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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?


To: MulhollandDrive who wrote (11048)12/3/1998 4:50:00 PM
From: Timothy Liu  Read Replies (1) | Respond to of 93625
 
I think raising margin requirement is positive move. If nothing else, it help limit the downside of stock market. Americans are highly leveraged already with mortgage, car payment et.

I don't think all the people in internet stocks know what they are doing. The margin requirement will damping the speculation.

Tim



To: MulhollandDrive who wrote (11048)12/3/1998 4:53:00 PM
From: MileHigh  Read Replies (2) | Respond to of 93625
 
*OT*

bp,

>>>Borrowing money isn't a right, it's a privilege, and the lender has every right to impose whatever "collateral" they wish before making a loan.

Agreed, but why categorize an internet equity as being different than an other and subject it to different rules? Because they are volatile? Come on....

>>>It was the hedge funds and their unregulated borrowing that contributed heavily to the market break in Sept/Aug.

Correct, "unregulated" is the operative word here. Internet stocks were regulated prior to today- 50% margin and 30-35% margin requirement call....Long Term Capital was excessive, something like 20:1- this is not even close to comparing apples to apples...

>>>I don't agree with tightening requirements on a "sector" though. What's next clamping down on the bio-techs if they become the next hot sector? If they're going to do it, do it across the board.

I am glad we agree on this. Because what if these "Internet" speculators were losing it all- should we bail them out? No. If they make a killing speculating, good for them. If they lose it all, that was their decision to take on all the risk to begin with.

Regards,

MH

PS- RMBS could be considered speculative and frothy.