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To: Hawkmoon who wrote (2377)	1/15/2000 10:40:00 AM
From: TimbaBear	Read Replies (1) \| Respond to of 3536

Ron...."....It would be a pretty simple thing to hike rates on margin and to to make it more difficult to margin high-P/E stocks...." So, would you limit the high P/E margin restrictions by industry? If not, then are you saying that a Home Depot with a high P/E (several years ago) would be the same risk as say, an Amazon.com?....What would you do for those companies who showed a loss last FY, make them automatically non-marginable? If so, you would eliminate both companies that are writing off acquisitions as well as companies with high R&D expenses like Biotechs. I think the issue is money is flowing into the market through Government sponsorship....the individual retirement plans....the average American (at least in my neck of the woods) does not have a company sponsored pension plan that is worth much....if you change jobs, you lose a year before you're eligible to participate in 401Ks and then there is the time for vestiture....so if you change jobs several times in 10 years, you could end up with no company contribution to your retirement....this creates pressure on the individual to both increase the level of participation and increase the level of risk to gain what they lose through not having as much in matching funds from the companies. I don't see the average American making so much money from their job that they can't find a place to invest it....real wages haven't risen like that.