robin hood did impose more restrictions on these securities this friday than how is robin hood going to shake out after all of this. ok so a couple predictions for you number one i absolutely believe robin hood is done i mean as far as retail investors why would why would anyone even go there why would you use this platform ever again it's already proven itself to be a complete set up for wall street but there's also been a couple of articles that have come out in the last couple of days which are pretty fascinating and what they're saying is that robin hood was never set up in a way to make money off of those retail investors that wall street firms in those wall street firms are then acting based upon the data of what's happening on the retail side if that is the case it also explains why on thursday evening robert who was able to get a 1000000000 dollar investment from some of its existing investors to help prop it up the truth is i think the they always been torn this is a problem what is the exact opposite it's not the company that takes from the rich and gives the poor it's the

so how have sites like robin hood so dramatically changed the face of retail investment? yeah, the rise of retail has really force wall street to take notice, especially after the catastrophic losses they face when institutional has got squeezed and started losing billions in names like game, stop and blackberry. so they are completely changed the landscape of investing, especially after blowing up on the biggest hedge funds like melvin capital, institutional they trade on fundamentals. they look at earnings, catalyst financials and global climate, and all that to determine price points of dames and their market cap to look for opportunities, but then retail, they rely more on sentiment and hype and to that end, it's a complete divergence from fundamentals because you look at a name like game, stop are an see and any institutional of b, like that's dead money, short it. but then all the retails ban together under their love of gaming and saving the movie theaters and movie business and managed to squeeze out all the hedges game. stop rallied over 2000 per cent this year,

just really shitty what robin hood's doing in. now is there and down all these regulations than when we played where were those before hand i think those are good tools i mean these are good tools a good power you know like financial power in the hands of the born hands of the little guy. robin hood is facing more than 90 federal lawsuits after restricting trading back in january but it does have an arbitration clause in its agreement that user signed agreeing to opt out of suing the company but if proven to be a proper class action lawsuit users may in fact be able to take action against a trading app that claims to support the average joe were portie for boom bust and sweet. home on this let's bring in boom bust co-host bones one who is in mexico today and christie i join us from california christine let's start with you when it comes to this hearing focused on robin hood what is the senate banking committee trying to accomplish here. well the committee is here to basically evaluate the dangers of financial speculation and perha

so robin hood can actually control this. it's completely dependent on the clary houses and clearing houses. they just that requirement that fluctuate daily based on volatility in the market. so if we have another flurry of this mean trading, this could actually happen again. and as a result of setting these training limits on those names, robin hood based a lot of backlash from outreach customers who lost their money, threatened to leave the app store and due to litigation, etc. that also received us congressional inquiries and investigations, negative media, all of which caused reputational harm to the name and what poses the risk in the future as a publicly listed company to affect the price of stock. yeah, and it's interesting to see the fact that robin hood is now admitting that this could happen again. it's just all up to those read it users who decide to come together. now ben, this is a sentence that would not make any sense if you heard it before this year. but robin hood has also listed don't coin as a risk factor f

well read it or initially did ignore robin hood because of the fact that robin hood was the reason that they got burned previously when they restricted the trading of names like amc and games talk better. there is an absolutely furious because they thought that games are that robin hood was actually working hand in hand in tandem with other big wall street names like citadel and screwing out the little guys that they propose to, to that purported to support the renters are actually quite furious with robin hood and it really wasn't until yesterday, after kathy woods came out and said that, hey, this is, this is great. we have a very high price target. we're going to be acquiring a big chunk of position. so read it as basically solve this as an opportunity to ride the wave up as well as renters also saw the fact that literally it was the 1st day of options trading. it was a very easy way for them to spark a rally spark a squeeze. and as you know, this is a game that retail traders like to play. they play short squeezes, they play gamma squeezes, they play delta squeezes, very obvious, te

associated with robin hood holds a large equity stake in dough. and that goes back to the wall street journal. back in february, they did some reporting that that time that indicated that about 20 percent of all those coin and circulation belong to one person or one entity about 30 percent of them. and very possibly that there may be a connection to robin hood itself that we don't know that. but here is what is a significant point here, is that the ceo of robin hood says, this is not true and that the company itself holds no major stake in any of the coin they trade. well, volunteer volatility of coin thing should not necessarily be bad for your business model unless you say, well people are buying them through us and therefore if they get hurt, that will reflect badly on us. but the thing is robin has a platform for stocks and it's a platform for crypto. so the idea of crypto go with up or down, or stocks going up and down would have a large detrimental impact on the platform. i think it's highly unlikely. yeah. and it is notable to see that we'r

