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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sandra who wrote (8240)	8/31/1998 6:25:00 PM
From: James Wright	Read Replies (3) \| Respond to of 29382

Sandra -- Here's an interesting observation -- I've been working to help put up a new private, Christian high school in my county, and last Friday morning I met with the VP of a large regional bank to discuss financing and related issues. During our meeting, I commented on the drop in the market and the VP told me his investment department had begun that morning calling in margin accounts on a large number of investors who had invested through the bank. This convinced me that the bear market had a lot more to go before it reaches a bottom -- investors will be forced to sell to cover their margin accounts, which will feed on itself to drive the market even lower and thus force even more margin calls. CNBC finally started mentioning today that this was beginning to happen. Now that banks and brokerage firms are forcing investors to cover their margin losses, I think we will see a lot more downside to this market as margin call forces selling, which drives down prices and forces more margin calls. What a mess! -- Jim