70.87 Billion Reasons Why The Retail Brokers Just Betrayed Their Customers. Pay Attention: Wall Street Steals From Their "Customers" ALL The Time And Have For 100+ Years

Posted by freedomforall 2 months, 3 weeks ago to Business
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"any number of large of large hedge funds have suffered significantly."

How much? According to financial data analytics firm Ortex, short-sellers - mostly hedge funds - are sitting on estimated losses of $70.87 billion from their short positions in U.S. companies just in 2021 alone! Add puts and other underwater derivatives, and the real loss will be even greater. And just as striking: Ortex data showed that as of Wednesday, there were loss-making short positions on more than 5,000 U.S. firms.

This means that virtually every hedge fund that had short positions on was getting hammered. So when dozens of these giant asset managers sat down and decided to polite call one broker after another what do you think happened.

That's right: Joe Sixpack was quickly sold down the river.

Why? Because the so-called "retail clients" are nothing but a cost center to the "retail brokers" thanks to the recently introduced $0 commission pay scheme. In fact, brokers would be delighted to dump all but their biggest whales clients. So who pays the fees? Well, just take a look at Robinhood's form 606: Citadel, Virtu, G1X, Wolverine, and countless hedge funds which, like Citadel, are tightly interwoven in the fabric of the market. It's they that made a few phone call and just put dozens of stocks on a market-wide restricted list.

There's more. While unconfirmed, there is speculation that that "Citadel reloaded their shorts before they told Robinhood to stop trading GME." As the source notes, if true the people behind this should be in jail.

Just got a tip that Citadel reloaded their shorts before they told Robinhood to stop trading $GME.

If this is true, Ken Griffin and the Robinhood founders should be in jail.

This is class warfare.

— Justin Kan (@justinkan) January 28, 2021
SOURCE URL: https://www.zerohedge.com/markets/7087-billion-reasons-why-exchanges-betrayed-retail-customers


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  • Posted by $ splumb 2 months, 3 weeks ago
    When the actor Richard Ney left acting in the 1960s and became an investment counselor, he had this to say:

    "Hidden behind the facade of pompous jargon and noble affections, there is more sheer larceny per square foot on the floor of the New York Stock Exchange than any place else in the world."
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    • Posted by 2 months, 3 weeks ago
      Richard was a straight shooter about the market in general. He wrote 2 books that exposed a lot of the ways Wall Street stole from Main Street. His cable tv show was also informative at the time (the 90's iirc) - hilarious at times and thoughtful at other times. Many Wall St brokers made fun of him to defend their looting - like the left does now against anyone who disagrees and can make a rational argument.
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  • Posted by CaptainKirk 2 months, 3 weeks ago
    The stock markets were INVENTED to spread the RISKIEST investments to the SMALLEST of Investors.
    I was part of the Tech Bubble, in a company that got Angel Funding (The most Grotesque use of Angel, EVER).
    These people bought in at a huge discount (10:1 for what they knew they could get).
    Then they gave us access to their "staff" and some other people we could have hired.
    Then they brought in the next layer of investors (Think Retirement Groups like CALPERS), and they sold 10% of their position, unbenounced to those firms, to take 100% of their RISK off the table. They held 90% of their position, risk free.
    When they realized we had some "internal issues"... They unloaded more at every fund raising they helped establish.
    Eventually some retirement funds were caught holding the bag.

    Long before we made it to the IPO stage, but in all honesty, they were all playing that game. The hedge funds to take us public were buying in at 30% and would be the first to be able to sell their shares if we made it. Then they can hang on to the rest as a lottery ticket. While Joey Sixpack buys the shares and has to guess if he's getting lied to. (Luckin Coffee, anybody).

    It's a corrupt Cabal. when traders started seeing LARGE Sell orders, and could front run the future large sell orders... (or buy orders), the market makers were allowed to LIE about the order size, or record the "side deals for their shares" after the market closed.

