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Friday, 05/26/2006 12:51:49 PM

Friday, May 26, 2006 12:51:49 PM

Post# of 24249
Doesn't anyone understand that we don't need more laws?- There already are laws that prosecute fraud and stealing. The system couldn't work any better than it already does. The US system of stocks and commodities is the envy of the whole world. We have the best market system in the world. Our system of markets is copied by the other countries of the world. Just because there are people that don't understand how the markets work doesn't mean that they don't work.

For example. Gspg trends down for 2 years straight and the public sees the short list growing while Usgl goes up for 2 years straight. How does this happen? Is there an evil cartel that is trying to destroy our business? No. When trading you may go long one security and go short another security in the same account at the same time. For example let's say that you buy 100 shares of usgl at .50/share and sell 100 shares of gspg at .50/share. Now usgl goes to 8.00 per share you made $750.00. And gspg goes down to .02/share you have made 48.00 from the gspg short sale. As usgl is going up and gspg is going down your account has more credit to trade with and so you can keep selling more gspg and buying more usgl. There is nothing wrong with this this is how markets give capital to the overperformers and take it from the underperformers. It is healthy. One day the conditions will change and these trades will start to reverse. And this happens over and over again every single day. There is no evil cartel just people that are very short sighted when it comes to trading and free markets.
regards
frnk
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