overall rise in applications. In fact, the total number of applications so far this year is 2 percent lower than in 2016. It could be that the higher denial rate is also discouraging some people from applying at all.."

Thanks to @gsiskind for his insightful comments. The increase in denials, he said, is “significant enough to make one think that Congress must have passed legislation changing the requirements. But we know they have not.”

My conclusion:
THREAD

1)
@SidneyPowell1 reflects on #Iran’s meddling in the U.S. in a recent tweet to U.S. President Donald Trump.

This thread focuses on Iran’s dangerous influence in the U.S., especially through its DC-based lobby group


2)
Why is this important?

@DNI_Ratcliffe "told CBS News that there was foreign election interference by China, #Iran & Russia in November of this year [2020]."

All Americans should be informed about how Iran & its lobby group NIAC are meddling in the


3)
#Iran has been increasingly aiming to interfere in U.S. elections specifically through NIAC.

DNI John Ratcliffe had previously shed light on this vital


4)
NIAC is a lobby group in the U.S. pushing Iran’s talking points.

Listen to this Iranian regime insider explain that NIAC was established by @JZarif, the foreign minister of


5)
@tparsi is the official founder of NIAC in the U.S.

Listen to how Trita Parsi parrots Zarif’s talking

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#ஆதித்தியஹ்ருதயம் ஸ்தோத்திரம்
இது சூரிய குலத்தில் உதித்த இராமபிரானுக்கு தமிழ் முனிவர் அகத்தியர் உபதேசித்ததாக வால்மீகி இராமாயணத்தில் வருகிறது. ஆதித்ய ஹ்ருதயத்தைத் தினமும் ஓதினால் பெரும் பயன் பெறலாம் என மகான்களும் ஞானிகளும் காலம் காலமாகக் கூறி வருகின்றனர். ராம-ராவண யுத்தத்தை


தேவர்களுடன் சேர்ந்து பார்க்க வந்திருந்த அகத்தியர், அப்போது போரினால் களைத்து, கவலையுடன் காணப்பட்ட ராமபிரானை அணுகி, மனிதர்களிலேயே சிறந்தவனான ராமா போரில் எந்த மந்திரத்தைப் பாராயணம் செய்தால் எல்லா பகைவர்களையும் வெல்ல முடியுமோ அந்த ரகசிய மந்திரத்தை, வேதத்தில் சொல்லப்பட்டுள்ளதை உனக்கு

நான் உபதேசிக்கிறேன், கேள் என்று கூறி உபதேசித்தார். முதல் இரு சுலோகங்கள் சூழ்நிலையை விவரிக்கின்றன. மூன்றாவது சுலோகம் அகத்தியர் இராமபிரானை விளித்துக் கூறுவதாக அமைந்திருக்கிறது. நான்காவது சுலோகம் முதல் முப்பதாம் சுலோகம் வரை ஆதித்ய ஹ்ருதயம் என்னும் நூல். முப்பத்தி ஒன்றாம் சுலோகம்

இந்தத் துதியால் மகிழ்ந்த சூரியன் இராமனை வாழ்த்துவதைக் கூறுவதாக அமைந்திருக்கிறது.
ஐந்தாவது ஸ்லோகம்:
ஸர்வ மங்கள் மாங்கல்யம் ஸர்வ பாப ப்ரநாசனம்
சிந்தா சோக ப்ரசமனம் ஆயுர் வர்த்தனம் உத்தமம்
பொருள்: இந்த அதித்ய ஹ்ருதயம் என்ற துதி மங்களங்களில் சிறந்தது, பாவங்களையும் கவலைகளையும்


குழப்பங்களையும் நீக்குவது, வாழ்நாளை நீட்டிப்பது, மிகவும் சிறந்தது. இதயத்தில் வசிக்கும் பகவானுடைய அனுக்ரகத்தை அளிப்பதாகும்.
முழு ஸ்லோக லிங்க் பொருளுடன் இங்கே உள்ளது
https://t.co/Q3qm1TfPmk
சூரியன் உலக இயக்கத்திற்கு மிக முக்கியமானவர். சூரிய சக்தியால்தான் ஜீவராசிகள், பயிர்கள்