very nice summary-the info from the article below
Post# of 9123
I dont know whats better-the present admin policy: "business is evil and has to be stopped but I have no power to stop big business, so I'm going to destroy these defenseless pennies (because they have no political or legal clout to defend themselves) or having Goldman Sachs running cabinet departments, as you have mentioned
and yes, hedge funds and other animals do short pennies down to .0001 w the aid of brokers violation of fiduciary duty-only in the stock market -a massive reverse robinhood scheme.
i do beg to differ w 1 point in the article - discount brokers have added millions of traders and and scores of millions of more trades, all w commissions to line brokers pockets -this electronic trading only costs brokers ca 8c/trade(i forgot the exact average figure)
DTCC- 1of the most shadowy agencies you can find-despite thousands of pages of expose re their unconstitutional manipulation-how its owned by the brokers is an amazing long story of political etc fraud-
from the article:
Prime brokers allow their hedge fund customers leverage on their assets, meaning that for every dollar of asset, they could easily hold $10 of short positions.
This over-leverage presents a systemic risk should positions in several larger funds go the wrong way, as there isn’t enough collateral to cover the domino effect of multiple positions being forced to cover.
This over-leverage creates an environment where the brokers are now pregnant with their hedge fund customers’ liabilities, and have a vested interest in seeing depressed stock prices remain depressed – if the stocks go up, the hedge funds could easily fail, and the brokers are on the hook to buy-in and deliver the stock owed by the funds – resulting in brokerage failures.
The DTCC is ultimately at risk for this domino effect, as brokerages fail.
The DTCC is owned by the brokers, thus is the brokers.
The DTCC processes over $1.2 quadrillion (million trillion) every year, and owns most of the stock American investors hold in their accounts – but most of the country has never heard of the company