When
@Paul_SF posted recently about the Jon Stewart discussion that centered on GameStop, Pay for Order Flow and RobinHood I did not initially comment. Having watched the episode more than once I agree that it is essential viewing for those of us who deal in any derivative and/or deal with RobinHood specifically, or, frankly any broker at all. The changes made during the Madoff era and since have all encouraged activities which should be regarded as fraudulent in the US and are in fact fraudulent in most major countries.
It is transparently obvious that the US financial system deregulation that has been developing since the repeal of the Glass-Steagall Act in 1999 has produced the 2008 'sub-prime' crisis and since then has introduced more and more systemic risk. The details are not for this thread.
These do prove, absolutely, that dealing in derivatives or margin in the US securities markets is not equivalent to casino gambling, because, as Stewart helpfully tells us, casinos in the US are regulated.
TSLA is not equal to GameStop, mostly because of broad ownership, but we also have copies
(Mod: after a bit of head-scratching, I believe "copious" is meant) proof that the market in TSLA is subject to wild manipulation by market makers and others. It is simply impossible to consistently succeed in a game designed to defraud investors, even though the term "defraud" is not necessarily legally applicable because, after all, those people wrote the rules.
I
(doubt? am astonished that?) anybody can continue to have confidence in their own skill to beat the system when Bernie Madoff wrote a couple of the crucial rules...