People would be losing a "bet" if the .com's hit rock bottom. People have became very rich on paper only, that is until they sell and pull out real dollars to buy that BMW. It's all happened so fast and all most people have is some computer print out that says they are worth a lot of money. I don't even think these .com companies have had enough time to really ramp up there business'; hence if they fail, they would simply evaporate with no huge hit to the economy. All the .com mania feels like a large bet at the blackjack table in Vegas...and swoosh, your losing bet goes down the tube... -L.

-- Ludy (windsng@123.com), January 31, 2000

Answers

It may be "funny money" ,but it secures a lot of debt that bought those Beemers, houses and leverage!

-- James (brkthru@cableone.net), January 31, 2000.

If you are implying that if the stock market tanks it won't matter because these profits were not real, think again.
If these stocks were bought on margin, the margin call will be very real. And from where will the money be coming?
If other forms of purchasing leverage are employed, the effect will be multiplied. A visit to the proctologist will be a minor discomfort compared to the pain that is coming.
I guess my point is that you have assumed that these "investors" have only put money in the market that is truly theirs and that they can afford to lose. In truth, some people borrow on credit cards or take 125% mortgages on their houses to play the market. There will be a significant effect when this comes down.

-- Chris Tisone (c_tisone@hotmail.com), January 31, 2000.

Thanks Chris, words are not my stock in trade.

-- James (brkthru@cableone.net), January 31, 2000.

There is a lot of HARD money in the markets. Think IRA's,401k,etc. retirement income.....

-- Tommy Rogers (Been there@Just a Thought.com), January 31, 2000.

Plus the psychological effect on dot-com employees when their stock options become just some much tissue. I read an article in the San Jose Mercury News about employees needing serious counseling for depression when the company's stock drops. Those stock options are often a primary reason why so many of those folks work 16-hour days for years. Imagine seeing your dreams go up in smoke when the stock implodes...

Anyone been following the latest storyline in Doonesbury, where the stock in Mike's dot-com collapses? "A free-fall does have a certain mesmerizing quality, doesn't it?" Interesting how every timely this has been, especially considering that Trudeau creates those strips weeks ahead of time...

-- DeeEmBee (macbeth1@pacbell.net), January 31, 2000.

Trudeau's perch certainly has a good view of things.

-- James (brkthru@cableone.net), January 31, 2000.

A number of the stock posts on this board, including these, reflect a rather elementary understanding of stocks. From what I've read here, most of you SHOULD be doing the ol' mattress thing. Or is that what yer doin' now, and posting drivel about the market makes you feel you are all making the right choices?

-- I'mSo (lame@prepped.com), January 31, 2000.

Hey ImSo,

Would you take a stab at a question over at Link?

I will admit to not knowing everything about the stock market. This is for curiosity only, all my money goes to my farm.

-- Possible Impact (posim@hotmail.com), January 31, 2000.