michelle: we're just concerned that the internets are virtual companies riding on levitation of synthetically-generated stock and moving on daily options volatility..the options are incredibly profitable for the brokerages...they make money on volatility, the indexes are riding up on options trading volume. The big money-center banks and brokerages just create whatever they need to balance the equation so they can make a profit on the trade. Nobody knows how big this off-balance-sheet derivatives market is, or who all the players are...the LTCM thing was a warning, like telling you if you want to double up your bets, do it now because the craps table is closing soon. The real money dried up last year.
You, on the other hand, are using real money. At least I don't think you are using synthetic money. The big boyz don't lose money when the thing goes down, you do. Based on FA nearly all of the internet companies will go bankrupt in a few years even with your charity donations to their stock fund. So don't buy because of FA, don't buy because of TA; buy because this is the biggest casino ever devised by mankind, you like gambling and you think it is fun. Earnings have nothing to do with it. The brokers have to keep the POSs levitated long enough to justify an outrageous price for Goldman Sachs IPO, because they all get a cut. I don't see much reason for them to keep it going after that time. After all, all the brokers run hedge funds, and they have to make money shorting the stuff on the way down, including each other's stocks. |
