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> It was real nice of Goldman and Merrill to stick their necks out like that.
> In fact, it was downright uncharacteristic for Wall Street outfits to put
> the thought of possible losses aside for the greater good.
>
> Because of the purely unselfish nature of what went on, traders are
> naturally suspicious. Hell, so am I.
Yeah, right, unselfish. They made a bundle. Same thing happened in 1987
and in every panic since. A few big players make a lot of noise buying
big size (while maybe dropping a rumor that the government is buying)
and quietly cover soon after with some extra millions or billions in the
bank and having protected their long portfolios.
It's definitely market manipulation but IMHO the motive is pure trader
greed. No way a bunch of government bureaucrats would have the
competence to move that quickly and create a profitable trade for
themselves. If I were going to look for the people behind it, I'd start
with the managers of the big funds. They have a lot to lose if the
market crashes and the bucks and market savvy to pull off something like
what happened tuesday.
But, personally, my attitude is who cares who is behind it. It's a fact
of life that the markets are manipulated by forces bigger than me.
Always have been, always will be. Anyone who believes otherwise is a
lamb waiting to be fleeced. The best I can do is to go with the flow and
try not to get run over by a truck. Looking for "reasons" is a fool's
game. Getting angry about it is doubly foolish. If the nature of the
markets makes you angry, it's time to move on to something that doesn't.
Kinda like sailing. If storms and rough seas make you angry, you
probably aren't cut out to be a sailor. If you enjoy the challenge of
sailing around or, if necessary, through a big storm, you've got what it
takes.
> By law, only the president can authorize a shutdown of U.S.
> financial markets.
Not true. If the Dow drops 30% the stock markets are automatically
closed for the day.
--
Dennis
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