"Joe Parsons" wrote in message
...
On Mon, 15 Sep 2003 18:45:38 GMT, "Calif Bill"

wrote:

Other than me using the wrong word, meant "requirments". I was correct.
I
admit the rate is not set by the Federal Reserve system, but the
requirments
are.

Then I'm somewhat puzzled by what you said.

On Sat, 13 Sep 2003 05:14:59 GMT, in rec.boats you wrote:

The election debacle upset the market greatly. Where AL tried to get
the
rules changed after election and all the law suits, put a huge, make
that a
HUGE, amount of uncertainty and turmoil in to the markets. Accelerated
the
slide that was already starting. Big grease on the skids. No one in
the
elected government controls Greenspan. Which may be somewhat bad for
us. A
lot of the problems were caused by his policies!!! When the market
overheated shades of 1928 and an IPO with a Website is selling for $300
million, he should have jumped on the margin rates. Not say publicly
the
market is overheated (or words to that effect).

You say that the rate on margin accounts is set by the Federal Reserve
System.
How do they do this?

And your statement about the "election debacle" (and I think you may have
unintentionally used the perfect word for what happened) "accelerated the
slide"
in the market--how do you come to that conclusion?

And with respect to "Greenspan's policies" relating to the overheated
market
(actually, his term was "irrational exuberance") what powers and/or
authority
does he have that might have avoided the problems you say his policies
created?

Joe Parsons


Bill

"Joe Parsons" wrote in message
news
On Sat, 13 Sep 2003 05:14:59 GMT, "Calif Bill"

wrote:

(why, Oh WHY do I do this...?)

No one in the
elected government controls Greenspan. Which may be somewhat bad for
us.
A
lot of the problems were caused by his policies!!! When the market
overheated shades of 1928 and an IPO with a Website is selling for
$300
million, he should have jumped on the margin rates. Not say publicly
the
market is overheated (or words to that effect).

May I suggest you learn at least some smattering of how the Federal
Reserve
operates? And what power(s) the Chairman (currently Alan Greenspan)
has?

Hint: Interest rates on margin accounts ain't on the list.

Second suggestion (oh, no...it's free--but thanks for offering): Look
at
the
performance of the major indexes (the Dow would be as good as any) and
overlay
its performance with events of the time.

For instance: A couple of the high-water marks set by the Dow Jones
Industrial
Average were set on January 14, 2000 (the Index hit 11,722). What was
going on
then? March, 2000: Largest dollar gain in history (up 4.93%). How
about
the
date the DJIA first dipped below the 10,000 benchmark? March 14, 2001.

Do these figures relate in any way to the uncertainties and
maneuverings
of the
election? If so, how?

Please be sure to show your work.

Joe Parsons




The Federal Reserve has the ability to set margin requirements under it's
rules. How much margin is required. Forget which rules, but do a search on
Margin Requirements and Federal Reserve. He should have raised the margin
to 50 or even 90% of the purchase. Would have stopped the Day Trader /
gambler operations. I think the Requirements were 10%, which says you have
to put up 10% of the purchase price. His term was "irrational exuberance"
but was meaning an overheated / near out of control market.
The AGore election shenanigans meant extreme uncertainty. Who was going to
be President and set the policies for the next 4 years was at stake. This
meant real turmoil in the markets. Markets that were already falling. I
worked for a semiconductor company at the time and we were seeing lots of
order cancellations before the election from the Cisco's, etc. So you have
extreme uncertainty and falling orders, Stage for a real freefall, before
someone can get in and set policies. And the greasing the skids (ways)
comment was exactly what I meant.
Bill