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.

Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus_Long who wrote (116196)	10/4/2003 6:50:38 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 281500

<I think irrational exuberance can result in real $$$$ changing real hands. And if the alleged value of that stock evaporates, there are real consequences.> There sure are. Your post was just how it worked, as I saw, up close and personal. I didn't get too carried away, but did increase my spending using borrowed money, on the basis that my investments were going to return so much over the years that I could spend some of it now. I expected returns to far exceed the interest cost, hence the borrowing to buy, and to continue to own, shares. I didn't think CB said anything that conflicts with your post though. Now that I'm not spending the borrowed money, somebody else must be. I've paid it back and they must have loaned it to somebody else at only 1% interest rate instead of 7%, which must also cut back the government's tax take a long way. Except that the government is printing plenty to make up the difference. They aren't getting much in the way of capital gains taxes on shares though. All that has major implications because a lot of money flowed in and out of the USA from other countries. Now the USA has a big trade deficit. They might repudiate the loans by debasing the currency. Actually, that process is well under way. NZ$ up 50% against US$ in three years. Eeekk, Mqurice Mqurice