we are watching this day trading frenzy
continue meanwhile robin hood raising an
additional 2.4 billion dollars from
shareholders
following last week's frenzy bringing
the total to more than three billion
dollars of a money raise
take a look at gamestop shares today at
the lows of the morning down 42 percent
the popular stocks on the platform
include gamestop amc
they're plunging the video game retailer
down as you see 42 percent
joining me right now is the founder of
the forum that started it all
wall street bets founder jamie
rogozinski jamie it's great to have you
today thanks very much for joining us
wow what a moment in time assess the
story for us how are you feeling as you
look at what took place last week
yeah well thanks for having me and this
is absolutely very interesting
this is fascinating to watch this is uh
wonderful to see
how everyone not only the people that
are actively participating
in the training community but people
from outside including politicians and
businessmen
and hollywood and everyone's kind of
chiming in and not only on the u.s
not only the us but worldwide i think
there's a lot of sentiments
that have been penned up for a while
that are just starting to surface so
this is this is just absolutely
fascinating to watch
well i mean you know retail investors
really stepped up a bit of an investor
revolution
do you think that continues
yeah i mean the the pandora's box is
open there's there's no
going back at this point you know it's
been uh i believe this has kind of been
a
catalyst that has uh shined a spotlight
on this but this has been a long time in
the making
there's been uh over the past 10 years
access to the wall street and financial
markets through
first discount brokers now uh free
brokers these app-based brokers that
give
the little guys access to the system
in in wall street for too long it's been
too hard and too
expensive to inaccessible and now
now that the retail traders have retail
investors or
retail participants have access to this
is really difficult to turn the clocks
back
but but but jamie what i'm really uh
trying to understand is how this
plays out i mean yesterday a number of
wall street analysts were looking at
schwab
looking at independent brokers to to
assess
what more regulation means do you think
this is where this is going jamie you
see this
in individual investor revolution
fighting back saying okay
the hedge funds think this stock is
going down we're going to be bidding it
up um
do you think that is going to lead to a
heavy
regulatory burden for these companies in
terms of costs in terms of what they're
able to do
well yeah there's there's a lot of
things that play right now i
just uh learned about the the 2.4
billion dollar cash infusion
into robinhood to help them deal with
this type of volume
uh a lot of people are cheering this
them on but the way i look at it
is it's too late for that you know these
retail investors shouldn't have to worry
about these clearinghouse mumbo jumbos
it's obvious that the system was not
designed
with them in mind it's been designed for
these large wall street institutions and
now that these
amateur traders these retail traders are
getting involved
it's never been more evident that the
system was never designed for them to
actually participate and have control
over uh their participation in the
financial markets
i think it's a little bit too late i
think it's sad that a lot of people
ended up losing money i suppose it's
good that they're
starting to address this but as you said
there needs to be
a bigger conversation uh regarding
the playing field there needs to be a
paradigm shift where
uh the retail traders are are taking
into account what the rules
you know for the the system was clearly
designed for the big guys
and the little guys obviously have a
seat at this table
and they need to address that yeah i
mean that's that's the whole point right
i mean for years we've been watching
hedge funds decide
what they want to do if they want to
take down a company they want to bet
against it in coordination they do it
they've been able to send stocks down in
doing so but now you see a group of
individuals do it
and all of a sudden everybody's up in
arms we need regulation we need to
make sure there's no market manipulation
so i
i mean did this make the point or did
this
push for regulators to go overboard
i think it goes one step even further
than that you know
you look at what happens in 2008 when
the
the big banks were playing with these
mortgage-backed securities and
collateralized debt obligations and all
these acronym-blading
tools that were basically just
sophisticated uh
financial casino channels
what happened in that situation is the
government comes in and bails them
gives them free taxpayer money i haven't
seen any bailouts of the people that
lost money last week i haven't seen
anybody trying to cheer on to say hey
the system clearly was wrong the system
would
go into sign blame wherever it is i
haven't seen the government trying to
step in and save the little guy so
there has to be a shift in mentality and
and that shift in mentality can come
many different ways it can come from the
regulatory standpoint it can come from a
legal standpoint but whatever it is
they have to consider the little guys
because the little guys have now gotten
together in such big numbers that
they cannot be ignored anymore
yeah so do you want to see but what are
your thoughts on how this community has
evolved
what the future could look like with
more popularity and where the
regulations go
should there be a stronger regulatory
backdrop
for the big guys look i think the rules
have to be the same for the big guys and
for the little guys
take your pick in which direction wants
to go in i understand both arguments
they can agree with both
arguments uh you know maybe you should
allow the big guys to short or whatever
it doesn't matter what the rules are but
they should be the same for here and
over there
there shouldn't be two different sets of
standards if we're given bailouts give
them to everybody if we're
uh you know allow if we're banning short
sales banned them for everybody but but
treat everybody the same that's the
biggest thing that
needs to take place uh you know with
regards to where things are gonna
come you know who knows at this point so
many people are talking about this
implication senators congressmen uh
they're talking about the the fairness
of the game but
the other thing that needs to seriously
be addressed is the
uh strength of the system in wall street
there are
it is too weak we saw the entire thing
come down fashion
uh whatever 12 13 years ago and and
we're starting to see cracks of things
that were never
addressed obviously there's not enough
room the clearinghouse process
is settling whatever access to these
leveraged etfs
with very very technical things
obviously you know we still get flash
crashes we've still got all sorts of
different things but so many
participants we need to see the system
strengthened
so that it can withstand uh all the
participants inside this market
you know you know some people say this
wasn't a david and goliath situation
at all in fact it was about capital what
do you say to that
well it was david in goliath situation
people on wall street bets and other
retail traders that were
privately using robinhood were doing
they were leveraging their
small capital to force the big guys into
winning they were lobbing this stone
really strategically in order to beat
them
uh obviously if
if the little guys had a lot of capital
then i
i believe that they would have been paid
attention to all along right
uh they were really clever in
understanding that they didn't have as
much money as the big guys did they
figured out a way to use some stock
options and he's
out of the money whatever is to get the
deltas and gamma hedging and blah blah
blah
they force the big guys to buy their
stocks they have to use their money for
it so the little guys figured out a
strategic
uh way to push back they knew that their
disadvantage
was money and they overcame
all right we will leave it there jamie
please come back soon we need your
guidance on
this market and really the enormous
potential of the retail investor class
jamie
rozinski we'll see you soon sir thank
you thank you very much