GameStop, Robinhood: explain it to me

Bernie meme

Bernie SandersA smart, nearly 80-year-old man wears mittens suitable for a cold DC day. How does it become a meme? And when do we decide it’s over? At least Bernie seems amused if slightly bemused by it.

This pic, BTW, was forwarded to me by my daughter. I have no idea why.

GameStop? What’s a GameStop?

Explain it like I’m 5 years old: A desperate nation tries to understand the GameStop saga. “There better be a test about the GameStop saga. When it burst into the news, I dutifully dropped my other studies and applied myself to the stock market frenzy.

“The short. The short squeeze. Margin call. Payment for order flow. The CBOE Volatility Index. Go ahead, ask me anything.

“Wait, hold on a moment: I swear I understood it like a second ago.”

I think the Globe is correct, that “we’re dealing with a Category 3 story… That’s a story that’s simultaneously complicated and simple, compelling but somehow boring, and can only truly be explained by John Oliver or a kindergarten teacher.

“Category 1: These are stories that are so easy that any civilian could go on CNN with no notice and comment authoritatively. Meghan and Harry leaving the Royal family. Murder hornets…

“Category 2: Stories you will never understand, no matter how hard you try so you can skip right over them. Physicists finding a way to test superstring theory. The new AI tool that cracks the code of protein structures…

“But then there’s the third category, which is when facts you should be able to grasp — if the Wall Street bros can, why not you? We’re not talking Stephen Hawking here — briefly seem within reach, but then slip away.”

Hank Green spends four minutes explaining the “short squeeze.” Whatever that is.

Does it wear green tights?

And what the heck is Robinhood? I’d never of it. According to this two-star review of the app, its “claim to fame is that they do not charge commissions for stock, options, or cryptocurrency trading. Due to industry-wide changes, however, they’re no longer the only free game in town.

“The firm’s target customer base is young people new to investing, who are drawn to the app by advertising that leans heavily on words such as ‘free’ and ‘democratization.’ By and large, this tactic has succeeded, drawing in 10 million accounts held by an unknown number of customers. But what happens to them when they outgrow Robinhood’s meager research capabilities or get frustrated by outages during market surges?”

You know their control of the market is too strong when AOC and Ted Cruz both think so.

Too bad John Oliver is on hiatus. Here, read these pieces from Nation of Change and Business Insider. I think it means…

And

Why is clogging while eating spaghetti so fascinating to me?

Author: Roger

I'm a librarian. I hear music, even when it's not being played. I used to work at a comic book store, and it still informs my life. I won once on JEOPARDY! - ditto.

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