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Politics : Ask Michael Burke

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To: re3 who wrote (97108)	7/31/2002 12:48:38 PM
From: Oblomov	Read Replies (2) of 132070

>>value of stocks in us : 8 trillion >>value of housing in us: 13 trillion How is this evidence of a bubble? Are you implying that you know the correct value for either, or that they should be the same for some reason? The "value of stocks" that is given here is just the value of corporate equity that is traded on an exchange. The majority of corporate equity is not publicly traded, but its value rises and falls along with economic expectations, just like the exchange indexes. Margin requirements are 50% for most stocks. A down payment on a house can be 5% or less, depending on the lender and the terms.

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