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Technology Stocks : How high will Microsoft fly?
MSFT 492.01+1.3%Nov 28 9:30 AM EST
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To: Valley Girl who wrote ()4/16/2000 1:00:00 PM
From: TTOSBT  Read Replies (2) of 74651
 
Re: "is there any chance that we might see some wide-spread bankruptcies from brokers"

Here is an article from the WSJ online edition about something like that:

interactive.wsj.com
Greenspan Warns That Market Remains Vulnerable Despite Technical Innovation

"Risk managers who make assumptions about the future based on the experience of periods when markets have been free of financial panics tend to underestimate how suddenly prices can move when a panic does occur, Mr. Greenspan said."

One hazard, he said, lies in the practice of many investors of borrowing heavily to buy financial assets.

Mr. Greenspan also warned that lenders should be careful about assuming that the U.S. central bank will bail them out if "their risk-management systems prove inadequate."

"Hundred-year floods come only once every hundred years," he said. "Financial institutions should expect to look to the central bank only in extremely rare situations."


I believe Mr. Greenspan is using market manipulative fears to get the margin fluff and easy money out of the markets.
It's over! Only value and quality will survive now. No more free FED rocket fuel. His next move will probably be to raise the margin requirements. Meaning you will probably have to have a larger cash infusion to trade. But the system seems to be taking care of itself so he doesn't have to. Meaning your broker will limit your margin trading.

TTOSBT
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