Re: Report: NYC May Lose Top Financial Spot
You got it pegged. There is some light. A blog post on OSTK was talking about a couple of hedge funds shutting down because they could not find enough stocks to short to hedge a long position with bigger risk. There are so many folks leveraged to the same trade to take the risk. I have long said that until we have total and complete failure of the system that is in place the markets will not survive. When all the money that was removed from the markets and given to wall street in the form of profits on shorting shares that have not been covered yet there is going to be a problem. The leverage works both ways and when there is no money left to cover all the shares that were shorted so they could use the money for something else, some folks are going to declare themselves bankrupt and then what happens. You cannot get money from a firm that has already spent the money or gave it to employees in the form of a bonus. I expect to see several funds go under with the recent decline in oil and coal. They need to cover short shares in other companies with money they no longer have because of the decline in the oil patch. I know I am rambling but I am still looking to short everything because recession is the only way Wall Street is going to be able to cover the massive, distorted, illegal, and legal position. They cannot cover the position until they create a recession. There are folks on CNBC everyday now promoting doom and gloom and lying about everything just to create fear and panic. They do this because they need to see a market crash to cover.