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 : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (7517)	1/11/2007 10:04:11 PM
From: robert b furman	Respond to of 33421

Hi John, Often we get concerned about debt levels because the numbers get so big. Now I worry about a margin level because it gets as big as what it used to be when I was 20 years younger. Of course since then my account has grown by a factor of 6-8 times. Sure I worry about the debt level - but it is not even as critical as what it was back when my account was more leveraged. I think this very same relationship exists with the level of equity we Americans have in our homes. Sure mortgage debt is higher - inflation assures this. But equity for most long term home owners also is greater. In the trough of historically low mortgage rates, I paid off my house.Not because it was smart financially- because I wanted the security and peace of mind of having no mortgage. I think there are many who walk this conservative line - more than most give credit for. There are also those who have no down, huge mortgages and they better never get fired or layed off. I think the wealth of the typical American is generally much higher than most give credit to. We are after all the most prosperous country in the world. Compare the wealth creation of Apple stockholders vs the wealth created by all of the commodity chip manufacturers in Taiwan,China,Japan,who make the components. Apple has the real margins, and the equity capital created by the success of the IPOD phenom is where the real money is = stockholder equity wherever they happen top live. God Bless America. Bob