Maurice, Good show! I hope you are having as much fun in the midst of this as I am as a spectator!
To increase returns, small investors are fed the notion that a little (a lot?) of margin debt will give them leverage. It will, of course, also feed the coffers of the brokerage, both from the interest for the margin balance, and the interest from the short who has borrowed the shares. And, in allowing our shares to be borrowed, we are contributing to our own demise.
It seems that those entrenched media and market powerhouses would have me believe that I must let them beat me up. That I must let someone else use my shares to artificially lower my price. So that while Globalstar has 60.1M shares that have been sold and bought long... another 25.1M have been sold on top of that.
Not being a self-destructive type, and incensed by bullies... in others words, being of sound mind and body, of my own free will, and because I have a brain, and amen brother!, now that I see the light... I will be moving my shares to cash.
And I can't help but wonder if we were to do this with our portfolios, if we wouldn't have a much less volatile and prosperous market. There's only so many shares that can be bought... but the number that can be shorted (sold against us) is up to us. Any insights/corrections from knowledgeable security wizards is welcome.
Thanks Maurice for the education, the entertainment... and mostly the willingness to be the focal point with attitude. |
