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.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (11808)	9/25/2003 11:41:16 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 95530

G, To be fair, I am sure much more of that margin debt this time around is from those short the market. Edit: I wanted to be sure that short sales counted as part of the margin debt before posting.....here is my source: blonnet.com If the investor gets a margin call, he will be required to bring in additional funds before a set time/date. If the security prices continue to fall and the equity in the account drops further, the broker may sell the investor out even without waiting till given time/date. Short sale through a margin account also works in the similar manner. BK

To: Gottfried who wrote (11808)	9/25/2003 8:27:03 PM
From: Sarmad Y. Hermiz	Read Replies (4) \| Respond to of 95530

Gottfried, re >> salute Thanks for the info on margin levels. But regarding the discussion of margin. Even if I buy stock on margin, the seller receives money which adds to their cash account (or reduces their margin). So the fact that I might be in margin up to my neck, means that someone else has lots of cash - with which to buy my stock, if she so chooses. Which got me to thinking about all that money that is on the so called sidelines. $2 trillion or so. Apparently that money got there from people selling stock. But the exact amount was removed from the buyers' account. So the money "on the sidelines" can neither increase nor decrease. Except from creation or destruction of money by acts of the central bank. It is sometimes asserted that low interest rates will prompt people to sell bonds and buy stocks. But when people sell bonds, money is transferred to their account from someone else's account. So the aggregate amount of money stays the same. I think the only way true new demand for stocks can occur is that if foreigners take dollars out of their mattress and deposit it into a US bank and use it to buy stock. Sarmad