yeah im really interested to see how this plays out because it could have some implications. they were manipulating it but they were doing so in the open for all to see. just how different is that from any stock tip guy like jim cramer? there will certainly be a lot of investigations but im not sure much will come of them except for any potential handful at the center.
wouldnt be surprised to see legislation introduced from wall street's congressmen in the coming days maybe weeks that regulates and impedes robinhood and any similar programs. how dare those peasants make them have to call their friends for loans!
just how different is that from any stock tip guy like jim cramer?
So while Cramer's brand of investment entertainment/advising does pump up stocks, sometimes with little value basis, the difference is that he can point to some underlying value when speculating. He doesn't just say "let's get this $2 up to $200". The latter being a direct admission that you're trying to manipulate the price.
Basically the razors which you would determine and use to prosecute manipulation are: 1. An organized intentional effort to increase/decrease the stock price. 2. Evidence that the value of the underlying security is not commiserate with trading price.
Of course fraud charges could also come into play some comments made can be considered to "misrepresent" the value of the stock.
there will certainly be a lot of investigations but im not sure much will come of them except for any potential handful at the center.
So the SEC will probably flag any sales/volume over a certain value and investigate. If you bought 10 shares chances are you're not worth the effort. The ones that are caught will definitely be made an example of, the big boys will make sure of that.
wouldnt be surprised to see legislation introduced from wall street's congressmen in the coming days maybe weeks that regulates and impedes robinhood and any similar programs.
Blackrock is probably writing it for them right now. Biden's biggest contributors are hedge fund managers so they have a pretty direct line to him. Also I would expect a "repurposing" of the SEC, instead of investigating institutions and companies they will be pushed as a watchdog for the general public. This is great for institutions and corporatist politicians because now they have a new villain to sick the SEC on which will make it seem like they're "really cleaning up wall street" while leaving their own alone, a "regulatory theater".
this could be a precursor for them to realize they can incorporate a bank and become a powerful investment fund banding together. if they shut down wall street bets, i feel like this would be the best option for a lot of them.
Honestly I would not want to be any of the folks posting/purchasing gamestop within the last two weeks. The SEC will definitely send a bunch of these folks to prison for market manipulation, also I wouldn't be surprised if platforms freeze some accounts from trading tomorrow.
edit: Here's where Reddit is talking about it and pushing it https://www.reddit.com/r/wallstreetbets/