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To: Fangorn who wrote (32624)3/6/1998 2:18:00 PM
From: Irish King  Read Replies (1) | Respond to of 176387
 
Steve, yes, margin requirements are different now, but today's market action is indicative of greed overuling common sense...after serious warnings from AMD, INTC and MOT the market chose to spin the jobs report into a positive whereas earlier analysts had predicted such a report would cause a correction...this Bull market has taken on a life of its own and it's too surreal...the merry go round will stop soon...it has to, it's physics...there will be a big correction soon...consumers want cheaper PCs...revenues are going to be flat for the rest of the year...March has come in like a lion, but will go out like a lamb...



To: Fangorn who wrote (32624)3/6/1998 3:40:00 PM
From: Jim Patterson  Read Replies (2) | Respond to of 176387
 
RE:...Things are a lot different
In 1929 margin requirements were as low as 10% which had as much to do with the crash as anything.

You make a valid point,
However, I am thinking about people. People don't change over time. Fear and greed are exactly the same today as 70 years ago.

Jim



To: Fangorn who wrote (32624)3/6/1998 6:15:00 PM
From: Jim Patterson  Respond to of 176387
 
Re: Differences from 1929.

One more thing that is different other than 10% margin requirement, the derivatives market. In 1929, there were no futures, no option, no portfolio insurance, and no option on futures. Have you checked the margin requirement on S&P's lately?

IMO once this is factored in, there may not be as much difference as you think.

Jim