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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: IndexTrader who wrote (41384)	2/25/2000 8:36:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 99985

IT, thanks, it sums the problems up quite neatly...i remember btw. that in '87 several NYSE specialists came to the brink of insolvency. no way are the NAZ MM's going to let that happen to themselves when they are swamped with sell orders. add to that the mountain of leverage and otc derivatives (which are equally illiquid) and you're looking at incredible systemic risk. on a more mundane level, one has to stop and think for a moment what stocks actually represent: they are a claim on whatever intrinsic net asset value a company possesses (zero in the case of most NAZ stocks) and future earnings streams (completely uncertain in the case of most NAZ stocks). hopes and dreams are a good thing, but at the lofty levels at which the collectibles called tech stocks trade, a slight disappointment could easily result in a chain reaction. it is very sobering when one takes a step back from the euphoria and looks at all these things... regards, hb