Thread time - Wall St changes the rules, some past history.
Before I get to the Hunt silver business, let's revisit the crash of 1987 /1

When the bottom fell out of stocks AGAIN on Tuesday, Oct 20 it appeared the survival of the markets was in question. There was an index, MMX, with 20 stocks and an associated futures contract that tracked the DOW closely. Those 20 stocks were the focus of attention. /2

With all eyes on the plunging indices, exchanges halted trading in all the big stocks that were dropping, while keeping trading open in stocks that were rising. The result? Indices INSTANTLY turned around! (if course they did!) /3

With trading halted in some stocks, I remember the clearing firm honcho going from option pit to option pit telling us "if you have any capital, put in 'market opening only' orders for the halted stocks. You will either buy the bottom, or the system is going to break." /4

In the mid 80s, I was clearing Goldberg Securities on the Pacific Exchange. each year Dave Goldberg came out for the annual Christmas party held at the Top of the Mark. Dave was a Chicago legend. Here's an excerpt from his Chicago Tribune obit. /5

Dave sat on the board of some of the exchanges. Surrounded by a bunch of us market makers drinking cocktails at that Christmas party Dave regales us with "Let me tell you boys how we fucked over the Hunts." /6

Dave recounted how he had spotted the Hunts accumulating silver and he went long for the ride, I think from the low teens. He got out of his longs in the mid 30s and began to short above 40. When prices kept rising, he and fellow board members changed the rules. /7

He said his take from the move was about $20 mil, a lot of money in 1980. But it was his closing advice that still rings in my ears.

"Boys, in every game you play, make sure you know who makes the rules."

/end