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To: SL2 who wrote (6383)	2/16/2000 6:30:00 PM
From: SJS	Read Replies (1) \| Respond to of 24042

I have no insights except that I saw that number on CNBC this week as they reported the new margin debt numbers. It was mentioned that it was an all time high. My comments were not meant to disuade or knock anyone from using margin. I am just concerned with any public inkling that this would tighten. That, of course, would be deleterious to the health of the market. Steve

To: SL2 who wrote (6383)	2/16/2000 7:02:00 PM
From: Guy Gordon	Read Replies (3) \| Respond to of 24042

RE "I use margin, but I have very specific rules for when and how." Care to share them? I use margin sparingly. I'm a long-term bull, but I don't carry long-term debt. When the market is looking particularly strong, and one of my sectors of interest is the current market darling, I'll go on margin for up to a month. I'll usually use margin to buy one or two stocks more than I could normally afford. Since I try to own just 10 stocks, that means 10 to 20% margin. Once you are on margin, all of your stocks are on margin -- not just the last one you bought. As the market tops out I look at how to get off margin by selling my weakest stock.

To: SL2 who wrote (6383)	2/16/2000 7:25:00 PM
From: Jay Fischer	Read Replies (1) \| Respond to of 24042

I agree that the absolute margin amounts would increase. Also keep in mind the "markets" value is around 20 trillion. $450 billion doesn't look that big compared to that.

To: SL2 who wrote (6383)	2/16/2000 7:42:00 PM
From: Sonki	Respond to of 24042

RE:maragins. cnbc does not speak in %terms. Its 243B in margins out of total 17 Tril market cap. so it's not much. like 1.42%. It's best to figure out rules for yourself depending on beta of your portfolio. I dont see Greenspan making any moves towards margin. Also keep in mind that mutual funds are allowed some % on margin. I m totally off margin these days. Mutual fund may use margin to offset expected incoming mony flow from 401k contribution. Finally a nice move today.

To: SL2 who wrote (6383)	2/16/2000 10:54:00 PM
From: StockHawk	Read Replies (1) \| Respond to of 24042

>>any insight into how much the margin debt equates to on a percentage basis? << Margin in the US currently represents about 1.6% of total US market cap. That is on the high side for the past decade, and is close to the high reached before the 1987 crash. However, it is far less than in 1929 when it reached 30% and caused big problems. While the absolute margin level is not alarming, it is the recent spike in margin (from around 1.25% to 1.6%) that has caused concern. Evidence suggests that a relatively small number of market participants are highly leveraged and the concern is that a correction that results in margin calls could hurt not just those on margin. StockHawk