David Sacks perfectly summarizes the Robinhood debacle
00:00:00.000 | I mean, the effects of that decision they made to stop trading.
00:00:02.720 | And specifically, they didn't stop people from selling.
00:00:05.840 | They only stopped people from buying.
00:00:07.600 | So they shut down one side of the trade.
00:00:09.760 | And the effect of that was we had these hedge funds from Wall Street.
00:00:13.500 | They were on the ropes, right?
00:00:15.220 | I mean, let's discuss who these guys are.
00:00:16.980 | These are the apex predators of Wall Street.
00:00:19.960 | They are in the business of shorting companies to destroy them.
00:00:25.220 | I mean, that is their business model.
00:00:26.840 | And they are not academic traders, OK, who are just speculating on outcome.
00:00:31.000 | They engineer the outcome, right?
00:00:33.440 | Look at their tactics.
00:00:34.680 | Just watch the show Billions, right?
00:00:36.240 | They hire PR people.
00:00:37.520 | They hire private investigators.
00:00:39.480 | They're participating on these message boards spreading disinformation.
00:00:42.680 | Look at the year of hell that Elon went through, right?
00:00:46.240 | They tried to destroy Tesla.
00:00:47.300 | It's like five years.
00:00:48.160 | Yeah.
00:00:48.640 | Yeah, exactly.
00:00:49.520 | They tried to destroy companies to engineer that outcome.
00:00:52.560 | They create nothing.
00:00:53.580 | They're in the business of destruction.
00:00:56.380 | Now.
00:00:57.340 | The beautiful thing is you had these Reddit kids, these pirates who published this manifesto,
00:01:02.780 | right, on Reddit, basically being the heirs to occupy Wall Street.
00:01:07.040 | They recognize, look, occupying like a physical space does nothing to these guys.
00:01:12.960 | We are going to hurt them where it counts in their pocketbook.
00:01:15.880 | We are going to get together and we're going to basically create a trade mob that's even
00:01:19.640 | bigger than their cartel.
00:01:20.860 | And they did.
00:01:21.740 | They got 2.7 million people taking the other side of this trade.
00:01:24.860 | And then when the hedge funds doubled down,
00:01:26.640 | they said, fuck you, we're going to double, we're going to triple down.
00:01:29.540 | And the guy on Reddit said, listen, paraphrasing John Maynard, Kane said,
00:01:34.400 | we can be retarded longer than you can be solvent.
00:01:37.080 | And they were winning.
00:01:38.320 | That was what they said.
00:01:39.980 | Right.
00:01:40.220 | And they were winning the trade.
00:01:41.580 | Okay.
00:01:42.040 | And Melvin was dead busted and Citron was on its way to being dead busted.
00:01:46.360 | And they had to go to big Papa, Stevie Cohn.
00:01:49.480 | Okay.
00:01:50.220 | And Ken Griffin to get, to get their rebuys to buy their rebuys to get back into the game.
00:01:56.360 | Okay.
00:01:56.860 | And then they had these guys on the ropes.
00:02:00.600 | They had them felted.
00:02:01.680 | Okay.
00:02:02.180 | And then what happens just at the moment where they're going to like basically bust them
00:02:07.120 | out of the game for good.
00:02:08.540 | Robin hood shuts down the buy side of the trade.
00:02:11.840 | And so what does that do?
00:02:13.120 | It gives these hedge funds time to regroup, to unspool the tray, to reposition and save
00:02:18.540 | themselves and to get out of the trade.
00:02:20.460 | If they want to get out of the trade, you can never take that 24 hour time period back,
00:02:24.200 | no matter what Robin hood does now.
00:02:26.180 | Hey everyone.
00:02:26.840 | Hey everyone.
00:02:27.440 | Welcome to the all in pod.
00:02:29.480 | A billion here, a billion there.
00:02:38.200 | Pretty soon.
00:02:38.660 | You're talking about real money.
00:02:39.800 | I love you, Saks.
00:02:45.740 | These are really big numbers.
00:02:49.760 | Is spread the opportunity that technology represents.
00:02:55.900 | We're probably going to have four Kardashians on there.
00:03:02.080 | So four besties on there.
00:03:03.780 | Yeah.
00:03:03.820 | Yeah.