Ted Cruz and AOC Sides with Retail Investors
Robinhood faces mounting backlash for freezing GameStop and AMC stocks, even causing agree Ted Cruz and AOC side with retail investors. AOC and Ted Cruz are on opposite sides of the American Political spectrum and usually are at each other throats. To see them come out in agreement on the despicable behavior of Robinhood is a clear sign that Robinhood is doing is wrong.
What Robinhood did is the definition of market manipulation. Forcing their users to lose so much money in favor of wall street elite hedge funds.
Alexandria Ocasio-Cortez tweeted the following at Robinhood on Twitter:
“This is unacceptable. We now need to know more about
’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit. As a member of the Financial Services Cmte, I’d support a hearing if necessary.”
To which Senator Ted Cruz reply ‘Fully Agree’.
Why did Robinhood Block trades of Gamestop and AMC?
Robinhood answers that they were protecting retail investors due to the stock market’s high volatility. However, the real answer is probably more nefarious than the one they gave. Especially, when you realize that Robinhood risks their entire company and customer’s trust to stop trading. So Why? Well, Robinhood has an IPO coming up, and large hedge funds have bought into the companies’ pre-IPO stocks. One of those companies is Citadel who was also heavily shorting Gamestop stock, they also helped bailed out Melvin Capital for their losses in the short squeeze.
So it’s not hard to see the connections and motives being drawn up up the closer one looks at the situation. Robinhood got greedy and forgot that retail investors got them to where they are now. Now they are more fearful of hedge funds than the retail investors that sustain their business model.
Robinhood probably fears the hedge funds destroy their stock once they IPO, are Citadel who is now technically a part-owner made a call.
Anyway, we will never really know the full truth because no one will be prosecuted.
Retail traders should stay vigilant and diversify their capital between multiple retail brokers like Robinhood.
It is time to pour into cryptocurrency, there are many crypto brokers like Robinhood such as Coinbase.
You can sign up to CoinBase via this link(CLICK HERE) to get $10 when you start trading cryptocurrencies like Bitcoin, Etherium, Litecoin, and Dogecoin.