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Pastimes : Alan Greenspan MUST GO: -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (36)	5/24/2000 10:52:00 PM
From: Master (Hijacked)	Read Replies (2) \| Respond to of 494

"... If you get a margin call it is generally wise to just go back to 100% equity,..." . In hindsight, that certainly is sound advice. However, and a big HOWEVER, in the last 3-4 years we've had many many crashes. Within two to three days of those crashes the markets rebounded to attain new highs. All we heard by the professionals was that the investors who lost were the ones who panicked and sold ...."had they held on for one more day everything would have been OK". No one can deny not having heard these comment in each of the major crashes over the last few years. The only problem this time around was that the markets didn't recover after the second day. They didn't recover after the third or even the fourth day. By the fifth day everyone was talking buying opportunities. And many of us seized those opportunities and utilized available margins to buy into what we were told were underpriced stocks. Meanwhile, the investment climate changed. Many investors were literally squeezed out, while many more just sat out too scared to get back in. Markets have a way of correcting themselves. Good companies will prosper while the bad ones will eventually spiral down. What Greenspan has done was to target the markets and manipulate them downwards sending them into a tailspin. This is what I object to. This is no longer a free and open market system. Vince