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To: MileHigh who wrote (11055)	12/3/1998 4:58:00 PM
From: Timothy Liu	Read Replies (1) \| Respond to of 93625

> 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. The problem is when they 'lose it all' they take others with them. They can't pay mortage so the bank has to foreclose. Sooner there are more house than buyer and real estate plunge. Bank holds bad loans and non-liquid real estate and they go under. Money center banks now has bad loan to these smaller banks and they go under. This is how Japan become what it is today. Tim

To: MileHigh who wrote (11055)	12/3/1998 5:02:00 PM
From: MulhollandDrive	Respond to of 93625

MH, I agree with you. We're on the same page regarding margin requirements. I'll tell you another thing, don't think for one minute that big brokerages that are seeing the internet traders making huge profits aren't behind this. Most of the Internets are new issues with low floats and the small trader can navigate in and out of them in a way that the big boys could never do. My hedge fund comparison was only to show what can happen in the extreme when you're playing with "other people's money". We are in a bull market, it's got the FED, demographics and liquidity fueling it. If tightening margin requirements are a "safety valve" used to help prevent a speculative bubble then I think it's a good thing. Just make it across the board, I want to see a level playing field. bp