XJO 1.88% 7,950.5 s&p/asx 200

Wednesday March 18 - Swimathon, page-7

  1. 10,740 Posts.
    lightbulb Created with Sketch. 2086
    True, true. If they want to pick on somebody, or point their finger at the bad guy, then they should point it at the institutions that lend their share portfolio's out in return for a lending fee, which allows the nasty short seller to sell short in the first place.. They kind of forget about the margin business.. you know, the folks that bought shares at the top, and pledged them as collateral to buy more shares on margin. The market tanks quickly, and the margin lender asks for more collateral, or more margin, which they don't get, or they don't ask at all, just sell the shares pledged as collateral, which makes the share price go down, which makes the LVR (Loan to Value Ratio) go down, so they sell more shares. etc.
    Last edited by 5speed: 18/03/20
 
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