you think that's also taking a toll on robin hood as well? you know, there's a, an argument, a few months ago that as more and more people go into the office because of delta be largely over that you'd have less people actually treating crypto, curtis and less retail and less mean treating all that. i think we're starting to see some of the elements of that. again, it's a little curious me, if a large part of your revenues being driven by the fickle crowd, you're going to very fickle revenue. so everything lines up with this narrative that a lot of people staying at home, we're bored. so what do they do? they went to the casino and the casino happened to have access through their the robins. and now chris, they want to bring you obviously into this conversation. why are you seeing the difference between what we thought maybe in the 2nd quarter and 3rd quarter for robin hood? do you agree with michael at all? well yeah, there was a huge surge of crypto training the 2nd quarter versus the 3rd quarter. and that was pretty much because of 2 thing

2020 at its worst rate since $1046.00 and shrank by 3.5 percent and the game stop saga continues as robin hood and other major trading partners are trading as the battle between wall street and small investors continues we'll explain what this means for future trading with the us pros with christiane and ben next have a lot to get to so let's get started. here's a headline that will surprise no one in 2020 the u.s. economy had its worst performance in 74 years since the end of world war 2 it contracted 3.5 percent now this was of course because of the coronavirus lockdowns and the impact of the worldwide pandemic so what's in store for 2021 especially in an economy that remains so uncertain joining me now to discuss this and more. on it chrystia i ben let's start with you can you give us a rundown of how the economy did or didn't perform in 2020. yeah i mean as you said in the beginning here it's really no surprise to anybody the economy did not do well contract at 3.5 percent as you said the worst it's done since 1946 so it's been a long time since the economy's contracted that much in a

and robin hood, basically capitalize and game of fight by giving these amateur traders a platform to band together an army, which is more powerful than any hedge fund or tells about these investors. who are they and what makes them unique compared to say, the traditional investor? yeah, there's a, there's a couple of things that are pretty significant here and talking about the median age, right. the median age of these retail investors, it's 31 years old, which is pretty remarkable. if you consider the fact that this isn't, i guess you can say this is not your daddy's investing game anymore, right. it's a, it's a totally different group of people from the past. i think everything chrissy just laid out explains why that is right for the 31 year old and younger. these are folks who want a game of fight system who love the idea of being able to move markets by moving in mass together. if you think about, you know, older investors, they would never have considered a time when you would kind of move markets together by going online 1st discussing what traits to make and then making somet

it is no surprise to hear that robin hood's i. p. o is raising questions about the power of mean stocks to disrupt financial markets. robin hood, which claims that as democratizing finance has found us solve, caught in the middle of mean stock traders and the fcc now and it's i p o filing robin hood says it cannot assure investors that mean mania like game stop or am see won't hit again. so joining in out of those jobs are boom bus, co host benson and christy i. christy, let's start with you here. now in an i p o filing companies have to list specific risk factors for investors. why would robin hood claim that means stocks are a risk factor while it's not exactly the mean talk that are the risk factor if the trading frenzy that comes with that because it's a big risk. and that's because robin hood like all brokerages, they depend on query houses to clear their trades and execute climes trade. and these clearing houses have certain capital requirements that are raised, strained, curious, of increased and heightened volatility. so that

and that's robin hood's crutch that they rely on. a lot of traders, not long term traders and hardly so one big coin didn't do anything for a couple months and just kind of flopped around the 38000 support line. people lost a lot of interest. and then of course, as a 2nd reason, which was the death of those coin. as michael just mentioned, a huge portion of robin hood's revenue came from crypto training, specifically don't coin. and i think all of you know, my feelings on those klein are ready, but those coin had been responsible for about 62 percent of crypto transaction revenue. robin hood in the 2nd quarter, but it has proven itself to be a one time gag token as now. volumes are down about 75 percent. so while there are a ton of great all coins out there that are actually doing spectacularly, it kind of blows my mind why robin hood wants to bet on and actually feed into this retail frenzy by listing such an unreliable and dumb coin and ignore i. some the real projects out there. when i know something we've talked about a lot, righ

