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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (55254)	4/8/1999 6:57:00 PM
From: BGR	Respond to of 132070

Barb, Market makers, indeed, have superior information. If that was reflected in the equity price, however, all investors should have been able to profit from it. For example, why would anyone make the panic sell if they know that there is going to be a dead cat bounce later? And, if no one is going to sell in a panic, shouldn't the stock open up then, instead of down? And in that case, isn't it wise to sell the stock, as it is going to open up on bad news? And if everybody sells, shouldn't there be panic sells and resultant dead cat bounce? Aha, we have entered a cycle where the attempt to double guess the market has gone bonkers! This, BTW, is a typical problem in game theory. Fact is, nobody knows, everybody takes WAGs. And that makes the market. -BGR. PS: I never thanked you for introducing me to the works of Richard Thaler. It was much appreciated!