Robinhood: What Went Wrong?

Mar 5, 2021
116 747 Views

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Is Robin Hood working for you, or someone a lot ... richer?
When Robin Hood emerged on the investment scene, it proclaimed itself a democratizer of the finance world. The reality is something very, very different. We''ll explain in this Wisecrack Edition on Robinhood: What Went Wrong
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=== Watch More Episodes! ===
Gamestop: The Economics of Sad Hedge Funds ►
Billionaires: What Went Wrong? ►
How Adam Sandler Got Good ►

Written by Jeanette Moreland
Hosted by Michael Burns
Directed by Michael Luxemburg
Motion Graphics & Editing by Jackson Maher
Video Title Card by Amanda Murphy
Produced by Evan Yee

#robinhood #gamestop #wisecrack
© 2021 Wisecrack / Omnia Media, Inc

  • Robinhood is a scam,,,

    Eddie RomeroEddie RomeroDay ago
  • I find it hilarious that all I got was stock investment ads through this that I could "turn 12,000 into 12 million"

    dragoonfunykiddragoonfunykid14 days ago
  • Wow thanks for the robinhood ad pop up.... f off

    Sue ThaoSue Thao19 days ago
  • Great educational content as always

    k kk k19 days ago
  • Even after RobinHood screwed their investors, there is no denial that the fat cats of Wall Street crapped themselves after the short squeeze. If they came to TV to cry and rant about the Average Joes messing the stock market, it seems that we finally hit them where it hurts the most; more people knowing about economics means less power for them to exploit the cracks. What happened once, will surely happens again; with new stimulus checks, more damage can be caused...if people know better about their tools.

    Pedro CoelhoPedro Coelho26 days ago
  • Had to watch a Robinhood ad before watching this video 😆

    Lizzy MyersLizzy Myers26 days ago
  • 6:47 "You also learned a timeless lesson about the inner workings of capitalism." Pinning the blame of malicious human behavior on capitalism is a tiresome argument. In which society did switching to nationalized markets or socialized government programs cause the greedy and/or unscrupulous people to cease taking advantage of others?

    Piers Echols-JonesPiers Echols-Jones27 days ago
  • Well this was a depressing watch. But important information. Glad I haven't used these apps.

    JoeJoe27 days ago
  • Okay the office space clip was very well placed

    JoeJoe27 days ago
  • I invested in both stock and crypto but currently I believe crypto is doing more better

    Altcoin DailyAltcoin Daily28 days ago
    • BTC is really changing life and this is helpful... Thank you... Expert Donald

      Richard ThompsonRichard Thompson28 days ago
    • He told me I would make 40,000 in two weeks of investing $5000, I did and in the said two weeks made $36,800

      Jaxon DavidJaxon David28 days ago
    • I'm not here to converse for him but to testify just for what I've seen, he's best option ever seen...when someone is good at what he does, people talks good about him

      Alexander LorenzoAlexander Lorenzo28 days ago
    • @Ruth Stephen you're kidding me? So you didn’t invest in 2018 (kudos for you wise decision) and now you hesitate? It’s not just save now, it’s maditory to buy BTC before it finally blast off

      Margaret MelissaMargaret Melissa28 days ago
    • I thought of investing in bitcoin in 2018 but i was discouraged by my friends is it safe now?

      Ruth StephenRuth Stephen28 days ago
  • I'm not much of an investor but I often only invest in companies that have a good past when they fall for a bit. I buy some, wait until it goes over what I bought (no matter how long it takes, and those good companies usually do make a recovery), sell it make a small profit. Then I repeat the process. It's not glamorous but still...

    GioGio28 days ago
  • End hedge funds.

  • We already have figured something else out... BLOCK CHAIN!!! No need for intermediary because escrow is built in 😊

    Steven WardSteven WardMonth ago

    Tim DuncanTim DuncanMonth ago
  • I have no problem with payment for order flow, because I still make money for literally doing nothing. Of course I don't trade margin. Also it's significantly cheaper for me than payment per trade

    Mitchell LerichMitchell LerichMonth ago
  • Fun fact. When I did research with machine learning for trading strategies for a client, there was an interesting fluke. The best strategies were 1. to buy SP500 and hold (thus not outperforming the market, but not falling below the market), 2. to make a single trade when there is a visible bubble burst. I tried artificially forcing the system to place orders once a day, but the system tried to mitigate this limitation (placing orders way below the market price or reducing volume to zero). When I tried to force it to place tradable orders, it always made things worse in the simulation. So, given enough data, ML system went "screw this casino, I'm out"

    Nobody QuiteNobody QuiteMonth ago
  • Sir this is a casino

    miguel castanedamiguel castanedaMonth ago
  • Bitcoin.