and in other news, robin hood is facing everything from federal, fine to criticism and read it as it files you go public. we'll discuss how all the pressures fans impact the popular app moving forward. and later trade between the you can, you is picking up the fight post wreck, the concert. we'll go over the numbers and see whether the trend will laugh. we have a tax, so today. so let's dive right in we leave the program with by dance, the company behind social media giant tick tock, shelving its plans for an ip mid scrutiny in china. beijing based social media giant last valued at $180000000000.00 in a funding ground in december, had been weighing an initial public offering of all or some of his businesses in the us or hong kong. instead, the companies found or decided that it would be better to wait. joining us out, discuss harpooned by co host, spend swan. christy. i ben, i'm going to start with a big question. why is bite dance, making this move to pull back these plans? yeah, i think there's a couple of big reason for the biggest is that china has this regulator that's essential

why jump into that for a with robin hood at this moment. while at the same price, it's the same reason as why you walk into a good you store and you decide to buy a bag. when it's on sale, you don't buy it when it's on full retail price at $60000.00. you buy it. when instead of 50 percent discount though, right now it would be the optimal time to actually jump into crypto because of the price drops. so it shows that demand is still robust. it's still really high. and robin had actually how it got a head start. they launch bitcoin eith, trading in the u. s. early in 28 at 3000000 for this year. prescriptive business. so this is despite the fact that it has very limited trading features and has listed less than 10 assets on its platform. that's a big failure because half of them are all derivatives of bitcoin and east. so basically very limited features and capacity. so if for tool and tiger broker can launch their commission free crypto trading platform, they will stand to take a lot from robin hood business and customers are hungry for othe

robin hood in the 2nd quarter. but it has proven itself to be a one time gag token as now. volumes are down about 75 percent. so while there are a ton of great all coins out there that are actually doing spectacularly, it kind of blows my mind why robin hood wants to bet on and actually feed into this retail frenzy by listing such an unreliable and dom coin and ignore i. some the real projects out there. when i know something we've talked about a lot, right? if you're getting in and you're making money, then life is great until it starts falling. and then all of a sudden you're losing money. so it'll really be interesting to see how robin hood moved forward with that. and if they continue to really focus on some of those mean point. now michael, i want to shift a little bit. i know that when we're talking about really just crypto currencies in general, a lot of those mainstream currencies are facing a tough road and have a tough road in recent days. but at the same time, we've also got j. p. morgan revealing that s

there's that made it famous thing the world should ignore the robin hood i p o altogether. so what will this mean for the future of the newly public company? joining us now, this guy is michelle snyder, partner and director of training research and education for the market gauge group . now michelle robin hood was just fine $70000000.00 by wall street self regulator for widespread and significant harm to the users. the company is also under scrutiny from the c c over the practices that generate most of its revenue. so how do investors see all of this pressure right now? well, we can add to that by the way, the $12600000.00 they had to pay in restitution. what i like to call the list of their crimes and misdemeanors. for example, false margin information, erroneous margin calls inaccurate account balances, inaccurate options, trading risk mean stocks. they couldn't keep up with the volume. and we had that unfortunate incident where that 20 year old kid committed suicide because he thought he owed a lot more money, which really goes down to i think their biggest issue, which

and robin hood hadn't announced any plans yet to expand their point. all right, so this market is primed for these new competitors to stuff and especially if they can stay, she'll tell appetite and not screw up, like robin hood did by going down, drink pete volatility. i mean, that's when everybody wants to trade. so both who to and tiger brokers are now increasingly focus on market outside of mainland china due to the tightening capital flow control. so both acts are speaking to attract customers with in the social network. that's very similar to each whirl where users can flop trading ideas and watch each other's traits. and like again of what we've been saying. although these up are great and easy to use, beautiful interfaces. the same problem still remains as these are centralized platforms, which means that users are not in control the fun and they don't on their own private keys. so while this is great for math market adoption, it, people should still look to something like minimum for example, which performs the same task, but also gives users o

