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.

Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: Adelantado who wrote (14581)	3/4/2000 11:01:00 AM
From: flatsville	Read Replies (3) \| Respond to of 42523

Joe-- You wrote: >>>I agree we are seeing a fundamental change in capitalism as more middle and lower income people move their savings to the market ...<<< The truly low income (defined by federal guidelines) are not in this market even if they are lucky enough to have a 401k plan with their crappy paying job. Most of these jobs do not pay a living wage. The 401k deduction would literally take food out of their kid's mouths. Perhaps your referring to the working class/lower middle class? Many of these people are in the market through 401k contributions. They have no choice. Few companies have defined benefit plans. It's a rarity when I hear about one still in existence. The saviest of this group also realize that 401k distributions and Social Security benefits are unlikely to produce adequate retirement income. There is a whole industry selling them supplemental retirement plans via UVL Mutual Fund products and they are buying. A few of them have the confidence to manage their own investments with an e-trading account to boot. More power to them. You do have legions of lower income college/graduate students and young "yet to be professional" in the market, but they are the middle class in disguise...just give them a few years. This is a truly "middle class" phenomenon. >>>This will close the banks and put cigars into the mouths of everyone as workers become NASDQ junkies.<< Industries will still have to look to banks for financing. It is a small minority of companies in certain risky sectors with some very high profile names that can exchange stock for capital. My suspicion is that the constant yakking by CNBC and the like about venture capital dollars leads us to believe that there is a vast financing change underway. Banks that remain competitive in commercial lending will do just fine and have plenty of customers. >>>My concern, of course is that when everyone is rich, who will work?<<< Everyone will not be rich. It's a small minority of millionaire secretaries, grounds keepers and janitors who are "rich." They got that way through stock options rather than straight NAZ trading....Most of them are still "on the job." >>>It is a revolution and a relatively quiet one at that.<<< I agree certainly with that statement...And I doubt that many of us here would have the kind of success we've had if we were still relying completely on full-service brokers for execution and print for research and analysis. In spite of the superior attitude often displayed on Silicon Investor we are just as much a part of the phenomenon as the trucker/housewife/disabled retiree/facotry worker/student/soldier/lawyer/programmer trader we so gleefully bash. "They" are us. Perhaps as a group we are savier and more watchful of the market, but we have contributed our fair share to the very volatility we bemoan.

To: Adelantado who wrote (14581)	3/4/2000 2:09:00 PM
From: yard_man	Read Replies (2) \| Respond to of 42523

Everyone can't attain wealth -- much of the wealth today -- paper gains are illusory. Suppose just 5% of folks sitting on paper gains decided to convert that paper to real goods -- got any idea what would happen to the markets? You may well say -- with credit so readily available -- they don't need to convert -- just be loopy enough to go ahead and spend it now -- but that means a crash in asset values is inevitable after the last person gets in, company's buy back all the shares they can, etc. It takes an ever increasing flow to sustain the virtuous circle -- it will continue until it doesn't -- and when it doesn't -- poof to a good part of it and then we begin the virtuous circle in the other direction. Get ready -- it will happen well before the election.