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Mikael Pawlo

30 Jan, 9 tweets, 5 min read

As Robin Hood continues to be downloaded at no 1 it will soon need another capital injection following the 1BUSD it took last week, just to cover trading volume due to the fashion it is construed with Citadel as broker. Remember: seven million subs in subreddit WSB now.

Should probably not be an issue, considering this is quite risk-free money, and money is in abundant. Investors in Robinhood are going to make a killing, no matter what your views on the matter is, as long as the company can keep increasing its trade volume.

@jason

@jason is going to make a serious killing in this one. Good thing I have supported his show as a patreon, he really needed the funds 😅😂

Just to give some flavour to this figure, JP Morgan’s common equity tier one capital is 205 BUSD. Robin Hood is great and all but there were some serious institutional capital (other hedgefunds) involved here. Citadel acting on all sides of the trades. Regulators will investigate

It is also more or less confirmed that Robin Hood’s CEO was lying last week and that the firm had liquidity problem and therefore had to halt the trades. It also make sense since Robin Hood needs to submit margin and Citadel acts ”broker”. Major communications screw up.

@vladtenev

Confirmed by @vladtenev this morning (CET) at @elonmusk’s @joinClubhouse talk. VAR calculations (”value at risk”) by the regulator demanded a deposit of 3 BUSD.

@elonmusk

@elonmusk: ”if you have no choice, you have no choice that’s understandable with a gun to your head”. I think @vladtenev did well here and @RobinhoodApp is going to surge in Appstore tonight. @Jason and @sequoia should be happy about Vlad here, good performance. Onwards!

@elonmusk

@elonmusk: ”To what degree are you beheld to Citadel?”
@vladtenev: “From our perspective Citadel was not involved.”
I guess this will be scrutinized by regulators.

So, all-in-all: capital requirement from the NSCC asking for 3 BUSD to cover the margin in #Gamestop #stonks trading.
Robinhood negotiated to 1.5 BUSD. Pausing trading (buying) was possibly the only option. Should have communicates more transparently imho but let’s move on!

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More from @mpawlo

Mikael Pawlo

@mpawlo

30 Jan

(Sw) Undviker hockeyn, då brukar de vinna. Kollar istället storslalomen från Åre 1979. Stenmark leder över Phil Mare. Vet inte var Steve håller hus. Det snöar kraftigt. Luscher vinner världscupen på 174 pinnar (Ingemar 144). Phil Mare 131. Dåligt år för giganten Bojan Krizay (72)

Om Phil Mare lyckas och kommer minst tvåa går han om Ingemar. Ingemar har vunnit alla sex tävlingarna i slalomcupen. Sverige håller andan. Älskade Göran Zachrisson kommenterar.

Det snöar kraftigt. I dag hade man nog inte kört tävlingen under dessa förhållanden. Vi talar raka skidor och chutzpah!

Read 11 tweets

Mikael Pawlo

@mpawlo

30 Jan

The stock market exists so that not only wealthy heirs or states can start and run companies. External investors get liquidity through the marketplaces and dare therefore to invest. Dark pools, shorts, frontrunning, HFT have very little to do with this.

Modern credit facilities were invented in lieu with the industrial revolution. Allright, the Medicis started the precursor to modern banks in Florence as early as the 15th century, but our kind of limited risk financing did not exist at scale before the industrial revolution.

Previously, you had an unlimited responsibility for your company's liability. If the company went belly-up, you had to bear all the company's debts. The poorhouse next, in other words!

Read 23 tweets

Mikael Pawlo

@mpawlo

30 Jan

(Sw) Börsen finns för att inte endast ärvda förmögenheter eller stater skall kunna starta och driva bolag. Externa finansärer får likviditet genom marknadsplatserna och kan därför investera. Dark pools, shorts, frontrunning, HFT har väldigt lite med detta att göra.

Moderna kreditfaciliteter kom i samband med industriella revolutionen. Visst, Medicis startade föregångaren till moderna banker i Florens redan på 1400-talet, men den typen av begränsad riskfinansering fanns inte tidigare.

Tidigare var alltså fallet att du hade obegränsat ansvarsgenombrott. Om bolaget gick omkull fick du stå för alla bolagets skulder. Fattighuset nästa, med andra ord.

Read 18 tweets

Mikael Pawlo

@mpawlo

29 Jan

@RationalityWins

(Sw) Antalt Gamestop-ägare på Avanza *ökade* igår och inte lite heller. Från 15027 -> 24209. Är det Flashback-traders? #finanstwitter cc: @RationalityWins @PGWahlen @Spiltan @financeamir @ballertrades @staffanpventure

Ingen har iofs frågat, men dagens Gamestop-notering på Avanza är alltså 28045 st ägare. En ökning på 115% på två dygn.

När det här smäller och 28 TUSEN personer har förlorat sina pengar kommer givetvis krav på reglering och då vet vi vems knä detta hamnar i och hur bra hen är på att skapa effektiv, fungerande reglering 👀

Read 5 tweets

Mikael Pawlo

@mpawlo

28 Nov 20

Tony Hsieh changed forever my view on customer support. It may sound like a small thing, but trust me, it is not. He was one of biggest visionaries around in this flawed, beloved ”industry” of entrepreneurship. Very sad to learn of this major loss to his family and the world .-(

If you don’t know about Hsieh or Zappos, do read Delivering Happiness. It is one of the top business books ever written. Hsieh did not ”revolutionize the shoe business” as being tossed around now. He changed the view of what online shopping and leadership could be altogether.

If you’ve been around for a while you would have tried at least one of Tony Hsieh’s brainchilds, namely LinkExchange. His final project was no small one, trying to lift the less fortunate parts of Las Vegas out of poverty and into prosperity.

Read 6 tweets

Mikael Pawlo

@mpawlo

27 Nov 20

(Sw) Subtweetar ej, men efter 24 år (herregud!) i diverse startups har jag noterat att entreprenörer underskattar vikten av IR (informera dina investerare, befintliga och nya) och överskattar vikten av sofistikerad mätning (mät enkelt, välj de stora talen). Tips från medelmåttan!

Man överskattar också nätverk inom startup-världen vad nu det är och underskattar nätverk utanför den, t ex i industri- och finansvärlden.

Sedan överskattar man den egna förmågan, men det är iofs en förutsättning för att någonting skall startas. Marknadsföring underskattas, produkt överskattas. Idéer värderades tidigare upp för mycket, nu ner för mycket.

Read 8 tweets

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