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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: accountclosed who wrote (35249)	11/4/1998 3:14:00 PM
From: Mike M2	Read Replies (2) \| Respond to of 132070

Antoine, thanks for the compliment. There are many potential trouble areas: hedge funds disasters( very likely more in the future) money center bank losses mount due foreign securities and derivatives; a falling U.S. dollar and more. I expect profits to continue to deteriorate but Wall St will rationalize it away and an all too trusting public will accept their promises that things will turn around. One process that will undue the bubble seems to have started and that is the loss of momentum in the stock mkt. The easy gains of the past few years aren't so easy anymore this encouraged consumer and spend more, save less and take on debt-why worry about debt when you can make 20% in the stk mkt? ho ho ho. Furthermore, a credit bubble requires an ever increasing expansion of credit to maintain its stimulative effect. There are clearly limits to stk prices and credit expansion. The tricky part is when and where but history tells us the bigger the boom the bigger the bust. Prolonging the inevitable only results in greater imbalances for which we will pay dearly. All debts must be paid : either by the debtor resulting in less discretionary income in the future or the creditor via bankruptcy. BTW two of my favorite sites are fiendbear.com and gold-eagle.com . Mike