it's sitting and robin hood's wallet. and so if the government decides that you're not paying enough taxes, or that if you're skirting something they don't like, or that if you're involved in some kind of a legal transaction, they can simply take the money out of your account because it's not your account. it's robin hoods, wallet and so i would just say it's a warning kind of a closing warning here. if you believe in crypto currency and you want to be involved in it, do not make a coin base or a robin who do your primary wallet because it's not yours. it is theirs. and they can do anything they want with the currency inside that great information, as always they consider boom bus, bent on and chris the i thank you both. thank you. and that, that for the time you can catch boom by on demand on the portable tv app available on smartphones and tablets through google play in the apple app store. 5 searching portable tv. portable tv can also be downloaded on samsung, smart tv, and roku devices, or simply check it out at porta

first robin hood securities put the restrictions in place in an effort to meet increased regulatory deposit requirements not to help head phones we don't answer to hedge funds we serve the millions of small investors who use our platform every day. second robinhood immediately secured additional bonds the spite the unprecedented market conditions in january at the end of the day what happened is unacceptable to us to our customers i'm sorry and i apologize please know that we are doing everything we can to make sure this won't happen again to important factors based entirely on publicly available information gave me confidence that game stop was undervalued 1st the market was underestimating the prospects of game stops legacy business in overestimating the likelihood of bankruptcy i grew up playing video games and shopping he came stop and i plan to continue shopping there game stop stores still provide real value to consumers and reliable revenue for game stop 2nd i believe that game stop has the potential to reinvent itself as the ultimate destination for gamers within the rapidly growing

hood and robin hood had been painted as a bit of a villain here but we heard what led to end of the c.e.o. of the company had to say so is that really the case that they were the villain in the situation. i don't think they're the only villain but i don't think what lad said today absolves them of anything look i think what michael said is absolutely true the whole damn system is corrupt from the top down and it's been corrupt for decades the system has been built in a corrupt way it's been structured in order to be corrupt to make you know these wall street hedge funds extremely wealthy what the wall street bets guys did was they unmasked a lot of that by moving forward does that mean everyone who was part of this wall street bets group was a good person no and this is part of the problem that media plays into is that we try to create a 0 sum game where it's like either you're all good or you're all bad everyone on one side is good and everyone on the other side is bad and it depends on how you view the situation and in the case of robin hood you know when when the c.e.o. sitting t

so where does robin hood make money? first of all, they have interest on their, on investing cash. so in other words, if you don't actually invest the money, they will charge you interest on that. or you also have a subscription service called gold service. they get $5.00 a month on that one from their people and they have $30000000.00 subscribers. but their biggest way that they make money is selling order flow, and that's where a lot of the rhetoric people are extremely upset about. because in essence what they're doing is they're selling your order flow to institutions, which then of course, can jump ahead those trays. so if you put that all together, we have to continue to see where it's going to monetize from number one. obviously it can can itself into too much more trouble at this point. and also just the whole trend of the trading has to continue, which means the market has to face all them if we get any kind of shift in how people are investing, that could be trouble for them. so that's really the bottom line. they had the 0 commission everybody's doing and now it's more c

of reddit coming in you've got he mentioned earlier glad to from robin hood coming in of course that was the financial app that a lot of people used when they were buying up all the shares of game stock and just to recap which is why they're looking into whether or not there isn't a manipulation of the market is the fact that you know it would appear also key skill who i need to mention also on that witness list as you know brant your words well you've known as roaring kiddie online and he was certainly active on that reddit page that sparked all of those day traders to get involved in buy massive amounts of game stop stock which of course shot up in value when a lot of big hedge fund investors were hoping that it was going to decrease in value so it sort of cut into their profits and i think that's what's happening you know and then you had robin hood stepping in which is where a lot of people were doing those transactions and they pulled the plug for met it and everybody was like way we hate you why are you doing this and so you have all these investigations looking into who did wh

if you compare that to robin hood, they have 18000000. so in terms of the whole trends, you just talked about retail investors getting more and more involved in the market . a power certainly opens up another door. now it's going to take a while for that to happen, as you've mentioned already into the crypto space. there's talk that perhaps they'll find some kind of a partner as a broker dealer. but overall, right now, if you just look at the stock itself, it's interesting because you mentioned it's sold off a little bit, but it actually is holding very team moving average here are the 50 day moving average. you have an opportunity if you believe that this could be a real profit for them as it was, let's say for robin hood, when you have a situation where you have about a $10.00 risk and it should send the stock off. now we will tell you though it does, it will take time. it's not going to happen overnight. wow. so pay pal is seeing all of the success that has been had with retail training and they're trying to get a piece of the pie. the