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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (39715)	4/25/1999 11:02:00 AM
From: Lee Lichterman III	Respond to of 94695

Looks like you read the same strings I do. Here is another from where I saw the one you posted. Just Think Good Thoughts To Keep E-Traders Aloft << Even so, ETrade's margin balances were $1.7 billion, while its total stockholders' equity was $710 million. Ameritrade had $880 million in margin debt, compared to $204 million in equity. That wouldn't be particularly risky if the margin debt was financing positions in Exxon or Ford or DuPont, but ETrade is financing positions in Ameritrade and Ameritrade is financing positions in E*Trade. Both are financing positions in Amazon.com. "That's what will blow up this business," says a short seller in my neighborhood. "When the bubble is pricked, and the customers are still out of money three days later, then the online brokers will own shares in each other and in the other Internet stocks. Then who will buy their stock? That's when the equity goes away." >> nypostonline.com Good Luck, Lee