Puppet MastersS


Popcorn

Jen Psaki's pathetic response to the Reddit Hedge Fund story and Redditors' glorious response to the SEC - UPDATES

jen psaki
© AP Photo/Evan Vucci
We've been following the amazing story of what some Redditors over at the forum Wall Street Bets have been doing to hedge funds.

The Hill's Saagar Enjeti did an terrific breakdown of the story if you haven't been following it or want to see a really good analysis of what happened and why people are mesmerized by it.


Comment: For more on the WallStreetBets market shenanigans see: Video game retailer GameStop stock doubles again with no let-up in amateur interest; Update: Discord bans r/WallStreetBets outright

UPDATE 28/01/2021: Developments have come fast and furious in the battle between the Reddit group r/wallstreetbets and the hedge funds. Big Money has pulled out the big guns in an attempt to quash the peasant rebellion:

NBC reports first:
Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, the hedge fund's manager told CNBC's Andrew Ross Sorkin.

GameStop, hedge funds' most-hated stock, was targeted by an army of retail investors who marshaled forces against short sellers in online chat rooms. In the Reddit forum "wallstreetbets" with more than 2 million subscribers, rookie investors encouraged each other to pile into GameStop's shares and call options, creating massive short squeezes in the stock.

CNBC could not confirm the amount of losses Melvin Capital took on the short position. Citadel and Point72 have infused close to $3 billion into Gabe Plotkin's hedge fund to shore up its finances. On Wednesday's "Squawk Box," Sorkin said Plotkin told him that speculation about a bankruptcy filing is false.
Vice tells of the hammer being brought down:
According to screenshots shared on social media, on Thursday morning a notification appeared on Robinhood telling users that they could close their position on GameStop's stock but not buy any additional shares. Redditors are currently panicking, looking for ways to transfer their shares of GameStop off of Robinhood to other platforms, and are generally furious at the platform.

In a blog post, Robinhood confirmed that it has placed restrictions on several stocks due to volatility. "We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities," the blog post read.

Robinhood did not respond to a request for comment.

Motherboard was unable to place orders to purchase shares or fractional shares of GameStop, AMC, BlackBerry, or Nokia in pre-market trading on the RobinHood app. We were able to buy a stock we picked randomly — something called SRNE — with no problem. "This stock is not supported on Robinhood," a message reads when we tried to purchase GME. Searches for "GameStop" and "GME" on the app itself no longer return any results.

This is likely to have a massive impact on Robinhood users and ultimately the company. Holders are now unable to freely trade it; the app is only allowing users to close out their positions, meaning they can sell it but not buy more. This is potentially devastating for novice investors or those who simply want to follow the general marching orders of the r/WallStreetBets subreddit, which is to hold (and buy more) GameStop stock until further notice.
ZeroHedge reports of lawsuits being filed against Robinhood by angry customers for blocking any trading of Gamestop besides selling, along with other updates:
Robinhood Reportedly Selling People's GME Positions Without Warning, Investors Sue

Update 1445 EST: Users are starting to report that Robinhood is selling their GME shares without warning. Screenshots like the one below are starting to make their rounds on social media. Meanwhile, platforms like Webull and Merrill Edge have also joined in the restrictions.
robinhood restrict gamestop trading
Update 1232 EST: Following the outrage of stock manipulation from AOC, Brendon Nelson (presumably a Robinhood user), sued Robinhood Financial LLC, Robinhood Securities, LLC, and Robinhood Markets, Inc. in the Southern District of New York this afternoon for "removing Gamestop from its trading platform."

The lawsuit reads:
"Robinhood purposefully, willfully, and knowingly removing the stock "GME" from its trading platform in the midst of an unprecedented stock rise thereby deprived retail investors of the ability to invest in the open-market and manipulating the open-market."
lawsuit robinhood gamestop
Social media users on Twitter were infuriated by the trade restrictions Robinhood and other discount brokerages placed on clients this morning. Some said:


"Does this suit mention Robinhood's relationship with Citadel, who are deeply interested in the shorting of GME?" someone else said.


Meanwhile, Barstool Sports' Dave Portnoy said he's down a "milly," (we believe that's a reference to $1MM) following the trade restrictions placed by Robinhood and other discount brokerages. He called Robinhood trading app "crooks" and started calling out executives on Twitter.

Portnoy still thinks "$amc and $nok come back the second the free markets open again."

Portnoy had this message to the founder of Robinhood:

Even rapper Ja Rule chimed into the discussion about the corruption on Wall Street. He said, "They hedge fund guy shorted these stocks now we can't buy them ppl start selling out of fear... we lose money they make money on the short... THIS IS A FUCKING CRIME!!!"


