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Strategies & Market Trends : Free Float Trading/ Portfolio Development/ Index Stategies

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To: dvdw© who wrote (1949)	7/30/2007 6:11:21 PM
From: dvdw©	of 3821

An excerpt from the previous post says; "The low price indicates the market is in distress, and the brokers significantly discount the collateral the funds have set aside in order to do business. At that point, the brokers issue margin calls, and the hedge funds sell to meet the calls — into a distressed market — causing investors to panic and redeem their money. And the death spiral begins." I would call the ultimate premise about price..... nonsense. I would call this typical opportunism, from a world where predators flourish..by inserting the excuse of the day. I would characterize the situation as typical.....of the grey area where proxies stand opposite investors and adjudicate short term ends as opportunity permits. lastly; Brokers are not supposed to be discounting collateral. That is not even in there job description, so this piece is flawed and typical of a trade that cant even remember its divisions of labor. ( sort of like brokers taking over the stock issuance game) Of course this comment could be relating to the Brokers excitement about being able to churn this customer because of the customers margin exposure.

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