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To: SeaViewer who wrote (4920)7/20/2000 11:29:26 PM
From: pater tenebrarum  Read Replies (2) | Respond to of 436258
 
that is correct. when a bubble as massive as this one unwinds, it takes decades to repair the damage. although the bulk of the decline could be a matter of two or three years, followed by a volatile period of smaller bull and bear markets a la Japan in the past ten years or so.

the Japanese mutual funds industry lost over 90% of its assets within 3 or 4 years of the peak. if that happened here, $3,8 trillion in assets would be withdrawn from the market. i don't think it'd take kindly to such an exodus.

of course we know that's impossible, as US investors are firmly in it for the long haul....to experience the permanently high plateau.