Their decision came with a tradeoff: A spike in volatility could be very, very bad 2/X
Robinhood is not the only brokerage that limited buys on GameStop this week, so why is it catching all the heat?
Maybe because @stoolpresidente & others were quick to spread a theory that hedge funds must have forced the move? Or, Robinhood acted alone
A thread on facts 1/X
Their decision came with a tradeoff: A spike in volatility could be very, very bad 2/X
They carry some liability in the days it takes for your trade to settle. That usually isn't a problem, but can become one if a stock swings fast 3/X
But Robinhood in 2018 decided to cut ties with Apex to build their own clearing house called Clearing By Robinhood 4/X
In Robinhood's own blog they trumpeted their achievement as the "only clearing system built from scratch, and on modern technology, in the last decade." 5/X
So what took Robinhood so long? 7/X
Building their own clearing house came with added risks - it just seems no one saw GameStop rising 500% in a week 8/X
Letting customers continue to buy GameStop stock was like selling lottery tickets while knowing there could be problems with the drawing 9/X
Messaging to customers that this wasn't about "protection" could have come sooner
The SEC could've done something (anything) and *market wide* to protect the lopsided impact to protect the market's poorest investors 10/X
But running with a theory that hedge funds pressured them into anything before those facts exist is dangerous and endangers any real change 11/X
I'm just as angry about it as everyone else (even Mama Guz couldn't trade on Robinhood!) I'll keep chasing the truth.
https://t.co/CGhDIqjRk1
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Facebook originally a CIA program called "LifeLog".
LifeLog, via DARPA, terminated on Feb 4th, 2004.
Facebook was launched on Feb 4th, 2004.
Many of the LifeLog team became execs at FB.
Zuckerberg is a figurehead.
CIA allowed Cambridge to help Trump win
https://t.co/enzOXDCogV
Pentagon Kills LifeLog
LifeLog, via DARPA, terminated on Feb 4th, 2004.
Facebook was launched on Feb 4th, 2004.
Many of the LifeLog team became execs at FB.
Zuckerberg is a figurehead.
CIA allowed Cambridge to help Trump win
https://t.co/enzOXDCogV
Project: Lifelog
— Robert Horan (@Robby12692) December 13, 2018
Started by DARPA in 1999, the goal of Lifelog was to create a database on civilians without their knowledge, and track everything they do.
The project "ended" on Feb 4th, 2004.
Facebook began the exact same day.
The CIA funneled tens of millions into Facebook. pic.twitter.com/r7hwF0v9kh
Pentagon Kills LifeLog