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Pastimes : Ask Mohan about the Market

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To: Simon who wrote (11116)12/11/1997 11:02:00 PM
From: Bonnie Bear  Read Replies (3) of 18056
 
I fancy the big brokerages have people on their staff who are psychologists trained in gambling addictions, and they know how to bait the market with options. The reduction in trading fees results in an increased reliance on profits on the options market, so the brokerages can increase volatility through computer trading to decrease the chances of collecting on an option. Most brokerages have their own mutual funds so they have a huge amount of money to play with that does not need instant accountability, it's easy to move a lot of money around in circles to create volatility. Sound like something you see???
The gambler likes to double up and bet again when he loses, so he can make even more on the next gamble -g-
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