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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: The Vet who wrote (100047)	12/1/2008 7:06:39 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 110194

As long as the stocks remain in a margin account then the broker can still offer them to shorts even if that account in free of margin.. That, according to my broker, is incorrect. I ask them if they were loaning out my shares, even though my margin account was not in debit (shares paid fully in cash). They stated they don't loan shares until the margin account is in debit. And by law, from what I understand, they are not permitted to loan shares that have not been purchased via margin. The fact that shares are in a margin account should not permit them the ability to loan them out. But I suspect they do anyway.. Thus, the only solution is to call for the certificates. That would be the equivalent of a "run on the bank" and would force the shorts to cover, or leave the brokers with their butts hanging out. Hawk