And that's coming from the guy who helped organize Fyre Fest.

* * *

Update 1141 EST: Robinhood is reportedly adding more names to its restricted list, including American Airlines, which was up more than 70% at one point in pre-market trading this morning.
ROBINHOOD ADDS AAL, CTRM, SNDL, OTHERS TO RESTRICTED TRADING
Additionally, it looks as though the first of what is likely to be many lawsuits has been filed against Robinhood. We wonder if Citadel has a good lawyer they can recommend?
ROBINHOOD CUSTOMER SUES OVER REMOVAL OF GAMESTOP
Update 1103 EST: Everyone seems to be piling on Robinhood, including hip hop artist and Fyre Festival bankroller Ja Rule, who says "this is a fucking CRIME" about the measures Robinhood is taking.

Update 1017 EST: Bloomberg is reporting that the SEC and Fed will likely take "little action" over the trading in GameStop and other names - but that it may include a trading suspension in the names.

Analysts told BBG: "We do not believe the SEC will issue an emergency order nor will the Fed change margin requirements. The only possible action that will potentially be taken is the SEC suspending trading in one or more of the names for one to two business days"

Update 0950 EST: Robinhood (once again) appears to be down. There's no word on whether the disruption is just from the volatility or whether or not it is directly related to the platform's ban of buying certain equities:
ROBINHOOD SAYS ISSUES WITH EQUITIES, OPTIONS, CRYPTO TRADING
ROBINHOOD SAYS DISRUPTION WITH IOS, ANDROID AND WEB APP
ROBINHOOD SAYS EXPERIENCING SERVICE DISRUPTION
Update 0925 EST: Interactive Brokers has joined Robinhood and has put option trading in some names into liquidation. This headline crossed the terminal around 0925EST:
INTERACTIVE BROKERS PUTS SOME OPTION TRADING INTO LIQUIDATION
In a statement to CNBC, IB said:
"As of midday yesterday, (1/27/2021) Interactive Brokers has put AMC, BB, EXPR, GME, and KOSS option trading into liquidation only due to the extraordinary volatility in the markets. In addition, long stock positions will require 100% margin and short stock positions will require 300% margin until further notice. We do not believe this situation will subside until the exchanges and regulators halt or put certain symbols into liquidation only. We will continue to monitor market conditions and may add or remove symbols as may be warranted."
Additionally, Robinhood has released the following statement:
"We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities."
We can't help but wonder...

Update 0842 EST: Barstool Sports' Dave Portnoy has weighed in on the restriction, stating "Either @RobinhoodApp allows free trading or it's the end of Robinhood. Period."

He has also Tweeted: "And it turns out @RobinhoodApp is the biggest frauds of them all. "Democratizing finance for all" except when we manipulate the market cause too many ordinary people are getting rich."

He continued: "Somebody is going to have to explain to me in what world [Robinhood] and others literally trying to force a crash by closing the open market is fair? They should all be in jail."

--

One day after TD Ameritrade implemented unprecedented restrictions on trading in GME, AMC and other massive short squeezes, on Thursday morning reports are circulating on social media that Robinhood is no longer allowing GameStop or AMC share purchases.

"Robinhood Removes GameStop, AMC; Puts Notice On Pages Saying 'You Can Close Out Your Position On This Stock, But You Can Not Purchase Additional Shares'," Benzinga reported at about 0830 EST.


The report was corroborated by additional sources shortly after 0830 EST.


Users are reporting the same on Twitter.

There are also scattered reports that the app has restricted BlackBerry. Users on social media are furious:

Developing...
Social media users continued to share information and vent their anger:


One purported Robinhood insider claimed the White House was getting involved:


Click for larger image:
gamestop reddit hedge fund insider
© Odin19199




Target

Biden begins staffing commission to study Supreme Court reform

US Supreme Court chambers
© UnknownUnited States Supreme Court chambers
The Biden administration has begun setting up a commission aimed at Supreme Court reform and the federal judiciary, according to a Politico report. Sources close to the matter told the publication that nine to 15 people are expected to be appointed to the commission that will study court reform.

Those who are expected to be on the commission include Yale Law professor and Obama-era Deputy Assistant Attorney General Cristina Rodríguez and former American Constitution Society President Caroline Fredrickson. Harvard Law professor and former Bush-era Assistant Attorney General Jack Goldsmith has also reportedly been tapped to join the commission, according to the report. The commission will fall under the scope of the White House counsel's office, Politico reports, with assistance from Biden campaign lawyer Bob Bauer.

