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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: tradermike_1999 who wrote (9150)9/14/2001 12:40:18 PM
From: Ilaine  Read Replies (2) | Respond to of 74559
 
I think you need to make it much shorter if you want to get it published.-g-

Seriously, I think it's a fine expression of your opinion.

My understanding of my reading of literature published by the Fed is that they feel it is important to prevent wild swings of the markets caused by liquidity crunches. Slow, orderly sell-offs are ok, panic selling isn't.

I can't understand the econometric data they use, but they think that panic selling causes systemic damage that keeps spreading, in waves, throughout the financial markets.

That's what they think. Don't fight the Fed.-g-



To: tradermike_1999 who wrote (9150)9/14/2001 6:31:55 PM
From: Sun Tzu  Respond to of 74559
 
FYI from WSJ online,

SEC officials say there have been suggestions that the regulator temporarily restrict short sales and trading by certain investment groups, such as hedge funds. Some companies fear that stock prices could be beaten down, for instance, if there were a flood of short sales, in which investors borrow shares with the expectation that they will replace them with cheaper shares if the price declines.

"There will be no prohibition on short sales or trading by any other market participant," Ms. Nazareth said.

regards,
ST