    BergkatzeBergkatzeMonth ago
  • The winners of the Greed game will never willingly give up their money or power.

    RJ EhlertRJ EhlertMonth ago
  • I got a robinhood ad in the middle of this video

    Samuel SmithSamuel SmithMonth ago
  • I watched the movie limitless and decided to do Adderall and trade stocks now I'm a thousandaire

    Hayan ImadiHayan ImadiMonth ago
  • Lmao I got a Robinhood add

    Alex MorrisonAlex MorrisonMonth ago
  • Lol only checking the app 10 times per day

    badamsbadamsMonth ago
  • Argh these promotions are killing me

    The Annoying OneThe Annoying OneMonth ago
  • When did Wisecrack go from a cool pop culture channel to a quality information video essay channel??????? Love to see it!

    Jack DaileyJack DaileyMonth ago
  • So okay, the more I hear about stocks, the more it sounds to me like it's giant groups of rich people buying abstractions that have no inherent value. And that will, some day somehow, explode and leave everyone involved dirt poor. So, would anyone in this comment section be kind enough to inform an ignorant man such as I?

    Mr. BernMr. BernMonth ago
  • The answer to your last question: DEX

    D FD FMonth ago
  • how did this channel turn to total shit

    OffLogicOffLogicMonth ago
  • Florida Man is on a roll.

    Aleister LaVeyAleister LaVeyMonth ago
  • the thing about making a lot of money the more trades you do reminds me of a living single episode where the cast decided to "invest". should have listened to kyle :-p

    stefoehmenstefoehmenMonth ago
  • Use Uniswap & Sushiswap Folks.

    Crypto RootzCrypto RootzMonth ago
  • *video ends* *stock trading app ad plays*

    Nicholas Kalas-HernandezNicholas Kalas-HernandezMonth ago
  • Did you guys change something on this video? The thumbnail or the title?

    Leandro PeixotoLeandro PeixotoMonth ago
  • "Here in My Garage..."

    Ryan MillerRyan MillerMonth ago
  • Lol just make it illegal to sell or lease something that you don't own. When you buy from robinhood, you're getting an IOU note instead of the security you think you're buying. I guess securities are also just IOUs. Same thing happens when you pt your money in a bank. I'd rather just pay a company a fee for handling my transaction or keeping my money safe. Cryptocurrency works in the same way.

    T Zack CrawfordT Zack CrawfordMonth ago
  • passive income is bullshit making money just by having money is bullshit earning income without doing anything of real value is bullshit the process of generating revenue by doing literally nothing is bullshit accumulating wealth without making anything or providing a tangible service is bullshit

    Nathan LevesqueNathan LevesqueMonth ago
  • This should be interesting. I detest what Robinhood did, yet I detest Marxists pretending to be ‘lovers of wisdom’ even more.

    maplebob23maplebob23Month ago
    • Sounds like your only solution is for us to enslave ourselves to you Central Committee. Like all Marxists you offer nothing.

      maplebob23maplebob23Month ago
    • Other than mass graves, can you vile Marxist ‘lovers of wisdom’ have ever produced?

      maplebob23maplebob23Month ago
  • Corporate communists.

    maplebob23maplebob23Month ago
  • Whoever your writer is doesn't know how robinhood works. Every company you can buy stock in is NOT on robinhood. For example your friends uncles weed company with no financials.

    FaiFaiMonth ago
  • lol I love how people think GME is over. It hasn't evrn started yet

    Nils LanthemannNils LanthemannMonth ago
  • So, 15 min and you failed to even mention the actual reason why Robinhood *legally had to* pause GME trading...

    Jérémy QuentinJérémy QuentinMonth ago
  • Dam man You crushed my dreams of being an Options Trading Millionaire !

