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.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Benkea who wrote (33591)	11/17/1999 4:44:00 PM
From: pater tenebrarum	Respond to of 99985

it's the only strategy that worked in the past 17 or so years...<ggg> so you have to excuse people who have never known anything else, or it's so far in the past they don't remember it anymore. funny that no-one stops to consider that as soon as the bubble, which needs basically geometrical increases in credit creation to keep going at the present rate, for some reason is denied the increase in money supply, it will all simply collapse...the paper profits of the 'buy-and-holders' will be gone faster than they accumulated. what could stop money supply from expanding further, barring easy Al stepping down (or croaking)? several things...loss of faith in the dollar comes to mind, an acceleration in inflation, or simply the natural limit of the system's ability to create credit being reached. note that corporations invested 125% of their reported earnings into buying back their own stock last year...in other words they keep on leveraging their balance sheets, all in the service of the bubble. consumer credit stands at an all time high of 98% of disposable income....the ratio of savings rate vs. IPO's has recently gone to infinity for the first time ever with the savings rate turning negative. in the midst of this, we have a speculative blow-off....my guess is that the system's limits will be reached relatively soon. that is not to say next week, but it will likely happen next year. just imo. regards, hb