The aptly named “Reddit Revolt” is still underway and another day of chaotic trading promises to be on the horizon. If you need background on this hilarious, yet very impactful story, click here, here, and here.
Last night, Dave Portnoy, best known for owning Bar Stool Sports and being extremely sane compared to most in that industry, went on Tucker Carlson’s show. Portnoy is a prolific day trader himself, and he has some thoughts on exactly what should happen to those who stepped in to rig the market the moment the normals started to prevail over the hedge funds.
— Douglas (@missionisgreat) January 29, 2021
Dave posted the full interview this morning as well, so be sure to check that out.
I actually watched this live last night, a rarity for me when it comes to cable news these days, but I figured it’d be worth the effort. Portnoy lays into the Wall Street manipulators, and no he’s not talking about the Reddit users who bought stock legally. He specifically hits Robinhood, the online trading app that shut down trades to protect the hedge funds last night.
As Portnoy points out, Robinhood has basically blown up their business. He even suggests they will cease to exist as a company in the near future. That led to the obvious question of why Robinhood’s CEO would do such a thing, so heavily putting his finger on the scale? Their entire brand was trading for the little guy, yet out of nowhere, they destroy their entire business model to protect some hedge funds from losing a bad bet? The insinuation here is that he was possibly paid off or that his company simply values hedge fund money more than those they claim to cater to. The latter makes sense considering Robinhood, per Tucker’s report last night, makes big money selling trading information to hedge funds so they can use that in their analysis.
Regardless, Portnoy says there needs to be an investigation. Unfortunately, that investigation will probably target the icky Reddit users and not the market forces, including Robinhood, who so blatantly manipulated the market to pick winners and losers yesterday. Do people need to go to jail? Sure, but no one ever goes to jail in these situations who should. The Biden administration has a literal Wall Street staple as Treasury Secretary. Biden himself couldn’t understand this situation if you drew it in crayon. They aren’t going to step in and do anything.
But Portnoy’s fire is still commendable. There’s a real revolt going on out there, and the populism that Trump ushered in isn’t going away. It’s just shifting its shape a bit.