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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: E. Davies who wrote (7278)	3/8/2000 7:43:00 AM
From: RocketMan	Read Replies (1) \| Respond to of 24042

Good point about the margin requirement tool. AG has stated that he does not want to use that, and I suspect it is because it might hit the institutions and hedge funds to a much greater degree than individual investors. And you know how sensitive he is to saving hedge funds. No wealth effect problem there.

To: E. Davies who wrote (7278)	3/8/2000 2:01:00 PM
From: SJS	Respond to of 24042

Eric, He doesn't NEED to raise margin requirements. It's already being done, but the Federal Margin requirements are just a starting "marker". Federal Margin requirements are 30%, but YOUR brokerage house has the lattitude to make them anything it thinks will ultimately protect itself from possible customer defaults. Believe me, that mean 100%, if they want to. And it's done WITHOUT THE FED, but probably with their tacit blessing. As I mentioned in the post that started this discussion, Frank Zarb already said on air that he has put the word out to many houses to tighten their belts and raise requirments for high volatility stocks. I've seen it in how much margin buying power my margined stocks spin off, even though I don't use margin to buy stocks. Check a few of your stocks with your broker, I'll bet a few of your solid tech stocks are 50%, but many of the volatile ones are 75 or even 80%. That means they spin of 20 cents of margin buying power for each dollar of stock value. That puts a damper on how much margin buying you have to use. Regards, Steve