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To: Bill Harmond who wrote (101362)	4/17/2000 2:03:00 PM
From: re3	Read Replies (1) \| Respond to of 164684

<<<Market cap is collateral. till it goes poof

To: Bill Harmond who wrote (101362)	4/17/2000 2:16:00 PM
From: GST	Read Replies (1) \| Respond to of 164684

William <That's a weak argument, GST. Market cap is collateral> Talk about weak arguments! If traders decide they need to raise cash -- and for the sake of argument, lets say it is $100 billion dollars, what would be the impact on the "collateral"? Down $100 billion? Not. The "collateral" evaporates with the selling -- lets say at the rate of 5 times the cash requirement. $280 billion in margin being called in can easily take the market cap down a trillion dollars -- and probably much more. That is without taking anything else into account -- including sales by foreigners seeking to avoid currency losses on their US stock portfolios.