    Hrithik mtaHrithik mtaMonth ago
  • Wow ... this episode dealt clearly with a obscure subject much the way that "Last Week Tonight" would have ... bravo

    secular monksecular monkMonth ago
  • I still want a Bernie Madoff and Sanders rap battle and have said this to them :)

    Bella MazBella MazMonth ago
  • As always, when the house finds out you can beat them at their own rigged game, they either change the rules or they don't let you play anymore.

    hellper198hellper198Month ago
  • Some people play the lottery, I throw spare change at biotech lol

    Ling0 SLing0 SMonth ago
  • props for trying to explain this as best you can

    TheCreepyproTheCreepyproMonth ago
  • Lol the users thought robin hood was letting them trade for FREE? if it is free, YOU are the product. YOU are THEIR slave. And you volunteered. Its not expensive, pay for your own trade account.

    tom SHADYtom SHADYMonth ago
  • Put your money on etfs not hedge funds

    Senpai TMSenpai TMMonth ago
  • Is this not insider trading.

    eaglesclaws8eaglesclaws8Month ago
  • Robin hood, more like prince John.

    eaglesclaws8eaglesclaws8Month ago
  • 6:37 Ah yes, nothing exemplifies the American ethos better than this example of ripping off your family member to make a profit.

    Erick PalaciosErick PalaciosMonth ago
  • Another example of the powerful economic elites not wanting average joe playing in their sandbox. As soon as retail investors start to get better than them at the game, they shut everything down. Welcome to the NWO.

    BeakersNetworkBeakersNetworkMonth ago
  • Robinhood is basically a data collection software for Hedge funds, to give them better information on what to short.

    Ugandan SonicUgandan SonicMonth ago
  • Please do the philosophy of the weekend

    Blessing FakudzeBlessing FakudzeMonth ago
  • The big players will always have more information. any relevant news for a stock has already been processed by high freq algorithms minutes/hours before you ever lay your eyes on it. unless you have a bloomberg terminal, you are the milk cow that is always 1 step behind. even with the terminal you will lose as their servers are closer to the exchange's servers. dont be a milk cow.

    KVOKVOMonth ago
  • Ugh the fact that this story is spun onto so populist bullshit by people who have no idea what they are talking about is the real problem here.

    EJR77EJR77Month ago
  • What's worse, losing billions of invested money or having the eyes of the world now honed onto the shady business that is stock trading?

    Um BongoUm BongoMonth ago
  • Let's be clear - the little guy won once, and look at the fallout. When do we reach for the pitchforks?

    Um BongoUm BongoMonth ago
  • Blockchain is the answer

    MrKomMrKomMonth ago
  • Passed this video up for 2 days thinking it was an ad 🤦🏾‍♂️

    SSJAlphaSSJAlphaMonth ago
  • Y'all should do a philosophy of the pandemic video. What really changes if we go back to normal life? Is remote work sustainable? What if did everything we could at home instead of going outside? VR?

    SanctionSanctionMonth ago
  • Are there any stock apps that are actually good?

    RelesyRelesyMonth ago
  • I don't know why people continue to ignore the simple fact that they become the product as long as the service is free. Look at so called "free-to-play" games and their predatory lootboxes. Look at Facebook and similar social media platforms that sell your personal information to advertisers. If you want a service to work FOR you rather than work YOU as their product, pay a fucking fee. There's no free lunch in this world. If it's free, YOU'RE the lunch.

    7177592671775926Month ago
  • Check gamestop 😏😏😏

    forgotten Onesforgotten OnesMonth ago
  • Many communists tried to destroy capitalism though any kind of revolution. Reddit users did a much stronger hit by using more capitalism against capitalism. Showing that the rich do not want capitalism for all, they want more protection from the government against anyone kind of legit popular organisation that may slightly harm their profits.

    FHZ ZuFHZ ZuMonth ago
  • That problem is that we are expecting everything for free. So if a new app offers a good experience and costs a fee pennies, nobody will use it.

    João PJoão PMonth ago
  • angry rich people loosing money.......

