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If everyone bought a stock at 100 someone had to
sell it at 100.00, the fact that no one else is foolish enough to buy it is not
relevant to the transfer of wealth. If someone had a $300 M margin call it
is because he purchased $300 M worth of stock from someone, he just
did it with borrowed money. The Japanese purchased their real-estate from
someone.
There is ALWAYS a transfer of wealth in every
transaction (even theft).
Good luck and good trading,
Ray Raffurty
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=bruce.larson@xxxxxxxxxxxxx
href="mailto:bruce.larson@xxxxxxxxxxxxx";>bondo92677
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Thursday, August 01, 2002 12:16
PM
Subject: Re: [RT] bear market stats
Yup, just ask Bernie Ebbers. $300million margin call
wasn't it? The Japanese had limitless real estate wealth in the late
80s but could not sell because of high tax rates. They leveraged
their assumed wealth until all the dominoes fell.Wealth does evaporate
without transfer. A stock does not have to change hands to go
lower. No bids = lower price. Everyone owns it at $100.
Next morning its at $10. The only winners are the corp issuer which in the
case of tech burned up the cash pursuing profitless dreams and the fed
gov't which taxes you on your worthless unexercised stock options.
--- In realtraders@xxxx, "Ray Raffurty"
<r.raffurty@xxxx> wrote:> Wrong, wrong, wrong, wrong, wrong,
wrong, wrong, wrong, wrong, wrong, wrong, wrong, wrong, wrong, wrong,
wrong, wrong, wrong, wrong, wrong, wrong, wrong, wrong, wrong,
wrong. If you believe this, STOP INVESTING/TRADING NOW. You
are in great danger.> > You are only "wealthy" on paper.
You have NO wealth until you take profits. A bank will gladly loan
you money on 50% of your paper wealth, then sell 100% of the position (or
whatever % is required to make THEM nor you whole if the stock drops below
40%) at any cost to you.> > Good luck (you'll need it) and
good trading.> > Ray Raffurty> >
> ----- Original Message ----- > From:
Steve Walker > To: realtraders@xxxx >
Sent: Thursday, August 01, 2002 11:34 AM> Subject: Re: [RT]
bear market stats> > > Wealth does disappear
to the extent the market moves higher after the>
purchase and then retreats.> > >>>
r.raffurty@xxxx 08/01/02 10:30AM >>>> Recently the
Democrats have been harping on the 7.7 trillion loss
in> market cap. This shows a total lack of
understanding on how markets> work.>
> If a person is stupid enough to by stock in Dr. Coop.com
(fill in your> favorite dead stock) at $80 they deserve
to drive a Dodge Omni with> 100,000 miles (they
probably paid 2995.00 for that too).> > The point is
that the 7.7 trillion dollars did not disappear, it
just> changed hands. The uninformed and greedy
sucker ALWAYS gets clipped. > CNBC just ran a report
about a couple that lost 75% of their account in>
JDSU. Their kid wants to go to Duke University, so they are
moving,> riding the subway, etc. He was man
enough to admit it was his fault,> but fell short of
admitting it was GREED, pure and simple, that made him>
buy an over priced stock and IGNORANCE that prevented him
from> protecting his position with options or even
stops. The person(s) who> sold him JDSU at the
top are driving the Porsche because they recognized>
that the market could not go parabolic for long.> >
If there is a case of fraud, a stock holder would have a
legitimate> complaint and new laws may address some of
this by returning ill gotten> grains to investors (if
the feds can find the assets). However in most>
cases this is not applicable. The vast majority of losses are caused
by> GREED coupled with IGNORANCE. Now the great
masses are crying to their> congress man "They never
told me I could lose".> > Good luck and good
trading,> > Ray Raffurty>
> ----- Original Message -----
> From: SLAWEKP@xxxx
> To: REALTRADERS@xxxx
> Sent: Thursday, August 01, 2002 6:03
AM> Subject: [RT] bear market stats>
> > >
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