El-Erian: Robinhood is a reminder that ‘you have no friends on Wall Street’

Robinhood's restrictions on trading for retail investors during the GameStop frenzy have stirred up a firestorm of controversy. Mohamed El-Erian, Chief Economic Adviser at Allianz, tells CNN Business' Alison Kosik what the future of trading will look like after Reddit's rally around $GME.

This interview is from our show "Markets Now". Watch the live digital show every Wednesday at 12:45 p.m., and get the latest news on the most important investing stories of the day as they happen:

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29 comments

  1. It’s not a problem when the big money traders conspire together to short a company out of existence taking all retail investors money doing it. But oh no how they scream when retail investors turn the tables.

    1. u can’t short a company out of existence. The company’s sahres have no direct impact of its day to day operation. In fact if the company is managed well, the financials will look better and the shorts who were betting against it lose while the bulls win. This is the same dumbassery that is fueling this BS. RH had to do what they did because they didn’t have money to handle the requirements. They borrowed money close to 1 billion just to allow traders to trade the next day even tho only in limited quantities. CNN should know better than to fuel the witch-hunt. RH has obligations and regulations that prevent them from creating too much risk for the market.

    2. @AllYourBase It is not profitable to short a company out of existence, but the influence the head of the funds exercise over the other investors may lead to a company towards a downward spiral making it more difficult for them to get money to fund their investments, eventually it could lead to a downsizing of its production and therefore the laying off of their employees which is not a good thing.

      Hedge funds who practice short selling may even influence the investment market to keep certain stocks on a constant low like they do with the actions of companies in countries such as Argentina where the government has a bad reputation for taxing the hell out of them, they need investments to prosper and grow, and some of them have quality products but since the government and this maggots make it difficult it may take time for them to grow.

      The worst part is that what happened to them was a product of free market, for them to ask for regulations is the ultimate hipocrisy, I personally hope this goes on until shortselling is permanently banned from Wall Street or it collapses.

      Small men should not decide the fate of companies and countries on a whim for their own benefit

    3. GameStop sank 25% as of 12:50 p.m. in New York, after rallying
      1,600% in January. Hordes of day traders piled into the shares
      after noticing the elevated short interest in hopes that buying
      would force shorts to cover, driving the price ever higher. Now
      the trend is reversing. The Dow industrials hammered out a
      235-point gain at the open, up 1.8% as the market looked to
      claw back a share of Friday’s steep losses. The S&P 500 rallied
      1.7%. The Nasdaq Composite swung 1.7% higher on the stock
      market today, Famous Stock analyst Dr Claus Smith said
      the new strain of Covid 19 virus being discovered is going to
      put a scare into the economy and the Stock Market in the next
      3 months so He warns new stock buyers to be careful. For now
      you can only make profit by trading your stock with a strategy
      instead of panic selling, was able to make $50,000 with
      $10,000 in 3 weeks with his stock trading strategy, reach him WhAtSaPp+1(((.3615020533)))

    4. Thanks for your comment. Expert Mark Robert is currently handling my crypto for me and he’s making me huge profit turning 2BTC into 4BTC in 14 days and making me $500,000 weekly by putting $50,000 indeed I’m amazed….

  2. Wall Street bets was doing exactly what many other hedge funds do. They have to buy to cover their position if the stock goes up. So they made it go up by buying.. When poor people lose money, poor people are “irresponsible” When rich people lose money, poor people are responsible.. 😁🤪

    1. Thanks for your comment. Expert Mark Robert is currently handling my crypto for me and he’s making me huge profit turning 2BTC into 4BTC in 14 days and making me $500,000 weekly by putting $50,000 indeed I’m amazed….

  3. Yes – a “friend” does not engage in criminal activity to change the rules of the game when his buddy is losing. wow – thanks for the insight.

  4. I can’t see how investing in a company with a history of market share and stock price declines can sustain itself. We’ll see, I guess…

  5. Between the printing of money out of nowhere and what happened on the stock market it’s time people just switch over to cryptocurrency. The stock market just showed me there are too manipulation.

  6. I was so upset at him a week ago, but now that things are more clear, I understand and have learned that the market makers make the rules. Love your enemy for they will teach you things that open your eyes.

  7. Oh..how the rich want to be rich for only their own. Plebeians like the retail traders must stay lowly poor~~ 😵🧐🤓😤

  8. Glad to see someone speaking the truth. Let’s not forget that multiple brokers were involved not just Robinhood, some even forcefully selling shares without permission in non-margin accounts!

  9. Then Jesus said to the crowds and to his disciples: “The teachers of the law and the Pharisees sit in Moses’ seat. So you must be careful to do everything they tell you. But do not do what they do, for they do not practice what they preach. They tie up heavy, cumbersome loads and put them on other people’s shoulders, but they themselves are not willing to lift a finger to move them.
    Everything they do is done for people to see: They make their phylacteries wide and the tassels on their garments long; they love the place of honor at banquets and the most important seats in the synagogues; they love to be greeted with respect in the marketplaces and to be called ‘Rabbi’ by others.
    “But you are not to be called ‘Rabbi,’ for you have one Teacher, and you are all brothers. And do not call anyone on earth ‘father,’ for you have one Father, and he is in heaven. Nor are you to be called instructors, for you have one Instructor, the Messiah. The greatest among you will be your servant. For those who exalt themselves will be humbled, and those who humble themselves will be exalted”.

    You shall not make for yourself an image in the form of anything, in Heaven above or in the Earth beneath, or in the waters below. You shall not bow down to them or worship them, for I the Lord your God am a jealous God, punishing the children for the sin of the parents up to the third and fourth generation of those who hate me, but showing love to a thousand generations of those who love me and keep my commandments.

    If my people who are called by my name, humble themselves and pray, AND TURN FROM THEIR WICKED WAYS, I will hear from Heaven, will forgive their sins, and will heal their land.

    And when you pray, do not be like the hypocrites, for they love to pray standing in the synagogues and on the street corners to be seen by others. Truly I tell you, they have received their reward in full. But when you pray, go into your room, close the door and pray to your Father, who is unseen. Then your Father, who sees what is done in secret, will reward you. And when you pray, do not keep on babbling like pagans, for they think they will be heard because of their many words. Do not be like them, for your Father knows what you need before you ask him.

    This, then, is how you should pray:

    Our Father in heaven,
    hallowed be your name,
    your kingdom come,
    your will be done,
    on earth as it is in heaven.
    Give us today our daily bread.
    And forgive us our debts,
    as we also have forgiven our debtors.
    And lead us not into temptation,
    but deliver us from the evil one.

    For if you forgive other people when they sin against you, your heavenly Father will also forgive you. But if you do not forgive others their sins, your Father will not forgive your sins.

    “Matthew 5-7 NIV Bible Gateway”, we can use google search.
    These are the teachings,
    The Righteousness of our Lord Jesus Christ our God.
    REPENT, and start doing what is right.
    If you abide my teachings, you are really my disciples; then you will know the truth, and the truth will set you free.

    A time is coming and has now come, that the true worshipers will worship the Father in Spirit and Truth. God is Spirit, so his worshipers must worship in the Spirit and Truth; they are the kind of worshipers the Father seeks.

    In the New Heaven and New Earth,
    only Righteousness dwells.
    May the Spirit of our Lord Jesus Christ our God be with you all.

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