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Ok another issue, what's the direct relationship between the whole FTD/naked shorting problem and the danger of margin accounts as discussed by Munger and beaten to death on the message boards?

And I will admit that I kindof forgot what's wrong with margin accounts?

a) that your shares are on street name and if your brokers goes bk. you can get screwed like that Moscow hedge fund got screwed in RefCo?
b) that the pool of capital in which you have your account could become insolvent if lots of ppl in the pool make bad investment decisions?
c) that your shares are loaned out to people who might not be able to buy them back and deliver it to you because they have become insolvent?
d) that you don't really own any shares for some other reason...?

e) some/all of the above?

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