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 : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (37599)	8/2/2005 6:47:13 PM
From: No Mo Mo	Read Replies (1) \| Respond to of 110194

"...85-90% real-price drop for the most extreme markets should not be unreasonable as the current bubble unravels. Nothing seems out of the realm of possibilities given a long enough time horizon, say 5-15 years. A long, slow grind that feeds on itself will eviscerate home prices, then consumer spending then jobs which will further gut home prices and so on and so forth. Rinse, wash, repeat. Also a common refrain on SI a couple years back.

To: Wyätt Gwyön who wrote (37599)	8/2/2005 7:08:56 PM
From: carranza2	Read Replies (2) \| Respond to of 110194

I hate to bring this up in a forum such as this, but JDSU is actually a pretty good buy right now and will become better in a few months. I'm waiting for a merger for which JDSU is paying cash plus stock to close by 9/30 before I buy. The price because of dilution should go at least into the 1.30s or 1.20s by then. It is likely go to 2.5 or more within a few months. Who says you cannot make money out of bubbles? I am becoming increasingly concerned about the bubble bursting effect of a hedge fund crash. The history--who the hell ever reads that?--suggests that after LTCM a Congressional proposal was made to regulate hedgies in 1999 but it failed thanks to the argument that they are not heavily leveraged creatures, only to a max of 2-1. Well, history is repeating itself, but this time with a vengeance thanks to the accumulated hedge "assets" which are probably leveraged at way more than 2-1 and which in toto make LTCM look like a lemonade stand.