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Technology Stocks : Globalstar Memorial Day Massacre -- Ignore unavailable to you. Want to Upgrade?

To: JMD who wrote (288)	6/5/2000 6:45:00 AM
From: Maurice Winn	Read Replies (3) \| Respond to of 543

Mr Doyle, I was thinking about my position after reading about this poor guy who lost his life's savings. Message 13790242 People said Mama Bear was callous. I didn't get that from what she wrote. What I did get was a couple of good points. When longs sell after a big increase, they are handing the problem on to the new owner because they believe the stock is overvalued. I don't think longs have any greater claim to being good guys than do shorts. Each maximizes their income at the expense of other investors if they can judge the market right. It has always baffled me that people seem to despise shorts. Thinking about my own position, I'm a very big short dressed in longs. To explain [and referring to my 1998 rants about Alan Green$pan's $$, Paul Krugman and The New Paradigm]. I have borrowed a dirty great Tonka-Truck full of Alan Green$pan's freshly printed SuperDollars. I have sold those, just like any common, garden variety short borrows stock and sells it. I sold those $$ in exchange for a bunch of Globalstar shares [and QUALCOMM too since I own those as well and they are comingled in my account]. What that means is that I have shorted the US$. I've done that because I think it will lose against The New Paradigm which to me means the vast wave of technological developments which is slashing the cost in human effort and lives of producing stuff. That vast slashing of cost is deflation. Alan Green$pan is enjoying a last little bit of inflationary tendency thanks to the price of oil. There was also a wealth effect thanks to the big spike in Nasdaq prices. Now things have cooled. SUV order books and gasoline pumping will be reducing. As oil starts dropping again, the worries about inflation will disappear. Then the vast economic gains from 6bn people in unison benefiting from The New Paradigm will send production soaring but at ever-reducing cost in human effort, time, lives. So prices won't rise, despite the vast production improvements. Which means Globalstar and QUALCOMM shares will go UP compared with Alan Green$pan's stock, which will go down against those stocks. At some stage, I might have to cover but I doubt it. I think Alan's stock is heading to bankruptcy court in about 5 or 10 years, so I'll just ride it to the bottom. Which is what any self-respecting genuine short would do. Encrypted cybercurrency will take over, based on values of companies and productive enterprise. Now, Alan will NOT like deflation. The people who own the money tree like printing flat out, spending and lending those printings and getting income from taxing interest. So, we can be sure that at the slightest hint of deflation, there will be more printings and US$ expansion to hold a minimal amount of inflation. That will mean a continuing increase in New Paradigm stocks though smokestack stocks won't increase so much - but they'll still do just fine. Alan cannot stop share prices rising AND allow a little bit of inflation. He will either get deflation and stable share prices, or a little inflation and roaring share prices. I know which they'll choose. So, I've shorted the US$ in a big way, expecting Alan to curse me, but go on printing. As holders of $$ realize they are being diddled compared with roaring share prices, they'll go back into stocks again. So we'll have roaring stock prices, 1% inflation, 8% interest rates and all will be well with the world. Mama Bear, Geoff and Dweeb are small-time shorters! As I said, if you are going to be a shorter, that means a speculator. That means big risk. That means the need to get the investment in Globalstar right AS WELL AS all the other stuff too. Margin accounts seem so benign, but as soon as people have one, they have entered the realm of speculation. They are fair game for big financial tsunamis. Boring longs do not carry that risk. Shorts should get awards for bravery, intelligence, financial market stabilization and general heroism. Since there aren't many awards, we ensure our own rewards from our financial positions. Hey, how about shorting the US$ against G! Now that's really carrying some serious risk! Geoff is actually just a plain, every-day drag-short who bought some G! He can't go wrong. What a wimp!! [Geoff, I hope you understand that I'm kidding - don't really think you a wimp]. Now I've made myself a bit nervous - betting against Green$pan AND on the success of Globalstar. Maybe just one of those bets would have been enough excitement. Oh well, I should have a very fun roller coaster ride up to $500 - note higher than Geoff's sell price with higher profits even though I paid $15 instead of his $8.50. Anyway, all you margined people - you are speculators! You are shorting the US$ You are taking on Alan Green$pan and co. Good luck. You might need it. Does that all make sense SurferM? Mqurice PS: Since my co-conspirators refused to comply with the terms of the GGMDM or the End Of Stream edict, I might as well rant a little...