Retail investors are exploiting instability created by the hedge funds
They didn't start the fire
https://t.co/26pyBtj4ec
1. If you turn on CNBC, you'll hear a narrative that reckless retail investors from Reddit are destabilizing the stock market by driving up prices for GameStop and other stocks.
This is BS.
Follow along if interested.
Retail investors are exploiting instability created by the hedge funds
They didn't start the fire
https://t.co/26pyBtj4ec
What happened in 2013? SAC pleaded guilty to insider trading and paid a $1.3 billion fine.
Plotkin then left to start his own firm.
https://t.co/26pyBtj4ec
But this week he was bailed out by his old boss, SAC founder Steve Cohen, and another hedge fund mogul, Citadel's Ken Griffin to the tune of $2.75B
https://t.co/26pyBtj4ec
This is where things get interesting.
https://t.co/26pyBtj4ec
Why are they doing this?
They say its to protect their customers.
But is that really what's going on?
https://t.co/26pyBtj4ec
Griffin is pays these platforms tens of millions of dollars for the right to handle their "order flow"
Let me explain
https://t.co/26pyBtj4ec
"Citadel Securities accounts for 40 of every 100 shares traded by individual investors in the US, making it the number one retail market maker"
https://t.co/26pyBtj4ec
This warrants further investigation.
https://t.co/26pyBtj4ec
In 2008 he had massive exposure to AIG and relied on Morgan Stanley for lending. He survived only because they got bailouts
https://t.co/26pyBtj4ec
For updates on this story and more accountability journalism, sign up for the newsletter.
https://t.co/TfpCItdVSo
We need to explore why they are doing this.
https://t.co/26pyBtj4ec
https://t.co/ISlZfsXKQ8
https://t.co/26pyBtj4ec
https://t.co/LQhcsM8yxS
More from Judd Legum
1. @NYGovCuomo became a pandemic star by contrasting himself with Trump
Cuomo crafted an IMAGE of being determined, honest and grounded in science
But 11 months later this image is falling apart
Follow along for a FACTUAL assessment of Cuomo's
2. Cuomo WROTE A BOOK, published in October, celebrating his own leadership during the pandemic.
Cuomo writes that NY had "confronted and defeated" the virus, and had "achieved what all the experts told us was impossible."
Today, things look
3. Today, New York has 338 people hospitalized with COVID per million residents.
This is the HIGHEST NUMBER IN ANY STATE by a considerable margin.
https://t.co/Hl4fsFxB6l
4. Overall, 46K New Yorkers have died of COVID, which trails only California (47K), a state with 2x as many people.
On a per capita basis, New York has had more deaths than every state but New Jersey.
Cuomo made decisions that made things
5. A new report by NY AG Letitia James (D) found Cuomo's order requiring nursing homes to accept residents w/COVID "may have put residents at increased risk of harm"
Cuomo dismissed criticisms of his nursing home policies in his book as
Cuomo crafted an IMAGE of being determined, honest and grounded in science
But 11 months later this image is falling apart
Follow along for a FACTUAL assessment of Cuomo's
2. Cuomo WROTE A BOOK, published in October, celebrating his own leadership during the pandemic.
Cuomo writes that NY had "confronted and defeated" the virus, and had "achieved what all the experts told us was impossible."
Today, things look
3. Today, New York has 338 people hospitalized with COVID per million residents.
This is the HIGHEST NUMBER IN ANY STATE by a considerable margin.
https://t.co/Hl4fsFxB6l
4. Overall, 46K New Yorkers have died of COVID, which trails only California (47K), a state with 2x as many people.
On a per capita basis, New York has had more deaths than every state but New Jersey.
Cuomo made decisions that made things
5. A new report by NY AG Letitia James (D) found Cuomo's order requiring nursing homes to accept residents w/COVID "may have put residents at increased risk of harm"
Cuomo dismissed criticisms of his nursing home policies in his book as
More from Business
1/An interesting thing happened tonight. I was scrolling through clubhouse and found WileyCEO, Godfather of Grime (kicked off Twitter in July for antisemitic tweets) speaking. So I tweeted this (and included a screen shot, later deleted as I found out TOS don't allow it ...
