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.

Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (61321)	9/10/1999 9:17:00 PM
From: pater tenebrarum	Respond to of 86076

the banks are also taking it on the chin, while on CNBC one analyst after the other comes out to tout them ("the deeply oversold financials").

To: Lucretius who wrote (61321)	9/10/1999 10:48:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 86076

i just listened to an interview with Tice...the most interesting argument he made was that the fact that policy makers are trying to prolong the economic expansion at all cost is in fact taking away the economy's natural healing processes. basically the excesses that result from recklessness being rewarded in a recession-free environment coupled with vast credit expansion causes in the end investments to be misallocated. that's a good point...everybody is very happy with the duration of the economic expansion, but they forget that the economy all this time never had a chance to wring out excesses. the excesses have now grown to the point where they represent an enormous systemic risk. he also mentioned that people's financial lives essentially rest on a three-legged stool, one leg being the income from their job, the second their home, and the third their savings and investments, 401k's etc.(nowadays consisting mainly of common stocks). they don't realize that all three legs could go at the same time...which is why household debt is now so massive. a collapse in stock prices would be a catastrophe for the economy...AG's confidence of the Fed's ability to deal with that may well be sorely tested...