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Monday, January 27, 2020 10:57:01 AM
I think the best thing to do would be to hold a funeral for the shorts.
The high short percentage is the only thing which has TSLA trading where it is. Official there's $16 billion short — but I'm sure some market makers are also short in additional large amounts which is not included in that total
This is what caused the collapse of Knight Securities during the "internet bubble". When "over-priced share soared, the market market Knight sold into the buying frenzy to calm the speculation, but could not later cover this short position because the price never cam back in . . . until after Knight's bankruptcy.
All it took was the tiniest bit of news that Knight was in a bind and every large investor bought into shares of worthless firms like "internet incubator" CMGI and made a mint as the shares soared at Knight's expense.
Today CMGI has a second life traded as STCN, a supply chain management company called Steel Connect worth $1.48 per share, a minuscule fraction of it's former peak share price of $1,286 a share, and it's still losing money !
The high short percentage is the only thing which has TSLA trading where it is. Official there's $16 billion short — but I'm sure some market makers are also short in additional large amounts which is not included in that total
This is what caused the collapse of Knight Securities during the "internet bubble". When "over-priced share soared, the market market Knight sold into the buying frenzy to calm the speculation, but could not later cover this short position because the price never cam back in . . . until after Knight's bankruptcy.
All it took was the tiniest bit of news that Knight was in a bind and every large investor bought into shares of worthless firms like "internet incubator" CMGI and made a mint as the shares soared at Knight's expense.
Today CMGI has a second life traded as STCN, a supply chain management company called Steel Connect worth $1.48 per share, a minuscule fraction of it's former peak share price of $1,286 a share, and it's still losing money !
We've run out of other people's Social Security taxes needed to subsidize our low income tax rates.
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