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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Carl R. who wrote (16939)	11/1/1998 9:42:00 PM
From: Enigma	Respond to of 18056

Carl - good answer. e

To: Carl R. who wrote (16939)	11/1/1998 10:09:00 PM
From: Haim R. Branisteanu	Read Replies (2) \| Respond to of 18056

Carl would like to interfer in your analysis. Based on recent publication LTCM also played the volatility game, as has Bankers Trust, Merrill Lynch and many others. It is actually selling collars on the markets and pocketing nice $$$. e.g if the market goes above x I will pay you (sold calls)or if the market drops below Y I will pay you (sold puts) The reason A.G. lowered interest rates as he did, was simply to bail out those who wrote the puts, and those who wrote the spreads on treasuries. The timing was specificly timed before option expiration for maximum manipulation and gain for the gamblers benefit. From a market "confidence" point of view. lowering interest rates Friday after the markets closing would had made the same effect. The more curious thing is why has AG not lowered 0.5% in the first place??? On Sept 23rd, they knew by then the LTCM problems. The additional rumors of furter cuts were implemented for the same reason of market manipulation as a new series of "tailored puts" expired this weekend. Now we are speaking about institution trying to safeguard their portfolios and the gamblers selling those derivates. The amount of money involved was staggering, much more that LTCM alone. The lesson from that is that the FED engaged in market manipulation for the benefit of few who violated the public trust and a myrad of banking laws. The issue I am arguing that instead of punishing those outlaws as it was done with the S&L the FED bailed them out by various means. BTW - have you noticed the silent departure of some big names lately in the banking system?? Now the same conspiracy moves along with the latest G-7 superfund of $90 billion. We could use it much better fighting cancer, aids, crime, better education and much nmore. Instead we are spending taxpayer money to save speculators who work in the FDIC insured banking system. Living under a communist regime during my childhood I heard similar schemes again and again... so nothing is new under the sun... BWDIK Haim