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>The timing of the expected rate cut seemed very clever. By announcing the
>cut a half hour before the close, Greenspan/Rubin must have known the
>market would jump and option traders of expiring options would have to
>cover shorts and buy into the close. Then the Dow would skyrocket so the
>reporting on the evening news would be very positive, convincing the public
>that the downdraft was over.
>
>Could this have been in their thinking?
yes and no. Yes part is clearly stated by Bob.
I don't subscribe to conspiracy theories, but I think it was the most
inskillful market manipulation of all times I watched the thing.
How "smart" one has to be to hurt his own? They hurt institutions who wrote
those 500,505,515 calls.
By "option traders" I mean the writers, the ones who stand outside of the
cages in this zoo. Or somebody siggests that a small guy would provide all
this cap to maintain playing field for gladiators inside the cage?
They hit institutions, and if there is any sense in this urgency, this
could be need to save a bank or two here. We shall see. I don't think they
are that innocently stupid. If this is the "reason", then something is
rotten in the kingdom.
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