Some think that Failure-to-Deliver information is not even fully disclosed...leaving us all in the dark as to just how much naked shorting exists (Red reports that ECU in the US has an estimated 1 million naked shorts at this time) Talk about criminality in the US! The panicked are going for broke hoping that they can continue to pull something off as their plight compounds significantly now on a daily basis as the rot metastasizes. There is no honor among thieves they say...and as they start looking over their shoulders at each other the instinct of survival will take over.

The banks are starting to hoard their liquidity to build equity to replace hundreds of billions $ of losses as they absorb Trillions of dollars of off-balance sheet "assets" back on to their balance sheets as the off-balance sheet structures unravel. Thus their credit activities are being downsized, so to speak as they cover. They will need at least $400 billion to do this..and it is disclosure that is unfolding so it may change in 6 months. I suspect the Fed. will print to bail them out as the moral hazard elevates. But to make matters worse, significant litigation against the banks is on deck...plus regulatory investigations and prosecutions. Yikes!! The finger pointing is about to take on prime time and the hedge funds will not be spared.

All of these problems are entwined in the investment and hedge funds active in the structured credit markets, with new surprises almost daily now. Where are all these hedge funds, many short, going to access credit? How much are they cumulatively hiding and how much worse does it get as they continue to hold short? It would seem to me that clearing a few million naked shorts on a small entity like ECU would be one of the first actions to take. The hedge funds are being forced to deleverage which will cause significant financial losses even if they stop the nonsense today! So, when will they cry "uncle"? Who will flinch first? How stupid can they be to continue in the hope that they can somehow get out of a hopeless quagmire? Do they really hope and prey that they can count on the Cartel to smash the price of the PMs down and thus attack the stocks and continue their shorts? Those days are now over. It's insane but I suspect they are in so deep that they are spinning on the spot right now. Sooner or later, and its getting mighty late, the powers that be will abandon them and they will have to cover the short squeezes and/or go long. What is the point of dabbling in naked shorts if it further exposes funds to legal prosecution and suits?

Credit is virtually non-existant for most short funds out there as the cost of debt is too high and growing. Can't imagine what will happen when The credit ratings on the monolines doesn't come through!

And so, we see the silly comments made here from the minions of the shorters...reduced to hollow taunting with a ring of despair.

It is amost time to feel sorry for them as they will soon be unemployed...at least as bashers. They will more than likel be pmpers with new names very soon.