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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (21228)	3/24/2000 8:45:00 AM
From: gdichaz	Respond to of 54805

Mike: On margin requirements and the Fed. The market is like the proverbial rabbit stew - half horse and half rabbit - one horse and one rabbit. The banks, investment companies, hedge funds et al - trading for their "own account" as well as for their funds - are the horse. The little guy is the rabbit. Raising margin requirements on the little guy, only hurt him and could cause temporary disruption at the edges, the "big boys" would be unaffected - except perhaps to increase their hold over the market and cause even worse "waves" from their program trading. Since Greenspan should know this, a change in margin requirements would not be a sensible action in reality. But since the Fed now acts on perception not reality, it might just happen as a "symbolic" move. Just as the Fed is fighting inflation when there ain't none. All just IMO of course. Best. Cha2