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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?


To: Maurice Winn who wrote (558)8/4/1999 8:18:00 PM
From: Keith Feral  Read Replies (1) | Respond to of 13582
 
Maurice: The margin requirement is 80% on most of the internet issues at this point. A $12,000 margin call requires a person to sell over $30,000 in equity (almost 3 to 1). Looking back to the 60's when the Fed frequently revised margin requirements to ridiculous levels similar to where they are now (only for ridiculous stocks), sharp declines obviously followed. Not suprisingly, these actions eliminated the need for higher interest rates. I think the interest rate environment may b e more stable than some might suspect.