From nathan.newman at yale.edu Thu Nov 4 14:00:59 1999
If there is a scenario for a 1929-style meltdown, it is
based on the stock option problem. One can imagine a
scenario where the markets suddenly "notice" the problem ...
Like the scenario where they 'suddenly "notice"' the general-purpose over-valued problem? Or they suddenly notice that these companies have P/E values that are out of whack with respect to history? Or they suddenly notice that Amazon is selling convertible bonds in order to pay people to "buy" their books?
No, this doomsday scenario was sidestepped when the GAAP dudes said that the current treatment of options is better than nothing.
/jordan