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Technology Stocks : Network Appliance
NTAP 111.56+2.1%Nov 28 12:59 PM EST

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To: stomper who wrote (9243)9/27/2001 10:56:53 PM
From: Jacob Snyder  Read Replies (1) of 10934
 
Hmmmm. You may be right about that. A wholly theoretical question, and hopefully it stays that way. A more useful measure to avoid mass panic selling, would be to:

1. raise margin requirements. At every bottom, from 1932 to 1998 to last week, we get a wave of margin calls that drive prices lower.

2. put hedge funds on a short leash. The government intervention to "fix" LTCM created Moral Hazard, which encourages further overleverage and risk-taking. The sums involved are large enough to destabilize the entire market. No regulations have been put in effect to prevent future LTCM-type debacles.
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