05-02-2013, 12:03 AM
Shorts are shaking the bushes again today in an attempt to find more shares to borrow. Schwab is looking for more shares and has increased the amount they say they will pay to lenders. When you start loooking at what it costs Schwab to borrow shares, plus now they are going to depositing cash into lenders' accounts to cover the value of the borrowed shares. They then add a healthy margin and pass this all on to shorts. I would guess the cost to borrow is getting steeper for shorts. Yet they continue like crack addicts.