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 : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Robert Rose who wrote (91658)	1/20/2000 8:16:00 PM
From: KeepItSimple	Read Replies (2) \| Respond to of 164684

>Houses of cards don't last that long! What planet are you from? Just because something has lasted for 30 years does not mean it won't end tomorrow. A wise man understands things occur in cycles. A fool thinks trends continue forever.

To: Robert Rose who wrote (91658)	1/21/2000 12:21:00 AM
From: GST	Read Replies (1) \| Respond to of 164684

Robert: Trade deficits must be financed by foreigners - pure and simple. When they decide to leave, the party ends. To believe the stock market will rise along with the trade deficit is to believe that foreigners will pump hundreds of billions of dollars per year(400 to be more precise) into our financial assets forever. Foreigners are the tooth fairy. Their contribution to our little 'party' is two to three times the rate of domestic investment in 401ks and all of that. The higher the trade deficit the more we need their money. But the higher the trade deficit the riskier our markets become for them because of the currency risk. Combine that with super-high valuations and you have a 'fool's paradise' - and the fools are the ones who don't see the risk. Do you know what deleveraging and foreign selling would look like? It would look like a stock market going over Niagara falls. As Bugs Bunny would say -- bon voyage.