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.

Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Michael Collings who wrote (1852)	5/7/1998 5:47:00 PM
From: yard_man	Read Replies (1) \| Respond to of 86076

I guess it depends on the difference between short and long. I guess I just assumed there would be a bias long. You don't think so.

To: Michael Collings who wrote (1852)	5/7/1998 9:07:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 86076

When did raising margin rates cause the market to rise? I don't question the statement, but would appreciate specific references, especially since it has been a great many years since margin rates were changed one way or the other. Perhaps you mean what happened in the 1930s when the Fed first had power to raise rates. At that point the markets had fallen 90% and buying stock on margin was considered as sensible as bungee jumping with rotten rubber.

To: Michael Collings who wrote (1852)	5/8/1998 12:58:00 AM
From: S. maltophilia	Read Replies (1) \| Respond to of 86076

I think that only the initial, and not the maintenance percentages would be raised. That would narrow the effect to new positions. Probably more long than short positions are being initiated on margin, so that would be slowing the bullish speculators more. The last time the fed raised requirements is beyond my investing memory, though I do recall reading that they adjusted them often and went as high as 100%. This slowed down but did not reverse the 60's bull market. Anyone know of a site with historical requirements and a chart of the 60's?