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To: Wyätt Gwyön who wrote (67586)2/21/2000 9:36:00 AM
From: TigerPaw  Respond to of 152472
 
Changing margin requirements would have no effect on the volitility associated with margin-calls. The most leveraged investors would still be subject to sudden sales which would have the same kind of domino effect. Only a reform in which margin due to declining value is treated differently or for different time periods would actually change the behavior, but this would lead to difficult and complex rules which would probably cause more trouble as people look for loopholes. At best higher margin percentages would mean that those surviving a margin call may have more assets at the end to try again, which may also not be best for the market as a whole.
TP