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Non-Tech : Market Makers - What They Do and How They Do It -- Ignore unavailable to you. Want to Upgrade?

To: Rob S. who wrote (323)	1/8/2000 9:20:00 PM
From: Phil(bullrider)	Read Replies (1) \| Respond to of 429

Rob, I understand the original reason that specialists and MM's were originated, but I disagree with the execution. Originally, they were designed to maintain an orderly market. But enter shortselling. Instead of them buying when you want to sell, and selling when you want to buy, they sell short when you want to buy and cover when you want to sell.They, therefor, use any reason to lower the price as much as possible so they can cover. Instead of maintaining an orderly market, they only add to the volatility. I understand that soon the MM's will be history, and computers will be the stabilizing influence. I can only say to the MM's - Good riddance. Now, you state: Quit your petty bitching about MMs and specialists. We all make money by taking advantage of market inefficiencies - like stocks that are under or over valued or the actions of MMs and specialists. Either learn how to play the game or buy mutual funds. You must either work for a MM or be one to make this statement. I believe MM's and specialists have had a free ride for way to long and are dinosaurs in a rocket age. Again I say: Good riddance!!! Have fun, Phil

To: Rob S. who wrote (323)	1/9/2000 7:50:00 AM
From: Doug Coughlan	Read Replies (1) \| Respond to of 429

"Quit your petty bitching about MMs and specialists. We all make money by taking advantage of market inefficiencies - like stocks that are under or over valued or the actions of MMs and specialists. Either learn how to play the game or buy mutual funds." What is your problem? You start out writing an intelligent reply and then end it by resorting to a personal attack on me. I merely posted an article on market makers by a respected site (Briefing.Com) that I felt was relevant and perhaps educational to this thread. I respect your right to disagree with the article, but I see no need for your last paragraph.

To: Rob S. who wrote (323)	1/9/2000 12:11:00 PM
From: Richard L. Williams	Read Replies (1) \| Respond to of 429

Rob--great post, until you defend the market makers. Those creeps don't deserve the bottom of a shoe that cockroaches see during the last moment of their lives. They prey on the fears of people, and their cynical use of psychology makes me want to puke on occasion. Freud would be appalled! Say I have a factory that makes plastic flower pots. I hire you to resell them for me after I make them. Business is very good, and at first you are able to run the price up and make a nice profit, but then people want more flower pots than I can make, so what do you do? You sell them what they want anyway, promising to give them their pots later. MILLIONS of flower pots! But how to give those people their promised pots? You have to scare the current owners of the flower pots into selling them back to you. You hire minions that go forth to spread dark rumors about the evils of plastic flower pots, how they poison plants, how they break so easily, how you're sure there are better ways to house plants. Voila', you have a flood of "defective" pots coming back to you, and you can make up the deficit you created. Now I am back at the factory waiting for a new order, but you tell me the world doesn't need any more flower pots at the moment. Factory closes, I go try my hand elsewhere. Crude example, but that is what the *&$%^# market makers do with stocks, Rob, and I am very glad to say that their fun time is almost over. Ala' the "Happy Times" of the German U-boat skippers in WWII, the destroyers are closing in, depth charges primed. Have fun in your own little world, boyo. Rick