2/ ... and several folks also asked me to remove it which I promptly did afterwards).... Coming into the CH room, I fully intended to confront him about how hurtful his comments in July were. But as I listened to the folks in the room, I decided to go a different direction ....
3/ the conversation jumped around, covered many topics and there were between 8-14 people up on stage. But a recurring thread was discussion of racism, bigotry, comparison of it in the US vs UK vs elsewhere.
4/ when I got a chance to speak, I had 5 bullets written down: a) we should harness technology and capitalism to make reparations for what America did to Black people. I gave https://t.co/SlrW8zCd58 (a project a couple friends co-started) as an example) ...
5/ b) capitalism and product know-how and technology can be harnessed for social justice c) historically oppressed minorities need to stick together and lastly, d) "Wiley, how could you say such hurtful things about Jews as a people?" That's what I had ready to say, anyway.
2/ ... and several folks also asked me to remove it which I promptly did afterwards).... Coming into the CH room, I fully intended to confront him about how hurtful his comments in July were. But as I listened to the folks in the room, I decided to go a different direction ....
3/ the conversation jumped around, covered many topics and there were between 8-14 people up on stage. But a recurring thread was discussion of racism, bigotry, comparison of it in the US vs UK vs elsewhere.
4/ when I got a chance to speak, I had 5 bullets written down: a) we should harness technology and capitalism to make reparations for what America did to Black people. I gave https://t.co/SlrW8zCd58 (a project a couple friends co-started) as an example) ...
5/ b) capitalism and product know-how and technology can be harnessed for social justice c) historically oppressed minorities need to stick together and lastly, d) "Wiley, how could you say such hurtful things about Jews as a people?" That's what I had ready to say, anyway.
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1/ Some initial thoughts on personal moats:
Like company moats, your personal moat should be a competitive advantage that is not only durable—it should also compound over time.
Characteristics of a personal moat below:
2/ Like a company moat, you want to build career capital while you sleep.
As Andrew Chen noted:
3/ You don’t want to build a competitive advantage that is fleeting or that will get commoditized
Things that might get commoditized over time (some longer than
4/ Before the arrival of recorded music, what used to be scarce was the actual music itself — required an in-person artist.
After recorded music, the music itself became abundant and what became scarce was curation, distribution, and self space.
5/ Similarly, in careers, what used to be (more) scarce were things like ideas, money, and exclusive relationships.
In the internet economy, what has become scarce are things like specific knowledge, rare & valuable skills, and great reputations.
Like company moats, your personal moat should be a competitive advantage that is not only durable—it should also compound over time.
Characteristics of a personal moat below:
I'm increasingly interested in the idea of "personal moats" in the context of careers.
— Erik Torenberg (@eriktorenberg) November 22, 2018
Moats should be:
- Hard to learn and hard to do (but perhaps easier for you)
- Skills that are rare and valuable
- Legible
- Compounding over time
- Unique to your own talents & interests https://t.co/bB3k1YcH5b
2/ Like a company moat, you want to build career capital while you sleep.
As Andrew Chen noted:
People talk about \u201cpassive income\u201d a lot but not about \u201cpassive social capital\u201d or \u201cpassive networking\u201d or \u201cpassive knowledge gaining\u201d but that\u2019s what you can architect if you have a thing and it grows over time without intensive constant effort to sustain it
— Andrew Chen (@andrewchen) November 22, 2018
3/ You don’t want to build a competitive advantage that is fleeting or that will get commoditized
Things that might get commoditized over time (some longer than
Things that look like moats but likely aren\u2019t or may fade:
— Erik Torenberg (@eriktorenberg) November 22, 2018
- Proprietary networks
- Being something other than one of the best at any tournament style-game
- Many "awards"
- Twitter followers or general reach without "respect"
- Anything that depends on information asymmetry https://t.co/abjxesVIh9
4/ Before the arrival of recorded music, what used to be scarce was the actual music itself — required an in-person artist.
After recorded music, the music itself became abundant and what became scarce was curation, distribution, and self space.
5/ Similarly, in careers, what used to be (more) scarce were things like ideas, money, and exclusive relationships.
In the internet economy, what has become scarce are things like specific knowledge, rare & valuable skills, and great reputations.