Since the start of 2021, there's been a massive influx of new traders in the markets, a lot of new retail traders, the retail trading revolution, if you will - or if you want to call it the ape revolution whatever you want to call it, it's all the same Thing and it's all very, very cool now, over the past year year and a half depending on when you're watching this there's been a lot of crazy things that have been played out and in all honesty we can make a multi-hour video just detailing all these different Crazy stories, but i want to talk about one common pattern that we're really seeing spike in all of these stories and that's the fact that there's a lot of people who are new to the markets, a lot of new retail traders who are shrugging their shoulders and They're saying where are the regulators? Where is our protection? Why, in the hell do all these elitist wall street douchebags get away with the same thing, time and time again and really that's what i want to talk about in this video? I actually have a little bit of a positive thing to update you all about and basically goes like this. The wheels of justice are slow, but they are still turning or maybe another way to put, that is karma's a and it's catching up to a lot of people. Let's take a quick walk down memory lane, let's go to about the end of january 2021, when gamestop and many other equities were going crazy and it was referred to as the shorts were getting screwed. We were in the middle of a short squeeze and robin hood among many other brokers, restricted trading.

They took away the buy button and this had a lot to do with, like high level fancy schmancy dtcc of like okay. Do you have enough capital? Here's our risk models, a lot of opaqueness in the situation, but the bottom line was they took away the buy button and they basically that meme with the dog of this, is fine. When everything was on fire. That was robin hood and a lot of this.

They deserved themselves, they their pr management, was absolutely awful and i don't want to get sued, so i have to say, allegedly they allegedly lied to the face of the entire public and basically took the mantra of okay. No we're doing this for your protection when, in reality, they seem to be protecting themselves in their cronies on wall street, i.e the dtcc these regulators, these market makers, all of them it seems, like retail, the average person stood up in a very, very strong way, and They were about to win and right at the finish line. They got rugged now. Obviously this was january 2021, let's fast forward to what's going on right now, robin hood cuts hundreds of jobs as pandemic stock trading flurry slows stock trading, app robinhood plans to lay off nine percent of its workforce.

The company hired ferociously as it boomed in popularity during the pandemic, but the expansion was too quick, leading to overlapping job functions and other issues. Now, really, i would argue that there's quite a bit of meaning in these other issues, as in the public, does not trust. You that's the other issues which is far far larger than just overlapping job functions. This rapid headcount growth has led to some duplicate roles and job functions and more layers in complexity than our optimal.

The right decision to improve efficiency, increase our velocity and ensure that we are responsive to the changing needs of our customers. According to the boy from bulgaria himself, i'm talking about vlad tenniv, the ceo and founder one of the co-founders of robin hood. Now, if you're reading, this you're - like probably your knee-jerk reaction, is good like they suck, but let's talk about that in just a second, because remember these are people's jobs, but what i really want to dive into is these comments like this is such of the issue. Like i think, karma is clearly catching up to them.

In fact, if you look at robin hood, it just hit a new all-time low of 938. Ever since its public debut, it is currently down 75 and from its all-time high. When mainstream media was still telling us to purchase it, it is down 89. It's getting its teeth kicked in this seems to be a company, that's pretty much on its deathbed, but they still haven't learned their lesson.

The quote from tenet right here: it's just pr just be honest, be like hey, we didn't know what we were doing like honesty. This is the whole problem with robinhood every single step of the way they've made the worst pr decisions. They've lied to the public and they've taken no serious steps to earn the trust back from said public. It's just always can like this.

Hey man, things went nuts, we hired too many people. We made awful decisions, we couldn't be honest with the public, for whatever reason just tell us the truth of what's going on, but time and time again they go more of this corporate route of just things that their lawyers like spin up. So, for whatever reason, i'm sure in a certain sense to protect themselves, and i wholeheartedly believe that it is digging themselves further and further into a hole now do i think tenet deserves this yeah, because i'm of the opinion that he lied to people when he's like No we're having no liquidity problem when they had a liquidity problem. We know that from internal documents, but it is still sad because people lost their job.

There are probably just coders and engineers and other employees who just they had nothing to do with these decisions. They were just trying to make an app and now they're the ones. So this is just another example that we saw this many many times of the people who end up really getting hurt. The people whose buy button was taken away and these employees who now are considered having a duplicate job they're the ones who are losing their jobs they're the ones who are getting hurt, while tenniv is probably still a billionaire, so is catching up to them.

