Truflette: You offer yet another anecdote to be filed under "S"
for "South Sea Bubble Reprised?" That story reminds me of the
days of summer and early fall in 1987. There was hardly a day
passed which did not feature a a cold call from a frenetic
broker pitching this stock, sure to be a takeover target, or
that junk bond, promising an eternity of 20%+ interest per
annum.
It is to be wondered just how much of this unprecedented bull
run is now being fed by a) second mortgages on primary homes
and b) unsecured credit card debt. In any case, if and when
Mr. Brinker finally pulls the plug, I suspect that there will be
more than a few "investors" so leveraged who wake up "financially
embarrassed," as our giddy aforementioned financial planner has
understatedly phrased it. Indeed, those financial destroyers, who,
like our Ms. Blitheful, heartily advocate converting home equity
into mutual funds, may be well advised to formulate, or "plan,"
if you will, a quick exit strategy at this time. This in the event
of a hanging party held in their honor pursuant to a stock
market melt-down.
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