Today's Stock Market Swoon

Max B. Sawicky sawicky at epinet.org
Fri Apr 14 19:54:11 PDT 2000


The only things you can buy with paper profits are other companies (Time Warner, etc.). These folks wanted to spend their wealth-effect money on houses, cars, fast living, and did spend a lot of it, incurring actual capital gains. This week the tax bill arrived, so they had to cash in more shares, at the same time everybody else did. Ken Lawrence

It's possible, but you'd have to ask why it didn't happen last year or the year before under similar conditions.

mbs



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