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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (8405)	9/7/1999 2:11:00 PM
From: Dogbert	Read Replies (2) \| Respond to of 15132

One difference between today and 87 is the record margin debt. If we had a 40% drop over a few days, many people would lose 80% of their equity and would be forced to sell within 3 days, further exacerbating the sharp decline. These people would vow never to touch the market again, as many did in 87. There would be many bankruptcies, and people left with mortgages to be repaid on their homes they took out only to play the market. On a more positive side, interest rates haven't risen as abruptly yet as I seem to recall them having done in 87.