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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Mr. BSL who wrote (12428)	3/12/2000 6:12:00 PM
From: Wally Mastroly	Respond to of 15132

Dick, Re:.- careful of what we wish for!!!...50 basis points..<g> I'm only saying that the Greenman should make his actions match his words (or back off on the rhetoric). Brinker's suggestion of higher margins would probably a 'kinder and gentler' way of reducing speculation in the current market. As Bob just mentioned again, if it's the broad market that Greenshades is targeting, perhaps is gradualist approach does match his words. Stay tuned for further developments....... Wally

To: Mr. BSL who wrote (12428)	3/13/2000 12:35:00 AM
From: Nandu	Read Replies (1) \| Respond to of 15132

Wouldn't the money Peter got from selling his Cisco come from Paul's money market account? Mr. BSL, try adding the following factors to your thinking to understand the wealth effect. Peter doesn't have to sell his Cisco. He can borrow on his unrealized capital gains to buy his $1 million hovel in Silly Con Valley. Paul can buy on margin. Only half the money that Peter got need to have come from Paul's money market account. Peter, without selling his Cisco, will spend more of his normal income, because he doesn't have to save anymore. His Cisco has made him rich. Cisco itself can spend its inflated stock to buy up other companies with inflated valuations thus helping the above effects to "trickle down".