As Politico notes, Fredrickson has indicated in the past that she is in favor of court reform, saying in a 2019 interview, "I often point out to people who aren't lawyers that the Supreme Court is not defined as 'nine person body' in the Constitution, and it has changed size many times." Rodríguez's and Goldsmith's stances on court reform are less well-known than Fredrickson's, notes Politico.

Comment: Biden's expert opinion? 'The court system is getting out of whack'. Who knows what that means! If discussions and debates follow the current Washington pattern, conclusions will skew to political advantage rather than non-partisan determination for the betterment of the judicial system and its service to the people.

FYI: Changes in the number of SC justices since inception:
Article III gives Congress the authority to set the number of Supreme Court justices. The court currently has one chief justice and eight associate justices, but the number has fluctuated since 1789.
  • Originally, the total number of justices was set at six by the Judiciary Act of 1789. President George Washington signed the act into law on September 24, 1789, and he nominated John Jay to serve as the first Chief Justice of the Supreme Court of the United States.[4]
  • The Judiciary Act of 1801 reduced the number of justices from six to five.[5]
  • In 1807, Congress increased the number of justices on the Supreme Court to seven "in response to the geographic expansion of the nation and the increased caseload of the district courts in the west. The act established a Seventh Circuit, consisting of Ohio, Kentucky, and Tennessee, and specified that the new justice be assigned to preside over the U.S. circuit courts within that circuit."[6]
  • The Eighth and Ninth Circuits Act of 1837 created the Eighth and Ninth Circuits to provide for an expanded caseload due to the admission of new states to the Union. This Act also rearranged the Seventh Circuit and created two new seats on the Supreme Court to support the circuit court.[7]
  • The Tenth Circuit Act of 1863 created the Tenth Circuit to represent California and Oregon, eliminated the California Circuit Court and added another member to the Supreme Court. This act gave the Supreme Court its highest number of members in history, with the chief justice and nine associate justices serving.[8]
  • The Judicial Circuits Act of 1866 reorganized the circuits in the thirty-six state nation, reducing the number of circuits from ten to nine. This reorganization created a basic structure of circuits lasting to present day. The Act also eliminated three positions on the Supreme Court.[9]
  • The Judiciary Act of 1869 again increased the size of the Supreme Court, setting it at nine justices, one for each circuit.[10]



Nuke

Russian lawmakers approve extension of key nuke pact with US

putin
© Alexei Druzhinin/Sputnik/Kremlin/ReutersRussian president Vladimir Putin
Russia has approved an extension of the New START nuclear arms control treaty as Moscow and Washington look to save the last major pact of its kind.

The lower house of parliament, the State Duma, voted unanimously on January 27 to extend the treaty for five years. It was then approved quickly in the upper house of parliament, the Federation Council.

The pact, signed in 2010, was set to expire next week.

A day earlier, U.S. and Russian officials announced an agreement to extend the accord, which doesn't require approval from the U.S. Congress. The extension is "a step in the right direction," Russian President Vladimir Putin said in an address to the Davos Economic Summit on January 27, adding that
"challenges remain that could cause a real setback in global development, which is fraught with a fight of all against all and attempts to resolve looming controversies through a search for internal and external enemies. The situation can develop unpredictably and spin out of control if nothing is done to prevent it."
He expressed "hope" that global conflicts are a thing of the past since they could mean "the end of civilization."

Attention

Tulsi Gabbard rips Brennan, Schiff and Big Tech for attacks on civil liberties, calls them more dangerous than Capitol rioters

GabbardBiden
© Reuters/Sam WolfePresidential candidates Tulsi Gabbard and Joe Biden
January 2020
Former Democrat presidential candidate Tulsi Gabbard has urged party leaders to halt efforts by such people as ex-CIA director John Brennan to infringe civil liberties, calling them more dangerous than the US Capitol rioters.

Gabbard said Tuesday on Twitter: "President Biden, I call upon you and all of Congress from both parties to denounce efforts by Brennan and others to take away our civil liberties endowed to us by our creator and guaranteed in our Constitution. If you don't stand up to them now, then our country will be in great peril."


Comment: As the plan unfolds to include domestic-terrorism crackdowns, more clearly we see movement towards martial law and irreversible enslavement. In retrospect, the Covid mandate will seem like 'a cold' in comparison.


Windsock

Will the truth on COVID restrictions really prevail?

