Ex-TD Ameritrade CEO warns meme stock traders that leverage could ‘rip your arms off’

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FFS, financial institutions have been leveraging for ages, this was a critical spot in 2008 crisis, and it is now, with rehypothecation. The thing is, it’s not about ‘meme stock traders’.

feckdech

His error is in assuming that they are trading on margin, when in fact they aren’t.

duhbird410

As if a mere human could rip off the arms off an ape…

banjo_assassin

Yeah. And? If you’re leveraging meme stocks you probably know full well what you’re going. Every little guy pouring a couple hundred bucks in for the meme is not going to get fucked over. They’re not doing anything serious, they’re just in it for the ride. They’re just going to lose the money they put in, something they’re fully prepared to do. And if you don’t know what you’re doing… you’ve been warned for months now.

Snownel

Did he tell the same thing about leverage to institutional investors or hedge funds ?

Force_Professional