Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (4960)	7/24/2002 12:44:09 AM
From: GraceZ	Read Replies (2) \| Respond to of 24758

One has to wonder what all those who bought above will do if these stocks go down further. Supply comes in above and below. You have to wonder about demand though. They bust through any further then it'll be a "sell to whom" scenario. It may be the only thing that gets us out of this morass of dropping prices, consolidation, dropping some more, etc. I remember that interview with the efficient market thesis guy, where the interviewer asked him, if the market is so efficient how come we had a crash in '29 and in '87. I thought his answer was pretty funny even though it got the interviewer in even deeper. He said there was a certain balance to the two crashes. '29 was too small and '87 too big, so this was more evidence that the market was efficient. Aside from that it struck me that he said '29 was too small and '87 was too big. Having grown up on Depression stories, the crash of '29 seemed like an apocalyptic event compared to '87 which I lived through myself. Primarily because '29 seemed to have such longer lasting consequences than '87. After living through this distributed crash in the last two years, I'm beginning to see his point. If we'd had a 22% drop in one day like we had in '87 maybe we'd of had a major financial shock and a bunch of businesses would have failed but it would be over by now. Instead we continue to have drops that are too small, we adjust to the new level and then drop some more, like we did in '29. And just like '29 its having much more devastating long term effects.