Happy Holidays and Best wishes for a Great 1998!
1. Market Maker's and their role....Robert initial states that the markets could not do without MM's and then presents listed exchanges as an alternative. If the NY and AMEX, which all have illiquid stocks can make do with a specialist system, so could the nasdaq. Let the investors, you and I, determine the markets's valuation for these companies. A stock should not appreciated because mm's have their grips on it and want to run it. Nor should customers pay up 1/8 or 1/4 (although mm's can legitimately markup stocks 5%) to own the stock that the mm's bought for their inventory. If the illiquid stock in a exchanged based system fell to low levels, then let the person who feels it is worth more buy the stock. Let everyone make the markets, not the market makers. Clearly this is not what is occurring. Look who runs the nasdaq, who's on the board, etc...its the Goldman Sach's, Merrill's of the world. Its the fox watching the henhouse.
2. As far as Chris is concerned. I don't recall anyone running him off the thread. As far as I can recall by looking at the posts, many posted cautionary notes regarding the fact that Chris was using an alias and that his motivations were unclear. As well, I strongly suggest he get supervisory approval or else he would lose his job. This is no different than me cautioning anyone on here about a flawed trading strategy. I would not sit by idlely watching one of you make a costly trading error so that I could simply later use it as an example. Chris, flat out, would lose his job if he were discovered by his employer. Robert, would you approve of the TV station that paid the robber to steal the car, but exposed the robber to criminal liability. That is, the theft was real and if the police happen to be strolling by, the robber, encouraged by the tv station, could do hard time. Actually, we are more removed as the tv station could probably be held an accomplice regardless of their motivation. (they didn't really want the car, just the footage)...Chris realized this and decided it wasn't worth it without getting approval. He got back in line with the law, what his employer wanted, and with what was right.
Anyway, sorry I have been relatively active....I have been trying to get year end stuff squared away and catching back up with stuff missed while on vacation.
Good luck to all....take those losses to go against your gains...don't pay unnecessary taxes.
Regards and Best wishes.
steve@yamner.com |
