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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (1782)	9/24/1998 3:01:00 PM
From: Sword	Read Replies (1) \| Respond to of 3339

"not substantial"??? Based on what? Past historical precedent? That is a faulty foundation for such a conclusion. We have never had a financial environment like this before. When I design a control system for a missle, I model everything I can. But sometimes exogenous inputs (external, unmodeled variables) cause the system to go unstable. A few years ago, the LA Times published a picture of a ballistic missle doing loop de loops in the sky. It wasn't supposed to work that way. But the model was wrong. Our financial model may be wrong. Derivatives margin of 95% or more is the possible wild card. We may be in for a market "singularity", far beyond our imagination. And Greenspan, along with his advisors, are probably very, very worried about the scenarios that are entering their imaginations. -Sword