can someone help me out to unerstand this? i am sure it is more simple than how it is being disguised in all the fancy rhetoric.
i thought something like this was comming when it was obvious that certain good financial companies were getting the hell shorted out of them
someone opens up a margin account, buys more stock than they can afford to own. this is done by thousands of people under the same broker. all of the combined stock is then pooled and lent out (LENT OUT TO WHO?) this is a pile of nitro ready to explode as soon as some one decides to shake it
like i said before but no one responded... was this pooled stock lent out (TO WHO?)to people who's pure motivation is to crash the australian market, produce ridiculous market caps, with no intention whatsoever of buying them back on market (FFS, look at the charts of the dow and the allords over the past 2 years, and see who is the biggest loser), then sneakily snap the companies up for "cents in the dollar", as in the case of bears and sterns etc.
in other words, they have shorted leveraged stock (to create the greatest effect), and when asked to give it back, they have given them the finger instead.
wouldn't surprise me if the banks knew darn well what was going to happen, and are party to it.
WHO ARE THESE ANONAMOUS SHORTERS THAT GET OFF SCOTT FREE?