I don't think they can outrun it for too long, but it is it's a whole wild scenario was going on that they lost nine percent and the stocks at a new low and, like i said, i think it's on its deathbed now, depending on when you're watching This you're gon na find out more about robinhood after the market closes on thursday post market earnings report. So i'm sure we're gon na have some commentary there, but it doesn't sound good. It sounds like this thing is going down and down and down now, another crazy story. You might remember way way way like this.

It's actually insane and i'm very happy that regulations, and particularly the fbi, caught up to this, because this is some big big money. Uh wow wow wow wow. This will, if you don't know what this story, your jaw will be on the floor. He built a 10 billion investment firm.

It fell apart in days, so this is talking about rk, ghost and then also bill wong. So what happened here? The highest level check this out. The whole affair is indicative of the loose regulatory environment. Over the last several years, archagos was able to hide its identity from regulators by leveraging through banks in what has to be the best example of shadow trading.

Basically doing highly leveraged and hiding it from the regulators - and it very well could have meant almost - could have been a systematic risk and we saw banks. Two banks in particular lose billions and billions of dollars now to quickly explain how this all played out without getting like two too specific. What happened here? Maybe you remember viacom cbs, that, like completely tanked, there was a massive massive leveraged position, but people didn't know about it and the way they were able to pull this off is they had the bright idea that whenever they got close to five percent, because after you Get over five percent, you have to file it publicly that you have more than five. They would run up to that line and then to increase their bet.

They would do it through the derivatives markets more particularly known as swaps, and they also had interesting things. It involved lying to banks and banks, kind of just, not caring, and then there was also one defensive strategy that i just absolutely love of how they were able to skirt regulators, get banks to not know what they were doing or the banks just didn't even care. Basically, this entire story is but a full, a bunch of greedy people and the regulators either knew about it, which is kind of sus or they didn't know the full picture and even that. But what happened in one year, this guy was able to run from 1.5 billion all the way up to 35 billion, using massive massive leverage.

And then it all came crumbling down. Because you can't do that when you're, just playing with way too big a size. And now it's led to this federal agents. Arrest are keigo's owner bill wong and a former top lieutenant the fbi.

If you're watching this uh the day, i'm posting it arrested them early this morning, according to the indictment wong and halligan, corrupted the operations and activities of the family office known as archagos and use it as an instrument of market manipulation and fraud and basically just a Lot they pulled it off through the sea, lies and really gaming. The system the criminal charges followed the spectacular implosion in march 2021 of archaegos, which lost billions in mere days, wong traded in a way that hid the true size of his positions and pumped arcago's portfolio from 1.5 billion to 35 billion in one year. And he did this by running it up to five percent and then using derivatives opposed to buying stocks. So he just never had to report it and they were arrested by fbi this morning, but just really highlight the insanity of this.

Yes did karma catch up to this 100, but this is how crazy it is. It's basically, you lie to brokers and you lie to banks and you give them to give you more and more and more money to keep the gravy train running and then you're like well. How did the banks not look into this? Well, i would argue that the banks are pretty complicit too. Archaicos did not respond to the proposal in a week and a half later on march, 4th 2021, the psr analyst followed up to ask whether archaicos had any thoughts on the proposal.

His contact at arcaco said he hadn't had a chance to take a look at it, but was hoping to look today or tomorrow. This is in response to when the margins started, to get crazy and they're like dude where's the money. What's going on the way archaegos got away with it, they just didn't pick up the phone folks. That is the thing that caused billions of dollars of losses and potentially a massive systematic issue.

This was a systematic risk that put companies and banks and obviously a fund potentially over the edge. The defense was uh yeah. They got away, they just didn't pick up. The phone billions of dollars were at stake, trillions of dollars in leveraged investments.

No one was checking and they're like i'll just no tomorrow today, i maybe later i just didn't check it. I'm not going to take the phone call, that's how this played out. That's the checking of these big banks and then obviously so the big banks are the blame. Obviously the hedge fund is blame and yeah regulators eventually caught up to it, but also the damage was done so did karma catch up 100.

Was it not enough? A little too late, also, probably yes, let's see if they even what their jail sentence is, what their fines are. Obviously time will tell, but these are two stories that just broke recently, that i get it if you're a retail trader if you're a member of the ape community, i can understand where there's that clear frustration just like what's going on like how are regulators not looking Into it, and it's just the wheels of justice turn slowly, but, yes, i think there's something that we can hold on to a positive thing that at least they're turning and like i said to start this off karma is a. Let me know your thoughts in a comment below.