SI
SI
discoversearch

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.
Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?


To: john dodson who wrote (25316)10/7/2002 11:17:52 PM
From: Sr K  Respond to of 25814
 
Duh!
5. Valuations
"BTW #1 - the current times are radically different from the crash of 1929. For one thing margin requirements are much higher now. This has a huge stabilizing effect on the market." That this was a huge destabilizing effect on the market in 1929-32 does not imply that its absence in 2000-2003 is stabilizing.



To: john dodson who wrote (25316)10/8/2002 1:40:09 AM
From: sea_biscuit  Read Replies (1) | Respond to of 25814
 
For one thing margin requirements are much higher now. This has a huge stabilizing effect on the market. Can you imagine conditions with at 10% maintenance requirement that wasn't enforced?

No, I can imagine something worse -- a friend of mine borrowed some money from a credit card, and then, using that money, opened a margin account! This happened in early 2000. Haven't heard from him since.