    John AyapJohn AyapMonth ago
  • Robinhood is the absolute worst free brokerage available. Webull is way better. TD Ameritrade is cheap and reasonably priced

    Shawn RobertsonShawn RobertsonMonth ago
  • You guys are trash without Jared

    Tetris McTetrisFaceTetris McTetrisFaceMonth ago
  • The hedge funds are not "destined to win". As the video notes, no hedge funds beat the market in the long run. That means a well-diversified portfolio that tracks the overall market BEATS THE HEDGE FUNDS. The problem is that a diversified portfolio held in for the long term is boring. You can't actively trade. Well, you can't have it all. Put 95% of. your investments in a bunch of EFTs or mutual funds, don't check them but once a month, don't buy or sell, just leave it alone. If you must actively trade, acknowledge you're gambling and use your other 5% to gamble with. Open a new account with another brokerage, so you can't see your real savings and be tempted to actively trade or track your daily gain/loss, and be ready to lose that 5%, or whatever % you're comfortable with losing. Smart investing is annoyingly easy. Like, too simple people can't imagine that buying a few EFTs and ignoring them for a few decades is the most profitable investment strategy. This is why investing doesn't need democratization. If you don't have enough money to open a 401K, that means whatever money you'd be investing isn't going to change your life anyway. Saving $1,000 isn't going to fund your retirement. Yes, you do need a lot more than that. So the real issue is one of poverty. If someone is struggling to make rent, the last thing they need is access to purchasing the highly volatile investments. They need their basic needs met, which we need to solve with, in my opinion, a UBI. Access to the stock market is not a social issue that needs solving. Apps like Robinhood are a solution searching for a problem. What do wealthy hedge fund owners really want? Exactly this conversation. The real problem is poverty, it needs to be solved through legislation that will most likely require higher taxes on the wealthy. The whole democratization of investing is a distraction, and as we've found out, a distraction created by the wealthy from whom commission-free brokerages are supposedly taking power. The point is, all of the inequalities in the stock market that favor hedge funds are in the short term. In the long term. You cannot beat hedge funds in short-term trading for all the reasons laid out in the video. In the long term, a passively invested, diversified portfolio wins. In the long run, we're all playing the same game, and $1,000 can expect the same % return as $1M

    Ben BowlbyBen BowlbyMonth ago
  • Easy. Considering they weren’t making money off people joining the platform. They made money by selling market data to Citadel and other funds who were also on the other side of the game stop bet. Read flash boys by Michael Lewis. It’s even in there as far back as seven or eight years ago that Citadel was a high frequency trader front-running the market by buying access to market data from brokers and then running to the other side of the trade. Get yourself on a platform where you pay the broker per trade, because it will make you trade less and think about what you are going in and getting out of. Because you don’t want to be paying nine dollars a pop on something small. So it automatically increases your discipline. And for god sakes, be boring and by index funds. The only people who do trading full-time, do it with other people‘s money, that’s why they get away with it. They don’t really do it with their own, unless they have shit loads enough to not care. I also love how America thinks it doesn’t have legalised gambling except for in certain states. They have one better, a casino called the stock market which has done a brilliant job of convincing everybody that it’s not really a casino

    Conor SConor SMonth ago
  • I want to like your channel, but shilling for phony hair growth/stop balding gimmicks is disappointing.

    John FrankJohn FrankMonth ago
  • I want to see Chelsea Fagan from 'The financial diet' do a reaction video to this; how has 'Wealth simple' averted this ?

    Marginalia 2043Marginalia 2043Month ago
  • For me Robbinhood is a plus. I’m a divided investor meaning My strategy is to hold stocks long term and receive payments. I’m set up where I get at least one dividend payment a week. Over time I could make over a $1000 in dividends in a single year.

    The ShrimpThe ShrimpMonth ago
  • “A few cents off every trade might not sound like a big deal. And when compared to a $6 or $7 trading fee, might even sound like a GOOD deal.” That’s why I use Robinhood. Plain and simple.

    nocoinnocoinMonth ago
  • Wait... people want to make money instead of just throwing money at meme stocks to make rich people mad? That's disappointing and boring.

