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To: wsringeorgia who wrote (45707)12/8/2000 7:31:48 PM
From: pater tenebrarum  Respond to of 436258
 
i think you have a very good point there. in fact, NO-ONE, be it mufus, corporations or individuals, is in any way whatsoever prepared for the possibility of a long term bear market and all that entails. ESOP pyramid schemes for instance are destined to blow up as well, as are all other accounting strategies that were based on the eternal bull. government will also soon realize that the surplus projections might just go up in smoke in a bear. i actually expect that to happen...i think by the end of next year, the surplus will be gone...



To: wsringeorgia who wrote (45707)12/8/2000 9:03:54 PM
From: Don Lloyd  Respond to of 436258
 
WSR -

.... Under current tax law, both fed and state, in a serious down market the holders invested during the decline pay the cap gains bill of other investors who may have left the fund years before. ...

Do you have a simple example to illustrate this? It is an intriguing idea and I'm too lazy and pre-occupied to come up with my own example at the moment.

Regards, Don