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Trust me, you want the government to intervene (and prohibit) if you borrow at 100%, because then clearly you're not intelligent, educated or mentally competent enough to give an informed consent. It's called predatory lending. A stupid person will do stupid things even when they are disclosed...

Well said.

Shorts Unite!

The CNBC dolts are bending over backwards to look tough these days, so they might give this one a run. But they would probably twist it into a this is good for the market to screw the shorts this way slant. They are dolts, trust me. Used to be a journo. Don't need to fight this one I think...

I believe it is fraudulent, illegal and certainly usurious. A court might disagree (Hey, a court once found OJ innocent). Regulators might disagree. (Hey, the SEC once thought Madoff was doing nothing wrong.) Legislators, paid off by lobbyists, might change the laws. Lots of things could make me...

Doesn't matter who is doing the loaning to whom, or what is being lent, or whether it's even a completely private transaction between two consenting adults, which is why loan sharking is illegal. Want to lend your neighbor $1,000 bucks fine. Ask him to pay back $1100 next week and you've broken...

This stipulation in the agreement, if it is indeed fraudulent or illegal or even usurious, negates the agreement. If somebody gives you a document to sign that says they can do something illegal to you, and you sign it, you think you are bound, and they can get away with it? Contract Law 101...

Only someone as toothless and lame and probably corrupt as the S.E.C. would allow this. I think A.G.'s and maybe even state banking administrators need to get in on this. It is usurious, and the using an estimate of rates is dubious. They could charge anything they want and say he well it was...

It's illegal, especially if you're not notified in advance of the rate or the methodology/benchmarks for determining the variability. At least in Connecticut it is, and that's where IB is headquartered. Give the A.G. a shout, and see what he says. Be REAL curious.

I understand the libertarian argument, but the lack of regulation over the years has led to, paradoxically, credit cards companies being able to charge 32% interest in some states -- and go broke at the same time, and threaten the economy. We have always had usury laws in this country that limit...

You don't know what the negative daily compounding issue is with a lot of short and leveraged ETFS? And you're giving advice on here about ETFs?

Are these marked in price daily, or do they follow an index? If simply re-calibrated daily, how do you avoid daily negative compounding?

I also did think about buying a ZN put, but there's not much action long-term, and short-term too much time decay.

I have futures in my IRA and try not to use it. Contract size is what? $115K. That's more than I was to have riding on this position. Yeah, I know it's only like 4K down. But I don't want the leverage.

Guys, I just found this thread. I got to tell you that if it is true, it should be criminal to charge 35% ESPECIALLY WITHOUT NOTIFYING THE BORROWER WHAT THE RATE WILL BE IN ADVANCE OR HOW IT WILL BE COMPUTED. There are laws that prohibit banks and credit cards from doing this. I can only imagine...

I want a long-term hold position, preferably in an IRA, so a short position is not possible. The TBT and other ETFs, if inherently short of leveraged, often have negative daily compounding, which would eat me alive long-term. Can't believe there is no way to do this effectively. Maybe I'll...

I am looking for an instrument, besides bond and futures that, unlike say TBT, will not have the decay from daily compounding. It doesn't need to have leverage either. What's out there?

IB charges 35% to short stock? Is this new? A special case? Never happened to me but I have never shorted Sears, unfortunately.

I don't think anyone, including FX brokers, does a good job with tax forms for cash Forex. It's too new, the nature of the beast, optional whether you do 1256 or not, and you have the carry to report as well. I don't know how small your account was but carry can be a big deal positively pr...

I am in the same boat, and then you have to factor in the interest paid and accrued, the carry. IB does not have it together with regard to cash FX and taxes. You have to do it manually, not each trade, but look at the in and out balances at year end for each pair, if you have an open position...