Mailbox
© Andree Kehn/Sun Journal via AP
The consequences of the SARS2 coronavirus pandemic and its management have been enormous. Over 400,000 American deaths have been attributed to the virus; more will certainly follow. Even after almost a year, the pandemic still paralyzes our country. Despite all efforts, there has been an undeniable failure to stop cases from rapidly escalating and preventing hospitalizations and death.

Here's the reality -- almost all states and major cities, with a handful of exceptions, have implemented severe restrictions for many months, including closures of businesses and in-person school, mobility restrictions and curfews, quarantines, limits on group gatherings, and mask mandates dating back to at least the summer. These measures did not significantly change the typical pattern or damage from the SARS2 virus. President Biden openly admitted as much in his speech to the nation on Jan. 22, when he said "there is nothing we can do to change the trajectory of the pandemic in the next several months." Instead of rethinking the results of implemented policies, many want to blame those who opposed lockdowns and mandates for the failure of the very lockdowns and mandates that were widely implemented.

Ironically, all new policies will coincide with a decrease in cases, because that decrease is already evident across the United States.

Comment: Of course Biden has saved the country. Optics over facts sell success. What this article begins to address is the upcoming slam on healthcare facilities for all neglected, undiagnosed and worsening health issues purposefully deflected by the COVID mandates - and all the deaths this will bring about as part of the grand purge.


Bad Guys

Warren, AOC weigh in on GameStop stock circus and take aim at hedge funds

warren ocasio cortez
Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez
Sen. Elizabeth Warren, a longtime Wall Street critic, chimed in on the remarkable surge in GameStop stock with a warning for hedge funds and the investment class.

"With stocks soaring while millions are out of work and struggling to pay bills, it's not news that the stock market doesn't reflect our actual economy," the Massachusetts Democratic senator said in a statement Wednesday. "For years, the same hedge funds, private equity firms, and wealthy investors dismayed by the GameStop trades have treated the stock market like their own personal casino while everyone else pays the price.

"It's long past time for the SEC and other financial regulators to wake up and do their jobs - and with a new administration and Democrats running Congress, I intend to make sure they do."

Comment: What a perfect hobby horse for Oscasional Cortex. But one wonders if she actually understands what is going on. Warren, on the other hand, has been in a position for years to force a fix for this and other openings for Big Money shenanigans. Why hasn't she?


Bad Guys

Scottish parliament orders release of 'explosive' documents that reveal conspiracy involving First Minister's husband to pressure police

News of a government investigation into allegations against Alex Salmond was leaked in August 2018.
© Jane Barlow/PANews of a government investigation into allegations against Alex Salmond was leaked in August 2018.
The Scottish parliament has ordered the country's prosecution service to release key evidence in the Alex Salmond affair, in a dramatic escalation of a battle over the non-disclosure of legal papers.

In an unprecedented move, Holyrood issued an enforcement notice on the Crown Office instructing it to release private messages from senior Scottish National party officials and documents about the leak of allegations that Salmond had sexually harassed two civil servants - allegations he denies.


Comment: Allegations he was cleared of:
He was cleared of all 13 sex assault charges at a trial last March, and his allies believe he was the victim of a plot designed to prevent him from making a return to frontline politics.

Comment: The Telegraph reports on one particular comment by the husband of Nicola Sturgeon, who is now Scotland's First Minister:
Challenged by Ms Baillie about whether there was nothing other than texts in which Mr Murrell spoke about pressure being applied to police over the Salmond case, he replied "there is nothing else - no.

"Mr Murrell has claimed he phrased the text message in which he said it was a "good time to be pressuring the police" poorly because he was upset and that its meaning has been misinterpreted.
See also: Scottish referendum result undoubtedly rigged


Alarm Clock

Do the Democrats really want unity?

Joe Biden
© ALEX WONG / AFP
Below is my column in the Hill on the increasingly divisive rhetoric and actions taken on Capitol Hill. Rather than plot a course to between greater unity, many are seeking to muscle through extreme measures that will only further aggravate and deepen our divisions. The media from the New York Times to the Los Angeles Times have run editorials encouraging aggressive moves to secure control of the Senate, including the ending of the filibuster. That move would make every vote a muscle play — producing sweeping changes in a country that is clearly divided and seeking political compromise.

Here is the column:

There are times when being a law professor ruins everything. You go to a great movie with your wife and get a sharp elbow after whispering in the theater that the character really cannot question a witness like that. Or you watch a football game with friends and try to explain that the cameraman wiped out by the running back would have a great torts case.

