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Technology Stocks : C-Cube
CUBE 36.64-0.5%Dec 5 9:30 AM EST
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To: Rarebird who wrote (36626)10/12/1998 12:27:00 PM
From: Helios   of 50808
 
Rarebird

Since you brought it up a short history of the bubble can be found at is.dal.ca.

South Sea stock had been at 175 pounds at the end of February,
380 at the end of March, and around 520 by May 29. It peaks at the end of June at over 1000 pounds (obviously a psychological barrier
in that four-digit number).

With credulity now stretched to the limit and rumors of more and more people (including the directors themselves) selling off, the
bubble then bursts. To be accurate, it suffers a puncture and begins a slow, very slow at first, but steady deflation. By mid August the
bankruptcy listings in the London Gazette reach an all-time high, an indication of how people bought on credit or margin. Thousands
of fortunes are lost, both large and small. The directors attempt to pump-up more speculation. They fail. The full collapse comes by the
end of September when the stock stands at 135 pounds.

BTW I don't agree that $300 represents a psychological barrier to gold but rather a fundamental one, $300 being roughly the cost to mine the stuff from a high yielding mine. These days gold is just another commodity and is subject to the same deflationary pressures that the rest of them are experiencing. For these reasons, while $345 is possible $500 is out of the question. Gold is a hedge against inflation not deflation.
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