Dear Extended Family,

Well it happened today. For a period of time this morning a MAJOR well known internet broker's clients experienced a failure of computer order systems because of an overload of users. CIGAs who then resorted to telephone service offered at a slightly higher cost found out that no one would answer their calls because the number of brokers who can answer is miniscule compared to the amount of people calling in during such a crisis. My feeling is when the grim reaper comes to have his way with general equities not one of these major firms will be able to handle the incoming flood, resulting in what happened this morning. Most, if not every non-professional trader, due to being skinflints at heart, use internet brokers. Think about the millions trying to get their sell orders in.

Recourse to these internet brokers amounts to zilch because all they have to tell the arbitrator is that they are a discount brokerage firm!

If you had no concerns previously about your internet broker’s financial capacity think long and hard about the above.

Regards,
Jim