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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (47412)	4/20/2000 11:43:00 PM
From: Square_Dealings	Read Replies (1) \| Respond to of 99985

<<fed up how they manipulate the market and the SEC should enforced the existing laws.>> Haim, I'm back to say you are right after all. I want to be bullish but maybe I can't be or shouldn't be after all until the corruption is addressed. Below is some proof of what you said in your earlier post. My trading partner thinks its the mafia that controls the markets- I think the head the exchanges having Italian names makes him suspicious. Anyway I do agree that it's blatantly obvious with the synchronized swimming-like rotation from the NAZ to the DOW and back as they suck money from one side of the fence to the other. You should find this quite interesting and perhaps you or other concerned individuals here might want to consider contacting this person to help if you can. The following is outrageous and demands justice. <<<Subject: Prudential - UNAUTHORIZED LIQUIDATION OF YOUR ACCOUNT Date: 4/20/00 7:36 PM US Mountain Standard Time From: DFenn1000 Message-id: <20000420223656.01464.00000818@ng-df1.aol.com> During this recent temporary and historical crash of the NASDAQ, it was interesting to see the behavior of Prudentail Securities, and read what they have in their Margin Agreement. Apparently these issues have gone untested till now. But counsel and myself believe their contract clauses as being un-enforcable. I was notified of a Fed Call, at the close of business on Friday. While I was determining the best alternative to utilize on Monday, to bring the neccessary funds in, they liquidated my entire account, without even a phone call to me just prior, to see if I had decided on a manner. This occurred during the rally, correction & upward movement, and they never even considered basic strategies like a stop loss, to protect their client's upward movement. While a Fed Call typically provides you 3 days, to my understanding (permitting a market correction, or an opportunity for you to get $ into the branch), this was done in less than 1 business day. Within 2 business hours following their action, my account would have been out of the Fed Call, and even have borrowing power to my understanding. I later read their Margin Agreement, and was shocked to see what they felt was enforcable. Understand, that not all clauses agreed to in a contract are enforcable. All contracts are governed and overridden by a reasonable conduct and good-faith covenant. After reading their Margin agreement, I saw that they gave themselves the right to buy and sell with your money, in your account, at their sole discression. Idoes not require any notice to the client or even a margin call. Simply put, in my opinion, they've given themselves the right to do literally ANYTHING to your account. I don't feel many people would sign such a contract knowing that. As I read it, an investor with $1,000,000 of equity and stock in his account, that has just used $25 of margin, could with no notice find his entire account liquidated at a huge loss, just because it was at the discression of his broker. Are we all fools? They took what was an account that I valued at over $150,000, and liquidated it to where I owe them over $21,000. Shouldn't we have choices about our risk, and what we'll do with our money? Shouldn't they be subjected to reasonable and good faith behavior? Well, I have secured excellent legal counsel, and this is a matter that will now be tested in the legal system. It's been too long now, that huge corporations have taken advantage of consumers. Now they are being taken on and beat (i.e. Ciggarrette Industry, HMO Industry, etc.)If you have been a victim of this same thing, please e-mail me at df1212@earthlink.net, and let me know your experience. >>>