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justfactsplease

10/16/06 1:36 PM

#120008 RE: camper9 #119989

Actually, I believe I was told a particular foreign intity can short pennies, I just cant remember which one. Also because shorts are clients just like longs, but have no limit to their potential losses, I think being able to maintain a liquid market is just a normal responsibility of the MM's in order to advoid potential liability. In the case of a massive sell-off there may not be enough buyers to fill long's selling, but their losses are limited. I know that sounds unfair, but I'm just the messenger. Either way, with SLJB, if MM's and others have done reasonable DD and are still short, they are sure to take a major loss no matter how much effort to advoid the gap up. But it seems they have been walked into this corner through their own greed and arrogance, and the wit and effort of a few savy CEO's. However if the MM's loose they're loosing their stock holders money not their own! That's the real shame, the ignorance of their own stock holders!!