Patrick, you have perfectly valid point. If I borrowed money from my credit cards at, say, 10% interest and bought intel shares on full margin and bought 200 intel shares at 160 (which apparently seem to be core subject on another thread), what percent margin will that qualify as? Believe it or not, I have known people who are doing this type of idiotic thing in the recent months.
You said, "The next big crash will be when funds to mutual funds start going
out instead of coming in. The market starts down. Mutual fund
holders don't see a return, so they exit the funds. The funds
have to sell more to pay out to the fund holder. The spiral
continues downward until funds return to a positive inflow.
Patrick"
I couldn't agree more. apart from the investor's greed getting to manic proportions, the congress has given the right ammo to accelerate a sell-off that will lead to a major crash of 1997, IMHO. The events that could trigger the crash are numerous. Economic slowdown, sell-off started due to locking-in long term gains, for which intel is a perfect candidate, upcoming earnings crunch - which is eveident from the 1Q earnings etc, etc.
To deny outright that a crash in 1997 won't happen is plain simple self deception. |
