Intel Strategy for Achieving Wealth and Off Topic Message Board

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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic

INTC 38.16

+2.5%

Nov 7 9:30 AM EST

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To: Sonny McWilliams who wrote (26437)	9/7/2000 3:08:15 PM
From: Gerald Walls	Read Replies (1) of 27012

I just don't look at margin as being the same thing as short selling. After all, it is a buy and I am not selling something I don't own. I never looked into shorting stock with margin and don't even know if this exists. In other words: When I buy a stock on margin, I buy the stock right now. I am not borrowing it. That baby is mine. Only my broker makes a little money lending me the dough. I am not borrowing someone else's stock. I could go on but I am sure you see a little diff. by now. As for shorting a stock. I would not even complain if someone would short a stock that they own. But it's borrowed stock that causes most of the volatility. Mortgages. Again. I am buying a house or whatever. I am not borrowing it from somebody. Yes, I am borrowing the money for it but if I can't pay for it after a while, I only hurt myself. And the lender probably still made money on me in the meantime. I guess we'll just have to disagree, because I consider money to be a security just like stock. It certainly has no intrinsic value, only the value that people place on it. US currency has a high value because people believe in the longevity and stability of the US government. I have no idea what is accepted as payment in Somalia. I guess that you could consider currency as a form of debt (payable in "trust") with the US having the highest credit rating and Somalia being in default. We tend to be blinded to this because we see everything priced in units of this security and it can be eye-opening to see the prices of things in other units, especially such units as hours worked. When you buy on margin you're shorting cash in relation to the payment you receive in the form of stock. If you borrow money you create more of it just like borrowing stock, and in both cases the increased supply can reduce the value. This is the whole basis for the theory that higher interest rates will reduce inflation. When you borrow money you're shorting the money against the value of the goods or services that you'll purchase with it. If you believe that the future value of the money will be worth more than the value received from the purchase then you normally won't short/borrow it. Also, what do you think about Options and Futures Contracts? These you don't even borrow when you sell-to-open a position, you create it.

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