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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: Think4Yourself who wrote (207793)6/22/2009 10:54:51 AM
From: John KoligmanRespond to of 306849
 
I'd bet you are right on the financials being the big issuers, one other sector I can think of is gaming, the three big guys in Vegas all issued shares. Wynn did a relatively small amount, LVS a significant amount, and MGM smashed their shareholders overnight with a large issuance that cut the stock in half. US Steel also diluted with new shares.

Regards,
John



To: Think4Yourself who wrote (207793)6/22/2009 12:15:10 PM
From: PerspectiveRespond to of 306849
 
< If my memory is correct then the author's logic seem highly suspect>

Money is money, and supply is supply. It doesn't matter what sector is issuing the shares. It's not like the buyers of all that garbage took it out of their "money to buy financials" bin. The money drained from the liquid assets of pension funds, mutual funds, and hedge funds, in a sort of forced portfolio rebalancing. It's gone, now idled on the bank balance sheets to make up for the 1% of loans that are failing every quarter...

`BC