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To: William Epstein who wrote (5417)	8/7/1998 2:17:00 PM
From: Flan	Read Replies (2) \| Respond to of 7841

Well Will - everyone who loses money in the stock market or sees wild swings in their stocks cries manipulation and abuse. Whereas that might be true in some thinly traded nasdaq stocks that is just not true especially on the NYSE. My uncles are specialists and have had seats for 30 years so I understand how they operate and I know how they make money. In terms of profitability they make more money on interday volatility that is not skewed in one direction, in other words if a stock gyrates up and down vs moving straight up or straight down. They have to follow very strict rules in terms of buying/selling for their own accounts and it is much more restrictive than you seem to think it is. Your assumptions about specialists moving a stock up for days on end (you cited SEG recent runup to $29) and then dumping the stock ie shorting it all the way down could not be further from the truth - strategies they utilize to make money are completely different and that kind of scenario just does not happen. And your statement about there being only two independent specialist firms is completely wrong many have investment partners but the partners own a controlling interest in the firms - any capital investment are largely related to the firms need to meet capital requirements that are imposed by the NYSE. Not trying to be harsh but your statements about their activities and strategies were just flat out wrong!

To: William Epstein who wrote (5417)	8/7/1998 2:41:00 PM
From: Flan	Read Replies (1) \| Respond to of 7841

Oh ya - Elvis is dead and the only myth is your conspiracy theory, you need to gather a little factual research before you post and you will see how misinformed your statements are. Call a NYSE specialist firm or anyone else who knows anything about how they operate and they would laugh at your assumptions especially the SEG specialist led run up to $29 then dump to $20 strategy. No way no how - there is just way to much capital tied up and way to much capital at risk. And to the person who posted in support of you claim citing the 87 crash well - The only one buying anything on those days was speacialists and they got run over and took huge loses, many went out of business and were forced to sell their seats and liquidate their assets by failing to meet NYSE capital requirements. These firms try to operate on neutral basis and incorporate hedging strategies in any long and short positions they establish to minimize potential loses that is why they make most of their money on interday up/down price movement rather than a rapid movement in one direction or on a sustained basis. That is another reason that punches holes in your manipulation theory. Their strategies incorporate risk and capital management and taking small gains in rapid succession - taking a stock up as you noted would be completely in conflict with those principles through which they operate. One trip to the floor and I think you would understand much better. Enough said you can believe your personal hypothetical ideas and I can believe mine the only difference being that mine are factual...