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To: robnhood who wrote (119216)6/18/2008 9:13:13 PM
From: TheSlowLane  Read Replies (2) | Respond to of 313059
 
I gave you a few good sources for information already. It's all clearly explained in the Bloomberg special on Phantom Shares that is available at YouTube. Do you want me to watch it for you too? The money is made at the time of the short sale. It is so obvious I didn't realize it needed explaining. Obviously it is not the only reason why PM juniors are down, I didn't think that needed explaining either. People that deny the problem exists are helping to provide cover for the criminals. And you call yourself robnhood. ROTFLMAO.



To: robnhood who wrote (119216)6/19/2008 12:16:07 AM
From: E. Charters  Read Replies (1) | Respond to of 313059
 
They don't cover as they are brokers and can wait indefinitely. Believe me it happens. Brokers are the biggest shorters on the street. They don't have to put up money and all they have to do is borrow the stock. And most don't bother to do that. When the market is falling they know they can make their money selling. All they need is a sell ticket. When traders make the most money is during periods of volatility. Picking trends. When the market falls that is guaranteed volatility. Down volatility. Markets do move in that direction. For years at a time. Why fight it? Trade it. Since March, shorting has been a no brainer.

How do they cover? Well they have the money, the market is falling. All they do is buy back in discreetly over time. They make half the money, but they are hedged. Simple isn't it? And the bigger the short, the more it depresses the market, and the easier to buy back in. If it yo-yos, it isn't a tragedy is it? as you make money both ways. If it does yo-yo and you are most of the market on the one side, then keep hammering it, and making money. Only if you have a richer faster guy on the other side can you lose. In this market it CANNOT be retail people who are selling it all. But can they EVER be talked into selling. It's all over the street. Gotta sell. So everyone does. And who profits? The people who sell who never owned the stock in the first place.

It is easy to panic a market. Just put in a monster sell order and stack it all the way down to the lowest bids. Don't worry, you will get taken out. Oh my.. and will the market move up.. ? Strange there isn't all that real buying out there against your fictional sales.. isn't it? Because bullshit money always exceeds real. So naked shorting wins every time. No junior has the market to buy back its stock so you make money shorting them. They have no liquidity and no support. Short a 30 cents stock? Perfect. No buying except that you will flush out. Wait for the news... sell hard, watch her crash..

It is all since the ABCP crash a self fulfilling prophecy. Once the institutions weakened and the retail panicked it has been free for all.

EC<:-}