>> reminds me of the real estate market during the '80s. When asked why real estate would continue up indefinitely, the real estate investor would say, "where else can you put money"<<
Yeah, you're right I remember ruining a Thanksgiving dinner with my sister, back in the 80s, because she declared that real estate was the only safe place to put money. I told her I thought it was about to crash, because of all the leverage and the ridiculous finance deals that even people of modest means were engaging in to own homes. Nothing I said could convince her that this was a possibility....it got ugly. Two years later after she had tried to sell a home at a serious loss, she tells me...."You know real estate doesn't always go up." totally forgetting the fight we'd had! People really have short memories.
I was really just musing about where the money was coming from, not saying it was a good thing, in fact it scares the heck out of me. I always figured that institutions were the bulk. I think part of the allure that individuals have for the net stocks has to do with the fact that most of them start out with too small a float for the institutions to get in on. An individual puts 10k in an EBAY and runs it up, he's made a big return, for him. The big guys can't even get in until the market cap is a certain size. Percentage wise they won't do as well. |
