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Pastimes : Home on the range where the buffalo roam -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (11703)	3/20/2001 1:17:38 PM
From: DOUG H	Read Replies (1) \| Respond to of 13572

There is a huge difference between a bubble created by leveraged $/yen begating yet another bubble in another asset class, and a bubble created by a population pouring their earned wealth (paychecks) into a market driven to frenzied levels by margin and options. The Japanese were allowed to highly leverage their real estate holdings and parlay that capital into margin accounts to buy stocks. In this case, the underlying security (real estate) was already leveraged. Leverage on leverage. Bubble on bubble. 401K's and IRA's are not allowed to buy on margin. I'd wager you that if you looked at the entire market cap of the US stock market and compareed it to $$ of secuities owned on margin, the % would be quite small indeed. IOW, my IRA can go to $000, but I'll never owe it a dime. Not so in Japan. That's why in my mind, the analogy just don't fit. And we all know, if the glove did'nt, you MUST aquitt.