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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (8237)	2/9/2000 3:53:00 PM
From: MythMan	Read Replies (2) \| Respond to of 42523

which means it can never happen. You're not getting this, are you?

To: Lucretius who wrote (8237)	2/9/2000 4:37:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 42523

panic selling, if and when it starts, can not be prevented. i actually think the curbs and circuit breakers, like all meddling, are counter-productive. just think about the nature of program trading: a computer calculates whether the difference between the spoo and the cash index would produce a profit if locked in that's greater than the interest on a t-bill one would receive for the remaining lifetime of the contract. if the spoo's at a big enough discount, it sells the stocks and buys the spoo, if it's at a premium, it does the opposite. thus, whenever the basket of stocks is sold, demand for the spoo is created at the same time, and vice versa. that actually helps to DIMINISH volatility, not increase it. the circuit breakers which are supposed to stop panics, imo exacerbate them...what's worse during a panic than not being able to trade? all these rules are utterly self-defeating.