All-In Podcast: E19: Robinhood's GameStop decision: Why did it happen and how can it be prevented in the future?


Economist Mohamed El-Erian (advisor to Allianz and President of Queens’ College, Cambridge) talks about these events on BBC Today Programme, starting at 0:50. He speaks at 0:52:12

“Apple was down 5% in a week that they announced record profits”

“It matters a great deal who wins.”

“There are 3 actors: Retail investors, Hedge funds, and Platforms.”

“A lot of us are cheering for that outcome. We’d like to see the small investor win and this be part of the democratisation of finance. But I have to tell you that the odds are pretty high that the hedge funds will prevail.”

" I remember being told to always remember that, as #investors, we have no friends on #WallStreet."

Best way to stop it from happening is just let the shorts win while they are killing the companies they short by 150%

I learned so much watching this, thanks for the upload @cezar

Best lessons for me personally:

dont think you understand something because you understand an aspect of it

trade with simple rules simple instruments

Listen to this 32:40!!

This is a huge flaw in the current system

I hope more people listen to THIS episode and their podcast in general. These are people who are trying to educate us, who have friends in very high places and can give you a glimpse of how things actually work. Plus having an insight of how people like Chamath think, is valuable information.