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To: DebtBomb who wrote (44200)1/18/1999 9:26:00 PM
From: KeepItSimple  Read Replies (2) | Respond to of 119973
 
Do the math. The short interest in most internut stocks is about 1/10th of the long interest. (And that's just counting the public float, if you add in insider holdings its more like 95% long) Hell, some of the internut IPOs can't even be shorted yet. There are a LOT more people long that will be forced to sell due to margin tightening than there are shorts.

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If they do stop margin on nets, why a drop in them? I don't see this. Many shorts would have to cover which would run the price up at the same time some longs would have to sell, I see a balance.



To: DebtBomb who wrote (44200)1/23/1999 12:44:00 AM
From: Mike M  Respond to of 119973
 
MM's and brokerage firms make a killing on trading nets on margin, why would they want ot cut off their own feet?

That's easy! They are frightened....Brokerages don't like to share the risk with investors with their stocks.....They see the potential for internuts to drop dramatically and want to make sure there is enough collateral to cover the loan.

:o|

Mike