Hi Def, you have been quite lately. -g-
Yea, I saw that in this morning's reading. I suspected that's what was going to happen when Chuckie, Brown, et. al. started selectively restricting margin many months ago. Even some of the E-broker's are now starting it - we had a post nailed up here from some clown that was complaining that his broker cut him off the margin because his account was concentrated 90% in some volatile POS (rambo was it?) and he wanted to lever up on the day's gains from his prior night's equity coverage of 27% (or so)! Jeez.
So, BubbleBoy is leaning on 'em, but I'm not really sure how far the thinking has gone considering what my rummy broker did to me last expiry in one of my accounts and the follow up inactions. Don't know if you saw it, but I had a bunch of intc poots that went ITM towards close and I couldn't get through to sell so the broker exercised and I was short a shit pile come monday morn. Drove my equity in that account under 10% (it was a 100 to 1 lever, if you can believe that). Then they let me go 3 days before I closed her out, luckily for a gain.
So, I think the brokers are wising up, but need a 2x4 upside the head, hence the formal letter. Can't be good for continued run up in equities, but is it really all that bad? I think the professional MMs are as loonie as the housewives trading their day away on margin rather than watching soaps. -g- |
