FWIW, Fidelity has reportedly been phoning all of its customers today (Sunday), informing them that all margin calls, no matter what the amount or original date due, must now be satisfied tomorrow (exchange calls immediately upon the open, house calls by the close of markets). A rep also told me that they explicitly are stating that if the markets continue to decline, even these deadlines will be ignored, they may begin liquidating their customers positions at any time at their sole discretion.
If other large brokerage houses are following suit along these same lines (and I suspect this may be the case - anyone know for sure?), I cannot help but think that we are going to be down hugely tomorrow AM, with tremendous margin selling pressure and few buyers. And that's even before the last of the tax-related and any panic selling kicks in.
Fasten your seatbelts, kids. It's going to be a bumpy ride.
-Rose- |
