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To: KeepItSimple who wrote (50687)	4/15/1999 8:27:00 PM
From: fedhead	Respond to of 164684

Whats going to fix this is a genuine grinding bear market like that seen in 1974 where stocks lost over 50 % of their values. That is what it is going to take to flush out all this instant trading at the click of a mouse. I bet ownership in equities declined a lot after the 1974 bear market.However I don't see that happening. Too many positives for that to happen. If LTCM had been allowed to fail we might have seen that scenario. Anindo

To: KeepItSimple who wrote (50687)	4/15/1999 8:42:00 PM
From: GST	Respond to of 164684

I agree there is growing systemic risk. All those who say 'I won't sell', will indeed sell. And it will destroy the finances of millions of families. The future lies with nets and their offspring, and these companies will be found to be worth billions of dollars in the long-term, but not tens or hundreds of billions as they are currently priced. The volume is picking up and the on-line business is raising the ante -- I don't want to count on it, but the market is sure starting to boil over.

To: KeepItSimple who wrote (50687)	4/15/1999 8:42:00 PM
From: Greater Fool	Respond to of 164684

... Finally, the bridge started twisting back and forth violently, in a whipsaw fasion, and snapped apart. ... Instant day-trading by the masses is causing our equity markets to "break" on a fundamental level ... The markets aren't resonators, they are chaotic systems. Resonators break, chaotic systems by and large don't. Any upward price movement is damped, because there is a finite amount of money available to invest in that price movement. Declines in prices also slow and come to a stop at a new level: the pessimists sell and leave, and as the price drops, new buyers are attracted. Market breakdown can occur on the buying side as well as on the selling side, which is why the stocks in this sector sometimes rise at incredible rates. Anyway, if this sector implodes, so what? A bunch of day traders lose their money and go back to their jobs. It's not like the economy suddenly stops when Yahoo goes to $5 a share. Don't go looking for a meltdown, look for a plateau followed by a long and slow decline.