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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: MIKE REDDERT who wrote (20954)	4/16/2000 1:14:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 29970

Now you're asking good questions. This is a matter of judgement call and it brings under light the fact the MMs use proprietary capital when markets go to extremes either instantaneously in a gapped stock or in an extreme move in the market. The individual MMs sit at a computer console and do these mechanical things. The managers give instruction based on the firm extension and leverage to the individual MMs to take less or add more within the confines of the rules, but there is a certain discretion allowed to each depending on many factors like experience. At times MMs like the venerable NYSE specialist go on strike protesting extremes like when the MMs wouldn't answer phones and specialists walked off the floor in the crash of '87. They refused to contend against their gigantic fear of the computer. They didn't believe they had the FED behind them. They thought their firms would go bust and the people wouldn't do a thing to bail them out though they do the public's bidding. That attitude is incredibly weak. It's "every man for himself" thinking. Soon after during the senate inquisition about the causes for the crash the FED was awarded new powers to prevent a repeat, but that's ridiculous because the FED always had those powers. The FED was invented in 1913 mainly because the Panic of 1907 made the powers that be then aware of the fact that guys like J.P. Morgan couldn't be expected in the future to walk out on the NYSE floor and take all offers at the money post to avert disaster. The country had grown too rich to expect any individual to be able to do that. This is a completely justified reason for the advent of the FED. It's their raison d'etre. But FED is Washington and specialist is NY. It is the difference between a government which has the philosophy of anti-capitalism and hides under the aegis of fairness and the philosophy of business which must bring home the bacon. This way of government-business relation is called adversarial. The 20th century had thought that was the superior relation. However, other nations help their corporations and that is giving those corporations an intermediate run advantage. Thus specialists and market makers are under duress when they they must don another hat and perform in the interests of everyone. It's extremely difficult to find anyone who believes that MMs have such a noble purpose. They don't necessarily choose it, but the nobility is where the most profit is had. So the answer to your question is that the action is 100% market driven and rule bound. Violations are not possible because the trace is quickly available and it is MMs who watch each other. Any MM trying to cheat which given the order rate is practically speaking impossible, is eliminated. When you hear about some misdoings of MMs know that it is posturing by officials to serve up appearances in order to appeal to the public's sense of fair play. The officials believe this restores the belief in the integrity of officials. The officials could care less about what's truly in the interest of the people since they don't believe the people are able to comprehend such profoundly deep matters. Economics is so deep.

To: MIKE REDDERT who wrote (20954)	4/17/2000 6:17:00 PM
From: Solid	Read Replies (1) \| Respond to of 29970

Hey Mike, Is this bottom and gradual consolidation or do we fall from here on the fate of the all too many whims and wonders? Any thoughts on earnings and sub numbers? Blodgett seemed to indicate lower than the sub numbers we are hoping for and I can't see him shooting into the dark to foul his image. He must have some interesting contacts. If it matters, perceptually I believe it does, and Portland goes the to the oa camp, earnings are not great and sub numbers are marginal, where, if anywhere, is support? I am thinking today was many on margin forced out of athm and shares on the cheap to be had by all. I would like to think that this is the bottom for athm...but I know better then to put much 'stock' in this. Curious if you have any insights. Thanks. Solid