Money creation

[Max Sawicky]

Yesterday Floyd Noriss in NYT and Bartlett today in WSJ show that buying on
margin hardly accounts for much of the market at all (perhaps 9% in the
late 1920s, to less than 2% today?)--the reasons for the bubble must be
sought elsewhere. Evidence is that bubbles tend to encourage margin buying,
>>>>>>>>>

Quite right.  We heard a talk by Randy Dodd who
presented data to that question.  Unfortunately,
this means that if you think the stock market
has to be cooled down, doodling w/margin
rules is not the way.  One suspects the
alternatives would be less appealing.

The only mystery is why Alan G has not resorted
to this argument.

mbs