Good afternoon,
Today, it looks like there must have been a massive exodus of Crypto into equities, why?
Are Robinhood’s customers completely vetted regarding KYC/AML?
However, I think opening customer accounts should have diligent account opening standards. With the ten-year continuing to being artificially suppressed, causing equity markets to continue to froth by both revenue per share and net income per share metrics when compared to relative price.
I think people who have not studied history need to understand the dammed stock market crash that contributed to the great depression. I understand the dust bowl also contributed to inflation and poverty. However, having a functioning stock market is essential to allocating funds towards companies that are good fiduciaries of their investor’s capital. This creates wealth for everyone..... The strictest standards should be used to ensure each individual can only open up one retail account per broker. A Social Security Number or other country’s equivalent unique identifiers are a great unique identifier to use.
However, considering the “retail trading” epidemic causing this bubble could potentially be deleveraged by good KYC/AML standards. I think it’s something that should be looked into.
The Great Depression not only caused an enormous amount of suffering but left the country without the funds to allocate towards detecting the Mitsubishi Bombers that attacked Pearl Harbor and forced the country into rationing to support a war effort. This is unacceptable. The amount of risk taking going on in the market should be curbed by a normalization of interest rates. Broken glass policing works, not broken glass economics. It keeps people busy but the effort it takes to destroy something and the wealth lost due to the destruction does not compensate for the increase in money velocity.
Warmest Regards,