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Non-Tech : Tulipomania Blowoff Contest: Why and When will it end? -- Ignore unavailable to you. Want to Upgrade?

To: KeepItSimple who wrote (748)	1/19/1999 6:55:00 PM
From: KeepItSimple	Read Replies (2) \| Respond to of 3543

Let me add this: Clinton is also going to unveil a new plan for retirement accounts that lets people invest 600 dollars into the account per year, and the government will "match" with 400 bucks. The account is presumably to be used for stock market investment. Now, do you think there is ANY chance in hell that greenspan would say anything tomorrow that would cause the stock market to go down? He does what clinton says, and clinton's proposals will look silly if the market tanks 500 points tomorrow. I wouldn't be surprised to see greenspan say that the market is UNDERVALUED! Clinton would look like an absolute fool if the market even appeared to be going down tomorrow. He would be laughed at, and people would call him an idiot. Greenspan has certainly been "told" that he better not do anything to embarass clinton. There is no purpose in shorting anymore. The easy money is going to be made on the upside. The bubble will continue until it consumes the entire US economy, but it wont happen until the next election. Until then, the market is ASSURED to go up. There is no other option.

To: KeepItSimple who wrote (748)	1/19/1999 9:03:00 PM
From: Jags	Respond to of 3543

You put it very well! ;-) I tend to agree with your line of argument. This may only end with a "The Emperor has no clothes" scenario. High valuations with earnings that dont support them. MSFT gave blowout earnings. More tech rally to come. A 390 billion company blowing out earnings like that! They have some 20 billions in cash reserves! What a monster! Jags

To: KeepItSimple who wrote (748)	1/20/1999 12:11:00 PM
From: Kailash	Respond to of 3543

KeepItSimple - Greenspan did say something negative about the stockmarket, even fairly strong words: Washington, Jan. 20 (Bloomberg) -- Federal Reserve Chairman Alan Greenspan suggested U.S. stock prices may be too high even though he acknowledged the U.S. economy is rolling along with few signs of the slowdown Fed forecasters expect. "Though the pace of economic expansion is widely expected to moderate as 1999 unfolds, signs of an appreciable slowdown as yet remain scant," Greenspan told the House Ways and Means Committee. The good economic times could be lulling investors into a trap, Greenspan suggested. The rebound in stock prices in the last three months leave them at levels that "would appear to envision substantially greater growth of profits than has been experienced of late," he said. This falls a little short of "irrational exuberance" but it's in the same league. Edit - another Fed member: "The Fed is concerned that there is a bubble developing," said Paul Kasriel, an economist at Northern Trust Co. in Chicago. "The Fed will not raise rates in order to prick the bubble. By the same token, it's not going to cut rate until it is sure that the economy is slowing, and not to just to 3 percent but to 2 percent." Kailash