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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (43035)	4/18/2004 3:39:24 PM
From: Wharf Rat	Respond to of 89467

A sign the market may be peaking. If anybody comes across an article in Ladies Home Journal, let me know; it's the last predictor of a crash. Unfortunately, last time, I didn't find the article, written in Dec. '99, until about Sept '00. Rat Mortgaging home to buy stocks concerns regulators Russ Wiles The Arizona Republic Apr. 16, 2004 12:00 AM Mortgaging a home to buy stocks: It doesn't seem like a good trade-off. But investment regulators say they're alarmed by a rising number of people using home-equity loan money or refinancing cash to invest in the stock market, imperiling their homes in the process. "Home mortgages generally are not within our purview," said Mary Schapiro, vice chairwoman of the National Association of Securities Dealers during a talk Tuesday night in Scottsdale. "But we are concerned about the use of home-equity loans to invest in securities, and about (investment) brokers who suggest that." The NASD last month suspended two brokers and charged a third for urging clients to buy securities using mortgage-refinancing proceeds. Two of the brokers are based in Colorado and the third in Idaho. People who can't pay off a home loan because of stock market losses risk digging a huge financial hole. "If you can't play the market without taking money out of your home, you can't afford to play the market," Schapiro told roughly 400 people at the Scottsdale investor forum. NASD Chairman and Chief Executive Officer Robert Glauber, another speaker at the event, said the self-regulatory group brought a record number of disciplinary actions against brokers and their firms last year, including a higher number for improper mutual-fund sales tactics. azcentral.com