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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: PaperChase who wrote (66804)	8/26/1999 9:22:00 AM
From: Freedom Fighter	Respond to of 132070

Paper, >>You must show me the event that will stop this wild-ass lending...not merely tell me that one day it will stop...because Magner has been waiting for 3 years for it to stop!<< I think DN was asking for a reason why the end of a bubble (or pyramid scheme) is inevitable. I have no idea what the event will be that will cause it or when it will happen. I don't care either. I'm one of those "apes" that buys discounted cash flows, undervalued assets etc and holds them.(g) I believe there are leveling effects in the economy and that value and returns matter over time. >>Where have you been during the past decade or two? The trend you speak of has continued for a long time without injury to the economy or our ability to compete. Look at the funds raised in IPOs and the resultant spending that those companies do to accelerate the economy. The post IPO price of these companies is merely 'prop-up the stock price' money without significance as these dollars are rotating away from the stocks of other small companies.<< I'm not one of those guys that thinks we have been in some sort of 50 year super cycle that will implode. I think stocks were extremely cheap in the early 80s and credit levels were fine. Over the course of the 80s prices moved towards reasonable levels. I think they remained reasonably priced until the mid 90s. (94-95) At that point conditions around the globe, easy money at home, and the momentum of the market itself caused a redirection of boomer money and foreign money into the US and that is where we are now. Most large cap stocks are extremely high. From this market cap overall it will require more money to move them higher than it did from a market cap of 5 trillion. And the spread between GDP (which is closely related to savings and income streams) and market cap is getting very huge. I think Ponzi would be very proud. (bg) Where's my penny? Wayne

To: PaperChase who wrote (66804)	8/26/1999 11:39:00 AM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

PC, Just one more thought. This one is on the house. (g) >>Look at the funds raised in IPOs and the resultant spending that those companies do to accelerate the economy.<< I agree that the idea behind IPOs is to raise capital for investment. But many of the IPOs that are coming out right now are really ignorance based wealth transfers. The money received is lining the pockets of the people that are coming public selling overvalued internet assets etc.. If anything, the flood of IPOs and capital will make it harder for anyone to make money in that area. WC