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

To: Knighty Tin who wrote (35559)	11/8/1998 12:59:00 PM
From: Cynic 2005	Respond to of 132070

<<5. The system is obviously solid when it requires stupidity on the part of one whole hedge fund to nearly make the entire house of cards collapse. >> Mike, another classic!

To: Knighty Tin who wrote (35559)	11/8/1998 1:11:00 PM
From: accountclosed	Read Replies (1) \| Respond to of 132070

MB. This isn't really a new or creative post, But.. Remember the last FOMC. The betting was 1/4 or 1/2. Got 1/4. The market threw a fit. Dow down 19%. Arguments whether it was a bear market or not. Speeches about the worst economic disaster in 50 years. Then the second 1/4 came one afternoon. Parabolic recovery. Essentially the market threw a multi-trillion dollar tantrum over the second 1/4 and held its breath until it got it. So it got it. Now it is ok. Back to normal. Discussions of potential buying panics on the way. ...INSANITY

To: Knighty Tin who wrote (35559)	11/8/1998 1:37:00 PM
From: Richard Nehrboss	Read Replies (2) \| Respond to of 132070

Mike, Thanks for your insight... The arguments are the same only the game has changed. I would query the supply and demand side of the securities. We do have large inflows of capital into the market, both from overseas and from the much larger US population base in the 30-50 year old range. This greater demand must cause an increase in price if supply is not proportional increasing, right? I used to collect stamps (back in my boring days (g)), as it caught on, prices sure went up. Is the supply of securities rising at a greater, or lesser rate than the demand? Do we have a measurement for this? We got our first snow this morning. When did you live in St Paul? Since we're below freezing here now, I assume my old lovely Houston is in the 70's with the perfect evenings of high 60's? Richard

To: Knighty Tin who wrote (35559)	11/8/1998 7:20:00 PM
From: Ramsey Su	Read Replies (2) \| Respond to of 132070

MB or other market historians, 1. The Baby Boom generation is investing for retirement and they have secure, well-paying jobs with a lot of money to waste and the level of ignorance required to make stupid gambles at any price. Whoops, that last part is the bear in me editorializing. <G> Liquidity has to be the driving force of this exuberant market. Are there similar times in the past when there is so much money pouring in? If yes, what happened in the end? Ramsey