Originally posted by agent.5
What these Ebay sellers are doing is front-running the legitimate buyers. Think of them are your market maker, who knowing that a client is buying say Cisco, purchased CSCO before the client and resell to the same client and scalp a profit. It is quite an illegal activity, and the end result is an inefficient distribution of capital.
With all due respect, this really is an outrageous analogy. A "market maker" with insider information? Hardly. It's illegal to act on market information NOT AVAILABLE TO THE GENERAL PUBLIC. I -- like all the others on the wait list -- based my decision to get on the waiting list on information published in national magazines. It was info widely available to the general public. I just chose to act quickly on it, taking a risk by putting down my own money as a deposit. Others either didn't see the articles (hey, that's life), or chose to sit back and take a wait-and-see attitude.
In the great tradition of American capitalism, I now have the option of (possibly) being rewarded for my research (reading the mags), my quick thinking, and my risk-taking, if I choose to sell my place in line. Because I had the foresight to act quickly, I should now be rewarded. Why should someone who sat on his arse while I took the risk now come along and reap the same benefits?
You can take the stance that it's morally wrong, but to call it illegal just really shows that you don't have a clue what insider trading means, and how irrelevant it is to this scenario.
Originally posted by agent.5 In fact, what some of you guys refer to capitalism is NOT capitalism in a philosophical sense, but the American version of capitalism -- which is any form of stealing is great as long as you can get away with it.
Again, this simply isn't stealing. We can argue the morality of it, but to accuse people of criminal activity is really ludicrous and grossly inappropriate.