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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?


To: Roger A. Babb who wrote (15719)11/23/1998 10:42:00 PM
From: toddy  Read Replies (1) | Respond to of 18691
 
just when you thought the likes of AMZN are outrageous....out pop EBAY...is this a cyber flea market or junk yard?

go to www.ebay.com and do a search for ' marijuana '.........there is an offer of 2 pounds for $300......lol.....
i am not making this up...go look...

this is unbelievable....hehe



To: Roger A. Babb who wrote (15719)11/24/1998 5:59:00 PM
From: RockyBalboa  Read Replies (1) | Respond to of 18691
 
Roger, recently you mentioned:

Raising Margin Requirements:

Here is another one who seems to know something.
Message 6552063

But - in 1929 just before that ancient tulipmania exploded, the broker loan rates have been increased by a higher percentage ... but the result was less than favorable, due to the spillovers.

A more impressive idea was to employ "stock loan brackets", a form of overdraft possibility provided by the stock clearing firms.
If the bracket was, for example 20% to 50% of the float, then the volatility of the stock prices can be dampened. And providing shares by unregulated shorting thru MMs can be kept in bands.

As sort of incentive it was possible to charge a small interest of the bracket and pass a part of the revenue to the company which stocks are loaned - or in some pooled form.
The loans can be staged on a time frame eg 50% of the loan for a weeks duration, 30% for a months and 20% for 3 months or the like.
That could be done especially for ipo's until additional shares are released and sold.

What do you think?

C.