THE SCAPEGOAT
Who is at fault for this mess that has happened? IMO the blame will shift as follows.
The market makers will say "It wasn't us. We simply executed trades at the direction of our clients and met all appropriate requirements for our clients maintining adequate reserves and security."
The DTC will say "It wasn't us. We have a system in place that apparently was taken advantage of by some very clever crooks. We need to look into this further to make sure this kind of thing doesn't happen again."
The SEC will say "It wasn't us. In fact, we've aggressively made efforts to stop this exact kind of abuse with our new short-selling regulations set to go into full effect soon."
In the end, IMO, the scapegoat (and rightfully so) will be the very large hedge funds that have profited off of this for a decade. The MMs, DTC and SEC all KNOW about this but have done nothing. Now IMO they will have an opportunity to express their outrage and "take steps forward" to cure these ills. Hopefully they have diligently uncovered exactly which hedge funds are driving this because SOMEONE is going to have to come up with the funds to cover.
Who are the literally hundreds of bashers on RB and here that post several hundred times a day? Who is providing the motivation to ALL the known hatchet jobs (StockBotch, StockPatrol, StockLemon)? IMO it is the hedge funds that are in trouble and at serious risk. If they haven't already transferred as many of their assets as possible elsewhere, they're probably in the process. This one's going to be a doozy IMO because Roger is doing this RIGHT. I have never seen a short position handled this way before. IMO, he is using the DTC and SEC to properly document and correct this issue. It takes someone intimately involved with the way this all works and, being a former SEC man and CPA, Roger knows the system and how to provide transparency to everything that is happening. This will ensure IMO that the proper market mechanics kick in to resolve the naked short issue I believe exists.
IMO, there should be some very large (if not the largest) hedge funds going down and out.
Z
As always, these are my personal opinions.
Hopefully nobody in here is investing anything but "fun" money that they can afford to gamble with.
