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.

Technology Stocks : Tekelec -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (1209)	12/11/1999 12:38:00 PM
From: WTSherman	Respond to of 1648

BWAC, I understand your point and don't have any good answers. The market has entered the hypergreed stage and I doubt that education would have any effect. Regarding the impact of the market increases, you only have to look at the incredible expansion of credit in the past 12-18 months to see what's going on. People "feel" richer because their portfolio's have higher market values, so they borrow money to buy things, the economy picks up even more, the market goes higher, they feel even richer, borrow more money...and so on. If you look at some of the money supply figures it gets very scary. The money supply is expanding at 2.5-3x the rate of economic growth. Where's that going? Well, lots of it is going into the stock market through margined purchases. Its like a house of cards. The telltale signs of this are all around, certainly everywhere I look. Ordinary people I work with are suddenly talking about buying stocks that are on the BB!!! These are people with salaries of $50K-$75K and families. The market has become a huge casino to indulge America's addiction to gambling. The Fed's money supply policy has helped fuel this.