> Enrique Diaz-Alvarez wrote:
>
> >For the record, I think that what "Bubbles" Greenspan is doing (try to
> >slowly rein in his Bubble by choking off the real economy) is idiotic.
> >People who think they are going to make 50% a year in the market will not
> >be deterred by 8, 9 or 13% interest rates. Productive businesses will.
>
> You're right that the real economy will suffer from higher rates, but
> a speculative market can't survive them for long either.
The Bubblemeister raised another 1/4 point. He indicated that there's more where that came from. But he didn't even have the guts to mention the explosion in margin debt, which is added to all other debt explosions. So the market laughed, and took a sweet long piss on his face. He really is an idiot, and what's really important, he is starting to look like one.
As I said, 8, 9, 15% interest on home equity loans, it's all irrelevant, as long as people think that the NASDAQ will go up 30-50% a year. Only denial of access to further indebtedness will have an effect. Unless the relentless insider selling and the IPO'ing of trash companies is enough to soak up all those credit lines, this can go on indefinitely.
-- Enrique Diaz-Alvarez Office # (607) 255 5034 Electrical Engineering Home # (607) 272 4808 112 Phillips Hall Fax # (607) 255 4565 Cornell University mailto:enrique at ee.cornell.edu Ithaca, NY 14853 http://peta.ee.cornell.edu/~enrique