    Finally, we all know how manipulated the Metals (Gold, where the sellers come in on a barely open market, and dump a weeks worth of gold in seconds. NOBODY who owns the gold, would EVER sell like that, as it DRIVES the price down... Where stops are triggered, STOPS THEY SEE (BTW), and then they cover their short positions with those stops. They can even run a program that tells them their profit potential for running the stops and do it before you have a chance to react.

    It's all criminal. Some trading platforms use HIDDEN stops, triggered to only show up when prices hit a certain value. But even then THAT FIRM knows they are there... Who says they are not using that info?
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    • Posted by 2 months, 3 weeks ago
      Thanks for relating some of the details, CapnK.
      I have gotten so tired of telling people about these legal (but immoral) actions (by firms assumed to be fiduciary to their customers) and being called crazy.
      It should be criminal, but they are completely corrupt.
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  • Posted by 2 months, 3 weeks ago
    Update 1445 EST: Users are starting to report that Robinhood is selling their GME shares without warning.

    That's right small investors, you have no rights when your trades infringe on Wall St's profits.
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    • Posted by mccannon01 2 months, 3 weeks ago
      "Just got a tip that Citadel reloaded their shorts before they told Robinhood to stop trading $GME.
      If this is true, Ken Griffin and the Robinhood founders should be in jail."

      "Users are starting to report that Robinhood is selling their GME shares without warning." More indication these creeps deserve jail! The former sets up for theft, the latter is theft!
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  • Posted by term2 2 months, 3 weeks ago
    Of course its class warfare. Always the powerful try and take advantage of the ones without power. That said, no one forces you to invest in the stock market, suspecting that it IS rigged with the people "in the know" protecting themselves.

    Same is true of political things. Invest in a pipeline and you never know when some politician is going to nix your project for political reasons and leave you high and dry. Own a restaurtant and a cuomo type shuts you down fr basically no reason, leaving you holding the bag
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    • Posted by 2 months, 3 weeks ago
      Same is true of any investment today.
      There are no low risk alternatives to plan for your retirement and families have been wrecked by government policies,
      so the seniors are likely to be slaves to the SS ... until it is too costly for the looters. Then that will be removed, too.
      It is a planned feudal system. Until the serfs revolt and make changes.
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      • Posted by term2 2 months, 3 weeks ago
        Universal basic income is coming
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        • Posted by 2 months, 3 weeks ago
          And it will quickly be worthless as the USD deteriorates.
          The upside is that our existing holdings of gold, silver, land will still be valuable until TSHTF.
          Land taxes will go up and make holding land more expensive.
          Gold could be confiscated.
          Better to be elsewhere. The question is what's a better place when the other governments will be anti-freedom, too.
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          • Posted by term2 2 months, 3 weeks ago
            It will be hard to find the gold private persons have. The government will have revolution if we have big inflation and SS becomes worthless. Land values will go up, and property taxes will rise along with it.
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            • Posted by 2 months, 3 weeks ago
              Old people are less likely to revolt, imo, and the young have been brainwashed into subservience.
              If there isn't enough food for people to survive, and they still have firearms then perhaps there will be revolution,
              although usually that doesn't succeed either because people are misled on the target of revolution.
              Today the fedgov is trying to destroy Trump's support before the supporters conclude that revolt is the only
              course for liberty. If they retain power longer than 6 months, American liberty is unlikely in the near future.
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              • Posted by term2 2 months, 3 weeks ago
                its true that older people are less likely to physically revolt. The millennials are too stupid to know what they want. There was an american revolution over the taxes and religions freedom back in colonial days. Today there will need to be a trigger- and I dont know what would be strring enough to cause the SHTF. Massive inflation and SS running out of money could cause things to escalate. Unavailability of medical care could do it. Massive shortages could be another one. I just wont know what was the trigger until the trigger was pulled... For me, it would be inflation and expropriation of retirement wealth. I would rebel at first by not paying taxes and go from there.
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          • Posted by term2 2 months, 3 weeks ago
            Good points. Best of all would be to be in an independently sustainable group of people who together could supply the needs of the group. I think they call that a GALTS GULCH
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  • Posted by $ Abaco 2 months, 3 weeks ago
    I like Paul and have communicated with him in the past. Neat guy. I always enjoy his harsh reality. Thanks for sharing.

