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>>The warning the Nasdaq issued a few months agospecifcally related to long positions bought on margin. <<

Another point reagrding the public margin debt issue. Short selling on margin would not result in the record margin levels we have now for a few reasons.

If folks were short selling on magin -as the rally climbed higher they would have been forced by their brokerage firms to either put up more money or cover their short positions. Since they were on margin in the first place they more than likley wouldn't have had the additioanal funds to put up. In that case they would have been forced to cover their shorts- this in turn would have reduced the total short interest -not increased it.

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