heh, yeah, that’s what I meant. I do hope that’s true. IANAL, but if money = speech in other areas, could it be extended to this to slam RobinHood under Citizens United?
No, you just have to decide which of Portnoy, Cruz, and Don Jr. is the worst person you know who tragically made a really good point.
1 Like
No. Fuck that guy.
2 Likes
I mean, when I take out a mortgage or a loan against my house though, they actually do a credit check and want to know my other assets/liabilities, etc. It sounds like you’re saying that the only thing that a broker cares about is the value of the volatile asset when extending credit lines based on the value of that asset? That’s fucking insanity.
lol totally this. he just wants to be on the team, like back in grade school
My guess is there are plenty of other non scumbags making the same point as Dave Portnoy, I wonder if they could be boosted a bit more? Should we find out what the war criminals at the Lincoln Project have to say?
3 Likes
Checking your credit for a home loan is a new thing. Used to be you could buy a home with no credit check or income verification.
But yes, for brokerages they don’t verify income (not even sure all ask about it). The theory is that your stocks provide enough collateral to cover the loan, and if they start decreasing, they can quickly sell the stock before it falls too much. Normally this works fine - just doesn’t work when a stock could decrease by more than 50% in a day.
I don’t think it’s that crazy at all, at least not from a broker risk perspective. They’re fully collateralized for the loan with fairly liquid assets, so I don’t think they bear much risk of actually losing money.
I mean, it’s super costly for a bank to step in when a homeowner defaults on a mortgage - they’ve got to take ownership of the house and actually try to sell it quickly. Very costly! With publicly traded stocks, the broker just presses a button and BOOM they turn into cash like magic.
Or do you mean that they should be more paternalistic in terms of not letting their retail clients make leveraged investments?
clearly she’s going after Robin Hood app user Thicc_Dad_Club.
5 Likes
In case anyone is wondering, Gamestop is still a functioning company and not just vaporware. I ordered some Dragonball Z socks for my girlfriend at 11:19am and they have shipped by 2:22pm!
11 Likes
So CCIV, or any SPAC for that matter, would essentially turn into shares of the company they merge with? As of right now it is just a pile of raised capital waiting until that moment?
Do I have that right?
1 Like
fine but I’m running if they tell me to get into their stocks
Yes
No, I guess now that it’s being explained to me like I’m a person who doesn’t understand it at all (which is the case), it makes more sense.
1 Like
What i found out in the last week is like 95% of the people (myself included) don’t know shit about finance.
8 Likes
It’s hard to make Portnoy look good but this guy did it.
hmm, on one hand, I don’t trust the senate, on the other hand, Sherrod Brown is actually cool
https://twitter.com/elwasson/status/1354881140453212163?s=20
4 Likes