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ThePennyTrader

06/06/09 4:57 PM

#101497 RE: Mingy #101495

Mingy, I'm pretty sure he said bonds as a tongue in cheek type of thing.
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rdailey4

06/06/09 5:00 PM

#101500 RE: Mingy #101495

Mingy, got this from a friend.

Defaulting on bonds- If the shorts have put up bonds to cover the broker/clearing firm in lieu of cash margin, then they may need to put up more collateral(cash or bond) to cover increased risk now that the price is up. I would be surprised if the entities shorting this were small-frys. I understand that some of the algorithmic trading they were getting hit with when they were on the bid were quite sophisticated.