The House Financial Services Committee will be holding a hearing Thursday afternoon that is centered around the recent stock market frenzy with respect to GameStop and other stocks. The witnesses testifying will be the CEO of Robinhood, the co-founder of Reddit, the trader who allegedly started the frenzy on social media, whose online handle is “Roaring Kitty,” and the CEO of Citadel, a hedge fund at the center of the controversy.
The hearings will focus on Robinhood’s trading platform and how they monetize their business. Questions will also be asked about the marketing practices that Robinhood engages in and how these mimic those of casinos and other online gaming apps. Further still, politicians will likely grandstand and pretend to all of a sudden be concerned for the average investor and the integrity of markets. The Kapital News highlights the market manipulation that occurs regularly and how the firms engaged in such behaviors are slapped with fines and deferred prosecution agreements; only to engage in said behaviors again. While the topic at hand is very important, it will amount to more of a dog and pony show. It is an important topic because we are witnessing the merger of online trading platforms, social media platforms, and financial markets. This is a perfect storm for market manipulation to take root, and in the process, for millions of people, potentially, to be harmed financially due to the predatory practices that may easily spread across social media platforms. People with little to no investing and/or trading experience will be preyed upon by more sophisticated players, in the hopes of getting rich quick. This is a real concern and is the bastardization of capital markets. It is a casino. It is the wild west. Every man for himself. This will not end well. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Reddit #Robinhood #Fraud #Markets #Liberty #USA #bananarepublic #EndTheFed #Inflation #Gold #Silver #Leadership