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Strategies & Market Trends : Bear! -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (84)	5/21/1998 12:38:00 AM
From: Mike 2.0	Respond to of 271

Agree. So who's gonna pony up for the whole article? :-)

To: James Clarke who wrote (84)	5/21/1998 1:03:00 AM
From: Michael Burry	Read Replies (1) \| Respond to of 271

Still doesn't make sense to me. If I could loan out money at 8% above inflation and had access to sophisticated hedging instruments, yeah I'd take the other side of the trade. The market's high, the long term return on stocks is 10%, and So I have to give you back 6% if the market goes up 10%/year. With any decent hedging at all, I'd still make at least 2-3% on free OPM, which is what I'd expect as a bank. No riskier than a used car loan or a small business loan, IMO. And I still wouldn't want to take the investor's side, either. 60% of the upside and none of the downside to me is a MM return if the stock market averages 10%/year over the next 10 years. I'm sure the minimum investment is high, and you'd have to take a huge penalty if you wanted out early, if they'd even let you out. Mike

To: James Clarke who wrote (84)	5/21/1998 1:25:00 AM
From: jbe	Respond to of 271

In defense of Glassman. Glassman isn't/wasn't "selling" anything, and he isn't/wasn't "in this" to make money. He is simply a financial columnist (and former editor of the Atlantic Monthly, I believe)who writes for the Washington Post every Sunday about various aspects/methods of investing. He wasn't pushing this whaddayacallit (insured certificates of deposit, or whatever); he was just describing it. Poor ole Glassman is getting all these slings and arrows because I was too lazy to track his article(s) down myself. I promise to do so, and to get back to you with what I find! Apologetically, jbe