Robinhood to Reopen GameStop After $1 Billion Raise (Payoff From Hedge Fund Traders Against Reddit Investors)
Robinhood to reopen GameStop buying after $1 billion raise
BY STAN SCHROEDER2 DAYS AGO
It’s been a wild week at Robinhood.
On Thursday, the company announced it will start allowing customers to buy GameStop shares on Friday.
Robinhood halted buying for several stocks — including GameStop, AMC, BlackBerry, and Nokia — on Wednesday, citing high volatility. Notably, these are the stocks that have gotten in the crosshairs of Reddit investor group r/wallstreetbets, who are buying them en masse and betting against massive hedge funds that have been relentlessly shorting (selling in anticipation of buying cheaper later) these stocks in recent months and years (read the whole saga here).
This didn’t sit well with customers, who started leaving the platform and moving to other trading apps. Deliberately or not, Robinhood’s move was helping GameStop shorters, as it stopped millions of traders from driving the price of GameStop higher up.
Now, Robinhood explains this was not the case.
“Amid this week’s extraordinary circumstances in the market, we made a tough decision today to temporarily limit buying for certain securities. As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment,” the company wrote in a blog post. “To be clear, this was a risk-management decision, and was not made on the direction of the market makers we route to.”
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According to The New York Times, Robinhood also raised $1 billion from its investors, in order to better cope with the high volume, it has recently said.
Initially, Robinhood will only allow “limited buys” of the restricted securities, with details available here. The company says it’ll keep monitoring market conditions, and eventually restore full trading for these securities.
Looming Derivatives Weapons of Mass Destruction Threaten Us ALL!
LaRouche Was Right: End Wall Street Now!
Clear steps must be taken to end the accelerating demise of the trans-Atlantic financial system now, before the sheer power of the ensuing chaos and hysteria drag the U.S. into war, even nuclear war with Russia and China. Hillary Clinton’s refusal to support the Glass-Steagall policy, equivalent to the Glass-Steagall program of Franklin Roosevelt, plus her support for the Obama and neocon war agenda exposes the absence of any sufficient American political leadership at a moment of severe economic and political bankruptcy. Something must give, and will give soon, and the only sane response is a return to the Hamiltonian legacy of American policy, as Lyndon LaRouche has uniquely stated for the last 50 years.
The Bank for International Settlements has just prepared a paper for the upcoming G-20 heads of state summit in China, warning that a blowout of the derivatives market could happen at any moment, and the clearinghouse system is totally unprepared to handle such a shock. Remember, it is Deutsche Bank which has the biggest derivatives exposure of any bank in the world, and it has counter-party contracts with almost every “Too Big To Fail” bank in the United States, Europe and Japan—and, it is Deutsche Bank which has been correctly described as a “dead bank walking!” Best estimates are that the global derivatives trade is still well over one quadrillion dollars, even after losses this year that have already piled up.
Add to this, interest rate yields are at their lowest level in over 500 years, echoing the banking blowout that ushered in the European Dark Age in the 1300s. Over 30% of global government debt, approximately $10 trillion, is now at negative interest rates and decreasing. Meanwhile, Quantitative Easing—central bank purchases of junk debt as well as stocks specifically to elevate stock indices—is now at a global level of $180 billion per month, greater than even just after the 2008 crash. This is by far the most unprecedented financial breakdown in modern European history, the very same scenario Lyndon LaRouche warned of in New York City during the 1960s if the then-current policies, the same as today but now more insane, were not altered according to Alexander Hamilton’s program.
Now at this late moment, there is only one option for the thoroughly bankrupt trans-Atlantic system: Reinstate Glass-Steagall, cancel all of the derivatives contracts, go back to a Bretton Woods–type fixed exchange rate system, and launch a massive capital investment in projects that boost real productivity through Hamiltonian national banking methods, including a crash effort to achieve fusion power. This is the heart of Lyndon LaRouche’s Four Cardinal Laws for the New Presidency. (See lpac.co/four-laws)
The West must abandon the dead British System and join the new Eurasia-centered system that is rapidly coming into being, under the political leadership of Russian President Vladimir Putin and through the realization of China’s One Belt, One Road program (OBOR). It is this OBOR program, with an investment already exceeding $100 billion in project loans, which will dominate the discussion during the upcoming G-20 summit in Hangzhou, China, as the trans-Atlantic refuses to end its own bankrupt policies.
In this context, in discussions with European colleagues on Aug. 15, Lyndon LaRouche declared that we, the political forces dedicated to mankind’s long-term development, are on the edge of a great victory for mankind. The nations of Eurasia are establishing a grouping, centered on leading Asia-Pacific nations that are growing rapidly, in stark contrast to other areas of the world which are sick and are dying economically. South America has been taken over by rapists, France is a failure, and Spain is a catastrophe. The focus must be on those leading nations that have taken the initiative in this development process. Putin, LaRouche continued, has emerged as a driving force in this Eurasian alliance. There are forces moving inside the United States, particularly in Manhattan, who can join in the Eurasian-led effort to crush the British System, which has been the enemy of mankind for the past centuries. Germany, if it is to survive, must join this Eurasian development, which means dumping all of the policies associated with Merkel and Schäuble.
Russian President Putin, over the past several years, has played a pivotal role in organizing a force of nations, largely centered in Eurasia, which are taking on the characteristics of a military force that can change everything, and can win the war for peace.
It is now time to heed the words of Lyndon LaRouche, and achieve a real victory for mankind in the near term.
In the coming weeks, the emerging Eurasian alliance will be at the center of a series of historic meetings: The Eastern Economic Forum in Vladivostok, Russia; the G-20 heads of state meeting in Hangzhou, China with Putin as special guest; the China-ASEAN heads of state meeting in Laos; the United Nations General Assembly session in New York City; and the BRICS heads of state meeting in India in early October. This density of activity, between now and the middle of October, provides a unique opportunity for us to set the course of history, and put Wall St. out of its misery.
