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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Eggolas Moria who wrote (74919)	1/31/2000 12:38:00 PM
From: Knighty Tin	Respond to of 132070

Gary, I'm a transplanted Texan and my sayings about guns haven't changed much since I left California for greener pastures. <g> There is something illegal about borrowing money, either with a mortgage or some other method, and then getting a margin loan on that cash balance. That is a violation of the margin laws. I know, because I did it in early 1975. I had a line of credit from Chaste Manhattan (cousin to Virgin Bronx <g>)and when my margin got topped out at Bache, I took down the full credit line and popped it into the Bache account and got more margin. But, I was living in Germany so I figured the SEC couldn't get me. <g> It worked, but it still wasn't exactly kosher. However, even so, I think there is a huge difference in playing a margin scam to buy more stocks at a multi year market bottom that at the all-time high in both absolute and valuation terms. And there is a lot of difference between one civil service wonk doing it and 10s of millions of people doing it. I don't know if you read The Rap daily, but for the last couple of weeks or so, Fleck has been giving examples of such risky behavior in nearly every issue. True, word of mouth does not substitute for actual stats about the practice, but if half of the stories he has been hearing are true, this country is in deep kimshee if the market declines precipitously.