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


To: Skeeter Bug who wrote (38378)12/7/1998 11:23:00 AM
From: Knighty Tin  Read Replies (1) | Respond to of 132070
 
Skeets, The point is, your $1.1 trillion sale only has impact if the $8 trillion base stands pat. If the $1.1 trillon sell order is met by $8 trillion to buy, the market will not go down. (I can hear all my brokers right now. "We can handle that order." <G>)

Both examples are absurd, of course, but new inflows at that level only matter if the base allows it to matter. And, as the base grows, it will take more and more new inflows to impact it at all. This $1.1 trillion, only amounts to 14% + of the existing base in 1991 and that is only 2.4% in new inflow a year. That sort of inflow simply cannot move the base unless the base lets it happen.

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