Bad Guys

Boris Johnson confirms 'red list' arrivals face new quarantine measures

Boris Johnson
© PABoris Johnson speaking during Prime Minister's Questions on Wednesday
Boris Johnson has told MPs that Home Secretary Priti Patel will set out tougher quarantine measures for "red list countries where we have particular concern about new variants".

Plans are expected to be unveiled on Wednesday, January 27, which could see UK arrivals forced to fork out for two weeks in a quarantine hotel to stop the spread of Covid.

And the Prime Minister addressed MPs during Prime Minister's Questions on Wednesday to confirm tougher quarantine measures are due to be set out by Home Secretary Priti Patel.

Mr Johnson told the Commons: "Throughout this pandemic, it has been the habit of the Opposition first to support one approach and then to attack it, to twist, to turn.

Comment:
UK PM Johnson confirms delayed school reopening in England, says Covid situation too 'perilous' to ease restrictions
Boris Johnson has dashed hopes that children might be able to return to school after the February half-term, noting that hospitals remain in a "perilous" situation and the government can't take any risks with Covid-19 rampant.

"It will not be possible to reopen schools immediately after the half-term. I know how frustrating that will be to students and teachers who want nothing more than to get back to the classroom," the prime minister said on Wednesday.
If we do, we run the risk of our NHS coming under still greater pressure, compelling us to reimpose every restriction and sustain those restrictions for longer.
Johnson noted that it was a priority to see kids in England get back to school, but insisted the decision would be taken as soon as the time was right.

The PM said it was still too early to relax restrictions, adding that the National Health Service cannot be put further at risk.

"We remain in a perilous situation, with more than 37,000 patients now in hospital with Covid, almost double the peak of the first wave," Johnson added.


Which suggests that all the ludicrous orders and insane dictates that people have been complying with has done absolutely nothing to stop or slow the spread.


The PM also insisted that schools are indeed "safe," but the risks of bringing communities together posed a high risk, and "a large number of kids are a considerable vector of transmission."

The government claims teachers are at no extra risk of catching Covid-19 and has not announced any plans for prioritizing teachers for vaccination against the virus, despite pressure from opposition parties.

Schools have remained closed since Christmas, with only the children of key workers receiving in-person teaching.
UK unveils STRICTER Covid-19 border restrictions as govt steps up enforcement measures
Home Secretary Priti Patel has unveiled new Covid-19 border restrictions, forcing UK citizens travelling from red-list countries to quarantine in government-provided accommodation while stepping up checks on other arrivals.

Speaking in the House of Commons on Wednesday, Patel declared that there are "still too many people coming in and out of our country every day," forcing the government to introduce stricter border restrictions to protect the country from new variants of the virus.

As was expected, the government will require UK citizens who are coming back from so-called 'red-list' countries to quarantine for 10 days in government-provided accommodation, so they can be monitored in case they develop symptoms. Alongside that, police will also increase checks on other arrivals who are self-isolating to ensure they comply with the rules.

To enforce the new measures, police presence at ports and airports will be increased, so border officials can check that people only travel abroad if they have a valid reason for doing so. Those who are flouting the rules will be asked to return home or be given a fine.

"Going on holiday is not a valid reason to travel," Patel said.


Except, of course, when they do it.


While Prime Minister Boris Johnson's party and his scientific advisers support this new approach, the opposing Labour Party has criticised the move as not going "anywhere near far enough" to combat incoming cases, leaving "huge gaps in our defences against emerging strains."

Labour's Shadow Home Secretary Nick Thomas-Symonds argued that by only requiring people returning from a specific handful of countries to quarantine in monitored accommodation, the government is showing it is "too far behind the curve" in tackling the ongoing crisis.

On Tuesday, the UK passed the grim milestone of 100,000 deaths within 28 days of a positive Covid test. The country has recorded almost 3.7 million cases to date.



Magic Hat

Homeland Security issues 'national terrorism alert' - because 'domestic terrorists' are very scary

DHS Logo
The Department of Homeland Security on Wednesday issued a national terror alert, reportedly warning that domestic extremists maybe be inspired by the Jan. 6 riot at the U.S. Capitol Building.

The alert states violent extremists opposed to the government and the presidential transition "could continue to mobilize to incite or commit violence." However, the agency said it has no evidence of a specific plot, according to the Wall Street Journal.

The alert was the first issued this year by the agency.

Comment: It took 20 years, but 9/11 is finally paying dividends for the totalitarians in the USA. Expect more of this from Grandpa Joe, and the people telling him what to say and do through his earpiece. Don't say we didn't warn you.