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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: James Yu who wrote (25390)	10/30/1997 12:55:00 PM
From: Petz	Read Replies (1) \| Respond to of 1579906

James, re: <Where the money go?> IMO, I'd be careful here. Wealth can disappear in the stock market when the sellers are more anxious than the buyers. The markets are not a zero sum game where real money comes out of stocks and goes into bonds or cash. Its possible for all of the wealth in all of the markets to go down at the same time! There were just as many shares bought as sold in the last week. If you paid $10,000 for a stock last week, someone else received this money. The cash levels of individual investors, pension funds, institutions and market makers all changed because of the stock trading, but the total cash balances of all these did not change, neglecting the effects of share buybacks and IPO's. From what Greenspan said, we will either have a slowdown to something less than 2% growth or, if the Asian crisis doesn't cause this effect, we will have an interest rate hike when wage pressures become stronger than productivity gains. Petz