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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Frank Ellis Morris who wrote (27369)	7/26/1999 4:52:00 PM
From: Gerald Walls	Respond to of 74651

You cannot have the kind of power that Greenspan has and tell the people that you would raise interest rates aggressively at any hint of inflation. Give us a break. He is doing nothing but manipulating and stirring a panic. I happened to listen to part of Brinker's radio show on Sunday and he said that if Greenspan was serious about all the concerns that he's been jawboning about then he'd raise margin requirements to 80%. That he hasn't, according to Brinker, casts doubt on his actions. Brinker, BTW, is currently bearish on the market and said that he wishes Greenspan would raise margin requirements to 80% to bring the market back down to reasonable valuations. He was bullish last October, if I remember correctly.

To: Frank Ellis Morris who wrote (27369)	7/26/1999 5:30:00 PM
From: Sunny	Read Replies (1) \| Respond to of 74651

Frank, Must you spread your joy on so many threads? Civility cost your nothing and gains you everything. (This is a paraphrase from my pappy about the value of courtesy.) sunny

To: Frank Ellis Morris who wrote (27369)	7/26/1999 5:44:00 PM
From: Andrew G.	Read Replies (2) \| Respond to of 74651

Frank: Didn't you know that the wave of selling is not Greenspan's doing alone ? It's his counter part: the large institutional holdings are being sold-off. These institutions have a love-in relationship with the FED. They make their real money on these FED moves and just about everyone in the financial community has a great time with this except the individual investors. Look we don't have any genuine inflation going on so you can see we are not dealing with a full deck of cards here and the little guy who keeps funneling his hard earned dollars into his 401K only to see each paycheck evaporate with these market gyrations is wondering what the heck is going on. But the answer is, if you worked for a fund manager or a brokerage company you'd be having a ball playing these swings. Some very rich people got richer today, shorting the heck out of blue-chip tech stocks. Sorry to break the news so bluntly, but I call a spade a spade. I can appreciate how you feel.

To: Frank Ellis Morris who wrote (27369)	7/26/1999 6:21:00 PM
From: Lucinos	Respond to of 74651

Mr. Greenspan has been doing an excellent job for us in the recent years. Without him, you would certainly see a crash similar to (or worse than) that in 87 happened last year or even earlier. In the old days, socialist believed that the self-constraint can not exist spontaneously in the free market, and the capitalism is doomed to self-destruction. However, the Federal Reserve under him has demonstrated its ability and effectiveness of stabilizing the free market by imposing a very minor constraint to the monetary supply system. I believe he is making a good example to the whole world that the Capitalism is fundamentally much superior than the communism. There is no other system can make the most prosperous for most of the people at the longest time. Lucinos

To: Frank Ellis Morris who wrote (27369)	7/26/1999 6:36:00 PM
From: FlameMe	Read Replies (1) \| Respond to of 74651

OTOT - Frank, the dow is off 3-4% from it's high, NAZ off 9% from high. But, both indices are up big on the year. Were you singing Greenspan's praises when he cut interest rates 3 times last year, avoiding further financial panic, and spurring a 100% gain in the NASDAQ? If you are so sure he is manipulating the market into a 1987 like crash, then it is very simple - sell your stocks and go short now. You will be rich in a couple months.

To: Frank Ellis Morris who wrote (27369)	7/26/1999 6:55:00 PM
From: Stormweaver	Read Replies (2) \| Respond to of 74651

Actually Frank a rate hike now would be better than a potential crisis due to an inflated economy ? I'm really starting to get concerned about all these "inflated" internet related stocks and the plethera of new IPO's that seem to be coming out each week that. To me this is just ficticious wealth. Here's a snippet from a fool message post: Certainly at some point, financial asset inflation could be a major problem in US markets. When this happened in Japan in the 1980's, the market was eventually chopped 2/3 and has been down for nearly 10 years. It seems to me that what we have here is a market of individual stocks with potentially high profit growth but in the aggregate returns can grow no faster than total profits in the economy. The bottom up approach has to be reconciled with the top down view. So, broadly speaking, if the approximately $12 trillion in stock market capitalization does not appear to be capable of earning a market rate of return, e.g. about $600 billion annually, some stockholders will try to trade their stocks for dollars. But there aren't nearly enough dollars to monetize these inflated stock prices, so stock prices will have to come down and interest rates up as the competition for the harder, more attractive assets heats up. This will be a vicious circle as it cuts further into profitability, and makes high p/e stocks even more vulnerable by comparison. But when will it start? The next cyclic recession would seem the obvious answer, but recessions also cut capital spending demands thus keeping interest rates down. So maybe the bubble doesn't end for a while? Full message boards.fool.com

To: Frank Ellis Morris who wrote (27369)	7/27/1999 2:40:00 AM
From: ed	Read Replies (2) \| Respond to of 74651

Well, I know your frustration about a governmental officials short the market in public , and which is not his job function. As you know each share you sold , the government get 20% of your profit , and it is called long term capital gain tax, of course , if you do not sell , the government get nothing. So, to generate enough budget surplus to show the public a nice book, the government need to take its profit from time to time, i.e take the long term capital gain tax from your profit, which is 20% of your profit. When the market reached to a certain level, AG will come to the public to short the market by saying that he thinks the market is too high , he may hike the rate ...etc to generate a fear to the general public and force a panic selling , and you know billions of tax dollars went to the pocket of government through what is so called long term capital gain tax. Once , the market hit a certain low level, the government will long the market again so that you can make some money and the government can get its profit again in next round of sell off. So , when the market drops to a certain level, AG will go to the public and claim that he saw no signs of inflation and that the stock market is in a reasonable level, then , the stock market climb again. Once the market reached to a certain level, AG will go to the public again and sing the blue song, and again force panic selling ...etc , the same thing just repeat over and over again , and the stock market goes no where but just took circles. Well, what can I say ? That is life , the government wants to play the market and get your shares of the profit !!!! Did you see we have a lot of budget surplus in recent years, and the government is stingy to return part of it to the people , the people who elected them to the government by votes !!!!