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

To: r.edwards who wrote (37030)	1/8/2000 11:56:00 AM
From: Benkea	Read Replies (1) \| Respond to of 99985

More mania: On page 27 of Bearon's there is an article entitled "Marginal Help: Stockbrokers are mortgage lenders for their customers". "Instead of selling any of the securities, she (the customer) opted for a mortgage that lets borrowers use their stock portfolios as collateral in lieu of a down payment." The customers says (full of dilusion and grandure): "In this market, you can easily earn 20% per year and your money is growing faster than it would as a down payment," says Mallouh. "Even in a down market you can earn 8% - 10% ," which, she observes, is higher than today's mortgage rates. UNBELIEVABLE. Mortgage everything you have an put it in the easy 20% market. Hey, worse case is 8 - 10% in a down market <g>. Oh yea, and the customer is a banker in equity capital markets at SG Cowen Securities. I wonder what the less "savvy" folks think?