    Note on #7. I think the answer must be to just print more money. Of course, printing money (in my view) is a tax. That's how they'll address the social security bomb. Inflation.
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  • Posted by mcsandberg 2 months, 3 weeks ago
    This is why I'm with Schwab for all my investments. They actually just serve the retail investor.

    I've beaten even the hedge funds in my investments and it's not even hard. The normal institutional investors have to meet their 90 day numbers, which forces them to act stupidly.
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    • Posted by 2 months, 3 weeks ago
      Schwab is so innocent and service oriented. They own and run Ameritrade and they stopped their small investor customers buying the stocks mentioned in the article.
      There are no Wall St companies that serve their customers.
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      • Posted by $ pixelate 2 months, 3 weeks ago
        I am on the Ameritrade platform. I can presently buy GME. As of now, I've been able to trade whatever I have found of interest in terms of investing. Of course, that could change.
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        • Posted by 2 months, 3 weeks ago
          Yesterday you could not buy it. Today you can for the moment. Tomorrow, your guess is as good as mine, but behind the scenes Wall St is scheming as usual. No investment is safe from Wall St, the banking cartel, and the fedgov - not to mention the thieves who can't write laws to protect themselves.
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          • Posted by $ pixelate 2 months, 3 weeks ago
            And this is why I am researching / buying land in Washington, Wyoming and Wisconsin... Diversify and keep my options open. And yes, I know, it really isn't my land since I am forced to pay property taxes. What I can control, for the moment, is the maintenance of my good health... heading out for a 10 mile run in a bit then get in some healthy calories. For mental health, I continue to enjoy participating in exchanges here in The Gulch.
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            • Posted by 2 months, 3 weeks ago
              Just curious, are you following any particular diet for health?
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              • Posted by $ pixelate 2 months, 2 weeks ago
                Short answer -- No...
                Longer answer in a story: I am hiking up on Mt. Rainier a few years ago, just below Camp Muir at 10,400' when I encounter a guy -- he is heading up, I am heading down. I would wager that he was 20 years younger than me. We dialog. He is into all manner of healthy diet things, mixtures, potions, supplements, etc... and so he asks me if I get the Essential 56 Vitamins, Minerals, and Etc. I look him in the eye and say "Well, I am here, yes?"
                I am not on any named sort of diet ... but, I think the important thing, like in a great many contexts, it is what you do Not see. I do not have a lot (moderation in all things) of junk in my diet. Very little alcohol, refined sugar, packaged good. If I had to write it all down, I bet that 90% of my calories come from ~10 food items:
                oatmeal, dried fruit, nuts, hardboiled eggs, 2% milk (for the coffee:), oranges, grapes, some greens, a bit of beef and chicken, jars of salsa ... and the diet is not rigorous. Sometimes I will go for days on whatever is on hand (and yet I do have a Food Storage Program similar to Mormons / LDS). And yet, even with a simple boring diet, I can wrangle my way up and down mountains and run 100 milers while in my mid-50s.

                I tell my friends and associates that My Secret is: keep your weight down, make that weight purposeful. Oh, and pick the right parents and pray for the optimal genetic mix. I confess to having been dealt a good hand in the genetic crapshoot ... but I will certainly be wise in how I behave in the manner of preserving that inheritance.

                I recall there being some Posts in the Gulch regarding diet ... some folks swearing by Keto, Paleo, Atkins, or hybrids. I think that it's good for an individual to keep on tweaking until they find something that generates the desired results.
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                • Posted by 2 months, 2 weeks ago
                  Thanks for sharing. I agree, one size doesn't fit all.
                  We are all working at less than optimum, but we can get to 80-90% of optimum for ourselves and the advantage can be remarkable over following the herd.
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      • Posted by mcsandberg 2 months, 3 weeks ago
        I've never dealt with the Ameritrade side of the house. I just checked with the Schwab side and I can buy and sell GME just fine.

        I'm not sure how representative I am, since I've got over 8 figures in my retirement account, though.
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