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[QUOTE="Forza Azzurri, post: 3716240, member: 1452"]
Yup.  I have enough knowledge of the clearing houses to know what they are, the purpose they serve and, at a 10,000 ft level, how they calculate their margin requirements that it was pretty easy to connect the dots between RH drawing down on their credit lines, having to raise a ton of new capital and the clearing house drastically increasing the margin requirements.

Of course conspiracy theories involving hedge funds is much more interesting than the mundane business of clearing trades so that is what won the day.

And, in this day and age, where any idiot with a mic and a sharp tongue can attract a sizeable following, and the truth is much less important than the number of views and clicks, the truth never really had a chance.

Ultimately, nothing should change.  There is nothing wrong with shorting stocks.  the ability to short serves a useful purpose.  And the retail crowd is just going to be another variable in the market equation.  With stock commissions set to zero, and options commissions down drastically, the retail trader is here to stay.

What I don't understand is how you can short 140% of the float.  If every short has to have a locate and borrow, how do you locate that 40% that is not outstanding?  That piece I do not understand.
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