    FirmusFirmusMonth ago
  • This is why I just have my selected stocks and recurring buys every week. Slow and steady. I know I'm getting screwed, but that's just life in this world at this time. If you aren't born into it or lucky, you will always be the one getting screwed. :/

    Jacob JonesJacob JonesMonth ago
  • All short sellers hate the hood. Ha ha.

    jkmaru09jkmaru09Month ago
  • Hedge fund and wall street guys all day trading and yelling at eachother= fine Retail people yoloing money they can afford to lose on highly speculative options and keeping an eye on the market= addicted Seems like some robinhood propoganda. Bring uo the couple idiots that killed themselves. Lol poor idiots. Shouldn't have been trading with margin. You realize the guy that got screwed by the vw short killed himself too. Did they shut down the market for him?

    mrmilkoilmrmilkoilMonth ago
  • Unsophisticated customers........ I never fell for that shit. How could it make sense, You fund a trader instead of your self...

    Radical EdwardsRadical EdwardsMonth ago
  • As someone who generally agrees with your videos and dislikes Robinhood, the amount of misinformation in this video is alarming.

    Brandon PetridgeBrandon PetridgeMonth ago
  • The "JUICE"... - Shut it Down. Simple as dat. Though the whole this is staged and setup, probably. Bankster should be sent into another dimension.

    Miki FloksterMiki FloksterMonth ago
  • AHHH NO I just signed up yesterday

    Sergio MarquezSergio MarquezMonth ago
  • how can the pros outweigh the cons, if they're all basically cons working there?

    irgynirgynMonth ago
  • I nearly tripled my money with 18 stocks. Over 3 years I made less than 100 trades. Granted, I did research, read financial statements, waded through piles of disinformation. Buy on long-term value and don't follow the crowd. While many of the concerns raised here are evident it has given everyone access to free trading and I applaud the idealism of democratizing the market. When given unfettered access and freedom combined with some people's propensity for gambling unintended consequences are inevitable but nonetheless still tragic.

    GoScrewItUrSelfAutoGoScrewItUrSelfAutoMonth ago
  • Just another form of the lottery, a tax on the poor and dumb.

    Sirrickthe2ndSirrickthe2ndMonth ago
  • meme investors and crypto bros are what's wrong with rh

    Thomas W. SmithThomas W. SmithMonth ago
  • That's clever. Instead of making the gamestop incident illegal, you can convince everyone to stop trading. Nice try wisecrack. Im not stopping 😆🖕

    CrashCrashMonth ago
  • It is like poker. Inexperienced players just play too many hands and call just to be in the game. 80% of hands should be folded. Also almost every free business makes the user its product. It has become one of the core principles of the internet

    ⸻̆̈⸻̆̈⸻̆̈⸻̆̈ᙎᓿᖇᙍᗫ ᒪᗅᓿᘉ⸻̑̈⸻̑̈⸻̑̈⸻̑̈⸻̆̈⸻̆̈⸻̆̈⸻̆̈ᙎᓿᖇᙍᗫ ᒪᗅᓿᘉ⸻̑̈⸻̑̈⸻̑̈⸻̑̈Month ago
  • Nothing like a Robinhood ad on a video about how Robinhood sucks lol

    Cuddibuddi12Cuddibuddi12Month ago
  • Buy and hold index funds. How difficult is it to understand?

    simran gillsimran gillMonth ago
  • GME is not over yet. The next few weeks gonna be crucial in the battle against hedges.

    kuprenxkuprenxMonth ago
  • The upside for anyone that understands how powerful information can be in stock sales is SO obvious it should already be highly illegal to do this.

    Alex TorresAlex TorresMonth ago
  • Irony that the USworlds ads for this video are for day trading apps.

    Alex FranceAlex FranceMonth ago
  • Short answer it turns out when the rich treat the stocks like a personal rigged casino for themselves it leaves that system open to manipulation.

    The Laughing Storm Born AgainThe Laughing Storm Born AgainMonth ago
  • Robinhood: People asked us why? Why treat people like this. WHy? Cuz fuck 'em thats why!

    Ninja BlackNinja BlackMonth ago
  • We like the stock.

    Christopher CooperChristopher CooperMonth ago
  • Its funny you try to paint warren as being on the good side, she proposed legislation that protects wall street, she is a snake, has always been a snake, and will always be a snake. trusting communists is going to be a bad idea, and will always be a bad idea.

    Sherman McDermottSherman McDermottMonth ago
  • Jared, come back!!!

    12oshinko12oshinkoMonth ago