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To: Zeev Hed who wrote (78623)3/11/2001 11:33:27 PM
From: Box-By-The-Riviera™  Respond to of 436258
 
a 200 billion dollar block pulled out from under a much larger pyramid..

that would have the potential of being excessive, would it not?



To: Zeev Hed who wrote (78623)3/11/2001 11:59:03 PM
From: AllansAlias  Read Replies (3) | Respond to of 436258
 
Margin debt has to come down a LONG way to return to any sort of historical mean vis a vis GDP. A year ago it was running just under 3% I recall (heinz?). It would have to fall to something under 1% before it could be considered in the average range.

As for margin to market cap comparisons, your contention that 1.76% is not extreme is incorrect. I doubt you can find a period in the last 70 years where it is that high.

I think we can agree that it is falling (-g), but it has a long way to go and a much longer way to go to reflect bear market levels.

Cheers.



To: Zeev Hed who wrote (78623)3/12/2001 6:58:14 AM
From: yard_man  Respond to of 436258
 
By itself all the margin is no big deal. Of much greater concern is the leverage of individuals and corporations that hold those shares ... but I guess leverage is a myth <g>