Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Millennium Crash -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (4350)	7/26/1999 9:34:00 AM
From: Arik T.G.	Respond to of 5676

From the introduction to this thread usastores.com A few gems : A financial collapse has never happened when things look bad. <snip> This explains why a crash catches most people, especially economists, totally by surprise. <snip>. All stock market collapses occur with a heavily indebted private sector, history also shows. Indebtedness is a sign of confidence. The lender trusts that the debtor will be able to pay the principal and interest on time. The debtor--if not a crook--believes the same. He does not have the money now, but he will have it later. Accelerated overindebtedness is, correspondingly, a sign of overconfidence, and in the latter stages, of euphoria. <snip> When euphoria changes into pessimism and fear, this indebtedness, previously justified by optimism and confidence, will be perceived as dangerous. Creditors, initially apprehensive, later in panic, will try to recover their funds, eliminating credit renewals, thus forcing foreclosures and bankruptcies, and deepening the crisis. This is how it has been, and how it shall be. ATG