Loading ...I did mean the games will take down the brokerage houses. The situation you mentioned is an example. What happens if the stock goes up and the buyers cash in? The brokerage is on the hook for the amount of the shares not purchased . What about all the naked shorting of the stock they want to drive down? What happens when the derivatives go against them? The brokerage houses use house accounts to move the markets the way they want them to go. They sell huge options and buy the opposite options and then push the market at expiration. They buy up huge amounts of mortgages and package them for sale.They also sell derivatives against the best interest of their clients.
This all takes huge amounts of fiat. If the fiat spigot runs dry, The whole system runs against them. Think EF Hutton. Even a lot of people who are correct in the market will lose because the brokerages become insolvent. Look up MF Global.
rno